Who's breaking even or better?

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MrBilly

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Who is breaking even? If so, how you doing it? Give details of how you did it and where you started from to get there.

Just went over last years financials, and I can't be of much help on this topic - we lost.

Billy
 
Just finished the books and it came out at 438 dollars to upkeep a cow per year. That is a jump of almost 20 cents a day over last year. The increased cost were in liquid feed, fuel, fertilizer and metal products. I have out CLS in the winter cost up 35 cents a gallon this year over last. With current prices I figure Old Belle is turning 75 dollars a year profit.
 
Dang ~ not us but we are still building herd. Lots of money out for more cattle. Having to buy hay at this years prices really hurt. Crop was a wash due to drought ~ that hurt.

But soon, we will be LOADED ~ yes?
 
angie2":35xeyerx said:
Dang ~ not us but we are still building herd. Lots of money out for more cattle. Having to buy hay at this years prices really hurt. Crop was a wash due to drought ~ that hurt.

But soon, we will be LOADED ~ yes?
With debt- yes?
CB's $75.00 margin is starting to get kind of thin. Those of us with a less than sharp pencil are going to start seeing red.
 
Not I. I only keep about 20 head of momma cows. If I just go by actual annual expenses, I make a profit. But, when you add in depreciation and stuff like that, it's a loss again. I really don't see any way to be making a profit with just a small herd.

My tax guy thinks it might be time to become a hobby farm. Not sure how that works from the IRS point of view. Might be better off to just shut down the farm, and do the cattle under the table, so to speak, i.e. no deductions and no income reported at all.

Possible ??
 
I showed a sizable loss in '07. Bought a lot of angus feeder calves. Will hopefully see a gain from them this year.
 
Haven't even started closing out the books for last year and I'm afraid to look at the totals. I expect that the cost per head per day is up 30% due to the hay prices alone. Beef sales was up quite a bit and our farmer's market sales were real good so we shouldn't be in all that bad of shape. Next year will be a challange so marketing will take some creativity and new markets will need to be developed.
Dave Mc
 
I have not done my books this year and I hope Caustic is wrong ( Which he probably is not) because I show $340 per cow cost which includes.
1. 3 rolls of hay per winter/drought
2. Mollasses
3. lease $20 per ac.
4. Fertilize for $ 30 per ac.
5. Minerals $ 20.80 per head
I have no equipment and no interest payments.
 
Hey Caustic, is Old Belle who is turning a profit of $75 your wife? I need to know how she does that.


Billy
 
I haven't started working on taxes yet (procrastination) It feels like it was just a couple months ago I did them for last year :( I know we didn't even come close to turning a profit this year but that is due to a rather large managerment mistake I did. I leased 400 acres that was a horrible nightmare and we ended up spending way more then the place was ever worth, but I did learn a very important lesson - although a very expensive lesson. I'm eating into our savings now. :cry:
 
Our cost per calf ends up being about $470 with a profit of $25 a head. The drought really hurt us. Our numbers include the bottle calves we raise. Bought several calves late in the year and held a few heifers to sell this month which hurt our numbers for 2007 so hopefully they will be better this year.
 
MrBilly":33dfxvkp said:
Hey Caustic, is Old Belle who is turning a profit of $75 your wife? I need to know how she does that.


Billy

No old Belle is not the Mrs.
Old Belle is what I call the cows. If I hadn't reduced fuel cost and consumption so much last year the bottom line would have been even uglier.
We have tightened our belts up on fuel, i haven't bought a tank of diesel for my truck since Dec 15. All trips to town are limited to twice a week and there is a list on the bar it might have a milk, 16 penny nails etc on it. Tractors are all but shut down except feeding and hay production. I have a list for tractor work when I get a days worth then it comes out, no more just running jumping on the tractor to go do this and that.
I have even went back to checking fences the old fashion way I walk the fence line.
 
gerardplauche":12mxnq0i said:
I showed a sizable loss in '07. Bought a lot of angus feeder calves. Will hopefully see a gain from them this year.
You showed a sizeable loss even when it only costs you $.85 per day for feed. If that is true my advice to you would be to get out of the cattle industry now. If you lost money with that low of a feed input costs you will never have a chance to make money regardless of prices. High or low prices.

