Big opportunity...dont want to blow it

Don't know what the prices will do this fall, but I doubt if they will drop much. Like I said, go to auctions and check on prices. Some newspapers carry livestock sales reports also.
Subscribe to the Georgia Market Bulletin or check it out nline. I think GA has a M Bulletin. There are usually cows for sale by individuals in it , if it is the same as the SC Bulletin. Remember there is an asking price and a selling price there.

COWS

wberry85

Let me share an experience I had with a person wanting to get into the feeder calf business. He contacted me regarding a farm I own that was not being used for cattle. The farm had fencing and was planted in forage and had been used as a hay source for a dairy producer. This potential feeder calf producer owned a small herd of heifers, approximately 14 heifers, and he worked for a dairy farmer that had equipment that he could use/borrow. I permitted the man to use my farm free of charge for 3 years. After the 3 year period the man was near financial ruin and was unable to feed the animals through Winter. The neighbors to the farm were calling me regarding the poor condition of the animals and that they animals were not staying in the pasture. I was forced to take action to recover the farm. The point that I am attempting to make is that even a situation that seems to be too good to be true still has a lot of risks. I caution you in entering the venture you are considering. IMO the market for the calves you are anticipating selling will start to correct itself by the time the calves are marketable. If that happens the price of the brood cows will also drop and you may not be able to recover your investment made in an inflated market. The up front costs to get started is more than you may realize. Then there will be expenses to maintain the herd during a time they are not producing any significant income and you may have to reroute funds that are currently used elsewhere. Are you prepared to make these sacrifices and to shoulder theses risks? For consideration I would suggest that you see if you can get a contract on the acreage and prepare to have cattle by getting ready over the next 18 months. By then cattle prices should be coming under pressure and you could start phasing in the feeder calf enterprise.

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Agmantoo
If they can do it,
you know you can!

You should immediately read about custom grazing. I think its the best way to get into cattle.

I think if you are passionate about it and are determined then you should start doing it. Just start small, be smart about it, and be aware you may loose money. And don't quite your day job just yet.

The only thing I wanna point out is that 100 acres for 5 pairs is way too big. You would be spending money on land your not using. It may be a good idea to be prepared to make hay on a large portion of it. It would need to be reseeded and fertilized as COWS described, or look for a smaller pasture to start with.

Not at all an expert on cattle; there's a lot of talk about costs in this thread, but not much talk about how you expect to generate revenue. I raise about 50 hogs per year (and just did my first 4 steers). I make a nice profit on the pigs, some meat chickens, and the steers did very well. I sell direct to individuals looking to fill their freezer with high-quality meat that's raised well. It's very difficult to market and sell to individual customers when you have 1,000 animals to sell. It's pretty easy when you have 5 or 10 (and the margins are much better.) How do you expect to sell your animals? I'd lose my shirt if I tried to compete with commercial farms, but I do well in my niche.

I agree that if you have a passion for it, try it. Start small to limit your risk. Avoid every overhead expense that you can. (and don't quit your day job.)

I don't know why everyone is so negative: This is something you've wanted to do for a long time. Large pieces of land to rent don't come up very often, and I expect you have some reason for not wanting to buy where you are. Those two things right there make this a pretty good opportunity for you.

Sure, cattle prices are high, so what? It's no loss to buy cows that are going to be working for you for five, ten, or even 15 years before you cull them when they won't breed back any more. So all I'm getting at it is, this is a long term investment, not short term, and if it costs more to get into it than you'd prefer, it all comes out in the wash after awhile. The cattle cycle is 8 years, and even if we are at historically high beef prices now, I think we are in a different situation than other cycles. The droughts we've had in this country have upset things a lot. And if you get into freezer sales instead of sending them to regular market, these prices don't mean anything, anyway.

Worse comes to worst you find out it's not something you want to do and you sell out in a few years and you may or may not sell at a loss when you do. Show me any business venture that is guaranteed.

I say go for it if it's something you really want to do.

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-Northern NYS

Yep. Make your own market.

if the droughts continue across the midwest, keep your money in your pocket ready to buy.. when corn prices skyrocket or pasture runs out, beef will drop with the flood to the market.. then buy in and enjoy a favorable market for years..... Hay is already short..

I don't foresee on the hoof prices dropping this year, even if there is a drought. There just isn't enough supply to flood the market and drop it so fast. Corn could go up a bit this year, due to more farmers putting in soybeans this year... coupled with a drought....

Head cows are already being affected here by short spring pasture and hay.. Some farmers are feeding hay trying to hold off selling cows.. We just turned the cows in on one of our hay fields. If hay is short in the fall, we'll be selling cows too..

I'm not saying the bottom will fall out.. I'm saying they will bobble enough to make it worth while to wait. That is if someone has the pasture and hay to feed them. Rolled hay is $45 a roll here now and climbing..

With killing cows selling for over a buck a pound here there is a strong bottom in the cow market.

Problem with that is that at this point he's 2-3 years out before he has a product to market. I'm in my fourth year of owning cattle, had wanted to for quite some time just never had pasture. Pasture became available so I rented it and bought 5 heifers. Prices were at or near record highs at that time also and have pretty much only gone up since. Yr one I had 3 heifers and 2 bull calves. Kept the three heifers and decided to fed the steers out. One went in our freezer so no profit there, the other my buyer backed out at the last minute and we scrambled to sell it. Was able to sell a half and much of it through cuts. So 30 months after my original purchase I had alittle over $1000 and a freezer full of meat. Last year lost several calves either at birth, through the winter or to some sudden illness, oh ya and one moms cow also. I was able to sell some calves but forget about that going in your pocket it all went back into the operation in fencing and handling equipment. I also picked up some additional heifers and 3 n 1's with outside money and built my herd some. Now I'm getting ready to cull some
Moms, they aren't old just have lost calves or haven't been happy with the calves thy have. Ill have some income there but that'll be going to pay off the feed bill at the coop and other cattle equipment. None of it will go into my "household" account.

When I started out I really didn't plan to make money for the first five years. I'd invested in the stock market when it crashed and did quite well in used that money for my cattle operation. I made the choice to manage it for the long term instead of short term profit. That's been expensive. I've held back several heifers that would make a decent $ at market currently. I don't think ill have it where I want it at five years to start livin off if some of the income. Don't expect to invest 9k and be able to make much, or even your money back, for an extended period.

I wish I'd started with feeders and would suggest that to you. Much shorter turn around and you can buy price protection insurance affordable if you so choose. Buy them, turn them, buy again maybe a few extra head. If the land your renting disappears you don't have a bunch of moms you have to sell. Old saying "there's no time like the present" just don't go into it expecting great returns imediately. It's an expensive enterprise and even more expensive getting started.