Neighbor's cattle profits

[Ryder]

With some of these huge profit's qouted on here I don't understand why you are not the new XIT or King Ranch.

There's a thought, but I'm not into that big of an operation.

For all those here who apparently aren't making much profit, why do you do it? Is it totally for the enjoyment? Doesn't it get frustrating year after year with so little profits? I understand doing it for enjoyment, but I only have 16 head. I can't imagine having a large number just for enjoyment. that sounds like a lot of work for only $100 a head.

A lot of the time it doesn't make any sense. :?
It's an addiction.
If you have them a lot of the time you wish you didn't.
If you don't have them you wish you did.
It acts like an infectious disease. It gets in your blood and I think pretty much incurable. :help:

 

[herofan]

With some of these huge profit's qouted on here I don't understand why you are not the new XIT or King Ranch.

There's a thought, but I'm not into that big of an operation.

For all those here who apparently aren't making much profit, why do you do it? Is it totally for the enjoyment? Doesn't it get frustrating year after year with so little profits? I understand doing it for enjoyment, but I only have 16 head. I can't imagine having a large number just for enjoyment. that sounds like a lot of work for only $100 a head.

The profit you posted of your neighbor's is richer than three feet up a bull's ass.
That was the national average as per the USDA I qouted you from several years back I have no clue what the average is today it is not near what you qouted. Most people actually run this like a business and keep track of input cost not just salebarn check's. We are one of the few businesses that buy retail and sale wholesale the only control your input cost.
My profit's per cow are running around 300 dollars per year this year. We are seeing price's like we have never seen before and this too shall pass if you stay in this long enough.

If my neighbor is off the mark enough to believe he made 12,500 profit off of a $14,000 sale, then he must have miscalculated the other 30 years and his father before that. So, my question is, even with his other income, which isn't huge, if he were under the illusion that his cattle profits were 3 times what they truly were, how does he keep from losing his butt? How does anyone successfully keep a roof over their head, pay their bills, put food on the table, and decide whether it's time to buy a new car if he's that off? I would think at some point there would be an "ah-ha" moment where he realizes something isn't adding up.

 

[Isomade]

I ain't saying there isn't profit in it. There certainly is. It just isn't a s easy as some would lead you to believe. I can winter a cow for $500. This year I sold calves weaned on the trailer for an average of $976 each. those same calves were bringing $550 just four years ago. No matter how you cut it it's volatile.

 

[herofan]

I ain't saying there isn't profit in it. There certainly is. It just isn't a s easy as some would lead you to believe. I can winter a cow for $500. This year I sold calves weaned on the trailer for an average of $976 each. those same calves were bringing $550 just four years ago. No matter how you cut it it's volatile.

If you don't mind, would you share some specifics about what goes into that $500 per cow? Thanks.

 

[Isomade]

I ain't saying there isn't profit in it. There certainly is. It just isn't a s easy as some would lead you to believe. I can winter a cow for $500. This year I sold calves weaned on the trailer for an average of $976 each. those same calves were bringing $550 just four years ago. No matter how you cut it it's volatile.

If you don't mind, would you share some specifics about what goes into that $500 per cow? Thanks.

Hay $120, grain $70, fertilize $125, spray $60, vaccinations $20, diesel $20, mineral $5, the rest varies and is made up in equipment repairs, parts, vet bills ect. Every area has an advantage and a disadvantage. Not knowing where you live i can't tell you how this will compare. Some years that's more, some less, but I would say $500 is a good average for now.

 

[Caustic Burno]

I ain't saying there isn't profit in it. There certainly is. It just isn't a s easy as some would lead you to believe. I can winter a cow for $500. This year I sold calves weaned on the trailer for an average of $976 each. those same calves were bringing $550 just four years ago. No matter how you cut it it's volatile.

I figure mine are going to cost 463.00 this year if nothing major fall's apart. Baring a hurricane and all the fence's get tore down again.

 

[agmantoo]

Is there a consensus that it costs $500 to Winter a cow? Would that cost remain near consistent whether the weaned calf sells for $900 or for $550? I think it would.

