Need advice/help

[cattlepower]

I'll try to be brief. A wealthy frined of my family wants me to come up with a business plan for his 70 acres of pasture to make money with cattle. He isn't looking to get rich as he already is but just to make a small profit or as much as reasonably possible.

1. 70 acres of pasture some creek bottom and some hills in good condition and hasn't been grazed in years just cut and not for hay
2. yr. round creek for water.
3. fencing is there in place
4. need cattle facilities that can handle 40-50 cows with calves--(corral, squeeze chute etc.)
5. water troughs, hay feeders, etc.

I'm sure I'm leaving things but this is a start.

I would get to be a part of this venture just because he's that kind of guy and he's fronting all the expenses. If he makes some money and I make some he's happy. I know we're not going to make much but it's just another little trickle for me and him.

 

[Limomike]

And your question is???

Did I read that right?? having 40-50 cows on 70 acres ???

 

[pdfangus]

And your question is???

Did I read that right?? having 40-50 cows on 70 acres ???

dittoes....

in our country 30 to 35 cows max under excellent managment on 70 acres....

 

[Hook]

Your ratio is off

 

[NC Liz 2]

If I were you, here is what I would do, as a start to a full business plan.

Get a sign notarized statement of comment from the owner that he has available and is willing to invest up to an additional $100.000 in the business, as he already has the land.
And that he shall pay you at the rate of $10.00 per hour for all of your services rendered, on a by-weekly basis.

When you get that far let me know and I will help you more from there.
Liz

 

[NC Liz 2]

The number of cows and calves he can/will run, depends on his business plan, that he is just now trying to put together.
IMO, to discuss stocking rate now, is premature.
Liz

 

[pdfangus]

The number of cows and calves he can/will run, depends on his business plan, that he is just now trying to put together.
IMO, to discuss stocking rate now, is premature.
Liz

oh I am sorry....
lets plan for 500 then....

 

[WalnutCrest]

Agreed ... figure out how the money will be split and the max amount of money he'll put into it (maybe including a bonus of some sort to you if you can do it for less (i.e., you get some % of the savings) ... then come back to us.

A few questions to answer before shopping for cattle:
* How will the money be split?
* Who bears losses?
* What will need to have occurred that will tell us that we're doing well?
* What will need to have occurred that will tell us that we're doing poorly?
* What happens of the land-owner dies mid-plan?

 

[Hook]

And first off, pay no heed to people with multiple names and who not only talk to them selves but also about themselves.

 

[TennesseeTuxedo]

Instead listen only to people with their heads up their a.....

Oh, never mind.

:hide:

 

[Hook]

Instead listen only to people with their heads up their a.....

Oh, never mind.

:hide:

:lol: touché

 

[NC Liz 2]

It just dawned on me that the owner might be asking for a corporation "business plan" as he is intending to incorporate, as that would be my next step to starting a new business.
IMO he didn't get wealthy by being stupid with his head up his a--.
You might want to Google " corporation, LLC, business plan" .
Liz

 

[OakCreekRanch]

My advice to you is that you shouldn't take any advice from NC Liz 2.

 

[NC Liz 2]

Here is a sample business plan.
http://www.olc.edu/~lhenry/Business_Plan.htm

And a site that gives a lot of info on a business plan.
http://www.agriculture.gov.sk.ca/Defaul ... e6f821184e

Liz

 

[snake67]

We have pretty good ground around here and there is no way you will "make money" on 70 acres - it is a hobby farm in my mind.

Well, I suppose you might make a couple hundred buck - but the expenses are going to be high and the income is going to be low.

But .... he will get a tax write off from the losses.

I would bet you a coffee that is what he is truly after.

I would run from this deal as it sits right now

Bez

 

[NC Liz 2]

I'm with you 95%, if you add the ag tax exemption to your list.
The other 5% I don't agree with you on could be in the proposed business plan.
For example: leasing additional land. Or maybe deciding not to run cattle at all and doing hay or strawberries, or back grounding calves if the first cow/calf business plan doesn't pencil out on 70 acres.
Liz

 

[Isomade]

The number of cows and calves he can/will run, depends on his business plan, that he is just now trying to put together.
IMO, to discuss stocking rate now, is premature.
Liz

Yougottabeshitingme

 

[NC Liz 2]

Yougottabeshitingme

No I'm not! I am as serious as a heart attack.

In the business world the first thing you need to know is how many $$$ you have to work with. If he has the cash available he needs to know what he got for his investment in the land before he can figure stocking rate.

I know upper middle TN and it can be good or it could be mountainside a goat couldn't climb.
Then there are about 50 other thing you need to know before you can determine stocking rate.
Such as, governmental and deed restrictions, availability of water, shelter and hay.
Is it or was it ever a toxic dump. How much is wooded. Does it have grass or is it freshly cleared timber land. Etc Etc Etc.

When you have all of those, and more, questions answered then you can start to figure stocking rate, or determine if a cow/calf operation is even possible to make a profit.

Liz

 

[NC Liz 2]

Hay folks, please knock off the BS.
I just did a psychological profile on cattlepower and he is NOT just another collage student trying to get us to do his homework for him.
He is an honest sincere person trying his damdist to get into the cattle business anyway he can.
So lets try our damdest to help him as he may just have found his calling, please.

If you don't believe me, do an advanced search on him and read all his 116 posts.
Liz

 

[NC Liz 2]

cattlepower,
I found this for you but it's a pdf file and I can't seem to get a URL.
I think if you google the next line you should be able to find it.
Liz

276 cattle company-business plan - Crater Comets
bisstudents.cratercomets.com/student.../class.../bp_completefinal.pdf‎
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injured. 276 Cattle Company will be a Limited Liability Corporation, rather than a Sole. Proprietorship due to the liability of cowboys and cattle. There will be 4 ...


Income Statement  
Semi‐Annual Income Statement   Revenues        
*If I have 150 steers, avg. 600 pounds, and today's market being $1.30/pound.  Sales Receipts  $117,000.00     
Less - Cost of goods sold $45,115.20     
--Total revenues $71,884.80
             
  Expenses                 
Employee salaries $21,880.00     
Commissions ‐         
Land lease $22,500.00     
Hay $18,000.00     
Utilities $3,000.00     
Materials ‐         
Office Expenses $140.40     
Advertising $200.00     
Professional services $0.00     
Insurance $982.80     
Home Office Expense $345.15     
Depreciation $410.93     
Taxes $327.60     
Maintenance $25.10     
Interest $585.00     
Miscellaneous(Diesel) $1,000.00     
Other expenses ‐          --
Total expenses $69,396.97    
                   
Net profit (loss) $2,487.83