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Farm expansion

Posted: Tue May 23, 2017 2:46 am
by Lazy M
[img[url=http://s1039.photobucket.com/user/LazyM1/media/20170523_032100_zpssfiannt2.jpg.html]Image
The farm that is contiguous to our main farm has been put up for sale. The for sale farm is outlined in red and I highlighted in yellow where my farm borders it. After much thought, prayer, and discussion we decided that we either had to purchase it or regret not doing so for the rest of our lives.. The new place is 123 acres, and the owner and I have finally come to terms now it's up to the bank. So far everything is moving along smoothly, wish us luck.
This new place should allow us to increase the herd at this place by another 35-40 hd. Do you think we should retain heifers to make up for this or consider taking out an additional loan to purchase cow/calfs or breds. I can see merit either way, but I am leaning towards retaining additional heifers. I hate to go even more in debt, but I know that buying cows will accelerate the income.. I just have never thought that I can buy as good a cow as I can raise.. Thoughts?

Re: Farm expansion

Posted: Tue May 23, 2017 2:49 am
by Lazy M
Sorry if the pic isn't too clear

Re: Farm expansion

Posted: Tue May 23, 2017 3:11 am
by dun
A little of both. Buy breds and retain your top heifers. Just be sure that the breds you buy are the type of cow that will produce the heifers of good enough quality to keep as replacements

Re: Farm expansion

Posted: Tue May 23, 2017 7:04 am
by TennesseeTuxedo
Lazy M wrote:Sorry if the pic isn't too clear


Where in Kentucky are you located?

Re: Farm expansion

Posted: Tue May 23, 2017 7:26 am
by 1982vett
Since it's fenced and large enough to maintain another herd....maybe buy some older, less expensive bred cows needing a little Tlc. Add some lbs to the cow, get a calf and trade both in for a better cow.

Re: Farm expansion

Posted: Tue May 23, 2017 7:42 am
by True Grit Farms
Congratulations hope everything works outs on the purchase. From what I've seen I'd come to northeast Florida and buy a couple of loads of thin bred cows and bring them back. I saw plenty of good young bred thin cows sell for less than $800. and a few went as low as $650. There's some money to be made down here right now...if you have the grass.

Re: Farm expansion

Posted: Tue May 23, 2017 7:57 am
by Brute 23
Go with your gut.

Personally I would do a mixture of retaining heifers and keeping my eye out for smoking deals to buy cash money.

Re: Farm expansion

Posted: Tue May 23, 2017 8:10 am
by Bright Raven
TennesseeTuxedo wrote:
Lazy M wrote:Sorry if the pic isn't too clear


Where in Kentucky are you located?


Lazy M is near Richmond in Madison County.

Congratulations.

Lazy M, on retaining heifers, consult with Caustic Burno.

Seriously, Caustic made some good points about buying versus retaining. If I were in your exact situation, I would go to Rocking P and buy their commercial bred heifers. Buy this summer and they would have calves on the ground this fall. Their commercial tier of bred heifers are Simangus.

Re: Farm expansion

Posted: Tue May 23, 2017 8:33 am
by Aaron
Rather than running out and getting yourself into more debt with extra cows this year, I would take the cows you already have and do more rotational grazing with them. Give your own pastures a break and see what the carrying capacity of the new pastures is. Buy more cows next year. Replace any poor fences this year - much easier to do with less cows.

Re: Farm expansion

Posted: Tue May 23, 2017 9:12 am
by TennesseeTuxedo
Aaron wrote:Rather than running out and getting yourself into more debt with extra cows this year, I would take the cows you already have and do more rotational grazing with them. Give your own pastures a break and see what the carrying capacity of the new pastures is. Buy more cows next year. Replace any poor fences this year - much easier to do with less cows.


Sound advice.

Re: Farm expansion

Posted: Tue May 23, 2017 10:10 am
by farmerjan
I agree with Aaron. Rotate your grazing, fix fences, and see what kind of grasses you have and get rid of weeds, rosebushes and unwanted junk plants, clean up the pastures. Get a feel for what has better grass,
when. In the process you can retain a few heifers, and keep your eyes open for some cheap thin bred cows, or old cows with calves that won't break the bank. Get them calved out, put weight on them, be able to turn them over for better animals and make a little back from the extra grass. I wouldn't go into any more debt to increase your numbers, but don't throw away a deal on some less than perfect animals that would benefit from feed and a place to turn around. Some times the sorry cows are that way from bad conditions and you might get a few good heifers out of them or they can just help cash flow things. We are buying breds here for 650 to 900. They are a risk, but you can make a bit if they raise a halfway decent calf and then sell them with good condition in the pound pen.

Congratulations on the future purchase. Don't blame you a bit for wanting to buy it.

Re: Farm expansion

Posted: Tue May 23, 2017 10:12 am
by Lazy M
Thanks all for the ideas. After down payment I won't have much free $ this year to purchase cattle. So if I'm going to do it this year I'd have to roll it into the loan. The last 4-5 yrs I've made it a point to save and ai my best 15-25 best heifers, and culled the cows hard at weaning. I saved 24 from last year's crop and ai'ed them last week. I may just relax my culling criteria a bit (age, temperment, questionable udders and feet) until my herd size is closer to capacity. It's kind of a slippery slope though..
Haven't completely made up my mind, but that's where I'm leaning.

Re: Farm expansion

Posted: Tue May 23, 2017 10:21 am
by farmerjan
If the interest rate is REAL GOOD, then you might want to add in 10-15 thousand extra. Use as a cushion to do work on it, or pick up some extras, or to help you along with less sales by you retaining more of your own animals. I wouldn't go too much more in debt, but I think you keeping more of what you have, is more in line with what you want to do by the sounds of it.

Re: Farm expansion

Posted: Tue May 23, 2017 10:32 am
by snoopdog
All good sound advice , maybe look into a LOC, then the funds would be there for the smokin deals you come across, and only interest on what you actually use.

Re: Farm expansion

Posted: Tue May 23, 2017 5:28 pm
by wbvs58
Looks like a usefull addition to your block. Hope it all proceeds smoothly for you.

I am always concerned about the biosecurity risk with bringing outside cows in, Pestivirus in particular.

Ken