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I've only been working with Cattle for three years, but I think a profit can be made if you do as SirLoin said and you separate the assets from everything else. That is how I do it, and this will be the first of the three years that I show a profit, though it will be minimal. We started with 20 pairs and selected cows with only heifer calves. We lost one calf that first year to pneumonia. Year two we sold only 4 steers and again retained our heifers. This year our first batch of heifers calved, all of them, and completely unassisted. In spring the second group will calve. We went from 40 to 110 in the last 3 years (3 bulls are bought and 5 more cows added middle last year). Sold this summer at about $800/steer, plus sold 2 for freezer, and it looks like I will pencil out about $3500 ahead after you take into consideration the diesel and seed.

We plant our winter pasture in rye ($7900), and we dont feed hay....our only expenses are mowing after the cattle come out of a pasture, and then we work them twice per year....the meds/worming are only about $12/head...The way I figure, is this year is $3500 profit, but next year should be closer to $35,000. Once last years heifers calve in the spring, I should have 80 cows calving. Take out $7/acre rent ($5400) With equipment and land paid for our only expense are 1) rent $5400 2) seed $7900 3) fuel $5000 4) vaccinations $1,300 and 2 bags of cubes/week ($936)

Total income assuming 90% calf should be about 72*800=$57,600. Total expenses $20,536 - plus random tractor maintenance, and small fence maintenance ....

For me, A big savings is having much more grass than we need....I can rotate pastures quickly, keep cattle off my winter pasture until January, and also I dont worry about the pasture not being perfect. There are weeds in my pastures until I run the cattle through and get a chance to mow them, but each year they look better than the previous year as the cows become less picky. Also I have found that our cattle actually gain substantial amounts of weight over the winter on the rye grass despite the fact that they are still nursing calves.

The first year we fed hay and only had about 80% breed back on time, and the cattle lost weight. We ended up with 100% calving but some were late due to poor condition on hay. Year two we did rye grass, and we had 100% breed back on time and all of them gained weight. This year we are gambling a bit because of lack of rain, but I have enough grass stockpiled to get me through at least February....

I find a winter pasture to be more profitable than hay - less equipment needed to make it, less equipment needed to feed it, less cost, more gains, and during the winter I don't have to go out there daily to check if they have food.

Honestly I don't know how the folks up north can compete with us down south folks who don't have harsh winters and can grow grass year round....does not seem fair. Our land is cheaper, our labor is cheaper, and our winter is not hard, and on a normal year we have plenty of rain. Just does not seem fair to you northerners.
 
I was going to copy article I read from this list, but I have read more than a few and they are all very informative. There is business and management section that will help you answer your original question, but there is also an awful lot of other relevant information that is useful regardless of where you live. Best of luck, and don't let anyone tell you it can't be done!

http://animalscience.tamu.edu/academics ... /index.htm
 
the only piece of advice i can give you is
think with your head and not your heart.
it's a lot harder than you may think
 
every1 here wants to make a living running cows.but with todays prices its real hard to live solely off cattle.you have tobe willing to put your blood an sweat into the farm as well as break your back.an then get up an doing all over again when you get knocked out by floods droughts an blizzards.running cattle isnt for the faint of heart.
 
Years ago I wrote a book on"How to become a millionaire in the trucking business." The theory can also be applied to cattle. It's a short read and very affordable, but seeing some of you are financially strapped , I will give you the information at no cost, and if you follow the theory to a tee, soon you too can be sitting in a coffee shop telling everyone you are now a millionaire. Everyone will be amazed that you did it so fast. Just don't tell them you started out with two million.
 
roadapple ive seen that in the dairy business.the owners would all meet at the coffee shop twice a day an drink coffee while their hands did the milking.an then they would wonder what happened when the bank pulled the plug.
 
This thread really got me to thinking......I guess you first have to decide what YOU consider a profit/respectable living/being rich!

For me that is easy...

