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Brute 23

Brute 23
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Just got done renewing a lease and the land owner was trying to go up on me because we... "are making so money on beef." Said beef prices had jumped in the store and they were selling out so we had to be making more.🤦‍♂️ Guess I understand what a trigger word is now. He got an ear full from my soapbox. I told him if he would like to lease based off all the profit we are making I'd take that deal all day long.

This made me realize we, as producers, are not doing a good job of getting the word out to people how the business really works.
 

C-Ranch

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It never fails, a person drives by (who is not a rancher/farmer) and see cattle in the fields and a tractor in the shed and instantly assumes we make to much money because the steak at their local steak house costs $25. They just don't understand what we go through and that the price they see isn't reflective of the price we get.
 

SBMF 2015

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Oh come on guys, didn't you know all farmers and ranchers are rich. I mean we all drive new pickups right? ( my pickup was "new" in 2005, and I m the 3rd owner)
Brute and C-Ranch nailed it.
Because we all handle a lot of money. It gives the unknowing public the perception that we are making money hand over fist.
We need to do a better job educating everyone.
 

Caustic Burno

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Just got done renewing a lease and the land owner was trying to go up on me because we... "are making so money on beef." Said beef prices had jumped in the store and they were selling out so we had to be making more.🤦‍♂️ Guess I understand what a trigger word is now. He got an ear full from my soapbox. I told him if he would like to lease based off all the profit we are making I'd take that deal all day long.

This made me realize we, as producers, are not doing a good job of getting the word out to people how the business really works.
I just did my year end preliminary numbers and my calves brought 84 dollars over inputs. That’s a whopping profit of .23 cents a day.
That’s preliminary numbers, I am sure as I start doing a forensic dive it will go lower.
I have been doing this a long time and another year or so like this is going to take out a lot more.
The only money these cows are making is in tax savings on land.
Might be cheaper to put the place in long leaf pine.
Government will pay to plant it and you keep your Ag exception.
 

callmefence

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Just the opposite here. With the countys really cracking down on ag exemptions we've had folks literally begging us to put cows on their place right now. We've got more leases than we need, for very little input.
Reputation has a lot to do with it.
If you have a reputation for taking care of a place and not recreationally around running the pasture everyday.
It pretty much falls in your lap.
 

C-Ranch

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Around here there are 10 guys waiting in the wings for the same piece if ground when it comes up for sale or lease. The one with the biggest check book usually gets it and that's normally the big guys that run 500+ cows. Hard to compete with those guys.
 

Dave

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When I was in the process of buying this place the realtor said there was a dozen guys who would be willing to fight over a lease. After my offer was accepted and in the process of financing the bank wanted a local address. I was at the post office getting a PO Box. I was out in my car getting some information for the post office. A young man who I had never met or talked to approached me to see if I was interested in leasing the place.
Leases do come up here now and then. But one better have an ear open to hear about them and don't hesitate because they will be gone tomorrow.
 

C-Ranch

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Exactly! Most places don't even hit the realtor office, they get sold and then you hear about later. So got to keep your ear to the ground and be ready to jump before someone else hears about it, others wise the price just went up.
 

Lucky

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Lease land is hard to come by here also. Anything that is available is something the bigger guys passed on, so usually needs allot of work. With land prices going up I’m not sure what will happen, could hurt or help. I don’t lease anything but nearly everyone that runs cattle here leases the majority of the land they run on. The future of the cattle business doesn’t look good.
 

C-Ranch

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I've been toying with the idea of using some ground that isnt the best to graze on and building a backgrounding lot. But with that comes more headaches. So the next few years will definitely be interesting.
 

Lucky

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What kind of backgrounding lot are you thinking and how many head? For yourself or the public?
 

C-Ranch

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I would feed a few of mine, but mainly try and find others to feed for. Get them at around 450/500lbs and then feed till 800/900lbs. Thinking around 1500-2000 head. Ideally, I'd like to feed for large organic dairys then I could keep the lot full year round versus only 4/5 months of the year.
 

SBMF 2015

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The problem around here is that if you can drive a tractor on it. The big boys will cash rent it, jerk out the fences and row crop it.
 

Lucky

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We have a local operation doing just what you are talking about. He lost the dairy part a few years ago but is still getting by. I think I’d enjoy running an operation like that. I think if you bought a few trucks to haul cattle and bring in feed for the custom mixes you could make a little there also.
 

C-Ranch

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Yeah we are still crunching #s and see what would be the best. The dairy route makes the most sense since they provide the feed. We just basically feed them out, but still need to look at all angles in case the dairy option went away.
 

504RP

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I don't know how many head it takes to make enough money off of cattle to make even a merger living. But i am guessing 500 head would be a minimum and i don't think you would make much over $ 75,000 after exspenses if you were to be honest about it. And to even do that i think all of your equipment, land etc..., would have to be paid for.

With land, equipment operating cost. I don't think it is possible for the average person right out of high school to ever swing all of that unless they inherited it .

If you were to attempt to aquire all of that when you are in your early thirties. I don't think you would live long enough to pay for it. And for sure couldn't pay for it from cattle sales.

I ask people that i knew what kind of income i could exspect from a cattle farming. And i remember telling them if what they was telling me was the truth. Why was they in the cattle business for no more than they were getting out of it.

And more than one of the told me it was more to do with a life style than the money they make from cattle.

I have found that statement to be very true. And once your in it. Your not going to get out of it without taking a loss in most case's . Thats just my opinion.

I got into it for tax purposes and i think i could have found a better way to have gotten around paying taxes than a cow/calf operation.
 

simme

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I don't know how many head it takes to make enough money off of cattle to make even a merger living. But i am guessing 500 head would be a minimum and i don't think you would make much over $ 75,000 after exspenses if you were to be honest about it. And to even do that i think all of your equipment, land etc..., would have to be paid for.

With land, equipment operating cost. I don't think it is possible for the average person right out of high school to ever swing all of that unless they inherited it .

If you were to attempt to aquire all of that when you are in your early thirties. I don't think you would live long enough to pay for it. And for sure couldn't pay for it from cattle sales.

I ask people that i knew what kind of income i could exspect from a cattle farming. And i remember telling them if what they was telling me was the truth. Why was they in the cattle business for no more than they were getting out of it.

And more than one of the told me it was more to do with a life style than the money they make from cattle.

I have found that statement to be very true. And once your in it. Your not going to get out of it without taking a loss in most case's . Thats just my opinion.

I got into it for tax purposes and i think i could have found a better way to have gotten around paying taxes than a cow/calf operation.
Here is information on the largest angus operation in my state. I don't believe they inherited anything. Just years of hard work, planning and can do attitude. A success story for sure.
 

C-Ranch

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I agree for somebody to start ranching/farming today with nothing is an uphill battle. Equipment (good used) is expensive and land well that's a whole different story. I may lucky as I'm the 3rd generation running the ranch and I have outside income, so the ranch, like any business, has to sustain itself. Also, as many have mentioned it's a lifestyle choice for some. I'd rather spend my time working cattle than sitting behind a desk working for someone else 40hrs a week..;)
 

C-Ranch

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There are great stories all a cross the country of individuals with a ranching or farming dream making it a reality. I think it's great, and brings hope that regardless what the idots in DC are doing there are people out there willing to risk it all to do what they love and keep people all across the globe fed.
 

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