If that is near correct then there would be a spread of $350 dollars?

Cut the $500 costs from Wintering the cow by feeding no grain and no hay and look where the profit would be. At $900 income from the calf and the producer would recognize $500 just on Wintering expenses in a year of high calf prices. In a down cycle with the lower price the owner would still see the same $500 Wintering expense eliminated. As an intensive rotational grazer feeding stockpiled fescue during the entire Winter I do not have the $500 costs and would make a profit in either market.

A traditional producer realizing the $350 spread from the market shift referenced above would go from a profit to a loss. Until a traditional producer gets his input costs under control I can readily understand why some think the profit cannot be had and at the level a low cost producer can experience. Location does have a major influence and that is something I cannot change. However, I know a lot of posters have an equal or better chance to use the same practices but elect not to do so.

 

[Caustic Burno]

Well I guess you have figured out how to take all the cost out of a cow.
This is quite an acomplishment you should write a book.
Until I can get free diesel, fertilize, vet supplie's no taxes,insurance or upkeep of equipment.
I quess I am one of the dumb asses that has been doing this for decades is stuck doing it all wrong.

You might want to contact TAMU as they regularly put on seminar's about cost and profitablity and they ain't got it right either.

What truely amazes me is absolutely nothing is free in life it has a cost, bore by someone.
Hat's off you have figured out what no one has been able to do raise a cow for free.

 

[dun]

Some of these discussions remond me of the guy that when asked why he kept beating his head against the wall replied "Because it feels so good when I stop"

 

[backhoeboogie]

He didn't fertilize this year

You have to take care of the grass. Fences too.

 

[herofan]

Well I guess you have figured out how to take all the cost out of a cow.
This is quite an acomplishment you should write a book.
Until I can get free diesel, fertilize, vet supplie's no taxes,insurance or upkeep of equipment.
I quess I am one of the dumb asses that has been doing this for decades is stuck doing it all wrong.

You might want to contact TAMU as they regularly put on seminar's about cost and profitablity and they ain't got it right either.

What truely amazes me is absolutely nothing is free in life it has a cost, bore by someone.
Hat's off you have figured out what no one has been able to do raise a cow for free.

Or, apparently my neighbor has been doing it wrong for decades, yet he hasn't lost his but as I mentioned in the other post. How has he done it wrong for decades and not went under? Answer that.

Oh, and I don't recall anyone saying they could raise a cow for free, but cheaper that what some others do. I have 16 head and I guarantee it won't cost me $8000 to winter them.

 

[IluvABbeef]

You all said yourselves the biggest costs in raising cattle are feed, fuel and fertilizer. What I see that you guys seem to be missing is that if you reduce the costs = minimize the usage of these three main expenses, you will end up with a lower cost per cow. The biggest thing that must take place in order to minimize these costs is to utilize better grazing practices (i.e., mob grazing), get the cows out of the drylot and out on pasture come winter doing some actual grazing (be it swath grazing, bale grazing or stockpiling) instead of spending $$$$$$$$ on fuel and grain.

So CB, sorry to say maybe you HAVE been doing it wrong this whole time. But what do I know? I'm just a beginner/armchair cattlewoman that just wants to reiterate information she's read and heard about in the past.

 

[agmantoo]

Well I guess you have figured out how to take all the cost out of a cow.
This is quite an acomplishment you should write a book.
Until I can get free diesel, fertilize, vet supplie's no taxes,insurance or upkeep of equipment.
I quess I am one of the dumb asses that has been doing this for decades is stuck doing it all wrong.

You might want to contact TAMU as they regularly put on seminar's about cost and profitablity and they ain't got it right either.

What truely amazes me is absolutely nothing is free in life it has a cost, bore by someone.
Hat's off you have figured out what no one has been able to do raise a cow for free.

Thanks for the compliment! I do consider my shift from little or no profit has been quite an accomplishment and that is why I try to share with others so that they too can benefit without repeating my prior mistakes. I do not think that I have ever cast a negative remark regarding what you appear destined to do. That is your business. What I do promote is that it is possible to profit in the cattle business but with upward monetary changes in the input costs it is necessary to address the manner that cattle producers go forward if they want to cease to subsidize the input suppliers and the marketers of beef. Something, preferably money, needs to go to and to be retained by the producer!