Everyday I get to wake up in a house that my grandfather built, raise cattle inside fences he put up on land he cleared. I am raising 3 teenage boys who know the value of hard days work and the rewards that come from it! We eat better than most and have decent vehicles and equipment and I don't owe anyone a dime. We thoroughly enjoy what we do and don't "want" for many things so .....I'm RICH!! I make a RESPECTABLE LIVING! and PROFIT everyday from the joys of my FAMILY FARM!!
 
Crazy Farmgirl":1g9ploq4 said:
This thread really got me to thinking......I guess you first have to decide what YOU consider a profit/respectable living/being rich!

For me that is easy...

Everyday I get to wake up in a house that my grandfather built, raise cattle inside fences he put up on land he cleared. I am raising 3 teenage boys who know the value of hard days work and the rewards that come from it! We eat better than most and have decent vehicles and equipment and I don't owe anyone a dime. We thoroughly enjoy what we do and don't "want" for many things so .....I'm RICH!! I make a RESPECTABLE LIVING! and PROFIT everyday from the joys of my FAMILY FARM!!
Quality of life has great value. :clap:
 
marksmu

Sounds like you got the bull by the horns!
Where do you live? Utopia Texas where you can grow grass year round?

There are two lessons you can learn from marksmu:
1. Don't be afraid to put a pencil to it, and
2. Grass is the key to making a profit

It appears marksmu has found the perfect geographical location to raise cattle on the only thing they really need. "GRASS"!

Unfortunately we all are not that lucky, so we must do some supplemental feeding.
And the cheapest way to go is hay. And when you supplement with hay you "MAY" have to feed some mineral supplements.
And that is all that is really needed to sustain cattle when grass is not available.

IMO the biggest problem with supplemental feeding is that we over supplement and the cost becomes prohibitive causing profits suffers.

Any time you are forced to do supplemental feeding, ( drought or winter etc ) on a scale of 1 to 10, if your animals are at an 8 when the grass gives out, there is absolutely nothing wrong with your animals coming out of supplemental feeding at a 6 or even a 5.
If you try to maintain a body condition of an 8 it will be cost prohibitive causing profits suffers.

marksmu

I don't want to put words in your mouth so at what point, age or weight, do you wean your calves?
And why?
SL
 
Many a cattleman has welfare cattle and only look at the salebarn check . Cattle have a daily cost and most don't have a clue. I am making a profit this year due to herd disposal, the cost of the remaining per head of cattle they are on welfare. Last calculations mine have moved to 1.60 a day to carry through this drought and I stil have the forth quarter to go. I would have to sell calves for 584 dollars a head to break even today this number is going higher. Two neighbors and I were discussing we are selling out in Jan. if we do not get a lot of rain. Sell them next year to keep off this years taxes and wait for better times.
 
crazy farm girl,
Re:
I'm RICH!!
Yes you are! And I am extremely happy for you.
You need to get down on your knees every day and thank your father and grandfather
for all they have done for you and your boys.
And I sincerely wish you all the success in continuing your heritage.

But unfortunately not all of us were born with a silver spoon in our mouths and have not yet bred 3 free ranch hands.
We are just starting out, just as your grandfather did, but in a different time and economical world.
So please try to understand the hurdles those just starting out must over come before they too can be "RICH".
Mt best wishes for you and your's with continued riches.
SL
 
Sir Loin":2jjeqkhb said:
crazy farm girl,
Re:
I'm RICH!!
Yes you are! And I am extremely happy for you.
You need to get down on your knees every day and thank your father and grandfather
for all they have done for you and your boys.
And I sincerely wish you all the success in continuing your heritage.

