Profit made off of cattle !

[Stepper]

You know if cattlemen make only about $125 profit a head off of a weaning age calf. I dont see how anyone who has to pay for all of their start up exspenses can make any money at all in the cattle bussiness. And how they can keep from losing money ?

From all of the discussions in the pass that i have read. $125 a head on feeder calfs is about right isnt it ? Or do i have that number wrong ?

 

[Caustic Burno]

You know if cattlemen make only about $125 profit a head off of a weaning age calf. I dont see how anyone who has to pay for all of their start up exspenses can make any money at all in the cattle bussiness. And how they can keep from losing money ?

From all of the discussions in the pass that i have read. $125 a head on feeder calfs is about right isnt it ? Or do i have that number wrong ?

Last article I read national average was 100 dollars a head, I haven't read anything new since fuel and fertilize jumped.

 

[Stepper]

Do you remember where you read that article at Caustic ?

 

[Caustic Burno]

Do you remember where you read that article at Caustic ?

I want to say it was in The Cattleman prouduced by the Texas Soutwestern Cattlmens Association. Don't hold my feet to the fire on that through it has been a while back.
My pencil works out I do alittle better than that but I am running an operation everything is paid for and I am tight when it comes to spending a dollar.

 

[Txwalt]

You know if cattlemen make only about $125 profit a head off of a weaning age calf. I dont see how anyone who has to pay for all of their start up exspenses can make any money at all in the cattle bussiness. And how they can keep from losing money ?

From all of the discussions in the pass that i have read. $125 a head on feeder calfs is about right isnt it ? Or do i have that number wrong ?

If someone has the answer to that please tell me. I started by purchasing 25 acres to get out of the city 2 years ago (2,250 an acre and thats a deal around here for only 25 acres, I had to jump on it). I'm in no hurry and I can make the payments. 3,000ft wasn't fenced and that cost me materials plus sweat. Basically about 4 weekends with help. I wanted 2 cows to get my ag exempt. I asked a friend with a ranch the cheapest deal he could give me to get my ag exempt. He sold me 2 cow calf pairs for $1,000 (12 and 15 year old cows). Even in a drought he was giving me a deal even though I didn't know any better at the time. He told me to feed cubes everyday. When we started getting rain I didn't know I could stop feeding cubes till the board told me. $1300 for the water tap to get water to my cows not including trencher rental, PVC, trough and sweat. I end up in a 50/50 split deal with a friend of mine who has 3 cows and 2 calves. He puts them on my place till his place is fenced (48 acres, only about 800ft around his house to fence it off, will be done in a couple weeks) I get the cows and start browsing this forum. What! I need corals and a chute??? $300 in gas for free chute, $400 dollars in materials for temporary corals. What the hell is a baldie (google doesn't help). Black leg (my cows are red)? Lipto? Coicidossis (no one spells it right)? Loose minerals or blocks? Horn flies go after polled cows too? When spring hits I thought all my cows had diarhea. I had to learn about cow poop, scours and protein. Straw and hay are different? Heterosis, must be a joke. Different neighbor offers us a free lease if we put our cows on his place so he gets ag exempt 80 acres. Let me see..... Sure done deal. Now we need a bunch of cows. I/We trade all the bull calves for heifer calves with the first neighbor thats helping me (I try my best not to lean on him to much). Then I have to learn about weaning. Scours, poop, blood in poop, pee, hay, feed, protein, and how long to wein. Doc Harris says something like "Manage your plan" or "Plan our manage". CB says "Grass farmer first". Too late I got cows now. Some grasses are poison? Come on already! Cows get stuck in stock ponds and die? I've been lucky and all the employees are healthy. Time to go to bed

Walt

 

[Brandonm2]

You know if cattlemen make only about $125 profit a head off of a weaning age calf. I dont see how anyone who has to pay for all of their start up exspenses can make any money at all in the cattle bussiness. And how they can keep from losing money ?

From all of the discussions in the pass that i have read. $125 a head on feeder calfs is about right isnt it ? Or do i have that number wrong ?

Your exactly right. I stated much the same thing in an earlier string and got some criticism for it; BUT if you follow the real estate prices in most of the USA, cows can NOT pay for the ranch any more even here at the peak of the cattle cycle. NON-farm money is what is driving land prices up, up, and up. Rich people buying the hunting place of their dreams. People with high incomes transitioning toward a new career. Investors trying to predict the next wave of sprawl. Existing ranchers Like kind exchanging their old ranches for new places further out. That is what is driving the market. I don't know if this is just the future or a bubble is going to burst.

