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nc Ne | Some one said there is no justification for a 240$ feeder . SO lets say you want to be a cattleman , you need cattle , land , machinery.
going to use a few assumptions and educated guesses
will have minimal machinery and facilities in this as well .
all feed will be bought
In a perfect world we will get 100% calf crop for easy figuring and the cow is gonna live for 10 yrs and always be bred. I bought her real reasonable for 1800$ payment is 24,000 or 240$ a cow
Need 640 acres to run 100 prs . Lets say you find this section for 1250 acre or $800,000 30 yr note is 58,000 or 580 /cow.
machinery (loader tractor , barn , corral, pickup and trailer this and that ) 50,000 6500 / yr 10 yr note
we will wean off 100 head of 550 # steer calves ( easy figuring)
feed them to 750 #
So my bill is gonna look like this .
240 cow
580 pasture
65 machine cost
300 cow winter feed
240 calf background feed
25 trucking
20 vet
20 sale charge
100 machinery cost
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1590 $ and on the 240$ feeder I get 1800$ or 180 gain so on 100 cows $ 18000 Show me how many are going to rush into this . Or take this to your banker and say give me a million dollars so I can be a cowboy.
No land tax in this , no bulls , no family living . no death loss , no replacement cost . No repairs. In 30 yrs I will look ok though.
Yes you can debate those figures. Wean bigger calf, rent pasture cheaper etc . But truly if you wanted to start in the game is going to be pretty tough.
edit on my post I see I have added 100$ machine cost in addition to the 65 $ . so that would skew the numbers a little In favor of 10000 more to the operator .
Edited by jreiser 12/17/2014 20:02
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240$ feeder justification