viewtopic.php?f=2&t=41308&p=479499#p479499
 
tom4018":3m6dpjqp said:
Our cost per calf ends up being about $470 with a profit of $25 a head. The drought really hurt us. Our numbers include the bottle calves we raise. Bought several calves late in the year and held a few heifers to sell this month which hurt our numbers for 2007 so hopefully they will be better this year.
Man that is something to be proud of you still kept the cows profitable in a drought and with these fuel prices. Hat is off to you that took some real ranch management.
 
somn":3goiynmg said:
gerardplauche":3goiynmg said:
I showed a sizable loss in '07. Bought a lot of angus feeder calves. Will hopefully see a gain from them this year.
You showed a sizeable loss even when it only costs you $.85 per day for feed. If that is true my advice to you would be to get out of the cattle industry now. If you lost money with that low of a feed input costs you will never have a chance to make money regardless of prices. High or low prices.

viewtopic.php?f=2&t=41308&p=479499#p479499

Somn - That almost sounds like an attack. That is the second time. You sound almost as cranky as my wife... :tiphat:
 
I did a little better than most around me. Last year before the grass got low I sold a lot of heavys and bought lightweights. I caught the market before the bottom fell out on the heavys and bought lights after the fallout. My hay fields were not going to be worth much so I stocked and grazed them for what they were worth. I grazed them down low and as I rotated the cattle off I sowed some wheat/rye. I still had to buy hay but now that wheat and rye is sure cutting down on the hay. That plan kelp my cost down. I didn't make as much on each one but I was able to make money on more of them.
 
Caustic Burno":1x8vy4th said:
tom4018":1x8vy4th said:
Our cost per calf ends up being about $470 with a profit of $25 a head. The drought really hurt us. Our numbers include the bottle calves we raise. Bought several calves late in the year and held a few heifers to sell this month which hurt our numbers for 2007 so hopefully they will be better this year.
Man that is something to be proud of you still kept the cows profitable in a drought and with these fuel prices. Hat is off to you that took some real ranch management.

One thing that is not calculated into the costs is mileage or taxes. With depreciation that will offset some expense but i feel it has been one of the worst years since I started doing this. We made so very little money that I wonder if it was worth it. It seems like there is always something that needs to be replaced or purchased. We went from a drought to a mud hole and i am beginning to wonder if I can feed hay with my tractor all winter or not. 2wd with a loader just don't go good in the slop we got. May have to take the loader off and try to feed it all that way but sure will miss the loader. I don't know if my back can handle the rings or not and we need to use them as hay is short. Sometimes I wonder why I do this.
 
gerardplauche":m3uk04nl said:
somn":m3uk04nl said:
gerardplauche":m3uk04nl said:
I showed a sizable loss in '07. Bought a lot of angus feeder calves. Will hopefully see a gain from them this year.
You showed a sizeable loss even when it only costs you $.85 per day for feed. If that is true my advice to you would be to get out of the cattle industry now. If you lost money with that low of a feed input costs you will never have a chance to make money regardless of prices. High or low prices.

viewtopic.php?f=2&t=41308&p=479499#p479499

Somn - That almost sounds like an attack. That is the second time. You sound almost as cranky as my wife... :tiphat:
Not attacking anyone. You do understand however when you post about your cost per day to finish a steer is $.85 per day there will be some people (cow calf people) who read that and have no idea what the actual cost is they might believe you and the first thing they will think is those SOB feedlot owners won't pay nothing for my calves on account of the high price of feed but yet look how much money they are making. It only costs them $.85 per day to finish a steer. Doing it your way
Calf cost 500# @ $1.10 = $550.00
340 days on feed @ $.85 = $289.00
Total inputs = $839.00
Sell 1450# steer @ $94.00 = $1363.00

$1363.00 - $839.00 = $524.00

Feedlot netted $524.00
$524.00 also equals a misinformed cow calf man that is mad at the feedlot owners. Cow calf man thinks he has spent a year taking care of cow and calf for a $50.00 profit so the feedlot man can screw him and make $524.00.

In order to survive Cow calf men and women need feedlot owners. Feedlot owners need cow calf men and women. Try not to drive a wedge between us. And telling people you finish cattle for $.85 per day is a big wedge in the trust factor.

This ain't perfect but it will give some insight into break evens. But remember these are done by a feed company who needs to sell feed. Sometimes they are wearing the rose colored glasses.

http://www.beeflinks.com/breakevens.htm
 

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