I ran across an ad for pasture lease and full care, up to 300 head, for 1/2 calf share. So that got me thinking and questions came from that.
1) Is that a typical deal (good/bad/average). (Let's assume that the people know what they are doing and we get good legal documents done)
OK the real question is this. Why won't this work (or will it)? It seems unlikely to be this easy-hence the question.
2) I buy 40 head (assume the calves are 50/50). Next year I keep 20 heifers and they get their 20. End of year 1 I have 60.
End of year 2 I have 90. End of year 3, I have 135. End of year 4 I have 200. End of year 5 I replace the 1/2 the mommas with calves still have 200.
I don't need any money out of the cattle operation (for 5 years +) and can payoff or cash the 100k+ to get started. Let's grow it 1 more year and keep 300 head going. At that point I sell 150 each year
Landowner is making good money 100k+, I'm making good money. Even if beef cuts in half--still pretty good yield on original 100k investment.
Thanks for the input.
1) Is that a typical deal (good/bad/average). (Let's assume that the people know what they are doing and we get good legal documents done)
OK the real question is this. Why won't this work (or will it)? It seems unlikely to be this easy-hence the question.
2) I buy 40 head (assume the calves are 50/50). Next year I keep 20 heifers and they get their 20. End of year 1 I have 60.
End of year 2 I have 90. End of year 3, I have 135. End of year 4 I have 200. End of year 5 I replace the 1/2 the mommas with calves still have 200.
I don't need any money out of the cattle operation (for 5 years +) and can payoff or cash the 100k+ to get started. Let's grow it 1 more year and keep 300 head going. At that point I sell 150 each year
Landowner is making good money 100k+, I'm making good money. Even if beef cuts in half--still pretty good yield on original 100k investment.
Thanks for the input.