Question from beginner

[Anonymous]

ok first i really don't mean to disrespect anyone. I do understant the desire to raise cattle for the family and to sell the beef. I have read many post here and really don't understand the desire to lose money. I have read on this forum many times that the profit expected is 100 dollers per animal. I have read the cattle cost between 300 and 1200 dollars. Raising the steer for one year could be 300+ dollars. If my math is right that is less then 7 percent return on investment. I believe most business budget on 15 percent min to make ends meet. IF my understanding is correct the cattle business is in trouble. I have a new appreciation for the cattlemen.

 

[Beefy]

just a few thoughts here-
cattle are a long term investment. we dont rush out and buy new cows every year. (well, most of us dont anyway).

like farming, ranching is a way of life. its risky and hard work.

"I give thanks to the Lord and a farmer each time i sit down to eat."

 

[Caustic Burno]

ok first i really don't mean to disrespect anyone. I do understant the desire to raise cattle for the family and to sell the beef. I have read many post here and really don't understand the desire to lose money. I have read on this forum many times that the profit expected is 100 dollers per animal. I have read the cattle cost between 300 and 1200 dollars. Raising the steer for one year could be 300+ dollars. If my math is right that is less then 7 percent return on investment. I believe most business budget on 15 percent min to make ends meet. IF my understanding is correct the cattle business is in trouble. I have a new appreciation for the cattlemen.

Ah a man that understands ROCE

 

[Anonymous]

Ah a man that understands ROCE

What is ROCE?

 

[Bama]

ok first i really don't mean to disrespect anyone. I do understant the desire to raise cattle for the family and to sell the beef. I have read many post here and really don't understand the desire to lose money. I have read on this forum many times that the profit expected is 100 dollers per animal. I have read the cattle cost between 300 and 1200 dollars. Raising the steer for one year could be 300+ dollars. If my math is right that is less then 7 percent return on investment. I believe most business budget on 15 percent min to make ends meet. IF my understanding is correct the cattle business is in trouble. I have a new appreciation for the cattlemen.

We do it as a way of life. Most have another job outside of raising cattle. More dairy farmers depend soley on their operation but a lot of them have outside income as well. Just ask around. You will find that several cut hay or do similiar work or something for extra income. I wouldn't want to discourage anyone from getting in to this. But I don't want to mislead anyone either.

 

[Farmhand]

Bama's right. And while they are doing this - you will find the wifes at a job in town.

 

[certherfbeef]

Bama's right. And while they are doing this - you will find the wifes at a job in town.

Or the hubby is at a job in town.

 

[Farmhand]

Bama's right. And while they are doing this - you will find the wifes at a job in town.

Or the hubby is at a job in town.

I WISH I could have it that way!! I'd never leave the place. Someday....

 

[Caustic Burno]

Return on Capital employed.