Is it worth it?

[#LHB#]

We have 65 head of commercial angus and I have the chance to rent a 40 acre pasture from a man going out of buisness. I have been thinking about getting started in registered angus cattle as a seed/stock producer, so my question to you is is it worth it? At 26 years old is it worth the big investment to get started or just stay a cow/calf producer. I dont no much about it and any help would be nice. Thanks.

 

[angus9259]

My experience suggests (and some economic theories also support) that the fewer number of anything you do, the more it's necessary to specialize in order to make money. 65 head is a relatively small operation so that would lend itself to something more specialized - seedstock being one option, club calves, freezer beef, organic farming, etc . . . .

1. Do you have the money or will you have to borrow?
2. "Rent" is a tricky somewhat impermanent word for such an investment
3. Do you necessarily have to go "whole hog"? Buy a couple and get started?
4. Name/reputation/word of mouth all takes time to develop - do you have that time?
4a. Working the cattle, research, records, ai, associations, customers all take time - do you have that kind of time?
5. Can you find a trustworthy mentor? I've been taken to the cleaners at sales and by individuals more times that I care to think.

In short, I would suggest specializing definitely has the potential for being worth it, but it's fraught with pitfalls.

 

[Isomade]

Why not just lease the land and expand on your commercial operation? I personally want nothing to do with seed stock.

 

[#LHB#]

If I do it I will start small with the pasture that Im fixin to rent and work my way up from there. Either that or I will just expand my commercial operation, I dont no much about the seed stock part of it but have alwayse thought of getting in it.

 

[jedstivers]

I'd stay with what you are doing, buy a few more commercials and go on. To be small in the seed stock you have to be really really good. I just don't see small working for everyone. A few are successful but more are not.

 

[Caustic Burno]

I'd stay with what you are doing, buy a few more commercials and go on. To be small in the seed stock you have to be really really good. I just don't see small working for everyone. A few are successful but more are not.

Wise man's advice here.
Most seedstock producers don't last ten years.
It's all about name and satisfied customers and you have to have name to get customers.
The first thing you need to realize that 80% of those registered calves are salebarn bound, as you should be only retaining the best of the best for private sale.

 

[cow pollinater]

I LOVE messing with cattle genetics and finding that perfect bull for every cow but unless you're like me and love to tinker with it... It's not worth it. If you pay yourself a wage for your time spent making breeding decisions and dealing with breed associations and weighing calves and showing cattle to prospective buyers, you're better off to cut them all and sell them by the pound as a weaned calf without to much time on your part involved.
If you REALLY love it, prepare to be frustrated... There's no such thing as a perfect cow.

 

[#LHB#]

Thank you for you help and advice.

 

[Aaron]

I'd stay with what you are doing, buy a few more commercials and go on. To be small in the seed stock you have to be really really good. I just don't see small working for everyone. A few are successful but more are not.

Wise man's advice here.
Most seedstock producers don't last ten years.
It's all about name and satisfied customers and you have to have name to get customers.
The first thing you need to realize that 80% of those registered calves are salebarn bound, as you should be only retaining the best of the best for private sale.

That IS a wise man's advice. Who'd you get it from? :lol2:

Being the same age as the poster and being in both the purebred and commercial sides, I will say it takes 15-20 years to make a name for yourself in the purebred biz if starting out with nothing. Less time if you have an existing name to ride off of or money to do outlandish deals.

Rent/buy the land and focus on the commercial cows. They will bring in more money over the long term.

 

[xxbrand]

It takes a lot of time,effort and money to get started and be successful as a seed stock producer. It takes time to build up customers and get repeat customers. It takes effort to breed and show your cattle to potential customers. Unless you want a big change from what your operation is now, I would say-purchase more landand stay the course with commercial cattle.

 

[HomePlaceAngus]

All the above is good advice. BUT!!!!!. If you are willing to put in the years that it take to build the fondation for your herd, have good mentors and like to tinker with genetics. Seedstock can be extreamly rewarding. Like what you are doing niow, yes, there are pitfalls, such as all of a suden you find out that 1/2 your herd are carriers of a new found gentic defect. Of course in your case, I would think you would have a built in safty net. I would just move those animals over to the commercial side. In the seedstock business there is a lot of reward working with AI, ET, and donor cows. If you are not willing to put in several years building a base and lurning a totally new business, then I would just expand my commercial operation.