Where have I stated that anything is free? I use litter to add nutrients to the paddocks. I pay for that but not as much as I would have to pay for commercial fertilizer. I feed stockpiled forage during Winter, not expensive baled feed. I also burn some diesel, but not nearly what I used to when traditionally attempting to produce feeder calves. I do not use herbicides, though I have a license to do so, on the pastures as I have no need to use them. I did contact TAMU. They replied and shared some information on dung beetles that was beneficial. Having the beetles is reducing my diesel costs!

Admittedly I have not figured out how to raise a free of expense animal so you can keep your hat on. On the other hand, I have figured out over time how to produce a low cost and consequently profitable animal in nearly any realistic business cycle. My intent here is just to share, not boast, and to help those striving to get started in the cattle business or those already there to become more profitable.

 

[TexasBred]

Some of these discussions remond me of the guy that when asked why he kept beating his head against the wall replied "Because it feels so good when I stop"

:lol: :lol: Yep and those really making real money in any business seldom talk about it at the coffee shop. ;-)

 

[backhoeboogie]

Some of these discussions remond me of the guy that when asked why he kept beating his head against the wall replied "Because it feels so good when I stop"

:lol: :lol: Yep and those really making real money in any business seldom talk about it at the coffee shop. ;-)

But they grin like a possum.

 

[Stocker Steve]

The profit you posted of your neighbor's is richer than three feet up a bull's ass.
That was the national average as per the USDA I qouted you from several years back I have no clue what the average is today it is not near what you qouted. Most people actually run this like a business and keep track of input cost not just salebarn check's. We are one of the few businesses that buy retail and sale wholesale the only control your input cost.
My profit's per cow are running around 300 dollars per year this year. We are seeing price's like we have never seen before and this too shall pass if you stay in this long enough.

If my neighbor is off the mark enough to believe he made 12,500 profit off of a $14,000 sale, then he must have miscalculated the other 30 years and his father before that. So, my question is, even with his other income, which isn't huge, if he were under the illusion that his cattle profits were 3 times what they truly were, how does he keep from losing his butt? How does anyone successfully keep a roof over their head, pay their bills, put food on the table, and decide whether it's time to buy a new car if he's that off? I would think at some point there would be an "ah-ha" moment where he realizes something isn't adding up.

I have a relative who became a millionaire running a few cows. His father sold him a well maintained place at a good price and then he ran it right into the ground. It took about 30 years for the fencing and the roofs to start to fail. So very very few inputs, purchased bonds with some of the sales barn check, and people fighting to buy this fixer upper after he decided to move to town... Now he is complaining about all the tax he has to pay. :lol:

 

[TexasBred]

Some of these discussions remond me of the guy that when asked why he kept beating his head against the wall replied "Because it feels so good when I stop"

:lol: :lol: Yep and those really making real money in any business seldom talk about it at the coffee shop. ;-)

But they grin like a possum.

Nope, not at all.....it's just another day in their life. They expect to make money and they do. How much is never the topic of discussion.

 

[ALACOWMAN]

"""Lord willing""" i plan to pay a tractor off this summer with my calves... but theres been alot of years ive put money in,, so any real profit ive made has to be spread out over the last few years ..... if their still good this year sure ive made a profit,,for this year... but i didnt start this year

 

[Stocker Steve]

:lol: :lol: Yep and those really making real money in any business seldom talk about it at the coffee shop. ;-)

But they grin like a possum.

Nope, not at all.....it's just another day in their life. They expect to make money and they do. How much is never the topic of discussion.

Starting with a goal of making a profit does help. Unfortunately - - a goal like that really undermines buying all those tractors, and hay fields to exercise the tractors in, and sheds to store the tractors after exercise.

 

[backhoeboogie]

Free cows, free land, free fertilizer, free fuel, free tractor, free truck, free trailer, free tires, free medicines - sound slike welfare. Maybe I should sign up.