Caustic Burno":14eq4r3x said:
The trap that most get in is listenig to you are going to make a fortune in cattle.
The national average for profit for a cow is a 100 dollars a year in a well run operation. I don't know about the average herd in the nation T A&M published a paper a few years ago the average herd was 20 head in Texas.
With those numbers you make 2000 dollars profit that was with a 100% calf crop which is not reality 90% is ,so your 2000 dollar profit is now 1230 dollars on 18 cows. They had to pay the upkeep on the two that didn't generate a dime.
Twelve hundred bucks a year is not going to pay the land note the set up cost or the tractor note.
If you want to live the lifestyle and consider the above mentioned cost as getting the life style. You can get old Belle to pay the mantainence if you operate as a cattleman.
You will here your land is appreciating in value not unless you sell it the only thing appreciating is the tax liabilty going up each year.
People say the land is an investment not unless you plan on selling it it is a liabilty to be maintained.
It take's a dollar a day to maintain Old Belle running the operation like a cattleman you can get her to pay the taxes the upkeep on fence, fuel and fertilizer and put a few frog hides in the old billfold.
CB,
Thanks for your earlier reply. By the way, we also utilize year around calving, and wean and sell in a somewhat similar manner to you. When asked when we calve, I tell people we have three calving seasons: Spring; Fall; and in between.
I thought the $100 profit per cow already took in account a 90% calf crop?
Shouldn't the land note, set-up cost, and tractor note at least be partially accounted for before the $100 profit is figured?
I like the idea of your post, 'grass first', and there's been a lot of informative points made throughout the thread; but if one is not charging anything to the cows for the grass, then 'grass first' just as well be 'free feed first'. I just think at a very minimum, if the land is paid for, a producer needs to account for what he could have rented his grass to another producer for. If one's only profit is $100 per cow, and if this is before the acquiring of any assets that would add to his net worth, then I think he could easily rent out his land for more money; or at the very least, he could rent it out for the same money and just sit back and relax if he chose to.