Making money in cattle!

[ClinchValley86]

I had some friends several years back that ran about 1,000 head. They'd buy opens and get them bred. Usually they'd generally sell in groups of 20 or more. They did pretty could for allot of years then broke up the partnership and got out. I think what made it work was they just had a revolving loan that they only paid interest payments on. This kept cost down.

I see. Im scared of debt. Oh so very scared of it. So far I've not had to borrow money on cattle. If I can hit a lick with these grass finished steers this summer and/or selling the breeders, very well could be some starter money's. That's what I'm hoping for anyways.

 

[kenny thomas]

Bought 8 bull and steers weighing 382, 1 bull weighing 1085, and a bred heifer today. High calf I paid was 1.92.

 

[MurraysMutts]

Bought 8 bull and steers weighing 382, 1 bull weighing 1085, and a bred heifer today. High calf I paid was 1.92.

They are getting up there!!
Most in that weight were over 2 bucks today.

@Warren Allison will like this. They sold several groups of short bred corriente cows. 4 and 5 yr olds. (Made no mention of what they were bred to) I think the heaviest group was 600lbs.

Most were 250 to 300 bucks. If they were bred angus they'd a made money!

One baby bull at 55lbs went for 160 bucks. I let my buddy have him. Sucks being pals. I get the next one!!!

 

[Warren Allison]

They are getting up there!!
Most in that weight were over 2 bucks today.

@Warren Allison will like this. They sold several groups of short bred corriente cows. 4 and 5 yr olds. (Made no mention of what they were bred to) I think the heaviest group was 600lbs.

Most were 250 to 300 bucks. If they were bred angus they'd a made money!

One baby bull at 55lbs went for 160 bucks. I let my buddy have him. Sucks being pals. I get the next one!!!

Heck yeah! That would have been a lot easier than going to El Paso to get those from, Mexico!

 

[Lucky]

They had $1,000,000 signature loan. Go big or go home. I actually know several guys borrowing a million or more to run yearlings. It's sometimes comical to find out the guys I thought were "rich" are actually just rolling a bigger ball than me. Debt is nothing to be affraid of.

 

[Lucky]

I see. Im scared of debt. Oh so very scared of it. So far I've not had to borrow money on cattle. If I can hit a lick with these grass finished steers this summer and/or selling the breeders, very well could be some starter money's. That's what I'm hoping for anyways.

Meant to quote you in above post.

 

[MurraysMutts]

They had $1,000,000 signature loan. Go big or go home. I actually know several guys borrowing a million or more to run yearlings. It's sometimes comical to find out the guys I thought were "rich" are actually just rolling a bigger ball than me. Debt is nothing to be affraid of.

I could get into soooo much trouble with that big a ball!

Definitely need more grass

 

[gcreekrch]

They had $1,000,000 signature loan. Go big or go home. I actually know several guys borrowing a million or more to run yearlings. It's sometimes comical to find out the guys I thought were "rich" are actually just rolling a bigger ball than me. Debt is nothing to be affraid of.

As long as it is the right kind of debt.

 

[libertygarden]

Spread sheets don't lie. I'm culling 4 bred cows, the mommas of the calves I sent to market in early January. I should have shipped them too back then. At $140 per bale, it is not worth to feed them until mid April when the spring flush kicks in. I ran the number since I got the five pair back in August all bones and skin, and I'm barely breaking even. I miscalculated the price of hay this year. Lesson learned, moving on. I believe someone here has a tag line that says most problems can be fixed by culling. I think he's right.

 

[Warren Allison]

They had $1,000,000 signature loan. Go big or go home. I actually know several guys borrowing a million or more to run yearlings. It's sometimes comical to find out the guys I thought were "rich" are actually just rolling a bigger ball than me. Debt is nothing to be affraid of.

Always use OPM ...use your money as a last resort.

 

[Travlr]

I see. Im scared of debt. Oh so very scared of it. So far I've not had to borrow money on cattle. If I can hit a lick with these grass finished steers this summer and/or selling the breeders, very well could be some starter money's. That's what I'm hoping for anyways.

I see you've already gotten comments advising debt as a way to make money. LOL... Not saying it can't be done, but if it made it easier why would the people with money be getting rich on the interest from money they loan to less wealthy people?
If you buy something right, and then pay interest, you are just throwing your already made money in the toilet. By paying cash you are paying yourself interest.

 

[libertygarden]

A revolving line of credit runs about 7 to 8%. What's the return on a 1000 steer if bought after weaning? I'd be a little scared to buy cattle on credit. Seems like it would be easy to fall behind the 8 ball.

 

[Brute 23]

I see. Im scared of debt. Oh so very scared of it. So far I've not had to borrow money on cattle. If I can hit a lick with these grass finished steers this summer and/or selling the breeders, very well could be some starter money's. That's what I'm hoping for anyways.

Smart. This game is changing and only the strong will survive. Stay fluid.

 

[Mountaintown Creek Ranch]

I see. Im scared of debt. Oh so very scared of it. So far I've not had to borrow money on cattle. If I can hit a lick with these grass finished steers this summer and/or selling the breeders, very well could be some starter money's. That's what I'm hoping for anyways.

Debt free is the way to be !!!. We just became debt free last year.

 

[Little Joe]

Just a matter of having the flow to do that for me. Good point though. But them making money... is it guaranteed? Always?

I agree with you, there's alot of risk for the person who owns the cattle and very little risk for the custom grazier. Our NRCS lady who just retired bought and paid for her farm by custom grazing, she had stipulations on health and how long weaned before they ever showed up. She had virtually no handling facilities to speak of, just grass, water and many rolls of polywire.

 

[ClinchValley86]

Bought 8 bull and steers weighing 382, 1 bull weighing 1085, and a bred heifer today. High calf I paid was 1.92.

What'd the heavy bull run you if ya don't mind me asking?

Saw a 2000+ pound bull bring $1.25 or better if I'm remembering right.

 

[ClinchValley86]

I agree with you, there's alot of risk for the person who owns the cattle and very little risk for the custom grazier. Our NRCS lady who just retired bought and paid for her farm by custom grazing, she had stipulations on health and how long weaned before they ever showed up. She had virtually no handling facilities to speak of, just grass, water and many rolls of polywire.

That sounds perfect for me and my situation. Just got to find someone needing the services. Don't think I want to graze mature cows unless they're being fattened for slaughter. No more calving.

 

[Allenw]

Always use OPM ...use your money as a last resort.

I don't know the whole set up and it was about twenty years ago an outfit was running an investment deal, borrowing other peoples money giving them a fixed return, and paying someone else to handle the cattle. One year they supposedly cleared a dollar a head. The cattle were allover the board as far as quality, Rumor had it they had a million head out.

Another guy got hooked up with some Friends of Bill, he didn't have anything left when they got done with him.

 

[KAstocker]

What's the return on a 1000 steer if bought after weaning?

-25% to 25%

 

[J+ Cattle]

Always use OPM ...use your money as a last resort.

OPM is a drug that people get addicted to, the money dealers want to get you hooked on it to the point that they own you and you become the equivalent of a modern day slave..
If the venture doesn't make good enough sense to use your own money then it's probably not worth doing.