Rate of return ??

[Sir Loin]

Realistically, over a one year period, what rate of return on your investment in cattle do you expect to achieve?

0 - 10 %
10 - 15 %
15 - 20 %
20 - 25 %
25 - 30 %
Above 30 %

Edited to add:
Hummmmm???????

Where is the submit button to post only a poll??
SL

 

[alohacattle]

My rate of return on my investment is very high, most of the money I invest yearly is the banks money.

 

[snake67]

Realistically, over a one year period, what rate of return on your investment in cattle do you expect to achieve?

0 - 10 %
10 - 15 %
15 - 20 %
20 - 25 %
25 - 30 %
Above 30 %

Edited to add:
Hummmmm???????

Where is the submit button to post only a poll??
SL

The vast, vast majority here on this board cannot claim profit in my opinion - so there should also be a negative return choice

Anyone working and spending paycheque money to support their cattle is not making a return - they are simply reducing the loss.

Bez

 

[shaz]

If I don't figure captial appreciation of land then my rate of return is horrid.

 

[snake67]

If I don't figure captial appreciation of land then my rate of return is horrid.

And you should not figure that into the equation.

Heck you could be raising grasshoppers and still making money if you were talking appreciation of land so it should NEVER enter into the equation.

Cattle income has nothing to do with land value going up or down.

However, be sure to put your mortgage costs, rent costs, lease costs, etc into the costs of your cattle as they are an expense you incur to own and keep those cows.

Probably less thasn 25 people on this board are actually making money on cattle.

Bez

 

[tom4018]

Did a quick figure on ours, 8% last year for expenses versus income. Did not include anything that is depreciated off. So it will be less that that actually.

 

[plumber_greg]

Bez, I agree with most everything you say. Most everything. Spending a paycheck to support their cattle can also be an equity builder, and a forced savings account. If I spend $25,000 out of my plumbing account to pay feed bills and other expenses, sell $50,000 of calves, take the 50k and buy land, more cattle, equipment or anything else related to the equity of the farm, couldn't I say I saved the 25K and gotten 100% interest? I know it's not quite that simple, but you should get my drift. Whatya' think? gs

 

[snake67]

Bez, I agree with most everything you say. Most everything. Spending a paycheck to support their cattle can also be an equity builder, and a forced savings account. If I spend $25,000 out of my plumbing account to pay feed bills and other expenses, sell $50,000 of calves, take the 50k and buy land, more cattle, equipment or anything else related to the equity of the farm, couldn't I say I saved the 25K and gotten 100% interest? I know it's not quite that simple, but you should get my drift. Whatya' think? gs

In this case I would say keep going - you will eventually get there

Just use discipline and faith in hard work

Best to you and for sure a big GOOD LUCK!!

Bez

 

[cow pollinater]

I had to go with 0-10%. I don't WANT them to make money for at least two more years. Luckily I'm still understocked and it's not a good feed year.

 

[denvermartinfarms]

I said above 30%. because that's about what i make on my money by buying calves and feeding them.

 

[snake67]

I said above 30%. because that's about what i make on my money by buying calves and feeding them.

You need to publish a book on how it is done.

I believe you are excluding some information and costs in this calculation.

Otherwise we would all be lining up to give you money - and I do not think that is going to happen.

I do not believe there is anyone in North America making 30% - that advice would make you a national leader in no time - and perhaps you are.

You are doubling your money every 2.5 years.

30% - really?

Sorry, I have to call you on this one.

Bez

 

[Brute 23]

If you look at cattle like mutual funds or stocks. Things like the cattle, large equipment, maybe land are your principal. Subtract your operating expenses from your income. Then tou can calculate a rate of return.

Cattle and land can be a good investment option. I would only do it after maximizing other investments and with cash. There is not room for you, Uncle Sam, and the bank to make money.

 

[TexasBred]

After giving my CPA everything I can find related to the cattle, I "Hope" to show about a 20% net LOSS on paper anyway.

 

[Sir Loin]

TB,
Re:

on paper anyway

:lol:
I still pick up receipts I find on the ground at gas stations, Lowe's, Tractor Supply etc.
SL

 

[alohacattle]

Bez I'm way over 30% on my money. I only invest 1.5 of my own money, I invest 11 of the banks money, their return is a mere 5%

 

[Brute 23]

Bez I'm way over 30% on my money. I only invest 1.5 of my own money, I invest 11 of the banks money, their return is a mere 5%

1.5 what? 11 what? Percent? What kind of liability goes along with a deal like that?

 

[js1234]

I said above 30%. because that's about what i make on my money by buying calves and feeding them.

You need to publish a book on how it is done.

I believe you are excluding some information and costs in this calculation.

Otherwise we would all be lining up to give you money - and I do not think that is going to happen.

I do not believe there is anyone in North America making 30% - that advice would make you a national leader in no time - and perhaps you are.

You are doubling your money every 2.5 years.

30% - really?

Sorry, I have to call you on this one.

Bez

No, he is probably right on for an all in return. In fact, if he is putting up say 30% equity and running on bank money, his ROE is probably quite a bit higher than 30%. If running completely on his own cash, half that as ROI shouldn't be any problem. At least that is similar to the rate of return that we realize. This is referring to stockers/feeders. Cow/calf net 250/head give or take.

 

[Caustic Burno]

I didn't vote as there are so many varibles here.
This get's down to bookkeeping and what is charged against the cow.
I put anything that has to do with the operation against the cow.
Last year I made 228 dollars per head I remember a couple of years ago it was like 70 buck's.

 

[denvermartinfarms]

I don't care what you think, it really does not bother me and have no problem with you, but i really don't like being called a liar, if i say i make 30% then thats what i make. How i come up with that, and i have done this for sevarel years and as it happens i do it for other people too. I buy calves at 225lbs average at 2.20 thats 495$, i feed them for 8 months, feed and hay costs me 220$ when i'm not feeding hay i take what it would cost and put that money toward pasture up keep fence and stuff like that. I figure a10$ a head death loss but it is not ever that high, vet suplies and antibiotics at 15 a head, sales commision at 15$ and other stuff like insurance and a few other costs at 10$. that comes out to 765$ i then sell them for about 1.45 at 700lbs thats 1015$ a head thats 250$ a head profit and that is just a little more than 30% profit on my money. I don't value my time at anything, and i don't borrow money to buy them so i have no interest to pay. I do this on sevarel hundred calves a year and it allway comes out at atleast 25%.

 

[Aaron]

Realistically, over a one year period, what rate of return on your investment in cattle do you expect to achieve?

0 - 10 %
10 - 15 %
15 - 20 %
20 - 25 %
25 - 30 %
Above 30 %

Edited to add:
Hummmmm???????

Where is the submit button to post only a poll??
SL

The vast, vast majority here on this board cannot claim profit in my opinion - so there should also be a negative return choice

Anyone working and spending paycheque money to support their cattle is not making a return - they are simply reducing the loss.

Bez

I can only guess that most of these people posting are only claiming against those expenses directly related to the cattle, and not living expenses like electricity, phone, food, gas, etc.

In which case, the last time I figured out that value of return (net cattle revenue/gross cattle revenue), it was around 45% I believe. But I don't really care about that stat because the person who owns them still has to eat/sleep. It's just a BS figure for bureaucrats to use in claim that 'cattle producers' are doing A-ok as far as income.