Making money on cattle

[Crowderfarms]

Bigbull, You might gross 55k. But what about all the other variables? Let's figure in another scenario,where the bottom drops out of Cattle, and interest rates go up, now what are you left with. My opinion, You'd be headed to the Poor House.

 

[Farmhand]

selling 100 calves a yr would make $55000 . based on selling all calves at 550hd. wich means you would be living on your town job. an it would be atleast 6yrs before the farm starts turning a profit the calves would pay the bank note. scott

That's what I was kinda thinkin'. Couldn't see how he was making a living on cattle.

 

[bigbull338]

right the farm wont pull its self under heavy debt. an if the bottom falls outta things you had better be able tighten your belt. if not your headed to the sale barn to quit. scott

 

[plbcattle]

another thing that many are overlooking is when you leave your current job you might have some 401k money left unless you worked for enron. but for the most part you walk out with no equity built up in your past job. when you decide to walk away or retire from cattle you can sell the cows,land,equipment provided it is paid for. that is worth something.if you sell 100 calves for $55000 you either weaned your calves to early, they were to light or you need better breeding stock. a 600lb bull or a 500lb heifer is the very low end we shoot for. at those prices that would be a minimum of $75,000
that takes in account for some 700-800lb weaned bull calves and some 600+heifers. I don't sell my cattle at weaning but just figured what the price would be if I sold 100 head at weaning.
sometimes a man's worth and happiness isn't measured in $$$
I made plenty of money owning and running 6 businesses in the past. I was miserable but had plenty of money. i don't ecpect to make loads of money in the cattle business but I am happy as a pig in slop.

 

[Texan]

I made plenty of money owning and running 6 businesses in the past.

I hope you saved plenty of it, because the way you figure, you're damn sure gonna lose plenty of it in the cattle business.

 

[plbcattle]

please explain. i will be glad to show you the sales records of my cattle sales

 

[Wewild]

please explain. i will be glad to show you the sales records of my cattle sales

See below.

I posted this earlier. Regarding the orginal posters question and your first post.

plb

What are you calculating for the note for the cows, land and equipment?

 

[Caustic Burno]

Wewild apparently he aint.

 

[Wewild]

Wewild apparently he aint.

I'm feeling a little neglected. I asked him a question and he didn't answer. Then later he asks someone else a question and expects an answer.

I got to quit being so sensitive.

 

[plbcattle]

you want an answer, I don't have a note payment

 

[Campground Cattle]

you want an answer, I don't have a note payment

Are you telling us it was free? If not it is still a cost that is an operating expense.

 

[plbcattle]

to those of you who are negative towards any newcomers getting involved into cattle because of a lack of income, WHY did or why do you raise cattle.
Apparently you don't think you can make a living raising cattle. I will call the express ranches,gardiner,camp cooleys,and many other registered breeders and tell them that you are a lot smarter than them and for them to sell out because they can't make any money. I know you are going to cameback with the argument that the owners of those ranches have a lot of money but there cattle operations are still profitable.
just something for you to think about
we sell about 100 embryo calves per year
they cost us $960 at weaning. we turn them out on grass or put them in bull tests which cost around $220 per bull.
we bred the heifers at 15 monthes of age
the yearling heifers and bull calves average close $3000 for bulls and $2500 for heifers. you do the math. I guess that puts a little damper on your statment that you can't make money selling cattle.
that is not counting the $4500-$8000 show heifer prospects or the $6000-$15000 herd sire prospects. so I guess I can't make any money at cattle so I will sell you all my cattle. you got a check ready

 

[SF]

plb; Arguing with some of these folks about making money in the cattle business is a futile effort. I'm sure that many of them don't make much money in the business. I'm sure that many of them lose money in the cattle business. The cattle business is a business, like any other. Most people who go into any business do not make it. Most will go broke. Some will struggle for a few years, then give it up.

There are many breeders out there that make a great deal of money. I know of breeders who average over $1,500 per head profit, but arguing that with many on this board is a waste of time. Just let them go on thinking the way they are.

I've never understood the cattleman or farmer who goes around claiming he doesn't make any money, but lives in a $300k plus house, drives a new $40k pickup (bought new every couple of years), etc.... What is it about cattlemen and farmers that they are ashamed of success?

Oh well, to all those that do it for love, lifestyle, etc..., and not for money. You may want to revisit your operation. It is possible to make money at it too.

 

[Campground Cattle]

I just wonder if both of ya'll be honest about much money you pumped in to get going and really put a pencil to it .

I have not thrown one in a long time but you both get the BS flag on this one.

 

[Wewild]

you want an answer, I don't have a note payment

See copy of first post below.

Okay go easy on me I am fairly new but looking to get educated. IronPants said I would lose my $ss
So here goes
1.150 acre ranch (Start in Spring Time)
2. 100 bred cattle and lets say Black Baldie
3. 4 bulls and lets say
4. Great pasture land in Fl.
5. Not much equipment

What would the initial cost (average) to buy the above and bulls and bred cattle and how much would your return be if you dropped lets say 80 calves the first year.
first year fall season income
2nd year spring season
2nd year fall season

What would his note be?

 

[SF]

I just wonder if both of ya'll be honest about much money you pumped in to get going and really put a pencil to it .

I have not thrown one in a long time but you both get the BS flag on this one.

Not going to argue with you camp. You do your thing, I'll do mine. I don't give a darn whether you make money or not. But there are niche markets available for those who are willing to do some things a little different. I know folks in your area raising commerical beef cattle, feeding them out themselves and selling them for natural beef at $1.50 per pound. About 300 head per year. Do the math.

There are ways to make money with cattle. Not all these ways are for everybody. And yes, if everybody were to do it, then the market for these niches would change. But there will be new niches, and new ways to make money.

We don't all have to do it the same way Camp. There are some who actually do make money with cattle. Sorry if you're not one of them. I had previously thought you were one of the ones who did. My mistake, I apologize.

 

[SF]

What would his note be?

I don't think you were addressing me Wewild, but I'll respond anyway. Around here, his note payment on the 150 acres would be between $20,400 and $30,000 per year depending upon the parcel of land purchased. Less if he were to be creative with the structure of the mortgage.

 

[Campground Cattle]

I do make money at cattle, but I freely admitt it is not my main income. I am a busineess man it makes money or its gone.
I just don't wear blinders about operating cost.
You are not helping people wanting to try cattle and if it was easy everyone would be doing it. I have been playing this game since the mid seventies.

You would benifit if you would study the difference between gross income and net income. If you truely run your cattle operation as a business you would be amazed at the true operating cost. Hey if you want to do it as a hobby and not keep accurate records go for it. I could sell out tomorrow and never miss a meal. I will not use outside income to prop up cows when that day comes they are gone, and start planting pine tress. There is only one way to make money in this business and it is controlling front end cost and ruthless culling.

 

[Crowderfarms]

I just wonder if both of ya'll be honest about much money you pumped in to get going and really put a pencil to it .

I have not thrown one in a long time but you both get the BS flag on this one.

I'm keeping score, the last time a BS flag was thrown it was at Presto.

 

[Wewild]

What would his note be?

I don't think you were addressing me Wewild, but I'll respond anyway. Around here, his note payment on the 150 acres would be between $20,400 and $30,000 per year depending upon the parcel of land purchased. Less if he were to be creative with the structure of the mortgage.

You got the land at between $2,000 and $3,000 per acre. That would be low here and probably in FL.

Add in $100,000 in cows and $100,000 in equipment and facilities.

That would put his cost just on the note at between $325 and $450 per calf sold. It could be higher with higher land prices.


He might have a tough row to hoe.