 

[Beefy]

You know if cattlemen make only about $125 profit a head off of a weaning age calf. I dont see how anyone who has to pay for all of their start up exspenses can make any money at all in the cattle bussiness. And how they can keep from losing money ?

From all of the discussions in the pass that i have read. $125 a head on feeder calfs is about right isnt it ? Or do i have that number wrong ?

If someone has the answer to that please tell me. I started by purchasing 25 acres to get out of the city 2 years ago (2,250 an acre and thats a deal around here for only 25 acres, I had to jump on it). I'm in no hurry and I can make the payments. 3,000ft wasn't fenced and that cost me materials plus sweat. Basically about 4 weekends with help. I wanted 2 cows to get my ag exempt. I asked a friend with a ranch the cheapest deal he could give me to get my ag exempt. He sold me 2 cow calf pairs for $1,000 (12 and 15 year old cows). Even in a drought he was giving me a deal even though I didn't know any better at the time. He told me to feed cubes everyday. When we started getting rain I didn't know I could stop feeding cubes till the board told me. $1300 for the water tap to get water to my cows not including trencher rental, PVC, trough and sweat. I end up in a 50/50 split deal with a friend of mine who has 3 cows and 2 calves. He puts them on my place till his place is fenced (48 acres, only about 800ft around his house to fence it off, will be done in a couple weeks) I get the cows and start browsing this forum. What! I need corals and a chute??? $300 in gas for free chute, $400 dollars in materials for temporary corals. What the be nice is a baldie (google doesn't help). Black leg (my cows are red)? Lipto? Coicidossis (no one spells it right)? Loose minerals or blocks? Horn flies go after polled cows too? When spring hits I thought all my cows had diarhea. I had to learn about cow poop, scours and protein. Straw and hay are different? Heterosis, must be a joke. Different neighbor offers us a free lease if we put our cows on his place so he gets ag exempt 80 acres. Let me see..... Sure done deal. Now we need a bunch of cows. I/We trade all the bull calves for heifer calves with the first neighbor thats helping me (I try my best not to lean on him to much). Then I have to learn about weaning. Scours, poop, blood in poop, pee, hay, feed, protein, and how long to wein. Doc Harris says something like "Manage your plan" or "Plan our manage". CB says "Grass farmer first". Too late I got cows now. Some grasses are poison? Come on already! Cows get stuck in stock ponds and die? I've been lucky and all the employees are healthy. Time to go to bed

Walt

LMWAO.
youre gettin there.

 

[Gate Opener]

Reading your post Walt made me smile.

 

[Limomike]

Walt.. Thats a great post. some good TRUE reading there.
My operation is basically like Caustic's; land is paid for, and I am a tight wad when I have to buy anything. I do make a profit, but its because I have learned to do most things myself, and not spend alot on my cattle.

 

[Caustic Burno]

Walt.. Thats a great post. some good TRUE reading there.
My operation is basically like Caustic's; land is paid for, and I am a tight wad when I have to buy anything. I do make a profit, but its because I have learned to do most things myself, and not spend alot on my cattle.

Most on here are in this for the enjoyment and a hobby which is fine its the smoke blowing that ends up breaking the bank and putting people out of business when they get tired of pumping money into breeds that don't maximize profit.
You can turn a profit in a small operation if you have a niche these are not everywhere.
This is a business if I could turn a higher profit running Musk Ox thats what would be in the pasture. In a cow calf operation the majority of your calfs are going through the salebarn.
To maximze profit you need pounds and what the buyer wants not what you want. You get the most hybred vigor out of crossbred calfs fact you get more out of a three way cross fact.
The most profitable cow is a hereford type momma cheaper to buy and you can maximize profits to meet market demand fact again.
Put a Brangus bull on them max ponds on the scales in a super baldie.
Put a Red brangus on them max pounds on a red baldie
Put a Char on Hereford/Brimmer momma max pounds on high yellow baldies.
These cattle produce cash by max pounds and low upkeep.
You have to be a businessman and a Cattleman.

 

[Victoria]

That's why here the agricultural land is going for houses. Ranchers just can't make it anymore, especially if they owe money to be the bank. Hard enough when you don't owe money.

 

[backhoeboogie]

That's why here the agricultural land is going for houses. Ranchers just can't make it anymore, especially if they owe money to be the bank. Hard enough when you don't owe money.

Some ranchers are making it here. Some are breaking even and some are losing, but some are making it.

Myself, I like to pay attention to folks who are making it. I can learn much more from them, and share with them.

 

[Brute 23]

That's why here the agricultural land is going for houses. Ranchers just can't make it anymore, especially if they owe money to be the bank. Hard enough when you don't owe money.

