Profit from cattle?? Where is it?

[OhioRiver]

Why is the board so doom and gloom on making any money in the beef business or the donor business? If everyone is losing money just stop and do something else? Why would someone continue to lose money year in and year out and say they are good at something?

 

[Hippie Rancher]

For many it is a life choice, not just a business. Most profit more than they say, everybody likes to complain. It is a sort of reverse-bragging.

But your question reminds me of the old adage about ranching being the slowest way to go broke - it can take 3 generations to do it. :lol:

 

[somn]

Im not sure everyone feel's that way. I'm still able to make money with puts and calls. I'm still

 

[Frankie]

Why is the board so doom and gloom on making any money in the beef business or the donor business? If everyone is losing money just stop and do something else? Why would someone continue to lose money year in and year out and say they are good at something?

I don't think everyone is doom and gloom on making money in the beef business. Prices have been wonderful the last few years. If someone couldn't at least break even with prices like they've been, they're in serious trouble.

We've managed to make money with our Angus without buying a high dollar donor cow. Maybe we could have made more if we'd spent $100,000 on a cow, but I doubt it. Marketing is still the key to making your money back on any cow. If you know people willing to consistently, year after year, pay $5 - 10,000 for a heifer, good for you.

 

[Jogeephus]

I hope this doesn't sound like I'm bragging but I have made gobs more money than my buddy did with his ostriches.

 

[Stepper]

I am not bragging either, but i made just a little bit more than i did off selling my stash of aluminum cans that i sold when i took my calfs to sale at the same time this year! 8)

 

[Jogeephus]

I am not bragging either, but i made just a little bit more than i did off selling my stash of aluminum cans that i sold when i took my calfs to sale at the same time this year! 8)

:lol: :lol: Which did you get the most satisfaction out of? Emptying the cans to put in your collection box or feeding the cows? :lol:

 

[Stepper]

Joe,

:lol: That kind of went hand and hand, like for instance today when i went by to feed them i found a big charolia bull(neighbors bull) in with them.

So i had to pop the top on a can of good ol rocky mountain spring water and cool off from the undoubtly new found news that i had one who did not breed back when she should have. :roll: So i got to enjoy empting that can to add to the collection.

And then after chasing that dam bull for 20 minutes who i was not able to get out of the pasture i got to empty a couple more cans to the collection. :lol:

So i am kind of expanding my cattle operation into a combined scrap metal/cattle type deal. :lol: But i am going to have to sharping the pencil to really find out where i am making the most profit from so i will know where to spend most of my nickels at on the operation come next year ! 8)

 

[OhioRiver]

right.................hence my point is made........why do so many beef farms fail then??

Im not sure everyone feel's that way. I'm still able to make money with puts and calls. I'm still

 

[Jogeephus]

Stepper, maybe he just put some more genetics in your herd and you'll get one of those greylings. Post pic if it happens.

 

[OhioRiver]

I don't know who would do that year in and year out clearly.............I am wondering if the Angus frenzy is coming off of its high perhaps. I want to get into this but have my reservations I must say if so many are not making money. I wonder if the risk of the embryo transplant into surrogates can pay good dividends or lose all your money??

Why is the board so doom and gloom on making any money in the beef business or the donor business? If everyone is losing money just stop and do something else? Why would someone continue to lose money year in and year out and say they are good at something?

I don't think everyone is doom and gloom on making money in the beef business. Prices have been wonderful the last few years. If someone couldn't at least break even with prices like they've been, they're in serious trouble.

We've managed to make money with our Angus without buying a high dollar donor cow. Maybe we could have made more if we'd spent $100,000 on a cow, but I doubt it. Marketing is still the key to making your money back on any cow. If you know people willing to consistently, year after year, pay $5 - 10,000 for a heifer, good for you.

 

[Stepper]

Hey ! :lol:

And not only that, it is not all about money anyway. :lol: I mean just like today, where else can you go chase a 2000 pound + bull arround for free at this day and time ? 8) And heck some of them will even chase back at times. :lol:

I mean look at the money you save right there. Do you know how much a year you would pay on member ship dues to go to a gym to get that kind of exersise ? ;-)

Dont let anybody kid you, there are a whole lot of hidden benifits to cattle farming. You just have to be able to recognize all of these hidden benifits. 8)

 

[Stepper]

Joe, !

I already know what it will turn out to be. :lol: It will be a murry gray ! :lol: And even though it will not be registered i bet it will bring as much money with in a few cents + or - of what ever else runs through the sale that day. ;-) You want to bet on it ? 8)

 

[Stepper]

right.................hence my point is made........why do so many beef farms fail then??

Im not sure everyone feel's that way. I'm still able to make money with puts and calls. I'm still

In my opinion 80 % of them dont know what they are doing and the other 20 % that do know dont have enough money to get into it big enough as you need to be in order to make a good living at it.

But that is just my opinion for what it is worth.

 

[Brute 23]

It becomes a habbit I believe.

What kills people now is one, it is basically impossible to get into it from scratch and make a profit.

Two, it is a business and has to be ran accordingly. These days you have to be a business man first, and know cattle second.

Just my opinion.

 

[somn]

right.................hence my point is made........why do so many beef farms fail then??

Im not sure everyone feel's that way. I'm still able to make money with puts and calls. I'm still

Alot of operations suffer from a common disease known as PPM.

 

[OhioRiver]

clue me in if you don't mind on some cause I know a lot of seedstock angus producers that live in huge homes and have mercedes and diamonds if you get my drift

Dont let anybody kid you, there are a whole lot of hidden benifits to cattle farming. You just have to be able to recognize all of these hidden benifits. 8)[/quote]

 

[Jogeephus]

Ohio, in my opinion, many people want the best of whatever breed is hot that year. They will pay huge prices for EPD's, toplines, names and papers. That's all fine and dandy if you can find someone else willing to pay you for it to keep you in the game. But historically, breeds come and go. If you are on the foundation side of a "new" breed that gets hot, you might get rich. On the downhill side, you are just covering someone else's losses when you buy them. Cause after all, a cow is only worth what a feedlot is willing to pay you for it. A cow is only unground hamburger. JMO

Stepper, I ain't taking you up on that bet cause we both know you would win.

 

[OhioRiver]

why is it this way you think????

It becomes a habbit I believe.

What kills people now is one, it is basically impossible to get into it from scratch and make a profit.

 

[dun]

What you think of as doom and gloom is in most cases reality. There is money to be made, just not a lot of money. The margin of true profit on each head is small. Buying big is one of the most common mistakes, borrowing into debt to purchase cattle is another. Many people have no idea of their actaul cost to produce a lb of saleable beef. I see a good number of producders that get the big check at sale time and think it's profit, it isn;t. They confuse gross with net.