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N FLA | I am sure many of you will hate on this because it comes from a University. However, I thought it was well written. Examples from Oklahoma, but seem broadly applicable.
http://www.nacaa.com/journal/index.php?jid=657
Summary:
Cow/calf operations are of interest to beginning and small operators as many want to buy small acreages to establish a rural residence or provide a part-time job or hobby. However, financing a beginning cow-calf operation can be a challenge. Using reasonable estimates of establishment and maintenance costs and analyzing cash flow associated with different loan options for beginning operators highlights cash flow problems. If income is available from off-farm sources or other farm income, purchasing cows may be feasible. A beginning producer with excellent management skills and low costs of production may be able to generate sufficient cash flow to cover operating expenses and contribute to loan repayment. But, making land payments will require significant off-farm income.
While leasing land is common in many parts of the country, leasing livestock may be unfamiliar to many producers. However, our analysis suggests that more beginning producers should consider leasing both land and livestock as it offers the best prospect for financial feasibility, requiring only nominal sources of outside cash for investment or maintenance. Producers who are short on cash for a down payment or are not credit worthy in particular may find leasing cows and land provides an entrée to cow/calf production. With leasing, the cow operator builds equity and collateral as ownership in the cowherd grows; however, it is a slow path to cow ownership.
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Financing alternatives for beginners (Journal article)
