Fontanelle, IA | easymoney - 10/15/2026 17:03
Name it, name the specific critique or concern that I ignored in this conversation.
I guess it probably depends upon how you calculate "profit" and the margin available/remaining to cover non-cash costs/depreciation/labor/opportunity/etc. Today's $4/cwt 5-6wts have masked many of the historical critiques to cow herd profitability.
If you do NOT borrow money and have paid for land, you probably have at least $500 profit margin advantage over a producer that borrows money/rents land/travel machinery & labor to distant pastures.
If you do NOT borrow money and have paid for land:
1. land cost is free (with exception of taxes i suppose). Pasture cost is free. Hay is free. You can manage as intensively or NOT. Waste as much hay or as little as you wish and you will be Happy.
2. Breed/color/size/quality is immaterial. Auction Market reports may show this or not. 4 frames, 8 frames, Chi's, longhorns, belted galloways, those cute scottish highlanders, feather-necked herefords from 300# to 850# - are all sold at sale barns any day of the week and all fall long. You will still be Happy.
3. Cutting the bulls to gain $150/ hd. Backgrounding to minimize shrink. Or don't.
4. Add in a lucrative, high paying-off-farm career.... capitalize on depreciation to offset Uncle Sam's claws to your income. Did you really need that $30k moco for 10 acres?
5. "invest in show cattle"
I'm perfectly fine with us disagreeing on "happiness" and "borrowed money vs. debt free" decisions. I take it that you disagree with many cattle publications that cite interest expense and high buy-in costs as the main cow herd expansion impediment?
Happiness is easier if your herd/production system can "absorb" calf price shocks, Murphy bad luck, and management hiccups when you don't have to justify any decision to a pursestring holder.
You can either be happy or you can be informed.
It's why the Bible says, "the lender is slave to the borrower"
Happiness is easier & life in general is easier when you dont owe money and own everything outright - just me i guess
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There's over 100 different ways to raise cattle
