The only way to make a profit is to spend less than what you sell. That means you have to know cost of production and then be able to estimate reasonable income.
Sometimes spending less will generate less income, and sometimes spending less will benefit you.
Unfortunately there are no garanteed ways to make money with cattle. One of the most popular ways right now is to get an ag exemption (only in the States) because of owning cattle. You don't really make money with the cattle, at least not right away, but the taxes saved can be substantial. Then again I know of some who went after the ag exemption and actually paid more tax because the gov't found out they had other assets.
Jason Trowbridge Southern Angus Farms Alberta Canada
Reminds me of the two brothers that went into the hog business. One stole the hogs the other stole the feed and they still lost money. There is no sure fire way that will work year in and year out. Maybe loaning money to a rancher, but raising them yourself is iffy.
> What is the best way to make money
> raising cattle.
> The only way to make a profit is
> to spend less than what you sell.
> That means you have to know cost
> of production and then be able to
> estimate reasonable income.
> Sometimes spending less will
> generate less income, and
> sometimes spending less will
> benefit you.
> Unfortunately there are no
> garanteed ways to make money with
> cattle. One of the most popular
> ways right now is to get an ag
> exemption (only in the States)
> because of owning cattle. You
> don't really make money with the
> cattle, at least not right away,
> but the taxes saved can be
> substantial. Then again I know of
> some who went after the ag
> exemption and actually paid more
> tax because the gov't found out
> they had other assets.
> Jason Trowbridge Southern Angus
> Farms Alberta Canada
Lower taxes is not money made it is less money taken from you for pork spending, waste, and social programs.
The last farm bill (Democrat pushed and Republican signed)past was a travesty. Farmers are now the largest welfare recipients in the nation and it went to the largest producers.
>SO as it looks, the only way to make a profit is to get subsidized as much as possible...Well that is pretty interesting. Is there a certain breed of cattle that are more profitable than others, I have heard you can make a killing on Piedmontese?? Don't really know, but how about raising other animals, is there more profit in hogs, buffalo...
Reminds me of the two brothers
> that went into the hog business.
> One stole the hogs the other stole
> the feed and they still lost
> money. There is no sure fire way
> that will work year in and year
> out. Maybe loaning money to a
> rancher, but raising them yourself
> is iffy.
John, subsidies are a bad deal all around, but sometimes they are necessary. The Canadian beef industry has been the least subsidized business in the ag sector for many years. There is some assistance there now over bse, but this is an extreme instance. I haven't got dollar one from it, I have been making other arrangements like selling beef privately.
Too many come into the cow biz with big dreams of easy money for working a few days a year. There are some who make a bit of money from cows on the side, but they have regular income from a day job. They usually are the loudest to complain also.
My original post wasn't a drive by as suggested by John S. Rather the quickest way to benefit from having cows(in the US). If that secnario doesn't work for you, be prepared to invest a lot of money and get no return for 2 years. Then the return might not be enough to generate a profit. With hard work and some luck, you can turn a profit in year 3 or 4 but maybe not enough to live on.
Hogs might be a quicker way to generate positive income, but you would have to invest more money and be in a contract situation. There isn't much chance to start small and expand as hogs are a more intensive type operation.
Novelty animals like Buffalo and Alpacas only make money for the first few on the pyramid, they have little market after the breeding market is saturated.
Jason Trowbridge Southern Angus Farms Alberta Canada
>My Vet had a large herd . he once told me he only made money 1 time in all his years in the cow business. The day he sold every one of them and quit. He said he made a killing that day. But it seems that there are alot of people out there in the cattle business for it to be non profitable including my self.I guess it is more like making equity instead of making money or profit. If you are looking to get into cattle for a profit, I would look into something else.It is more of a lifestyle or pleasure thing for alot of people .Alot of farmers and ranchers are well diversified and dont depend on the cattle to be a main source of profit for thier operation.It is however a pretty good equity builder for the long haul.Just my opinion ,and I am speaking for the way things are in my area. I realize it can be alot different in some areas where cattle are an only source a income for a ranch.please ,no one take offense.
What is the best way to make money
> raising cattle.
"Novelty animals like Buffalo and Alpacas only make money for the first few on the pyramid, they have little market after the breeding market is saturated." Jason T
The same can be said for trying to make money in the PB Angus seedstock business.
In reality, if you are looking to an internet forum to tell you how to make money in the cattle business, then I predict you never will.
There is money to be made in most business endeavors but only for those who don't follow the herd. You need to do your own thinking and figure out a plan that works for you. It might not work for anyone else.
Well, Basically I am trying to get opinions from people outside of this area, and it has been quite interesting. I have a bunch of land, and I am just getting into Farming/Ranching, and am trying to learn as fast as I can.
The Angus seedstock business is like any business: provide a good product at a reasonable price, market it properly, stand behind your cattle and you can make some money.
I see you're back, John S, with your usual negative comments. Come on, try to find something positive to share with posters on this board.
> "Novelty animals like Buffalo
> and Alpacas only make money for
> the first few on the pyramid, they
> have little market after the
> breeding market is
> saturated." Jason T
> The same can be said for trying to
> make money in the PB Angus
> seedstock business.
> In reality, if you are looking to
> an internet forum to tell you how
> to make money in the cattle
> business, then I predict you never
> There is money to be made in most
> business endeavors but only for
> those who don't follow the herd.
> You need to do your own thinking
> and figure out a plan that works
> for you. It might not work for
> anyone else.
John, I'm just curious, how much is a bunch of land? I think that most of the people that make a profit on cattle either have land handed down to them to use or they lease the land. Don't take this to heart but it's my opinion that it takes about 200 head to make a about $60 to $70,000 for a year. This is if you do your own hay. 200 head here in east Texas would require about 600 to 700 acres. A profit is what we all want but more than that, we just enjoy raising cattle.