Rate of return ??

[js1234]

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.

Our current return (I selected the one just under 30, 20-30 I believe it was), includes ALL operating costs. Of course, this does include all costs directly associated with the cattle. Also included are all land costs, labor costs including benefits and insurance, interest at the bank, fuel, utilities, maintenance, office expenses and anything else other than depreciation. Cattle in some form or another are our only business and have been since 1904. So for better or for worse, there isn't any "other paycheck" to augment the operation. However, I do recognize that everyone has different situations and sets of numbers, hence the poll.

 

[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%

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

Million

 

[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?

Million

Liability? What do you have to put up for some one to lend that?

 

[alohacattle]

Liability? What do you have to put up for some one to lend that?

The 11 Million is the liability, for collateral the bank files a UCC 1, and they also have a security agreement securing all the livestock, option contracts, cash contracts, basis contracts, and all equipment used in the production, sale, and transportation of grains and livestock. They have their name on more dollars worth of my assets than I have dollars of theirs.

 

[Sir Loin]

See:
Cost per cow --- per year
viewtopic.php?f=8&t=82260


SL