Hypothetical financial question

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Bigfoot
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Re: Hypothetical financial question

Postby Bigfoot » Wed Apr 19, 2017 6:37 pm

Not aimed at Ranchman:

Somebody knows something I don't, if they are hiring labor to raise/care for cattle, and have something left over for themselves. Once you've reached the limit of what you and family can do, it's a great great big jump to the next level.

Like anybody here raises tobacco but here goes------- I raised 16 acres of Dark tobacco for many years. Goal was to hire as little help as possible. I can promise you I made more total profit than the man raising 100 acres. He kept the road hot in his truck, while I was working in the tobacco patch. He was leasing ground, leasing pounds (actually acreage on dark), leasing barns, and forking cash out the back window to hired hands all day everyday.
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Re: Hypothetical financial question

Postby Jogeephus » Wed Apr 19, 2017 7:49 pm

Stocker Steve wrote:The sharper cattlemen here talk about "too many cows" (reducing profits due to increased outside inputs). Often the limitations are the leased pasture or crop byproducts or facilities or seasonal labor that give an operator financial advantage(s) up to a certain size. The unpopular fact is that cows do not make a great centerpiece operation in most areas but they are very good scavengers.
One of my more profitable periods was when I hired my teenage kids to run summer stockers on leased pasture. There were both acre and labor limits to this operation. When I pushed the stocking rate envelope (like usual) with an increased amount of purchased supplement I was mostly trading dollars.
Can you hire a retired/semi retired person part time? They make some of the best employees. :nod:


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Re: Hypothetical financial question

Postby backhoeboogie » Wed Apr 19, 2017 8:32 pm

RanchMan90 wrote:Hypothetically speaking say a person made $50k at their 9-5:00 job and $50k net profit on the farm, while having $2000 a month in living expenses. Would it be financially smarter to hire an employee for $20k and keep said job or quit job to keep up with farm work load? What's your opinion and why? Thanks


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Re: Hypothetical financial question

Postby RanchMan90 » Wed Apr 19, 2017 8:40 pm

backhoeboogie wrote:
RanchMan90 wrote:Hypothetically speaking say a person made $50k at their 9-5:00 job and $50k net profit on the farm, while having $2000 a month in living expenses. Would it be financially smarter to hire an employee for $20k and keep said job or quit job to keep up with farm work load? What's your opinion and why? Thanks


You gotta think bigger Much bigger

Tell me more. Bigger on cattle or the job? You're an instrument man too aren't you?
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Re: Hypothetical financial question

Postby RanchMan90 » Wed Apr 19, 2017 8:41 pm

Bigfoot wrote:Not aimed at Ranchman:

Somebody knows something I don't, if they are hiring labor to raise/care for cattle, and have something left over for themselves. Once you've reached the limit of what you and family can do, it's a great great big jump to the next level.

Like anybody here raises tobacco but here goes------- I raised 16 acres of Dark tobacco for many years. Goal was to hire as little help as possible. I can promise you I made more total profit than the man raising 100 acres. He kept the road hot in his truck, while I was working in the tobacco patch. He was leasing ground, leasing pounds (actually acreage on dark), leasing barns, and forking cash out the back window to hired hands all day everyday.

I hear ya. I appreciate all the feedback. Just out of curiosity what's the profit per acre on tobacco?
Success is not a station on the railroad where you get off and your life's work is complete. Success is the train itself ~ Allan Nation

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Re: Hypothetical financial question

Postby Bigfoot » Wed Apr 19, 2017 9:34 pm

RanchMan90 wrote:
Bigfoot wrote:Not aimed at Ranchman:

Somebody knows something I don't, if they are hiring labor to raise/care for cattle, and have something left over for themselves. Once you've reached the limit of what you and family can do, it's a great great big jump to the next level.

Like anybody here raises tobacco but here goes------- I raised 16 acres of Dark tobacco for many years. Goal was to hire as little help as possible. I can promise you I made more total profit than the man raising 100 acres. He kept the road hot in his truck, while I was working in the tobacco patch. He was leasing ground, leasing pounds (actually acreage on dark), leasing barns, and forking cash out the back window to hired hands all day everyday.

I hear ya. I appreciate all the feedback. Just out of curiosity what's the profit per acre on tobacco?