Ranchers can make it... they have to run a tight business. Alot of this stuff talked about on here will lead you straight into the red.

 

[ArrowHBrand]

Walt loved your post, it's so true. My wife and I are trying to start up our own livestock business, cattle and horses. She was raised on a farm and all of her sisters live on a farm, but I grew up in town so it has been a crash course since we met. We bought our place almost two years ago and are slowly getting it the way we want it. We need to put in some major fence and have the materials, but it hasn't stopped raining in almost a week. It's nice to catch up on the moisture, but five inches in two days isn't how to do it. Some places close got almost twelve inches. Start up costs are putting young people with ag interest off. They feel they need to get a high paying job to be able to farm or ranch, so they can pay for everything. It's too bad.

 

[Sir Loin]

Walt,
Re:

If someone has the answer to that please tell me.

I would but all I would get is a hard time for my efforts.
And besides I have posted it on this board several times before.
But here is a little hint
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* 'INCORPORATE"!!! :roll:

SL

 

[Victoria]

Sorry guys, that should have read Most (not all) ranchers can't make it here anymore. Especially if money is owed to the bank.

 

[Stepper]

Walt.. Thats a great post. some good TRUE reading there.
My operation is basically like Caustic's; land is paid for, and I am a tight wad when I have to buy anything. I do make a profit, but its because I have learned to do most things myself, and not spend alot on my cattle.

Most on here are in this for the enjoyment and a hobby which is fine its the smoke blowing that ends up breaking the bank and putting people out of business when they get tired of pumping money into breeds that don't maximize profit.
in a small operation if you have a niche these are not ecan tuYou rn a profit verywhere.
This is a business if I could turn a higher profit running Musk Ox thats what would be in the pasture. In a cow calf operation the majority of your calfs are going through the salebarn.
To maximze profit you need pounds and what the buyer wants not what you want. You get the most hybred vigor out of crossbred calfs fact you get more out of a three way cross fact.
The most profitable cow is a hereford type momma cheaper to buy and you can maximize profits to meet market demand fact again.
Put a Brangus bull on them max ponds on the scales in a super baldie.
Put a Red brangus on them max pounds on a red baldie
Put a Char on Hereford/Brimmer momma max pounds on high yellow baldies.
These cattle produce cash by max pounds and low upkeep.
You have to be a businessman and a Cattleman.

Caustic,

you say that "you can turn a profit in a small operation if you have a niche these are not everywhere."

I am not sure what you mean by that ? Are you talking about finding a deal like we talked about where say if you was able to find timber land that you could sale the timber off of to pay for the land to cover some of your start up exspenses ?

 

[Caustic Burno]

Its the start up cost that get you if you don't inheirt the land.
Use to in our area you could buy timber land sell the timber and pay for the land and clearing it. Not any more to many baby boomers buying up tracts at inflated prices. There will be some good buys when they find out Green acres is not the place to be as an aging population. Secondly you need some way to maximize profits on your cattle. Marketing direct to the customer cutting out the middle guy, pooling calf crops with other small ranchers and selling a pot load.
Another example like in our area run a Polled Hereford bull on Brangus cows retain the heifers to breeding age and sell in production sells as they always bring a premium here, the steer calves always ring the bell at the barn. Learn to cut cost
you don't need the fancy trailer you can hire someone to haul your calf crop. Don't run a bull AI that is usually will add another couple of cow's for what it cost to feed a bull year around. Buy hay in cheap years and stockpile for hard times more expensive years.
Don't carry a note period if you can't pay cold hard train riding cash you don't need it.
Learn to raise grass money is made in the front end of this business it is about controlling cost on the front end.

 

[ArrowHBrand]

Now when you say the rancher is only getting so much for his cattle is this compared to what he makes at the sale barn or when the consumer pays for it at the grocery store. I think I read somewhere that when the consumer buys meat at the store the rancher only gets only a quarter of the price. Something like that, it's been a while since I read the article maybe I can dig it up again and put out some concrete facts.

 

[hillrancher]

I have owned cattle for 30 + years . Taken care of them after dark most of the time. In the past 2 years have done the ranching full time. The farm has been a place to spend vacation without any planning, parties without costumes, but if I hadn't done it this way my retirement would have been very slim. Came to the farm full time with every thing payed for.

All my neighbors are out of state and from the city. Thank ranching is destroying the environment. This is a bigger problem than flies, ticks and having the wrong bulls. The other problem is increasing in wild life tearing up fences picking up calves and keep the cattle spooked all the time.