Loan or grow?

The place to start if you are new!
Stocker Steve
GURU
GURU
Posts: 7487
Joined: Mon May 02, 2005 8:28 am
Location: Central Minnesota

Re: Loan or grow?

Postby Stocker Steve » Sun Feb 04, 2018 11:23 am

Good posts. I like to use the U of Kentucky "Bred Heifer Profitability" spreadsheet. In my numbers cow depreciation becomes a huge deal - - so recently I have been rebalancing my "stocking rate" by selling some (common) stock and buying back some (cattle) stock that can appreciate.

Once you have confidence you can consistently make a profit then a little leverage is a good idea. :cboy: I was pretty confident till 2015/2016. Bud would say I was not making enough turns.
0 x
Stocker Steve

Coosh71
Cowhand
Cowhand
Posts: 75
Joined: Sun May 01, 2016 8:32 am

Re: Loan or grow?

Postby Coosh71 » Tue Feb 06, 2018 8:15 am

I have read every post in this thread and really enjoyed reading it all. There's a ton of knowledge on this site and that's why I enjoy it so much. There are successes and failures in either approach you decide to take (loan vs grow slow). I agree with one post that sticks out to me, about growing slow and learning as you grow. It's much easier to swallow losing 1 or 2 head because of a blunder vs 25. A neighbor bought 50 hd of nice Black Angus bred heifers a few years back just a couple months before prices took a big drop. With what he paid for heifers vs his return in first calves (with a lower market) and the loss of 12 that didn't breed back he was pretty deflated. He paid his bank not but it was a wash. Took 3 years to make it pencil out right. Also after 3 years he had 29 of the original 50 remaining in his herd. I guess my take is that if he had bought (with cash) 10-15 mid aged cows/year, he would have been a whole lot better off after those 3 years.
0 x

bird dog
GURU
GURU
Posts: 1045
Joined: Tue Nov 28, 2006 10:33 pm
Location: North Central Texas

Re: Loan or grow?

Postby bird dog » Tue Feb 06, 2018 8:56 am

Coosh71 wrote: I guess my take is that if he had bought (with cash) 10-15 mid aged cows/year, he would have been a whole lot better off after those 3 years.


Gaining experience is expensive in this business. You can save a bundle learning from other peoples screw ups. Stay with it long enough and you will have your share of stories to tell someone else how dumb you were. No one is immune from the dumb mistake disease.
5 x


Return to “Beginners Board”

Who is online

Users browsing this forum: Yahoo [Bot] and 10 guests