Making Money

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tjmdo

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So I'm new. I want to start a cattle operation and I've gotten started. I bought 5 bred heifers that have all calved and now I'm breeding back AI after taking the Champion genetics course. I spoke with an extension agent yesterday about buying land and the overall conversation changed to making money. He was not very positive about the ability to make money in cattle. Can you? And if not why would a responsible adult choose to do it? I want to and I am having a lot of fun with it now but I don't want to piss money away. Thanks
 

boondocks

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tjmdo":z4m7vcrk said:
So I'm new. I want to start a cattle operation and I've gotten started. I bought 5 bred heifers that have all calved and now I'm breeding back AI after taking the Champion genetics course. I spoke with an extension agent yesterday about buying land and the overall conversation changed to making money. He was not very positive about the ability to make money in cattle. Can you? And if not why would a responsible adult choose to do it? I want to and I am having a lot of fun with it now but I don't want to be nice money away. Thanks

Because it keeps you out of the bars. Maybe.
And :welcome:
 

RanchMan90

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tjmdo":2kf3euga said:
So I'm new. I want to start a cattle operation and I've gotten started. I bought 5 bred heifers that have all calved and now I'm breeding back AI after taking the Champion genetics course. I spoke with an extension agent yesterday about buying land and the overall conversation changed to making money. He was not very positive about the ability to make money in cattle. Can you? And if not why would a responsible adult choose to do it? I want to and I am having a lot of fun with it now but I don't want to be nice money away. Thanks
:welcome: Do you want to be in the cattle business or the land business?
 

dieselbeef

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if yer counting your time youll never sell enough calfs to pay yer way...better like doing it...dang sure never make a mtg payment
 

Hunter

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Depends on how much land you need/want. If you can put enough head of cattle on that land then you may be able to pay the bills. But, you will still need income from something else to live off of.

Good luck and enjoy.
 

Smoothy

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I'm a younger guy who started the same way. I have a passion for cattle don't ask me why but I do as most on here I'm sure will agree it's​just something you love to do. Yes you can sell calves and money meaning you get paid for them but the inputs on a smaller operation are greater than what you'll make. Saying that we have slowly have grown our herd bought more land, purchased some equipment, updated some old fences, so on and so on. We haven't made money but gained equity. As said before it's a passion/hobby that "helps" pay for it self. I'm sure bigger operators have a different outlook but im just a small timer in full time expansion mode!!
 

callmefence

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I would say no you can't buy land and make a real profit on cattle in your lifetime. Shameful me inherited my land and I used to make money until I went and bought some more.

Fwiw money can be made on leased land. I can lease a 200 acre place. For 2000 or less.
Turn out 15 cows and a bull and forget about em. It's a real profit..a real one
 

Son of Butch

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tjmdo":2zf8l3cb said:
So I'm new. I want to start a cattle operation and I've gotten started. I bought 5 bred heifers that have all calved and now I'm breeding back AI after taking the Champion genetics course. I spoke with an extension agent yesterday He was not very positive about the ability to make money in cattle. Can you?
And if not why would a responsible adult choose to do it?
I want to and I am having a lot of fun with it now but I don't want to be nice money away. Thanks
Sure you can make money... $250 per cow per year
So just depends on what you need to make to live in the manner you choose
5 cows x 250 = $1250 per year
so by doubling your herd of 5 cows every 4 years
4 yrs 10 cows $2,500
8y 20 cows $5,000
12y 40 cows $10,000
16y 80 cows $20,000
20y 160 cows $40,000

Just keep going and you should be rich in no time... as long as you can get by the first 20 years of expansion
:)
 

skyhightree1

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tjmdo":2cuhyj5r said:
So I'm new. I want to start a cattle operation and I've gotten started. I bought 5 bred heifers that have all calved and now I'm breeding back AI after taking the Champion genetics course. I spoke with an extension agent yesterday about buying land and the overall conversation changed to making money. He was not very positive about the ability to make money in cattle. Can you? And if not why would a responsible adult choose to do it? I want to and I am having a lot of fun with it now but I don't want to be nice money away. Thanks

I don't know what you call making money but if I were really wanting to make " Money " Cattle would not be the way I would go about it. I like fooling with cattle and would not go into it as a im going to be rich thing if I own cattle. If you like cattle raise them... just don't set yourself up for failure with un obtainable goals.
 

