Neighbor's cattle profits

[HEREFORD ROADHOG]

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.

Burno, now I am dissapointed in you. Apparently you haven't been listening to Obama & Co. they are going to cover 30 million more people with health insurance, & IT'S NOT GOING TO COST AN EXTRA PENNY !!!! :bs: :bs: :bs: :bs:

 

[backhoeboogie]

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.

Burno, now I am dissapointed in you. Apparently you haven't been listening to Obama & Co. they are going to cover 30 million more people with health insurance, & IT'S NOT GOING TO COST AN EXTRA PENNY !!!! :bs: :bs: :bs: :bs:

Ya'll hang on a minute. I'm gonna need waders. Its about to get really deep it appears.

 

[JSCATTLE]

I've got a question . When you buy land and it appreciates does that go in the profit . All I know Is I'm making more on my money than I would in the stock market or 401k

 

[TexasBred]

I've got a question . When you buy land and it appreciates does that go in the profit . All I know Is I'm making more on my money than I would in the stock market or 401k

You only have a "potential" profit or appreciation until you sell it and actually make a profit. Taxing agencies will increase the value from time to time for tax purposes but you have no gain or loss until it's sold. Piplelines and transmission lines may cross it and pay you nicely for an easement and that's tax free money, however, the basis for the value of theland decreases by that amount increasing the potential tax owed eventually IF you sell it.

 

[JSCATTLE]

I had my place appraised last week to refinance . My original loan renews every 2 years . I'm wanting a 15 year loan and lock in the low interest rate . It appraised for 110 k more than I paid for it . If I sold it today for that price I would put 150k in my pocket . 3 places sold around me in the last 6 months . Not a bad investment .

 

[Ouachita]

I've got a question . When you buy land and it appreciates does that go in the profit . All I know Is I'm making more on my money than I would in the stock market or 401k

You only have a "potential" profit or appreciation until you sell it and actually make a profit. Taxing agencies will increase the value from time to time for tax purposes but you have no gain or loss until it's sold. Piplelines and transmission lines may cross it and pay you nicely for an easement and that's tax free money, however, the basis for the value of theland decreases by that amount increasing the potential tax owed eventually IF you sell it.

This may answer one question I ask. So, my hay guy does mine on the halves. I don't pay him anything. I was curious if I should add the value of my hay as an operating expense. Now I see that I should not, because it is only potential income. So my hay is free. I should also not consider the fresh grass my cows eat as an expense, because if I didn't have cattle eating it, I would have a "potential expense" bush hogging my place. I don't count my land as an expense, because I will retain it if I choose to not have cattle, but I could lease it to someone else to run cattle, so is that potential income?

 

[herofan]

You're in Kentucky right Hero?

What part?

herofan, what state do you & your neighbor live in? how many acres does your neighbor have for this operation ? just curious, because I know it will take much much more that 500 dollars wort of hay to feed my " herd",of 1/2 that size for this year.I believe he is missing several expenses in his figures. :nod:

I live in southern KY not far from Tennessee. I don't know how many acres my neighbor has for sure, but I would guess around 200. He has his own equipment and cut and rolled his own hay. I don't think he fertilized this year either.

 

[TennesseeTuxedo]

Assuming you're north of Nashville you must be getting pretty dry right about now.

 

[agmantoo]

JSCATTLE

You need to acquaint yourself on what a like kind exchange can consist of if you are thinking of making a change. Doing a 1031 exchange can be the best financial move you will ever make.

 

[herofan]

Assuming you're north of Nashville you must be getting pretty dry right about now.

It's starting to get that way. I don't consider it extremely serious right here yet, but a couple more weeks of this and it could be. The soil in our garden is really dry, but things are still producing well and our spring is still running only slightly below normal. Up until a couple of weeks ago, we would get scattered showers. We got 1' around 2 weeks ago, but nothing since.

 

[JSCATTLE]

JSCATTLE

You need to acquaint yourself on what a like kind exchange can consist of if you are thinking of making a change. Doing a 1031 exchange can be the best financial move you will ever make.

I'll check into that thanks

 

[HEREFORD ROADHOG]

Assuming you're north of Nashville you must be getting pretty dry right about now.

Here in western Ohio we are burning up. We have had a total of 1 inch of rain since late May & set a record of 102 degrees today. I expect hay prices to soar. To be more realistic your neighbor should also figure the "market value of his hay", not just a 500 dollar expense to make it.

 

[Massey135]

Contemplating opportunity cost will eat you alive.

 

[Ouachita]

Assuming you're north of Nashville you must be getting pretty dry right about now.

Here in western Ohio we are burning up. We have had a total of 1 inch of rain since late May & set a record of 102 degrees today. I expect hay prices to soar. To be more realistic your neighbor should also figure the "market value of his hay", not just a 500 dollar expense to make it.

But I just learned that would be considered "potential income"; just like "potential expense"; those don't count :help: . There is such a way to figure "Realized" profit, which is much different than taxable profit.
He!!, I've already got fishing poles and a stocked pond, so if I start buying/selling my fish, do I have to count my tackle and the cost I already spent to build the pond (tank)?

 

[dun]

Assuming you're north of Nashville you must be getting pretty dry right about now.

Here in western Ohio we are burning up. We have had a total of 1 inch of rain since late May & set a record of 102 degrees today. I expect hay prices to soar. To be more realistic your neighbor should also figure the "market value of his hay", not just a 500 dollar expense to make it.

We're about the same rain wise but we've topped 105 the last 3 days and no real end to those kinds of temps in sight.

 

[1982vett]

Assuming you're north of Nashville you must be getting pretty dry right about now.

Here in western Ohio we are burning up. We have had a total of 1 inch of rain since late May & set a record of 102 degrees today. I expect hay prices to soar. To be more realistic your neighbor should also figure the "market value of his hay", not just a 500 dollar expense to make it.

We're about the same rain wise but we've topped 105 the last 3 days and no real end to those kinds of temps in sight.

We have gotten about 65 inches of a normal 118 over the last three years. Hasn't rained 2 inches in the last 3 months. Will start supplementing burnt up pastures with hay in a few days.

 

[HDRider]

Forgot property taxes.

Not to mention land acquisition unless you inherit it and to run the number of head he's running it's have to buy considerably more of it which mean depleting cash reserves or having a debt servicing expense. Then the last question "Can you raise a family on $39000 a year and replace things as they wear out.

OH and as of today you have eitehr a new hospitalization premium or a penalty to pay.

The penalty is going to be way less than insurance...

 

[TexasBred]

Forgot property taxes.

Not to mention land acquisition unless you inherit it and to run the number of head he's running it's have to buy considerably more of it which mean depleting cash reserves or having a debt servicing expense. Then the last question "Can you raise a family on $39000 a year and replace things as they wear out.

OH and as of today you have eitehr a new hospitalization premium or a penalty to pay.

The penalty is going to be way less than insurance...

And that's what buckwheat wants....more money to spend.

 

[HDRider]

Hate to take this sideways and get all political, but I can't help myself. BO ain't going stop (unless we stop him) till he has all our money coming his way so he can dole it out as he sees fit

 

[TennesseeTuxedo]

HD, I think this thread jumped that track a while ago.