But unfortunately not all of us were born with a silver spoon in our mouths and have not yet bred 3 free ranch hands.
We are just starting out, just as your grandfather did, but in a different time and economical world.
So please try to understand the hurdles those just starting out must over come before they too can be "RICH".
Mt best wishes for you and your's with continued riches.
SL
thank GOD when your down on your knees..... keeping that way of life,, will be thanks enough to your dad and granddad count on it ;-)
 
Sirloin,

Our place is near Anahuac TX. Southeast of Houston. On an average year we get about 56 inches of rain, spread fairly evenly across the months, and only a few days below freezing. The single biggest detractor on the place is the threat of hurricanes, (Ike destroyed all of our fences) and the presence of mosquitoes. Cattle absolutly must have brahman influence, which most northern folk will call a negative....but it works for our area. I am an optimist, but I still find it to be a great place to raise cattle. In a normal year we get plenty of sun and lots of rain....It is hot in the summer, but the winters make up for it....cool not cold, and our rye grass grows all winter. There are about 3 weeks in Jan/Feb where it slows down, but it never stops growing. This past year the cows stayed on the rye until May 9 - even then when we opened the gate to the next pasture many refused to leave the rye field, and picked over the yellowed out grass for a couple more weeks.

We *try* to wean around October 15 - this year will be Nov 5....we fenceline wean in a 3 acre pen that has bullwire around it so they can still see each other. We do use hay for weaning as we leave them in the 3 acres for about 2.5 weeks, but I buy that hay from my neighbor who loves selling to me b/c I pick it out of his fields for him. We select October/November to allow the cows about 1.5-2 months to gain condition prior to re-breeding(they lose condition nursing through the summer). We aim to have the cows breeding Jan-Mar while on the rye grass....this will be the first year we pull the bulls off the cows. They had been left with the cows year round, but this March they will come off for the first time as we try to establish a formal breeding season. They all had similar aged calves when we first bought them as they came from a place with a set breeding season, so most have calved closely together on their own. This year we intend to start culling, so we need to keep better records.

Don't get me wrong, there are lots of things we are doing wrong - and plenty of room for improvements, better record keeping, smaller pastures and more rotations, weaning weights, etc...I have lots of goals, but just not enough time. Also, when its time to wean, we wean them all regardless of age...most should be around 7 months and 750lbs, but there will be some that wean at 5 months and closer to 500lbs....we dont sell them all at weaning though, we keep all our animals until we get to around 750-800lbs. Once weaned they are split. The bigger steers goto the barn, the heifers back in with the cows, the smaller steers get put back on pasture, and any bulls that were left intact goto the neighbor who selected him during vaccinations in May. I will hold as many steers back to finish as I have people willing to put a deposit down on - that is all just word of mouth and mostly my friends/family in Houston.

We have enough land to do some things poorly and in uneconomical way because we have more grass than cows....I hope to get the bad habits straightened out before we end up with more cows than grass. It seems that day is coming quickly so this year is the year we get organized before its too messy to fix....

Like Caustic says - I am one of those folks who has no clue what my carrying cost per day is on my cattle. I keep a spreadsheet of expenses and I get a check from the barn or a neighbor a couple times a year....I lost money the last two years....nearly $20,000 year one after hurricane ike, and $7000 last year. At the end of this year (unless that rye never comes up) the expenses will be about $3000 less than the costs. Adding more cows does not significantly impact my cost now because I have more land than I need. Im looking to cap the herd at 250 pairs.
 
My question is with today's spread sheet's and computers why don't cattlemen operate on knowing the daily cost of a cow. How can you make informed culling decisions along with investments. Cattle are employee's the cheaper one work's the more profit returned to the corperation. My books are ran by the yearly quarter's the cost of all expense's is divdided equally among the cattle giving you you daily cost per head. This tells you what a salebarn calf has to bring to make a profit. Why keep a cow that is raising a lighter calf at weaning that reduces the profit. With a 100% calf crop and a cow costing 400 bucks a year that is a cost of 1.09 a day you would have to get 80 cents a pound on a 500 pound calf to break even, a 90% calf crop it moves to 91 cents to break even.
During the drought my cost has moved to 584 dollars to keep a cow in the pasture. That mean's I would have to get a 1.16 to break even.
 
yep me too and i'm a doctor i'm a lawyer i'm a millionaire i own this bar
ranching is a poor investment unless you already own the land.
most do it for the lifestyle and not so much for the money.
i'm sure it's different in other parts of the country but most places cattle won't make a the land payment.(think with your head not your heart rule)
if you have the cash to buy land as an investment it's a solid investment but the return on your money is not much and you could do better else where.
renting land is a different story as is feeding a pen of cattle so it depends on whether you are looking at the lifestyle or more of an investment.
 