Nesikep

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Son of Butch":2r6v1gy1 said:
tjmdo":2r6v1gy1 said:
So I'm new. I want to start a cattle operation and I've gotten started. I bought 5 bred heifers that have all calved and now I'm breeding back AI after taking the Champion genetics course. I spoke with an extension agent yesterday He was not very positive about the ability to make money in cattle. Can you?
And if not why would a responsible adult choose to do it?
I want to and I am having a lot of fun with it now but I don't want to be nice money away. Thanks
Sure you can make money... $250 per cow per year
So just depends on what you need to make to live in the manner you choose
5 cows x 250 = $1250 per year
so by doubling your herd of 5 cows every 4 years
4 yrs 10 cows $2,500
8y 20 cows $5,000
12y 40 cows $10,000
16y 80 cows $20,000
20y 160 cows $40,000

Just keep going and you should be rich in no time... as long as you can get by the first 20 years of expansion
:)
Only problem there is losses.. seems that when you're starting out you always have more.. so the equation kinda looks like
5 cows x 250 - 1 x 1500 loss = $-250 per year, and it's just hard to get started that way
 

Rafter S

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It may depend on your part of the country. Where I live if I bought land I doubt if my grandchildren would be able to pay for it with cattle in their lifetimes. Other places that may not be the case.
 

Bestoutwest

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Rafter S":1j6iisbf said:
It may depend on your part of the country. Where I live if I bought land I doubt if my grandchildren would be able to pay for it with cattle in their lifetimes. Other places that may not be the case.

The only people making money around here are the ones that have been on their land for generations. Here's a place that's near me, and it's not even close to Boise, Meridian or any other "big" city here.

http://www.realtor.com/realestateandhom ... D605169348

Here's another good example of the market around here.
http://www.realtor.com/realestateandhom ... 8446-24845
 

Son of Butch

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The $250 per cow is optimistic
National 10 yr average is $100 profit per cow per year for 100 cow herds ($10,000)
and the bottom 20% of producers on average lost $100 per cow per year (-$10,000)

IF money is the goal (even at top end of $250 profit per cow) there are 1,001 better options than a cow/calf herd
 

ddd75

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if you can grow the hay, not throw much feed to them, and pasture them.. you can make a decent coin with them. Equity is also a valuable asset that cattle produce. Retaining cows and paying them off.. thats a lot of money walking around.

If you're buying your hay and feeding them fat you might as well light money on fire.


600 lb steers going for 1.50+ right now.. if you don't have any feed or bought hay in him.. mineral.. that doesn't cost much.
 

Son of Butch

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ddd75":17acpmav said:
Equity is also a valuable asset that cattle produce.
Retaining cows and paying them off.. thats a lot of money walking around.
BUT the fact is he is just starting out. Bought 5 cows. So he has Zero Equity and the money walking around is on the
wrong side of the balance sheet until the cows pay him back the money they owe him for the money he invested in them.

To say he can make decent coin is right. A single coin... if all goes well.
 

Bigfoot

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I have raised cattle for over 40 years. I have not made much what I call folding money on cattle in that 40 years. My net worth has grown (in the form of land, equipment and cattle).
 

Dave

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ddd75":14blicbp said:
if you can grow the hay, not throw much feed to them, and pasture them.. you can make a decent coin with them. Equity is also a valuable asset that cattle produce. Retaining cows and paying them off.. thats a lot of money walking around.

If you're buying your hay and feeding them fat you might as well light money on fire.


600 lb steers going for 1.50+ right now.. if you don't have any feed or bought hay in him.. mineral.. that doesn't cost much.

He is just started. He can hardly afford the equipment to make hay for 5 cows. I quit making hay in 1997 and have been buying ever since. In all those years I was able to buy hay cheaper than make it every year but one.

Lease land, manage the grass, and never ever fall in love with a cow. She does her job every single year or she is gone. The real money is made in either the buying or selling. Figure out how to buy low and/or sell high.
 

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