Looking to get into cattle ranching

[easternkanfarmkid]

I'm a high school age student living in eastern Kansas. I live on a small pig and chicken farm used to supplement our food costs. My grandpa own a 350 acre beef ranch. He is retired from the construction business and he does this now to supplement his social security, pension, 401k, etc. He is in his early 70's and I' m looking at either joining the IBEW or taking over the ranch. He has many pastures, 2 tractors, a bailer, stock trailer, a barn full of tools and such and other useful equipment that I have access to. He has about 40 head of cattle, mostly cows or heifers and a bull or two. I'm planning on eventually expanding the farm and start raising pigs, meat and laying hens, and rabbits. I want to market them as organic and sell them to the yuppies in the uppity county next door. I'm just wondering if this sounds like a sound, lucrative buisness plan. Any and all replies are appreciated. Also whats the average salary of a rancher with 40 head? I've gotten varying answers all over.

 

[cowboy43]

Too many unknowns to answer the question. Is he giving this to you or selling to you. By your description he could have anywhere from $100,000 to $200,000 of inventory. If he is using for extra income why would he give it away, my suggestion would be to talk to him and work out a business agreement, if you buy from him and he finances the project do not expect any profit , the money will all go into operation and paying off the note. :cboy:

 

[cowboy43]

Too many unknowns to answer the question. Is he giving this to you or selling to you. By your description he could have anywhere from $100,000 to $200,000 of inventory. If he is using for extra income why would he give it away, my suggestion would be to talk to him and work out a business agreement, if you buy from him and he finances the project do not expect any profit , the money will all go into operation and paying off the note. :cboy:

 

[allisonr]

I agree with cowboy in that there are too many unknowns to get a solid answer. Thats also the first thing you're going to have to learn when it comes to cattle; expect the unexpected. Things aren't going to go great at first. But if you are smart about it and layout a plan, know your goals, organize it and make sure everyone is on board with it (I'm talking about your grandpa or whoever may be helping with financials, labor, etc) it will go a lot smoother.

Also; don't expect a solid salary. If you want one of those, get a 9-5 job and then do the cattle ranching as a hobby, not as a job. Once you've established the ranch and it is successful enough to pay the bills plus provide you an income, then you can switch from your other job to farming full time.

I've seen both sides of farming, full time and hobby. Both are extremely taxing and are not for the weak; but if you are passionate enough about it and willing to take on the burdens, the return is priceless.

Good luck to you!

 

[Bigfoot]

It's refreshing to see a young person with a goal.

 

[greybeard]

It's refreshing to see a young person with a goal.

I too, had goals when I was a young man.
Unfortunately, most revolved around fast cars and even faster girls.
(I got my $$ worth tho, on both accounts, tho nowadays can barely remember either)

 

[Supa Dexta]

Just as a ball park number to go on - 40 cows will raise 38 calves or so. We're in historically high cattle prices right now, and say those calves are worth 1000 a piece. That's 38,000 worth of calves, but you'll likely want to keep a few heifers, to ensure you have replacements as the older cows wear out. So say 35k a year. That may seem like a bunch of money to a high schooler.

Take out your taxes, and expenses and there's not a whole lot left over. Certainly not full time wages. 40 cows is a hobby, not a job.

2017 is supposed to be a low in prices, so say those calves drop to 400 a piece. Suddenly you're only bringing in 15k a year, and you're expenses remain the same, eating up nearly all of the money. And nothing left to live on. Now you're farming!

The very best way to get a start is to get a 'real job' and farm on the side. Set everything up to be as efficient as it can be run. Right from calving ease of the cows, to how a gate is hung and opened to save time. Do this for everything you can think of, while learning the ropes, growing, having money coming in consistently from your job.. etc Then if you need a loan for more land or a tractor or whatever, the bank has something solid to go on.

 

[nathan arizona]

If you want to sell to the yuppies next county over, there are folks that do that and do it profitably, but you have to be a marketer and a farmer as well. They won't knock on your door. Look up Polyface farm and get some ideas from them. A lot of folks don't agree with their methods and a lot do, but you can't knock their marketing.

 

[dieselbeef]

im sorry..............................................................................................................

 

[SteppedInIt]

I'm a high school age student living in eastern Kansas. I live on a small pig and chicken farm used to supplement our food costs. My grandpa own a 350 acre beef ranch. He is retired from the construction business and he does this now to supplement his social security, pension, 401k, etc. He is in his early 70's and I' m looking at either joining the IBEW or taking over the ranch. He has many pastures, 2 tractors, a bailer, stock trailer, a barn full of tools and such and other useful equipment that I have access to. He has about 40 head of cattle, mostly cows or heifers and a bull or two. I'm planning on eventually expanding the farm and start raising pigs, meat and laying hens, and rabbits. I want to market them as organic and sell them to the yuppies in the uppity county next door. I'm just wondering if this sounds like a sound, lucrative buisness plan. Any and all replies are appreciated. Also whats the average salary of a rancher with 40 head? I've gotten varying answers all over.

