Loan or grow?

[Jrebyank]

I have been fooling with cattle for the most of my life. My family shut down our operation several years back and the last year or so I've been getting back to it. I have hustled up 11 Moma's on 25 acres with no loans or assistance. Here's my question. I have bought(financed), cleared and fenced 60 acres recently. Would it be better to get a loan to buy cattle. It seems like it is taking for ever to raise heifers from what I have? If so what are the best options out there?

 

[5S Cattle]

How many more cows are you wanting to get?

 

[sim.-ang.king]

Put feeders or old boney bred cows on the 60 acres. Be a lot cheaper investment, with a some what quicker turn around.

 

[angus9259]

Would it be better to get a loan to buy cattle. It seems like it is taking for ever to raise heifers from what I have? If so what are the best options out there?

Unless you're ok losing your capital, a loan on something as risky as cattle is a bad deal. Be patient. Never seen patience be a bad investment.

 

[Farm Fence Solutions]

Pick up a part time job and roll the paycheck into a pair at the sale every other week.

 

[bird dog]

I agree with the others. Never borrow money for cows unless you have many years of experience and know what your doing.

I would buy some old cheap bred cows to get your feet wet and generate some cash flow. Sometimes you get lucky and they throw a heifer you might want to keep.

 

[ALACOWMAN]

I use to be bad at borrowing on a 6 mo. Note...I'd pay it off with money from saving,cattle,or income tax..I have just payed the fn charges and roll it over again in a pinch...not recommending you do it just what I've done in the past....

 

[wacocowboy]

Why not buy a few 5 weight heifers and raise them up. As others have suggested buy old bred cows maybe you will get heifers to raise. If she is old odds are she was a good cow might pass on those genetics to the daughter.

 

[Silver]

Sometimes leasing cattle can be a good option.

 

[Caustic Burno]

Why not buy a few 5 weight heifers and raise them up. As others have suggested buy old bred cows maybe you will get heifers to raise. If she is old odds are she was a good cow might pass on those genetics to the daughter.

SS heavies are cheap here right now.

 

[5S Cattle]

Why not buy a few 5 weight heifers and raise them up. As others have suggested buy old bred cows maybe you will get heifers to raise. If she is old odds are she was a good cow might pass on those genetics to the daughter.

SS heavies are cheap here right now.

$650 here last time I sat at the sale two weeks ago. 2 were 7 months bred. Was pissed I left my checkbook at the house

 

[Caustic Burno]

Why not buy a few 5 weight heifers and raise them up. As others have suggested buy old bred cows maybe you will get heifers to raise. If she is old odds are she was a good cow might pass on those genetics to the daughter.

SS heavies are cheap here right now.

$650 here last time I sat at the sale two weeks ago. 2 were 7 months bred. Was be nice I left my checkbook at the house

Dang good cheap way to get started.
The girls know how to work and most are good for a few more calves.
Even if she isn't you bought her and the calf for kill cow prices.

 

[Coosh71]

I'm not trying to be anyone's "finance guy", but we started out years ago with 9 old cheap bony cows and a rented bull on 7 sections. We could have went to the local land bank and filled up every pasture. We decided to do it the ole fashion way and I'm glad we did. We didn't and haven't borrowed a dime for anything. We have bought and sold cattle for years and reinvest every bit that we can back into our place and our animals. It's slow at first but once you build up replacements and buy more bred cows it speeds up quick. Took us about 7-8 years to get about where we wanted on stocking numbers. I sleep well at night for sure. Oh and when we goto the sale we see guys selling their calves and their banker is there with them to get "his" check. I'm prolly different than most but I don't like owing anyone if I can help it. Good luck.

 

[ddd75]

well.. you can wait 8.. 10.. 15 years to build up your herd.. or if you are like me.. don't see that ever penciling out.. then just get the loan, go buy your cattle, and then make your payment. most cattle loans for brood cows are 7 years.

50k loan for around 25 hd. will run around 8850/yr. with 36 calves to take in you should be able to easily make your payment.

 

[ddd75]

if you were to buy older cows, I'd look for a ranch making room for younger ones.

That'd be the best bang for your buck.

 

[Brute 23]

What I am doing on my few cows is cash flowing the day to day expenses out of my pocket so when I sell calves I will use that lump some to buy a couple more.

No risk and it's easy to make happen.

 

[ky colonel]

well.. you can wait 8.. 10.. 15 years to build up your herd.. or if you are like me.. don't see that ever penciling out.. then just get the loan, go buy your cattle, and then make your payment. most cattle loans for brood cows are 7 years.

50k loan for around 25 hd. will run around 8850/yr. with 36 calves to take in you should be able to easily make your payment.

how hard is it to get the loan? did you get a loan for more than covered the cows?

 

[Brute 23]

Remember we are at record highs right now. If you choose to go the loan rout make sure you can pay it with $.8-.9 calves. We are due.

 

[ddd75]

well.. you can wait 8.. 10.. 15 years to build up your herd.. or if you are like me.. don't see that ever penciling out.. then just get the loan, go buy your cattle, and then make your payment. most cattle loans for brood cows are 7 years.

50k loan for around 25 hd. will run around 8850/yr. with 36 calves to take in you should be able to easily make your payment.

how hard is it to get the loan? did you get a loan for more than covered the cows?

whoops. my number is a little high for 25 hd.. i'd say a loan for 40k would do it. Loan was easy for me, I put my tractor (25k) up for collateral for a 50k loan, plus the cattle I bought with it. They'd probably want to see some more background info / previous cattle history / etc if you didn't have any collateral. I buy everything with 0 down and just use collateral. houses, cattle, equipment, etc.. whatever keeps the most money in my pocket to buy more with. Try to get established with a bank and soon you'll just have to say "I need this much"

 

[Dave]

Loans are fine. It is certainly easier to grow utilizing borrowed money. Just be careful not to get in too deep. I would never finance more than 50% in cattle. You can be pretty well sure that the market won't fall that much. If it does you are only losing your money and not the banks. Losing your money stings. Losing the banks money will really hurt. And hurt for a long time.