The best way ?'s

[S&S Farms]

I need some opinions here.

I've been given some great info by a friend on here (not naming names ;-) ) on crossbreeding, but of course ye can't go on with info from just one source, 'cause ye need a bunch of different sources in order to make a GOOD (and solid) decision. (Sorry KNERSIE...oh, whoops!!...too late now... ;-) ...hope ye don't mind...)

Anyway, what's the best way to go, for someone like me:

1. Foundation herd are straightbred Herefords bred to purebred Angus bull to produce baldies (heifers and steers) that are sold for market (premium, obviously); buy replacement straightbred Herf heifers

OR

2. Foundation herd comprising of F1 Black Baldy cows bred to a terminal bull (either Simmental or Limousine(?)), and sell both steers and heifers for premium; buy replacement F1 heifers.


Thanks in advance...

Both if you have the room use number one to produce what you need for number two. Only on number two why not look at a char bull.

 

[HerefordSire]

I need some opinions here.

I've been given some great info by a friend on here (not naming names ;-) ) on crossbreeding, but of course ye can't go on with info from just one source, 'cause ye need a bunch of different sources in order to make a GOOD (and solid) decision. (Sorry KNERSIE...oh, whoops!!...too late now... ;-) ...hope ye don't mind...)

Anyway, what's the best way to go, for someone like me:

1. Foundation herd are straightbred Herefords bred to purebred Angus bull to produce baldies (heifers and steers) that are sold for market (premium, obviously); buy replacement straightbred Herf heifers

OR

2. Foundation herd comprising of F1 Black Baldy cows bred to a terminal bull (either Simmental or Limousine(?)), and sell both steers and heifers for premium; buy replacement F1 heifers.


Thanks in advance...

Why are you starting with so few head?

 

[IluvABbeef]

Why are you starting with so few head?

That's a good question. Since I'm new to the seedstock operation thing, I want to start small so's I can get used to handling and being around cows and calves. I know in some ways they are no different than steers, but I also know that in others they are different, and latter is what I need to get accustomed to.

The other thing is breed. I may not like the breed that I'm starting with (which will probably be a very slight chance), then that gives me a chance to sell half and replace the same number that I sold with that of a different breed.

 

[HerefordSire]

Why are you starting with so few head?

That's a good question. Since I'm new to the seedstock operation thing, I want to start small so's I can get used to handling and being around cows and calves. I know in some ways they are no different than steers, but I also know that in others they are different, and latter is what I need to get accustomed to.

The other thing is breed. I may not like the breed that I'm starting with (which will probably be a very slight chance), then that gives me a chance to sell half and replace the same number that I sold with that of a different breed.

Here is the reason I ask:

With a larger sample, any fixed cost you incur may lower your average cost per head. For example: my land payment is $1,967.50 each month. I have 124 head which is less than land capacity. Therefore, $15.87 is my average cost of land per head per month. On the other hand, if I owned 62 head or half as many head, my average cost of land per head per month is $31.73 per head or twice as high.

In my view, there will be plenty of time for learning. Therefore, only raise cattle for money or love and money, etc. There are two many people that go out of business very fast. You should be prepared and have as large of a volume to lower your fixed cost per head.

 

[IluvABbeef]

Why are you starting with so few head?

That's a good question. Since I'm new to the seedstock operation thing, I want to start small so's I can get used to handling and being around cows and calves. I know in some ways they are no different than steers, but I also know that in others they are different, and latter is what I need to get accustomed to.

The other thing is breed. I may not like the breed that I'm starting with (which will probably be a very slight chance), then that gives me a chance to sell half and replace the same number that I sold with that of a different breed.

Here is the reason I ask:

With a larger sample, any fixed cost you incur may lower your average cost per head. For example: my land payment is $1,967.50 each month. I have 124 head which is less than land capacity. Therefore, $15.87 is my average cost of land per head per month. On the other hand, if I owned 62 head or half as many head, my average cost of land per head per month is $31.73 per head or twice as high.

In my view, there will be plenty of time for learning. Therefore, only raise cattle for money or love and money, etc. There are two many people that go out of business very fast. You should be prepared and have as large of a volume to lower your fixed cost per head.

Okay, I didn't about know that. But what about other costs associated with higher number of cattle?

 

[HerefordSire]

Why are you starting with so few head?

That's a good question. Since I'm new to the seedstock operation thing, I want to start small so's I can get used to handling and being around cows and calves. I know in some ways they are no different than steers, but I also know that in others they are different, and latter is what I need to get accustomed to.

The other thing is breed. I may not like the breed that I'm starting with (which will probably be a very slight chance), then that gives me a chance to sell half and replace the same number that I sold with that of a different breed.

