Nesikep":124fqbk4 said:
BRYANT":124fqbk4 said:
sky, true inputs are higher but people act like they aint worth giving away I don't see that. I saw a guy that sold 200 hd. of 450 wt. steers a few weeks back 1.85 per pound and a lady kept saying at that price they were not worth raising ?????? don't know but I think he made money ??????? I don't see any way you can subtract land , if you are buying it, because that is and investment that around here goes up in value ????
The thing is that these days cattle can't pay a mortgage like they used to be able to do.. with moderate ranch being a million bucks, maybe more by the time you stock it and put machines on it.. lets say it holds 300 head? well, those 270 calves you get ain't paying you a living wage and the $50K or more you'll owe to the bank every year.
Nesi, couldn't agree with you more. If we didn't both have our full time jobs, there is no way we could live off the cows and pay a mortgage on the 75 acre farm my son bought a couple of years ago. The land without the house was in the neighborhood of 225,000 and that was less than alot of them around here. Bought the house a year later when they couldn't make the payments on that but it is rented for almost twice what I pay, and it pays the mortgage, taxes, insurance etc. on the house. The cows/calves are paying for the land but barely with the way prices have dropped.
And Sky is right, $200 per calf isn't worth all the time away from family and such over the course of the year.