I wish I knew. The only way to raise it now, is to work for the tobacco companies, and I've got bad blood towards them going back generations.
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Re: Hypothetical financial question

Postby Brute 23 » Wed Apr 19, 2017 9:39 pm

One of the biggest problems I see with people in the cattle business, or any small business really, is they aren't good about keeping records and really seeing what makes money and what doesn't. Their efficiency is very poor. They tend to get sucked in on the thought that they have to build their own fences... but they don't factor in that they neglected some thing else that may cost them that much or more.
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Re: Hypothetical financial question

Postby Stocker Steve » Thu Apr 20, 2017 10:19 am

Brute 23 wrote:One of the biggest problems I see with people in the cattle business, or any small business really, is they aren't good about keeping records and really seeing what makes money and what doesn't.


Our local farm expert tracks profit per cow. :? So I am buying up all the biggest 1600 to 2000 pound girls I can find. ;-)
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Re: Hypothetical financial question

Postby Kell-inKY » Fri Apr 21, 2017 8:51 am

RanchMan90 wrote:Hypothetically speaking say a person made $50k at their 9-5:00 job and $50k net profit on the farm, while having $2000 a month in living expenses. Would it be financially smarter to hire an employee for $20k and keep said job or quit job to keep up with farm work load? What's your opinion and why? Thanks

Is your 9-5 a soul crushing slog through the week that leaves you mentally drained and nearly unable to drag yourself back to the prison you call work every morning, and makes building fences seem like an oasis in a sea of turds? Just asking...

Only people here that make money (that I know of) on cattle are those who row crop big time and can use that equipment and crop residue to make a profit without any more inputs. But I'm just a small time beginner who's knowledge is pretty limited.

That, and the people thinking out of the box and going full on organic with chickens, pork, vegetables etc. But that is a real lifestyle commitment there.

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Re: Hypothetical financial question

Postby skyhightree1 » Fri Apr 21, 2017 12:48 pm

True Grit Farms wrote:I sure wouldn't depend on farm income to pay the bills year in and year out. Working while you can is the name of the game, I'd work both jobs as long as possible myself. Anyone can work 12 to 18 hours every day and get ahead. It's hard to get ahead working a 40 hour week unless your a banker or some other suit wearer.


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Re: Hypothetical financial question

Postby backhoeboogie » Sat Apr 22, 2017 1:12 pm

Brute 23 wrote: they aren't good about keeping records and really seeing what makes money and what doesn't.


T. Rowe Price Institutional Large Cap Growth Fund - 11.70 % gain since January 1 . No losses there
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Re: Hypothetical financial question

Postby TexasBred » Mon Apr 24, 2017 12:53 pm

backhoeboogie wrote:
Brute 23 wrote: they aren't good about keeping records and really seeing what makes money and what doesn't.


T. Rowe Price Institutional Large Cap Growth Fund - 11.70 % gain since January 1 . No losses there

If it can hold that til next January 1 you'll have a real 11.70% gain.
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Re: Hypothetical financial question

Postby backhoeboogie » Tue Apr 25, 2017 2:07 pm

TexasBred wrote:
backhoeboogie wrote:
Brute 23 wrote: they aren't good about keeping records and really seeing what makes money and what doesn't.


T. Rowe Price Institutional Large Cap Growth Fund - 11.70 % gain since January 1 . No losses there

If it can hold that til next January 1 you'll have a real 11.70% gain.


I guess I am confused TB. It is now 13.17% $511,396 is now at $578,746.85 if it were cashed in today. I see that as a 13.17% gain as of right now. It could be more or less come next January. A person could cash in and jump in to a CD or bond fund. That bond fund starts now.
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Re: Hypothetical financial question

Postby TexasBred » Tue Apr 25, 2017 2:48 pm

backhoeboogie wrote:
TexasBred wrote:
backhoeboogie wrote:
T. Rowe Price Institutional Large Cap Growth Fund - 11.70 % gain since January 1 . No losses there

If it can hold that til next January 1 you'll have a real 11.70% gain.


I guess I am confused TB. It is now 13.17% $511,396 is now at $578,746.85 if it were cashed in today. I see that as a 13.17% gain as of right now. It could be more or less come next January. A person could cash in and jump in to a CD or bond fund. That bond fund starts now.

Returns are always stated in annualized figures. Not monthly or quarterly. Returns like that in that period of time would be about a 52% +/- annual yield. Actually it should earn about $60,000 in a year (11.7%)
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Re: Hypothetical financial question

Postby backhoeboogie » Tue Apr 25, 2017 3:16 pm

TexasBred wrote:Returns like that in that period of time would be about a 52% +/- annual yield.



I've got my fingers crossed. My year 2025 fund and my GIC fund aren't doing very well. But they're safe.
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