- Jan 16, 2006
- Reaction score
Donnie Frazier":1csj5hzb said:My benchmark is more like $200.00 to $300.00 per head. If I don't see where I am going to profit at least that it will be just as you put it playing. I do enjoy being arond cows and working them but I am not looking a hobby. I am looking to make some extra $. Thanks,
Last year was a very bad drought here locally. This year's drought didn't help either. They claim we are something like 47 inches below normal on a 20 month average per the local newspaper.
My "profit" on cattle is embarrassing at this point. But hay profit is pretty good and offsets things for now.
Reading back over this thread reveals a lot of stereotype ideas and assumptions. Especailly about debt. With these gas prices and with the Barnett Shale dumping all the nickels into the economy, it is hard to believe everyone is in debt. Even bad money managers should be in high cotton if they are land owners.
In the last 3 years I have signed mineral interests on 11 different pieces of property. Many of the leases are "non-participating" lease in that I own mineral interest but no longer own the property. (grandaddy was a smart man). They are punching a cotton patch well right now on land I do own near Marshall.
It seems every town I travel through is bursting at the seams. Bechtel is trying to hire laborers at Comanche Peak, having a hard time finding any, and paying $19 an hour. Every business person I talk to is having a hard time hiring labor.
With the recent oil field boon, dozer operators are making all kinds of nickels. Truck drivers for water trucks are working all the hours they want and more. We have hundreds of "dixie boys" pipe lining all over this country. They are up here out of Mississippi and Alabama. It is hard to get into a motel room. EVerything is pretty much full. Bad restaurants are doing okay because the waiting line is not as bad.
Surely folks are investing in stock markets, putting away money in savings accounts, essentially diversifying portfolios.
If the economy does go bust, I am ready to jump at the chance to buy land at reasonable prices. It isn't going to happen. But if it does, I am ready. I can pull my nickels out of their near stagnant locations.
Caustic, if we have a 70's "bottom falling out" case with cattle, I'll buy many head. It is essentially no different than buying into the stock market when it crashes like folks did in the late 80's. If I can get quality cattle at bargain basement prices, I'll be buying quite a few.