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| Tim in WI - 11/29/2007 20:57
Sell the heifer you have now. Focus on getting your "bad debt" paid off and some money saved up. Get your family situation in order. You said you are more interested in crops than animals-why buy animals? Why would anyone who is credit-worthy(read-will actually make the payments)lease cattle? If they have good credit, they can buy the cattle themselves-no need to pay you. I know you feel mature, but you are 22 years old-too young, in my opinion. Get some more experience before you start making mistakes with your own money. Patience will pay off. I don't want to be too harsh, but I think you need to "pay some dues" first.
Tim,
I knew the whole crops vs. animals comment would bring a reply. Don't get me wrong--I love cattle too. I milked 7 days a week in college, and worked for 4 different dairy farms to gain experience. I loved it. There are a lot of cold winter days that it would be nice to just lay in bed or work in a nice warm shop, though! I will farm somehow someway and in the area I want to farm in we have a BTO paying way more than you, I, or anyone can afford to rent ground for. Between cash rents being out of site and my poor line of equipment, I can't get any ground rented to even start. I have a local guy who is more than willing to let me use his equipment in exchange for my labor at planting and harvest, but even then the rent situation usually bumps me out of the running. People tell me well if he can pay XXXX dollars an acre to farm it, why can't you? He has a large construction company and is farming to lose money and to farm the most ground in our county. I can't blame landowners for renting for all they can but I just hope someone someday is willing to give a young guy a chance.
As far as why someone would lease cattle from me vs. buying their own. The particular person I am thinking about recently built a new barn. They have about 60 cows and built a 120 frestall barn. They do not want to buy cattle, but rather expand their current herd to fill it and that will take time. I don't know if they would be interested or not but I wanted the facts before I talked to them as far as rates, who pays for what, etc. I do know they feel, as I do, that it is a noble thing to help a younger person get started in farming. This isn't really so much of a money making adventure....more like a herd/equity building. When I talk to people about renting ground, they all want to know what I am going to farm it with since I don't have the newest, shiniest equipment. When approaching a dairy owner about renting or buying it, if I had say 30 cows it would say a lot more than "well if I rent this I am going to go buy 100 cows and a chopper and baler and tractor and rakes and mower and wagons and........." I guess my thought is if I start my herd and show that I am serious about farming perhaps it will lead to opportunities. They could be sold if need be if/when a crop farm came my way.
In order to rent ground, it seems like people want me to buy iron and I just can't spend $50,000 to buy equipment to farm ground I "Might" get if I had the equipment. Does that make sense?
Patience will pay off, I agree. But it seems to me the guys who go for it and get things done are the ones farming while guys who sit back and hope for something to come their way are on the sidelines.
Thank you for your advice, it is very much appreciated.
Mike
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Buying/Leasing Dairy Cattle
