Small time cattle operation

[badaxemoo]

I don't like using "hobby" to describe what I am working toward. You are right when you observe that it is not a big enough operation to make a living on. But if I can find a way (with good business practices) to clear $7,000 a year the place will pay for itself and I will get a free education in the cattle business (mostly the hard way). Who knows where that may lead?

Besides, there have been days when I would have liked to have had 7,000 bucks. Those days may come again.

Best Regards;
Jon

Rather than set a dollar goal of $7,000, why not sit down with a paper and pencil and figure out what you can actually clear with that size acreage?

I might be all wet, but I think that $7,000 might be a little optimistic, especially if you are including any kind of labor charge (I don't - I guess my time isn't worth anything, and am I really going to use that time to earn money some other way?).

Are you planning on selling at the sale barn or direct marketing freezer beef to some sort of niche group? Don't underestimate the amount of time it takes to direct market. It can be satisfying, but extremely time consuming.

And whoever brought up the maintenance costs hit the nail on the head. I had the advantage of starting out with several pieces of older hand-me down equipment from my folks.

On the other hand, I had the disadvantage of starting out with several pieces of older hand-me down equipment from my folks!

 

[backhoeboogie]

I had the advantage of starting out with several pieces of older hand-me down equipment from my folks.

On the other hand, I had the disadvantage of starting out with several pieces of older hand-me down equipment from my folks!

:lol:

Seriously tho - some of the horror stories of late with new equipment has me thinking that old used stuff I bought my have been the best thing. Maybe some day I will get the A/C working in that Massey.

 

[john250]

I had the advantage of starting out with several pieces of older hand-me down equipment from my folks.

On the other hand, I had the disadvantage of starting out with several pieces of older hand-me down equipment from my folks!

:lol:

Seriously tho - some of the horror stories of late with new equipment has me thinking that old used stuff I bought my have been the best thing. Maybe some day I will get the A/C working in that Massey.

I have a '75 MF 1135. The compressor is under the shop bench. I made expensive repairs to it 3 times. Then I just removed it. The cab is still a nice windbrake in winter. Just not meant to have AC.

 

[dun]

There's old and then there is ooold. The trick is in telling the difference

 

[dyates]

You can probably turn a profit in the long run, but it will take several years. Just look at the cost of the cows to get started.

Don't forget the opportunity costs involved. What else could you do with the land? Good pasture with good fence around here will rent around $30/acre. You could also bale hay and sell it. I'm just saying you could probably turn more profit sooner with another enterprise.

The most important part of the equation is what will make you happy. If you want cows, get cows. Stick with it and make wise, informed decisions. You will eventually make a little money.

 

[rkm]

When I said 9 t0 10k gross I meant gross. Even the best cattlemen wouldn't figure more than more than $3 to $400.00 net per cow. Some times something jumps up and bites you in this business and 15 cows is just not enough to spread your losses over. Having said all of that, if it was me I would try it. 8) But I've had this disease for over 50 years and I guess I will die from it. :lol:

 

[bigbull338]

ive had the cattle diease for well over 40yra.all my life actually.an its a lifetime diease.

 

[dun]

ive had the cattle diease for well over 40yra.all my life actually.an its a lifetime diease.

I'm afraid I would die without it

 

[Beef11]

The problem with the number 15 is that it is a number that doesn't lend itself to efficiency. If you want to breed them in a manner other than strictly AI you will need a bull. That bull will breed 25 head for the same money as you will pay to breed 15. That number will pull your cost of production up. On the sale end of things you will end up with a handful of calves to sell not enough to fill a load so you will be on the lower end of the price scale for calves of like size and quality. If it were me i would look to pick up a little more lease ground and shoot for at least 50 head maybe 100. Good luck.

 

[bigbull338]

ive had the cattle diease for well over 40yra.all my life actually.an its a lifetime diease.

I'm afraid I would die without it

same here i wouldnt live a month if i didnt have cattle.heck i always say i have manure in my vains insted of blood.

 

[Brute 23]

I would buy young heifers (when prices are low) and sell them when they are older (prices are high).

If at any time things aren't looking good you sell them and wait for the right time to get back into it.

 

[dun]

ive had the cattle diease for well over 40yra.all my life actually.an its a lifetime diease.

I'm afraid I would die without it

same here i wouldnt live a month if i didnt have cattle.heck i always say i have manure in my vains insted of blood.

My wife frequently comments that that muct be what I have for brains.

 

[spoon]

Beef11, when I was talking to a friend about starting a hobby farm (I like that term) he said he started the same way. But he made the mistake of making money at it. So he got greedy and expanded his operation. He got up to 90+ cows. He said that he was making money but that it was too much like work and he is now down to 19 and much happier.

 

[plbcattle]

On that small of an operation, it will be hard to make much off commercial cattle. U might want to look at a registered operation. Maybe get some commercial cows, buys some embryos, or get a couple donors and flush them and sell embryos, the offspring will bring more if you have the right genetics. U can raise fewer cattle and make more off them in a smaller operation. Just something to look at

 

[rkm]

Plbcattle, I was thinking the same thing. But he probably needs a little more experence before he tries to crack that nut.

 

[MissouriExile]

On that small of an operation, it will be hard to make much off commercial cattle. U might want to look at a registered operation. Maybe get some commercial cows, buys some embryos, or get a couple donors and flush them and sell embryos, the offspring will bring more if you have the right genetics. U can raise fewer cattle and make more off them in a smaller operation. Just something to look at

I had thought along those lines, even bought a Registered Red Angus Cow/Calf (Jury is still out there) thinking in terms of Small but high quality but as the next poster notes I don't have enough experience to know what to buy and what to stay away from.

the stock market adage: "Buy Low, Sell High" applies to the cattle business as well but you have to be able to recognize when cattle selling low are a good deal or "somebody elses problem".

thanks
Jon

.

 

[JMichal]

I believe I read on these boards a few years ago that it takes 300 head to make a living. Well maybe depends on how much you need.

One thing I do know is that if you work outside and make enough to live on, and the farm pays it's expenses it will be the best investment over time. They are not making more land. It has gone way over price what you could pay for it to farm, and will continue.

There is alot of money in the U.S., and alot of people waiting to get out of the city.

A friend bought a 10,000 acre ranch 2 years ago in SE Kansas for $1,000./Acre and sold it last month. He sold it for $1,900.?acre. You do the math. He has been buying up large Ranches like this for about 10 years now (all over the midwest to the west), and is making a killing.

Most of us will reap the rewards when we sell out.

 

[OhioRiver]

This is true...I am one of them

I believe I read on these boards a few years ago that it takes 300 head to make a living. Well maybe depends on how much you need.

One thing I do know is that if you work outside and make enough to live on, and the farm pays it's expenses it will be the best investment over time. They are not making more land. It has gone way over price what you could pay for it to farm, and will continue.

There is alot of money in the U.S., and alot of people waiting to get out of the city.

A friend bought a 10,000 acre ranch 2 years ago in SE Kansas for $1,000./Acre and sold it last month. He sold it for $1,900.?acre. You do the math. He has been buying up large Ranches like this for about 10 years now (all over the midwest to the west), and is making a killing.

Most of us will reap the rewards when we sell out.