Profit

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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,

Donnie

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.
 
Bama":24qwwdbf said:
Depends on how sharp your pencil is. $300 dollars on a calf is hard to achieve. Figure in all cost and it will be much less. Most of the time less than half that. The most I got last year was 287 dollar profit on a calf. That was an exception. I don't expect it, and very rarely go above $225. I have also went as low as $4.00 profit on a calf. You have to take the good with the bad. The ones you lose goes into the negative numbers.

Anyone that claims to be making 300 dollars a calf is not counting all the expense's.
 
Campground Cattle":trsdhi62 said:
Bama":trsdhi62 said:
Depends on how sharp your pencil is. $300 dollars on a calf is hard to achieve. Figure in all cost and it will be much less. Most of the time less than half that. The most I got last year was 287 dollar profit on a calf. That was an exception. I don't expect it, and very rarely go above $225. I have also went as low as $4.00 profit on a calf. You have to take the good with the bad. The ones you lose goes into the negative numbers.

Anyone that claims to be making 300 dollars a calf is not counting all the expense's.

I'll probably agree. At least for the "commercial" (not registered seedstock producer).

To get "true" picture of ones profit/loss, one must factor in Operating Expense PLUS ALL Overhead Expense. That done, my guess is that very few producers are making a dime in the longrun... ;-)
 
backhoeboogie":3c5dx92x said:
Donnie Frazier":3c5dx92x 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,

Donnie

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.

Great Idea boogie what are you going to feed them dirt, I was out your way a while back .If it went to raining today would take two years for most places to recover that I saw.
 
Caustic Burno":1lzkxi7z said:
Great Idea boogie what are you going to feed them dirt, I was out your way a while back .If it went to raining today would take two years for most places to recover that I saw.

You hit the nail on the head with that CB.

I done some irrigating and have a nice patch of coastal on the river bottom. Should be another cutting with the recent rains. Irrigation fuel cost me many nickels on top of the fertilizer.

Last year was terrible and this year has been bad. I am not running many head right now. Got plenty of hay for the winter with all the culling down to the few I have left.

Just planted rye and wheat today. It is all on the upper flood plains tho and I can't get adequate irrigation to it with my little set up (for now). We've finally got about 3 inches of rain in the last month so I was able to disc and plant. If I get some rain this fall I may not even need my hay.

I mixed in Hubram White Sweet clover with the rye. I have never tried it so we'll see what happens. I picked up 100 lbs at $1.50 a pound. Dang rye was $45 a hundred.

I overseeded the coastal field on the lower flood plain in Hubram and Rye too. I can irrigate that if need be.

So with the cost of fertilizer in the spring, the cost of fuel to irrigate, and the cost of fall seed, I'll lose nickels on cows this year. I hate it. If I get plenty of fall rain, I should be able to sell some horse quality coastal. Probably can turn lose of a little anyway to friends who are begging.
 

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