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To much land
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<blockquote data-quote="Brandonm2" data-source="post: 155004" data-attributes="member: 2095"><p>IF you have got $35,000 sitting IN the bank by all means go ahead and buy the cows. My example assumes that one doesn't.</p><p></p><p>Let's throw some numbers out there..</p><p>Lets say you have gotten 100 acres and you pay tax at $5 per acre (I am just guessing about NC taxes) and minimal fertilizer needs are $25/acre per year and the cost of clipping those fields (including tractor repairs) is $15/acre per year and maintaining the fences requires 10 t-posts and 4 rolls of wire /year.</p><p>So $500 taxes + $2500 fertilizer + $1500 machinery cost + $150 fence repairs = $4650 per year in maintenance costs whether he has 1 cow or 50. IF he has 5 cows they need </p><p>Vaccinations + dewormer = $30 each (incuding the calf + ~half that number is ivomec) </p><p>ear tags = $2</p><p>feed = ~3 rolls of hay + 4 sacks of feed + year round mineral</p><p>or ~$110</p><p>So each pair is another $142 in costs (and I think I am too low with that number)</p><p>so 5 head is $682 in direct per animal costs IF you never called a vet out for anything which I doubt so throw in another ~$110.</p><p>Now we are spending $4650 + $792 or $5442 per year. If all he sales are the bulls then he markets 2-3 calves at ~$600 per calf. Of course keeping those heifers means additional costs in feed and vet bills and he has to have a bull somewhere (unless he AIs which has it's own costs) so factor in $150/hd in heifer development costs plus bull maintenance of $150/year plus $700 for the prorated cost of the bull (who has to be replaced every 3 years to avoid inbreeding).</p><p>$5442 + (2*$150) + ($150+$700) - (3*$600) = a net loss of $4822 a year. Granted eventually he will have enough cows to pay the bills; but that will be after absorbing a lot of years of out of pocket losses.</p></blockquote><p></p>
[QUOTE="Brandonm2, post: 155004, member: 2095"] IF you have got $35,000 sitting IN the bank by all means go ahead and buy the cows. My example assumes that one doesn't. Let's throw some numbers out there.. Lets say you have gotten 100 acres and you pay tax at $5 per acre (I am just guessing about NC taxes) and minimal fertilizer needs are $25/acre per year and the cost of clipping those fields (including tractor repairs) is $15/acre per year and maintaining the fences requires 10 t-posts and 4 rolls of wire /year. So $500 taxes + $2500 fertilizer + $1500 machinery cost + $150 fence repairs = $4650 per year in maintenance costs whether he has 1 cow or 50. IF he has 5 cows they need Vaccinations + dewormer = $30 each (incuding the calf + ~half that number is ivomec) ear tags = $2 feed = ~3 rolls of hay + 4 sacks of feed + year round mineral or ~$110 So each pair is another $142 in costs (and I think I am too low with that number) so 5 head is $682 in direct per animal costs IF you never called a vet out for anything which I doubt so throw in another ~$110. Now we are spending $4650 + $792 or $5442 per year. If all he sales are the bulls then he markets 2-3 calves at ~$600 per calf. Of course keeping those heifers means additional costs in feed and vet bills and he has to have a bull somewhere (unless he AIs which has it's own costs) so factor in $150/hd in heifer development costs plus bull maintenance of $150/year plus $700 for the prorated cost of the bull (who has to be replaced every 3 years to avoid inbreeding). $5442 + (2*$150) + ($150+$700) - (3*$600) = a net loss of $4822 a year. Granted eventually he will have enough cows to pay the bills; but that will be after absorbing a lot of years of out of pocket losses. [/QUOTE]
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