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| When I was getting started, cash flow was (still is) always something to watch. Buying an open heifer with borrowed money meant that if you bred her, you had 9 months to wait before having a calf......and another 6-7-8-9 months to wait until she weaned that calf.......So you probably will have a year and a half to two years before ANY cashflow returns from the project. I couldn't wait that long, so early on, I always bought cow/calf pairs, or heavy springer cows. Costs more, but cashflow flows much quicker. Banker's happier.
It helps a lot if you have your own capital, or your own grass pastures. Buying financed cattle, and pasturing them on rented grass, doesn't leave a great deal of profit some years....especially if you have some death loss, or difficult weather require additional feed inputs. Don't ask me how I know this.
I had some fancy herfords in my younger days, but am almost exclusively black now. My reason was eye problems--especially cancerous turmors. Any tumor which shows bigger than a matchhead nowadays will get the cow condemned, and one can't sell them. Used to be able to sell them publicly, but no longer. Much less eye problems with blacks.
If you have the time and inclination, a pedigreed herd might be more profitable. You can sell fancy bulls to the neighbors. LOTS of management, and record keeping, tho.
1976 (I think) I bought 22 cow/calf pairs on borrowed money for a rented pasture. Cattle were cheap, and grains were high. Paid them off in a year or two. I spent a few months thinking "Man, THIS is TOO easy!" I was right, it was. Spent the next thirty years paying off the cattle purchased later. Nowadays we run about 150 mama cows with minimal management. Darn near all paid for, but am negotiating for some more grass.
Dad used to say, " A dozen cows is fun. A Hundred cows is WORK." He was right. showboat | |
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starting a herd?
