New farmer question

[Cattleman23]

I'm a relatively young man wanting to get into the feeder cattle business...I have a location for feeding, and equipment.. but need to know some basic things to get going sucessfully! I'm thinking of starting with between 20-30 head....any suggestions?

 

[Aero]

dont borrow money.

work twice as much as you planned on... go to lunch, then do it all over again.

keep as much data as possible.

 

[Cattleman23]

dont borrow money.

work twice as much as you planned on... go to lunch, then do it all over again.

keep as much data as possible.

How in the world do you not borrow any money to start things???

 

[la4angus]

dont borrow money.
How in the world do you not borrow any money to start things???

Have what you need to get started saved up.

 

[Cattleman23]

dont borrow money.
How in the world do you not borrow any money to start things???

Have what you need to get started saved up.

I have everything needed to raise them, but cattle... and that could cost thousands. How do you do that???

 

[Ranchcop]

Be patient and wait long or do what I did and sold a few thing that I could live without until I made a profit a few years down the road.
http://www.WatsonRanchOrganic.com

 

[watso059]

I just started a herd this past April. I am also trying to get up to 20-25. I have 11 right now with a bull. I started out with 2 bred cows, 4 pairs, and a bull. I sold the calves and bought cows with the money. Also, I've saved up along the way to add to the money I made with the calves. I did not have much money to start with either, so I just bought what I could and enjoy what I do have!!! Good luck with your start up. Hope it all works out for the best. Also, welcome to the cattle business.
Brad

 

[J-CCCC]

Cattleman23.

Never give up a dream[/b] but consider la4angus's advise! This isn't a business for poorly financed startups. Nature throws in variables. Opportunities beyond what you envision now will require more finance than purchasing 20-30 cows.

Look for a local model in a similar operation. Cattle people are sometimes slow to open up but will flood you with advice and support when their convinced you are serious and responsible.
I know this from my own experience.

Jay

 

[George]

I'm a relatively young man wanting to get into the feeder cattle business...I have a location for feeding, and equipment.. but need to know some basic things to get going sucessfully! I'm thinking of starting with between 20-30 head....any suggestions?

Do you have any experience with cattle?

 

[Cattleman23]

I'm a relatively young man wanting to get into the feeder cattle business...I have a location for feeding, and equipment.. but need to know some basic things to get going sucessfully! I'm thinking of starting with between 20-30 head....any suggestions?

Do you have any experience with cattle?

Grew up on a small family farm--mostly cropland and a few cows. My dad would raise 15-20 cows that were bred, and then we sold the calves every year. I was involved with feeding and taking care of them from day to day....not so much involved with selling and the business end of things. I still have the desire to do that tho...and my dad's farm to raise them on. I'm a carpenter by trade now...but I still help my dad farm his land.

 

[la4angus]

I still have the desire to do that tho...and my dad's farm to raise them on. I'm a carpenter by trade now...but I still help my dad farm his land.

What part of this U S of A is your dads farm located and what feed crops do you grow there.

 

[Beefy]

Im all for taking risks to get started but just make sure you have ALL of your ducks in a row.

 

[ctlbaron]

Go slow. Don't borrow.

 

[Saltydawg]

Go slow. Don't borrow.

I will second this.

You will need another source of income while you get started, so as they say "don't quit your day job", not yet anyhow.

It takes time to develop markets and get things running smoothly. You could have all the cows in the world but if you can't sell all of them at a profit then all you have is a cash sink.

I would probably suggest starting with 5-10 Bred cows to keep your startup costs low. Borrow or trade for as much as you can(for the first couple years anyhow).

You will reach your 20-30 cow goal in a few years and be better equipped with the financial end of things to determine where you need to go with your herd.

The only people who should borrow large chunks to start up something like this is someone who ALREADY has years of experience and connections in the industry.

Debt can CRUSH an otherwise good operation if you can't afford to get from point a to point b and pay the debt back at the same time. That interest adds up and you wanna be in business to make money for yourself...not the bank.

Start small and build your herd.

 

[Cattleman23]

I still have the desire to do that tho...and my dad's farm to raise them on. I'm a carpenter by trade now...but I still help my dad farm his land.

What part of this U S of A is your dads farm located and
what feed crops do you grow there.

Our farm is in Northeastern Iowa. We grow mostly corn and soybeans on it, but we have a few acres of alfalfa too. I think everyone is giving me really good advice to think about at this point...money wise. My original question was more about raising feeder cattle tho. I want to feed out calves from about 400lbs. to finish. I would still keep my day job as a carpenter, and at the same time feed out the calves. Any more suggestions?

 

[Aero]

i was confused by your terminology. you said you wanted to get into the "feeder cattle business" which made me think you wanted to sell feeder calves. after reading your lastpost, you want to finish them, right?

finish = weaning to slaughter

 

[Aero]

if you want to feed out calves, the first thing is to figure out where your prime selling markets are; there should be quite a few in your area. Call them and ask them what they are looking for in finished cattle and if they have any ration, health, or finishing programs for you to go buy. trust me; they know more about what they want than you do.

 

[Cattleman23]

i was confused by your terminology. you said you wanted to get into the "feeder cattle business" which made me think you wanted to sell feeder calves. after reading your lastpost, you want to finish them, right?

finish = weaning to slaughter

Sorry for the confusion! Yes, I want to finish them.

 

[Aero]

i was confused by your terminology. you said you wanted to get into the "feeder cattle business" which made me think you wanted to sell feeder calves. after reading your lastpost, you want to finish them, right?

finish = weaning to slaughter

Sorry for the confusion! Yes, I want to finish them.

this makes a big difference in borrowing money.

a normal feeder calf producer doesnt have a real need to borrow money for a herd when he could work a few years to get there with normal herd reproduction. with a finishing/feedlot program, you arent going to build a herd and some financing is almost necessary.

unless you plan to haul them yourself, there is usually a hauling minimum, for the semi loads. usually it will take 38 or so 1300 lb steers to get to the 50000 lb hauling mark. hauling less than a full load just costs you money. if hauling a long distance, this should come into play when considering cattle numbers.

 

[A6gal]

Cattlemen23,

It's not uncommon in this area of Texas to partner with a local feed lot. They supply the calves, you supply the grazing. After a few months they pick up the calves and you get paid on the weight gain. Anyway, I think that's how it works. I've never actually done it, but my neighbor makes a pretty penny each year this way.