Sir Loin":1qsdkvsn said:
crazy farm girl,
Re:
I'm RICH!!
Yes you are! And I am extremely happy for you.
You need to get down on your knees every day and thank your father and grandfather
for all they have done for you and your boys.
And I sincerely wish you all the success in continuing your heritage.

But unfortunately not all of us were born with a silver spoon in our mouths and have not yet bred 3 free ranch hands.
We are just starting out, just as your grandfather did, but in a different time and economical world.
So please try to understand the hurdles those just starting out must over come before they too can be "RICH".
Mt best wishes for you and your's with continued riches.
SL

Sir Loin..

I most certainly DO understand the hurdles of just starting out, there had been no cattle here since the early '70's when my Grandfather and Dad were forced to sell out and go to work off the farm. Yes I did inherit the land and some 1960's equipment (which I still use!) but every animal here I bought and have raised and have gone without to support. Your right I do have 3 ranch hands...but they are far from FREE! I'm not disputing that money is not important but I do think people should put more value in the non-material portions of their lives! I could have sold the property and took the check to the bank but instead opted to bust my a$$ everyday to keep it! I also do not have the misconception that money will make me "RICH"!
 
Crazy Farmgirl":2089ogrz said:
Sir Loin":2089ogrz said:
crazy farm girl,
Re:
I'm RICH!!
Yes you are! And I am extremely happy for you.
You need to get down on your knees every day and thank your father and grandfather
for all they have done for you and your boys.
And I sincerely wish you all the success in continuing your heritage.

But unfortunately not all of us were born with a silver spoon in our mouths and have not yet bred 3 free ranch hands.
We are just starting out, just as your grandfather did, but in a different time and economical




world.
So please try to understand the hurdles those just starting out must over come before they too can be "RICH".
Mt best wishes for you and your's with continued riches.
SL

Sir Loin..

I most certainly DO understand the hurdles of just starting out, there had been no cattle here since the early '70's when my Grandfather and Dad were forced to sell out and go to work off the farm. Yes I did inherit the land and some 1960's equipment (which I still use!) but every animal here I bought and have raised and have gone without to support. Your right I do have 3 ranch
hands...but they are far from FREE! I'm not disputing that money is not important but I do think people should put more value in the non-material portions of their lives! I could have sold the property and took the check to the bank but instead opted to bust my a$$ everyday to keep it! I also do not have the misconception that money will make me "RICH"!

I hope you stick around CF, I like your thinkin'
 
Personally I don't make decisions on carrying costs now, because what I currently do for 100 head would be no different than what I would do for 70 or even 60. The grass is there, the water is there, the equipment is all paid for - so the only savings for me would be the expense of vaccinations. I still have to mow after they graze, and I still have to fix fence. We do everything else ourselves and the initial purchase was high quality cows, and since then I have been trying to improve on the original stock...We only bred them with even higher quality bulls - so the only real culls I would get rid of are the ones that have bad attitudes....possibly a couple more....but at the moment culling just means fewer calves next year...our goal is to have our own genetics, not continually buy in new ones. We will buy bulls, but we are trying to raise our own replacements. They work well in our area, and its tough to buy the ones that can deal with the mosquitoes, salt, and other issues we have along the coast.

We probably could make more money running some short terms stockers on our excess grass, but I have been hesitant to bring outside animals because I dont want to take the chance that I introduce disease, or buy crazies that I cant move/work or who go through fences..I've got gentle easy to work, easy to move cows and bulls that will follow me off a cliff for 2 bags of cubes....They respect fences and they know our property. My main goal from the start has been efficiency....I try to make it where 3 people (my dad, me, friend) can do everything in one day a week. If I have animals that do not fall into line - I have to get rid of them, b/c I dont have the time to deal with crazy.
 

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