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N FLA | Threw together this unsophisticated budget as we talk about expanding the rent-a-cow program. I still can't figure out where herd expansion comes from unless it's organic (folks with paid off assets and big profits from previous year). There just doesn't seem like many dollars left making this attractive to newcomers. This thing looks much more attractive if you sell off the factory (the cows) at Labor Day.. I know its not precise, but a few dollars here and there and it's in the ballpark. Not sure how to pull off year 2 if the feed is gone and there isn't money to buy more. This would be "calving with nature" for our area calves born at grass greenup in spring and weaning calves when warm season grass gets poor in feed value late in the season. Could obviously change budget to not pay self for labor, and death loss is too low. Could possibly get $1150 for calves here in this program if prices hold in 2015. I assume we will do some version of this still this winter. My established "rent-a-cow" herd is October-December calving to raise calves on rye/ryegrass until May. One bull isn't enough but I could work my current bull overtime. We have silage and picked up a new grass field to utilize. Just sharing for your entertainment.
CATTLE OPERATION FINANCING
Resources
Silage Wagons
Truck
200 T Silage
45 Rolls Hay
100 Acres Bahiagrass ( rented)
Knowledge/Skills/Abilities
Pens/Squeeze Chute
Time
Needs
50 Head Bred Cows ($57,750)
Bull ($3,000)
Stock Trailer ($7,500)
Loader Tractor ($10,000)
Fuel ($5,000)*
Maintenance/Repairs ($5,000)*
Mineral/Creep/Supplement/Tags/Vet ($2,000)*
Fertilizer ($6,000)*
Labor (self) ($5,000)*
Land Rent ($5,000)*
Program
Buy 50 Head 4-6M bred cattle #1100 @ 1.05/lb =50*$1155=$57,750
Feed Silage to May 1. Calving March-May. Summer grazing May-September on fertilized grass.
Sell #350 calves @ $3/lb. Commission 4%. Net $1,008
Net $1008 x 50 = $50,400 – 2% death loss = $49,392 Net Sale of Calves
Preg Check Nov 1 and sell open cows (REPLACE?)
Operating Loan*
$28,000 * 1.5% = $420. Annual payment $28,420
Term Loan
$78,250 * 1.5% = $1173.75. 5YR Amort $15,650. Annual Payment $16,824
Total Payments $45,244
Net Sale of Calves $49,392
Margin to Management + Silage/Hay $4,148
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rent-a-cow budget
