StrykerScout
New member
How can a young man purchase a ranch buy cattle to stock it, pay the bare minimum operating expenses and afford to feed himself for the year in SW Missouri? Is it even possible? I don't believe so. I've done the math several times.. It doesn't work even with a pretty decent off farm income. The off farm income helps but it doesn't cut it with my current liabilities and expenses. With the price of land in the area, you could not make a 5-7 year cattle payment and at the same time make an annual farm payment even amortized over 40 years at a very low interest rate per USDA beginning farmer and farm ownership loans. This isnt even considering a loss/death rate, fertilizer, decent truck, trailer, handling facilities and getting hay baled on shares to maintain a low equipment cost to start. Assuming that purchasing quality brood cows with calves at side and bred back at atleast $1500/pair. Is it possible, what am I missing? The local USDA rep told me that we could potentionally get 1.75 million to purchase land and to make capital improvements as a beginning farmer/rancher and stock it with cattle through a low interest operating loan over 5-7 years. As stated it doesn't matter if you purchase 15 cows and 40 acres or 150 cows and 400 acres. The math doesn't seem to work. How could they give someone all this money knowing it can't be paid back. Or are the USDA beginning farmer loans not intended for beginners but more for people like my good friend Jacob who started out with about 30 momma cows as a teenager and with the help of his grandparents he was able to grow his herd to about 200 owned free and clear by the time he graduated Highschool. Then he was able to purchase a portion of his grandparents farm through the USDA at a fraction of the market value. I unfortunately have to purchase my grandparents farm at full market value from my aunt and my grandparents probably would have given me cattle to get started but didn't have their ducks in a row before they were killed unexpectedly. I have to purchase the farm its not an option for me. I am not quiting my day job but to buy the farm I have to be able to make a cattle payment and farm payment from my calf crop. Impossible? I would love and appreciate some insight from experienced professionals who operate a real and profitable enterprise. Thank you.