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thinking of getting into the biz
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<blockquote data-quote="Running Arrow Bill" data-source="post: 39348" data-attributes="member: 9"><p>Welcome MM!</p><p></p><p>Erase from your vocabulary such negative terms as cattle losses, deaths, sickness, etc. With healthy, quality stock from the onset that are properly cared for your losses (if any) should be negligible. While it can take a couple of years for a "3 in 1" package to develop, it is still a bargain in cattle purchases.</p><p></p><p>Pay as you go...your assets will multiply fast and you won't have debt. Breeding stock is a depreciable asset. Calves you raise from your breeding stock are considered "gains" and sales of them are taxable (less expenses of your operation).</p><p></p><p>Do your arithmetic: Project females offspring over a 2-5 year period, only selling your bulls you don't want to keep. Will be amazing how fast your herd will grow.</p><p></p><p>I started off with 2 three-in-one packages of Registered Longhorns. One package was a fence crasher and went to sale barn. The other package has produced 3 calves which sold for 5X the cost of that package. Still have cow and 6 mo old calf that I expect to sell them for minimum of 5X what I paid for the original mama. Over 3 years dealing with quality registered longhorns, our herd has grown from one cow & calf to about 29. Every female is producing a healthy live calf (did have one rare breech birth stillborn). Still buying better breeding stock...selling some of offspring and occasional breeding animal. No debt of any significance. We start breeding our females at 14 months to have first calf by 2 yrs old, then a calf every year. We sell our "beefy" type longhorn yearling bulls as sires for commercial cross-breeding. A bull that doesn't measure up otherwise (stuff happens, right?) we put in freezer (also will eat one if no one willing to pay us what we think he is worth). </p><p></p><p>We also lease out good cross-breeding type bulls to commercial ranchers. Also sell semen. These activities help pay the room and board for these bulls: 2 months lease out will support the bull for the other 10 months.</p></blockquote><p></p>
[QUOTE="Running Arrow Bill, post: 39348, member: 9"] Welcome MM! Erase from your vocabulary such negative terms as cattle losses, deaths, sickness, etc. With healthy, quality stock from the onset that are properly cared for your losses (if any) should be negligible. While it can take a couple of years for a "3 in 1" package to develop, it is still a bargain in cattle purchases. Pay as you go...your assets will multiply fast and you won't have debt. Breeding stock is a depreciable asset. Calves you raise from your breeding stock are considered "gains" and sales of them are taxable (less expenses of your operation). Do your arithmetic: Project females offspring over a 2-5 year period, only selling your bulls you don't want to keep. Will be amazing how fast your herd will grow. I started off with 2 three-in-one packages of Registered Longhorns. One package was a fence crasher and went to sale barn. The other package has produced 3 calves which sold for 5X the cost of that package. Still have cow and 6 mo old calf that I expect to sell them for minimum of 5X what I paid for the original mama. Over 3 years dealing with quality registered longhorns, our herd has grown from one cow & calf to about 29. Every female is producing a healthy live calf (did have one rare breech birth stillborn). Still buying better breeding stock...selling some of offspring and occasional breeding animal. No debt of any significance. We start breeding our females at 14 months to have first calf by 2 yrs old, then a calf every year. We sell our "beefy" type longhorn yearling bulls as sires for commercial cross-breeding. A bull that doesn't measure up otherwise (stuff happens, right?) we put in freezer (also will eat one if no one willing to pay us what we think he is worth). We also lease out good cross-breeding type bulls to commercial ranchers. Also sell semen. These activities help pay the room and board for these bulls: 2 months lease out will support the bull for the other 10 months. [/QUOTE]
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