I've taken over my grandfathers cattle business. As he got older he let the cattle numbers go down to just enough to pay for fertilize and his taxes. The problem is that I've got 10 cows on over 100 acres. My question is should I buy replacements or let the herd regenerate.
To much land
- Thread starter sambo
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Crowderfarms
Well-known member
If you let the herd regenerate, you'd probably be as old as your Grandfather by the time you had a herd.How did he pay taxes and fertilizer bills on ten head?sambo":24y1zf3h said:
Not enough info. How good is the land, the fences, the pastures, the water, the hay potential and so on?
How big is your wallet? You do not have to answer - but it is an important factor.
Give us more and then expect a reasonable answer.
Regards,
Bez!
How big is your wallet? You do not have to answer - but it is an important factor.
Give us more and then expect a reasonable answer.
Regards,
Bez!
Crowderfarms
Well-known member
What State are you in?sambo":q7kijqu9 said:
sambo":2x9uo4f4 said:
Because I am an idiot - can you clarify - the land is owned by you and rented out - or you do not own the 60 acres - you lease it from someone.
You therefore own 100 acres, or you own 40 acres. It does make a difference.
If you own it all - is the lease to your ???? long term or breakable?
Bez!
Crowderfarms
Well-known member
Bez, You done lost me.Bez!":2jpqylfa said:
Crowderfarms":2m3kbxyk said:
He said he has 100 acres. He then said 60 acres is leased.
I am not sure if he owns 100 acres and leases out 60.
Or does he own 40 and lease 60 from someone else?
So, how much land is deeded to him or his family?
Clear as mud?
Bez!
Crowderfarms
Well-known member
Bez, I was kidding. :lol:
sambo":3l4yqago said:
OK - you OWN 100 acres - but have 60 leased out. You planning to keep leasing it out to someone? Perhaps you are legally obligated to do this?
If so you actually only have 40 acres to play with and therefore you can simply grow the herd from within. Sell some extra hay for cash money. Use any extra funds to develop your breeding program. This means you can do it all at no "outside cost".
Take the lease back and it is a new ball game - and your plans are? .....
This is why it is so important to provide ALL the info if you want someone to give you their best thoughts on your questions.
Bez!
Crowderfarms":3o4n8c5o said:
Just got lost in the translation. Having just spent two weeks in North Carolina, I now know that we are often divided by a common language. :lol:
I now know how to use the Y'all expression - know the literal translation for chityeah and a few others. Needed some help for the first week but caught on fast.
Bez!
sambo":3kohuawq said:
No need to apologize - just needed the info.
Lots of options.
Most important - spend as little as possible. Use profits - if any to build up your program.
If your wallet is thick and you are a gambler - prices are strong. But NEVER forget this is a cyclical game - what goes up will always - without fail - eventually come down. Not good if you hit the top of the cycle and have to sell into a losing market. Might happen this year - might happen in 10 - take your pick.
Have you actually sat down to work out a budget to see if there is any available cash for the start up? Keep the debt load down.
Have you sat down with any cattle folks to work out a possible plan of action - every province, state, county usually has an organization that is willing to help. While I can throw some info your way, it is vital to recognize you require LOCAL advice. I guarantee you that what works here will NOT work where you are. So beware of experts outside your region - but do use them for ideas. :lol:
Have you attended any ag courses? Always go to any and all cattle association information meetings. Do not be afraid to ask the stupid question - because folks will laugh - but they also realize only stupid people do not ask questions!
Do you have a full line of equipment - sounds like you might.
Cheapest way we found to get started is to use the calves as cash. Breed to AI - you do not really have enough cattle for a bull to pay for himself - yet.
Sell your excess hay to pay for one or two or more if able additional good animals each year - save ONLY the best heifers from your small herd - cull hard - it is NOT a numbers game - it is a QUALITY game.
Save about one to two years of forecast hay usage - trust me - you will run into a feed problem down the road - want to go broke? Buy feed for your herd over a long term. Got that T-shirt on this place. Always have a little extra in your back pocket for sale or personal use.
Keep the money from the lease to pay taxes and improvements.
Do it right and you can have a full up and running operation with 40 - 50 animals inside 5 years. All paid for and all quality animals.
Remember - unless you are full time in the business you will likely be working out. That means you need good infrastructure, better animals and an excellent breeding program. All of this can be done if you plan ahead.
Your question as you can see is not simply answered in one thread and two or three comments.
Once you are full up - then take back the lease - or reduce the size of the lease and use the land you take back to continue to grow. Use the money from any land still leased out to pay taxes and development costs.
10 years and you will have a heck of an operation - all paid for to boot.
Looking ahead that 10 years may seem like a long time. When you get there it will have passed as quick as a blink of an eye.
Regards,
Bez!
Are there any hog multipliers near you?? There is a lot more risk; but with that much land if you added finishing floors or nurseries you would eliminate your fertilizer needs and generate cash income (though also a lot of debt). I don't know if Murphy-Brown (ie...Smithfield) is still adding growers or not; but you might want to talk to them. They also took over Carroll's Foods turkey biz.
http://www.smithfieldfoods.com/Understa ... murphy.asp
I used to know all of the players up there; but I got out during the great hog glut of 1998 and haven't looked back so don't know who is still standing and who all went belly up. With the new regs it may not be worth it at all, but 100 acres of fenced grass in North Carolina sounds ideal for this sort of thing.
http://www.smithfieldfoods.com/Understa ... murphy.asp
I used to know all of the players up there; but I got out during the great hog glut of 1998 and haven't looked back so don't know who is still standing and who all went belly up. With the new regs it may not be worth it at all, but 100 acres of fenced grass in North Carolina sounds ideal for this sort of thing.
polledbull
Well-known member
Im from NC, we grow hogs for murphy and coharie in Sampson county. Where in NC are you from??
