Price to feed beef cattle?

[terrisss]

First of all, I want to thank & congratulate you, for having such an educational website!

But I have a question, could anyone tell me what it would cost to feed beef cattle per year? I recently bought my fathers farm, and I am planning on purchasing 20 head of beef cattle to put on it. I am going thru FSA to buy the farm and cattle, and they are requesting of course, a business plan, however I am unable to figure out what it will cost per year to feed them. If it helps, I live in Wisconsin!

 

[alabama]

Wow, this is a hard one to answer. It would help if you provided more information. What type of grass do you have in your pastures? Are the pastures in good shape or full of weeds? How many cows do you plan to run per acre? Will you be buying hay? Will you be buying other feed supplements? What type of cattle will you be running?
I am from the Deep South so I won't be much help but I am sure that others on here can help but the more information you provide the better the answer will be.
Good luck.

 

[terrisss]

Wow, thanks for the quick reply. Sorry I didn't give you enough information, but I will try to help you out with what I know so far.

1. The pastures are in great shape (no weeds). (40 Acres total) with running water.
2. I'm not sure what type of grass is on it, the pasture had been rented out for the last 5 years and had about 40 angus on it. The owners just took them home recently.
3. We plan on buying our hay, and supplements.
4. Do you recommend black angus?

I have also been reading that there isn't any profit in raising and keeping the calves. Is this true?

 

[mitchwi]

This is not an easy answer, there a lot of things to consider...
are you buying all of your feed requirements?
are you having a cow/calf operation?

When you say "feed" are you asking just for that? and no "upkeep"....

Okay, hay requirements for Wisconsin... we have the 4x5 small round bales, and it is very easy for 2 mature animals to eat 1 bale per week from approx Oct thru April, give or take. And to potentially go thru more in Jan - Feb when it is usually the coldest. We usually do not have to supplement with anything else (tubs, etc), but we do keep out minerals, as we bale alfalfa, which typically has a good nutrional value. But we occassionally do give a bit of grain, more as a treat than anything else, once sometimes twice a week... this really does nothing for them except keeps them comfortable around us and easier to handle.

So lets say 10 bales per week for 30 weeks at $25 to 30 per bale (you can still find those prices locally) that is $7500 to $9000 purchased hay. Grass is cheap as long as your fields are in pasturing condition... otherwise you will spend quite a bit of money getting those into shape as well...but the return is long term.

The hay price gets you to $375 to $450 per year per animal.... a good rule of thumb these days is $1 a day/animal....

Hope this helps you out....

Michele

 

[mitchwi]

sorry, you posted before I was done posting!

 

[mitchwi]

4. Do you recommend black angus?

I like Caustics reasoning of using Red Mommas - if commercial is your route... they are usually cheaper than blacks and you can change the color of the calves by the bull....best bang for your buck!

I have also been reading that there isn't any profit in raising and keeping the calves. Is this true?

Another deep question... easy answer is true, dependent on prices... if that helps at all... just think of the costs associated with one of your calves until you could have a calf on the ground by this calf... but of course there are always exceptions.

 

[terrisss]

Your information is greatly appreciated....This is probably a dumb question, but what do you mean by commercial being my route?

Thanks
Terri

 

[dun]

As to the breed of cattle, it's been said many times on htese boards, goo to the salebarn if that's how you plan on marketing your calves and see what sells the best. Compare similar calves, not just color but quality.
Before you even get your first cow, determine how you're going to market the calves. Direct market as carcass beef, selling at the sale barn, private treaty live cattle, etc.

 

[terrisss]

Thanks for all the great advice!
But I have another question, if I started with 20 head, how many years would it take to see a pretty big profit, and how much do you think I could make? I'm sure this question has alot of factors built in...but could you give me a rough estimate?

Thanks Again..

 

[mitchwi]

You are not going to buy the family farm, and pay for it with 20 calves a year....

"pretty big profit" .... let's use the figures from my previous post about $375 to $450 per year to feed a cow.... and at weaning you sell the calf that weighs 600# and are getting $.90...that is $540.... $165 to $90 per calf, and that is with everything going well....

West Central markets pay better for (feeder beef markets)
larger frame/boned, no fine boned, bunk broke, weaned 30+days knife cut, vaccinated.... get those first.... and black will bring higher amount than any other....

Michele

 

[mitchwi]

I should say reputation does/can factor in as well.... so as not to say black will "always" bring more, but it is more common to see...

 

[mitchwi]

Your information is greatly appreciated....This is probably a dumb question, but what do you mean by commercial being my route?

Thanks
Terri

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