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Central Texas | Oct 1973 bought 75 stocker calves to graze on wheat pasture in TX panhandle that was furnished by my dad as my annual bonus. Thanksgiving 73 married city girl from Houston. April 74 sold the calves and they were $7000 SHORT of paying off note for their original cost. Really fun to try explaining that to new wife who has never seen $7000. In 1974, $7000 would buy the fanciest Cadillac made or almost 2 new pickups like pfl bought in above post. Fortunately had no other debt, no children and 2 modest paying jobs so lived on 1 paycheck and gave the other check to PCA for most of the next year until paid off. Not a fun way to start a farming career or marriage but we have managed to survive and eventually thrive. Needless to say it has greatly affected my approach to cattle and debt.
Compared to today, will say that in 74 there were lots of cattle around as numbers had been building since the 50's, feedlots were built in TX panhandle as fast as could be built. Lawyers, doctor's, plumbers, county agents, partsmen, fertilizer salesmen and anyone else who could come up with $1000+ cash were investing in cattle "feeding groups" and having cattle custom fed at these newly built feedyards using feedyard arranged financing. Almost put some money in one of these groups in 1972 but changed my mind when they also wanted me to also sign a guaranty agreement on top of my initial investment. By 1975 virtually all of these groups were broke and out of business. Most groups were setup to place 1 pen of cattle on feed each month so would have 4-6 pens on feed at any time. A big group placed a pen each week so they had 20-25 pens on feed at a time. Needless to say 1974 was very bloody time to be in cattle business. | |
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1973
