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<blockquote data-quote="inyati13" data-source="post: 991035" data-attributes="member: 17767"><p>Bez, does have some style don't he? His posts rely on an economy of words. That takes style and/or a clever writer.</p><p></p><p>I just want to comment on the economics of cattle that Bez mentioned above. He stated, "Profit is slim - probably less than one percent of the people on these boards actually make money - the rest spend it - big hats, big trucks, big words and small cows."</p><p></p><p>That subject comes up in every conversation I have with anyone in the cattle business. The point (it is not highly intellectual, clever or anything of that sort, it is probably what we all know) I want to make is this, most people in the business or who live around it have to know how difficult it is to make a profit in the cattle business. In this cattle country where I reside, I am aware of established operations that make a profit because they have outstanding reputations, flush embryos, sell richly bred stock for breeding markets, and/or operate on a scale that allows a viable income on a small profit margin basis. The cattle business reminds me of Walmart. A commercial cow pays you such a small amount on an annualized basis, that you got to have 500 of them before the profit margins add up to a number that you can live on. What I see here is people deluding themselves into believing that if they can take their losses from their farm off their real job they are making money. My neighbor came over and was telling me the way I run my cattle operation that there is no way I will ever make money. I told him if I wanted to entertain a lifestyle that was about making money, I would still be 2000 miles away from here. He replied that every calf that hits the ground is paying for his farm. I said well David if you are paying for your farm you are doing very well indeed. He said, "well yeah, I can also take my farm losses off my taxes. That helps off-set my income from my gas company job". I said, "David, are you cheating on your taxes?" "Lord, no", he says. I said, "well you just told me your cattle operation was paying for your farm". He said, "Yeah, it is, every calf that hits the ground." I said,"You better go home and think on this. Because if you are reducing your income tax obligation because you are losing money with your cattle operation, then my friend, your cattle operation cannot be paying for your farm. In fact, what you are doing is paying for your farm and cattle operation with your utility job." He could honestly not see that. I said, David, you cannot be making money if you are showing a loss on your farming endeavor, it cannot get any simpler.</p></blockquote><p></p>
[QUOTE="inyati13, post: 991035, member: 17767"] Bez, does have some style don't he? His posts rely on an economy of words. That takes style and/or a clever writer. I just want to comment on the economics of cattle that Bez mentioned above. He stated, "Profit is slim - probably less than one percent of the people on these boards actually make money - the rest spend it - big hats, big trucks, big words and small cows." That subject comes up in every conversation I have with anyone in the cattle business. The point (it is not highly intellectual, clever or anything of that sort, it is probably what we all know) I want to make is this, most people in the business or who live around it have to know how difficult it is to make a profit in the cattle business. In this cattle country where I reside, I am aware of established operations that make a profit because they have outstanding reputations, flush embryos, sell richly bred stock for breeding markets, and/or operate on a scale that allows a viable income on a small profit margin basis. The cattle business reminds me of Walmart. A commercial cow pays you such a small amount on an annualized basis, that you got to have 500 of them before the profit margins add up to a number that you can live on. What I see here is people deluding themselves into believing that if they can take their losses from their farm off their real job they are making money. My neighbor came over and was telling me the way I run my cattle operation that there is no way I will ever make money. I told him if I wanted to entertain a lifestyle that was about making money, I would still be 2000 miles away from here. He replied that every calf that hits the ground is paying for his farm. I said well David if you are paying for your farm you are doing very well indeed. He said, "well yeah, I can also take my farm losses off my taxes. That helps off-set my income from my gas company job". I said, "David, are you cheating on your taxes?" "Lord, no", he says. I said, "well you just told me your cattle operation was paying for your farm". He said, "Yeah, it is, every calf that hits the ground." I said,"You better go home and think on this. Because if you are reducing your income tax obligation because you are losing money with your cattle operation, then my friend, your cattle operation cannot be paying for your farm. In fact, what you are doing is paying for your farm and cattle operation with your utility job." He could honestly not see that. I said, David, you cannot be making money if you are showing a loss on your farming endeavor, it cannot get any simpler. [/QUOTE]
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