Here is the reason I ask:

With a larger sample, any fixed cost you incur may lower your average cost per head. For example: my land payment is $1,967.50 each month. I have 124 head which is less than land capacity. Therefore, $15.87 is my average cost of land per head per month. On the other hand, if I owned 62 head or half as many head, my average cost of land per head per month is $31.73 per head or twice as high.

In my view, there will be plenty of time for learning. Therefore, only raise cattle for money or love and money, etc. There are two many people that go out of business very fast. You should be prepared and have as large of a volume to lower your fixed cost per head.

Okay, I didn't about know that. But what about other costs associated with higher number of cattle?

I am glad I can help you then. I believe you are referring to variable cost...those costs which fluctuate with the number of head. However, there are fluctuations of fluctuations as in variable cost volume discounts. For example, if I have 124 head and I need to purchase a variable cost item, like a tub of minerals and molasses, the cost may be $125 per tub * 2 per month / 124 or $2.02 per head per month for minerals and molasses tubs. If I buy 10 at one time instead of two, my cost may go down to $1.80 per head per month. You see, when you enter a business act like you are competing for your life. When it comes to selling time, you should have a cost basis lower than your revenue. Before choosing item one or two, or any other item, you should know all your projected costs and revenue.

 

[IluvABbeef]

I am glad I can help you then. I believe you are referring to variable cost...those costs which fluctuate with the number of head. However, there are fluctuations of fluctuations as in variable cost volume discounts. For example, if I have 124 head and I need to purchase a variable cost item, like a tub of minerals and molasses, the cost may be $125 per tub * 2 per month / 124 or $2.02 per head per month for minerals and molasses tubs. If I buy 10 at one time instead of two, my cost may go down to $1.80 per head per month. You see, when you enter a business act like you are competing for your life. When it comes to selling time, you should have a cost basis lower than your revenue. Before choosing item one or two, or any other item, you should know all your projected costs and revenue.

Okay, and for feeding costs, it's pretty much the same thing, right? Like, even when you're making your own feed?

 

[HerefordSire]

I am glad I can help you then. I believe you are referring to variable cost...those costs which fluctuate with the number of head. However, there are fluctuations of fluctuations as in variable cost volume discounts. For example, if I have 124 head and I need to purchase a variable cost item, like a tub of minerals and molasses, the cost may be $125 per tub * 2 per month / 124 or $2.02 per head per month for minerals and molasses tubs. If I buy 10 at one time instead of two, my cost may go down to $1.80 per head per month. You see, when you enter a business act like you are competing for your life. When it comes to selling time, you should have a cost basis lower than your revenue. Before choosing item one or two, or any other item, you should know all your projected costs and revenue.

Okay, and for feeding costs, it's pretty much the same thing, right? Like, even when you're making your own feed?

Correct. They say feed is 60% of all costs, fixed and variable. If you could lower your variable feeding cost per head, this would help to compensate and offset the negatives of your learning stage. If you were to buy your feed additives by the truck load, those that you do not grow on the farm for example, and all other costs were similar to the average rancher, than you would have a competitive advantage over other average ranchers. However, you and I are not average, correct? We are special, so we need a better plan that average so we can get our cost down to increase market share. Correct?

 

[IluvABbeef]

I am glad I can help you then. I believe you are referring to variable cost...those costs which fluctuate with the number of head. However, there are fluctuations of fluctuations as in variable cost volume discounts. For example, if I have 124 head and I need to purchase a variable cost item, like a tub of minerals and molasses, the cost may be $125 per tub * 2 per month / 124 or $2.02 per head per month for minerals and molasses tubs. If I buy 10 at one time instead of two, my cost may go down to $1.80 per head per month. You see, when you enter a business act like you are competing for your life. When it comes to selling time, you should have a cost basis lower than your revenue. Before choosing item one or two, or any other item, you should know all your projected costs and revenue.

Okay, and for feeding costs, it's pretty much the same thing, right? Like, even when you're making your own feed?

Correct. They say feed is 60% of all costs, fixed and variable. If you could lower your variable feeding cost per head, this would help to compensate and offset the negatives of your learning stage. If you were to buy your feed additives by the truck load, those that you do not grow on the farm for example, and all other costs were similar to the average rancher, than you would have a competitive advantage over other average ranchers. However, you and I are not average, correct? We are special, so we need a better plan that average so we can get our cost down to increase market share. Correct?

Thanks. Right, since you an me are in different environments so we'd have different strategies to lower feeding costs.

Thanks again HS. Appretiate the help.

 

[vs_cattle]

Why wouldent you try a Charolais on top of those baldie cows? you would get some nice calves

 

[IluvABbeef]

Why wouldent you try a Charolais on top of those baldie cows? you would get some nice calves

Because I'm not a fan of (in other words, do not like) Charolais cattle. I'd rather go with a Limo or Simmi. Even with those two I prefer simmi over limo...