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Most farms must be larger to support today's farm families
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<blockquote data-quote="skyline" data-source="post: 573182" data-attributes="member: 5305"><p>So, let's do the math... If a family wanted to buy a commercial beef cattle ranch and start from scratch with the intention of it being their sole source of income.</p><p></p><p>Land 2000 acres minimum at $2000 per acre minimum = $4,000,000 or more.</p><p>Cattle 1000 head at $1,000 minimum = $1,000,000 or more.</p><p>Miscellaneous equipment, barns, facilities, etc... = $500,000</p><p></p><p>So for a smooth $5,000,000 to $6,000,000 you can get started in the cattle business on a scale that is large enough to support your family.</p><p></p><p>Debt payment on $6 million is roughly $46,000 per month, give or take (7%, 20 years). $552,000 per year.</p><p></p><p>So, assume you have a 100% calf crop (you won't) and you sell all your calves for $500 each. Your annual gross income is about $500,000. Nothing left for operating expenses such as feed, diesel, etc... And double nothing left to feed and house your family with.</p><p></p><p>That folks is flat out depressing. If you don't own the land outright or have a spare $5 or $6 million laying around with nothing to do, you are out of luck.</p></blockquote><p></p>
[QUOTE="skyline, post: 573182, member: 5305"] So, let's do the math... If a family wanted to buy a commercial beef cattle ranch and start from scratch with the intention of it being their sole source of income. Land 2000 acres minimum at $2000 per acre minimum = $4,000,000 or more. Cattle 1000 head at $1,000 minimum = $1,000,000 or more. Miscellaneous equipment, barns, facilities, etc... = $500,000 So for a smooth $5,000,000 to $6,000,000 you can get started in the cattle business on a scale that is large enough to support your family. Debt payment on $6 million is roughly $46,000 per month, give or take (7%, 20 years). $552,000 per year. So, assume you have a 100% calf crop (you won't) and you sell all your calves for $500 each. Your annual gross income is about $500,000. Nothing left for operating expenses such as feed, diesel, etc... And double nothing left to feed and house your family with. That folks is flat out depressing. If you don't own the land outright or have a spare $5 or $6 million laying around with nothing to do, you are out of luck. [/QUOTE]
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Most farms must be larger to support today's farm families
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