In my opinion, now would be a great time for you to get your feet wet to start learning and getting experience. Talk to your grandpa and work out an agreement based on what you have in mind. Work his cattle or start buying your own stock and try it out. See if you can start making money and grow. At your stage in life, if it doesn't work out its no big deal. I doubt you have to pay a mortgage and bills and support a wife and kids. Your biggest challenge will be, not buying new trucks, 4 wheelers, hunting alot, having fun on weekends with everyone else. Instead you will be working and taking care of your responsibilities and working toward success. Your next biggest challenge down the road will be taking easy paying job working all week, or scratching out something from farming. Good luck.

 

[dieselbeef]

good luck with the mrktg..take the elec job..use the ranch as a sec job..aint no ins or guarantee money in a cattle ranch..least a real off farm job wont leave ya homeless...

 

[kerley]

good luck with the mrktg..take the elec job..use the ranch as a sec job..aint no ins or guarantee money in a cattle ranch..least a real off farm job wont leave ya homeless...

X2

 

[dieselbeef]

if you work 3rd shift youd be able to ranch all day

hey kerley.. there yet? how ya doing

 

[SteppedInIt]

good luck with the mrktg..take the elec job..use the ranch as a sec job..aint no ins or guarantee money in a cattle ranch..least a real off farm job wont leave ya homeless...

There sure isn't any guarantees in construction work. Now days, you will be traveling to stay employed. You will go from one job to another and one company to another. I work with guys from all over the world, trying to stay employed. Get your bags packed, buy an RV and maybe when you retire you can think about ranching. The insurance is so high you cant afford it. Younger guys pay the new Obama fee and don't have any insurance. Guys with families are in a bind covering spouses and kids. BTW, good luck taking care of your family while your 100 miles away.

My vote is try ranching now. If it don't work out for you, become an electrician, iron worker, welder, pipefitter and spend your next several years chasing money.

 

[dieselbeef]

depends on the job. most of the guys here are in factories/manufacturing plants/jobs no new construction...even so..retrofit guys make alotta cash...but travel..for a few yrs...meh..whatever

 

[JSCATTLE]

If you are in a area that has Chem plants or refineries,go to school aND become an operator .. I owned my own construction company for 13 years before I made the switch .. I work a lot but still have time for my cows .. and you will have a hard time beating the insurance and other benefits. .

 

[Zacks]

New to the forum but glad to see so many good replies and some solid advice. I always like seeing a fella your age with goals and ambition. Some people poke fun of the ones who are wet behind the ears but a good mentor to teach you what you need to know and help you through the start up is worth more than money can buy. Any update on how it's going?

 

[poorfarmer]

As everyone else has mentioned there are so many variables to consider. So I will try to give a little insight into what I have found as I entered farming. I grew up on a cattle farm. It was the only job I had until I graduated from college. About the time I was 25, the opportunity to enter farming arose as my wife and I purchased about 80 acres to build a house on. Over the past 7 years I have gradually added a barn, equipment, and cattle. Although it is not my only source of income I have approached farming from the beginning as a business that should make me money, not a hobby. I currently run about 70 head of cattle on the side. Even with 70 head I wouldn't be able to quit my job. As I look at farming seems to be turning into a way to invest your money and get a return. It doesn't seem like it is a viable job without a very large investment. I think I remember seeing somewhere, that farmers who are depending on their land paying for itself will need to wait 87 years. I am not saying don't go for it, I truly enjoy farming, but get a plan and run the numbers. These are just my thought there may be others that can give more insight and maybe a more positive outlook.

 

[rynophiliac]

To the OP,

You are in a great position to make a full time income in cattle but it won't come overnight and it may take many years. Most cattlemen are getting older and not many younger guys have much interest. My advice would be get a full time job that pays well. Live off less than you make and start saving money for your own cows. Dont' buy expensive trucks, toys, etc. Talk to your grandpa about buying some cows of your own and grazing them on his place to get started. You could either pay him monthly rent to have your cows graze with his or you could do labor as payment. You could take care of his cows for him. He may enjoy having less responsibility. You want to get yourself in a position to purchase that land when he is ready to sell it. That would make a great base property that you can expand from. Keep your day job until your land is payed off, you have enough cows to make a good living, you have some savings in the bank and you have some diversification of assets. Beef prices go up and down and if you depend on it alone for income you may have some rough years. The earlier you get started the earlier you'll reach your goals. Good luck.