Loan or grow?

The place to start if you are new!
User avatar
Brute 23
GURU
GURU
Posts: 7058
Joined: Thu Apr 19, 2007 7:59 pm
Location: South Texas Gulf Coast

Re: Loan or grow?

Postby Brute 23 » Mon Jan 29, 2018 8:58 am

What I am doing on my few cows is cash flowing the day to day expenses out of my pocket so when I sell calves I will use that lump some to buy a couple more.

No risk and it's easy to make happen.
0 x
Brimmer Pimpin Ain't Easy

"Don't let schooling interfere with your education" - Mark Twain

ky colonel
Cowhand
Cowhand
Posts: 44
Joined: Thu Jun 23, 2016 10:27 am

Re: Loan or grow?

Postby ky colonel » Mon Jan 29, 2018 9:13 am

ddd75 wrote:well.. you can wait 8.. 10.. 15 years to build up your herd.. or if you are like me.. don't see that ever penciling out.. then just get the loan, go buy your cattle, and then make your payment. most cattle loans for brood cows are 7 years.

50k loan for around 25 hd. will run around 8850/yr. with 36 calves to take in you should be able to easily make your payment.



how hard is it to get the loan? did you get a loan for more than covered the cows?
0 x

User avatar
Brute 23
GURU
GURU
Posts: 7058
Joined: Thu Apr 19, 2007 7:59 pm
Location: South Texas Gulf Coast

Re: Loan or grow?

Postby Brute 23 » Mon Jan 29, 2018 9:46 am

Remember we are at record highs right now. If you choose to go the loan rout make sure you can pay it with $.8-.9 calves. We are due.
3 x
Brimmer Pimpin Ain't Easy

"Don't let schooling interfere with your education" - Mark Twain

ddd75
GURU
GURU
Posts: 1655
Joined: Thu Feb 19, 2015 10:47 am
Location: KY

Re: Loan or grow?

Postby ddd75 » Mon Jan 29, 2018 6:57 pm

ky colonel wrote:
ddd75 wrote:well.. you can wait 8.. 10.. 15 years to build up your herd.. or if you are like me.. don't see that ever penciling out.. then just get the loan, go buy your cattle, and then make your payment. most cattle loans for brood cows are 7 years.

50k loan for around 25 hd. will run around 8850/yr. with 36 calves to take in you should be able to easily make your payment.



how hard is it to get the loan? did you get a loan for more than covered the cows?

whoops. my number is a little high for 25 hd.. i'd say a loan for 40k would do it. Loan was easy for me, I put my tractor (25k) up for collateral for a 50k loan, plus the cattle I bought with it. They'd probably want to see some more background info / previous cattle history / etc if you didn't have any collateral. I buy everything with 0 down and just use collateral. houses, cattle, equipment, etc.. whatever keeps the most money in my pocket to buy more with. Try to get established with a bank and soon you'll just have to say "I need this much"
0 x

Dave
GURU
GURU
Posts: 6617
Joined: Mon Jul 12, 2004 1:35 pm
Location: Klickitat County Washington

Re: Loan or grow?

Postby Dave » Mon Jan 29, 2018 7:30 pm

Loans are fine. It is certainly easier to grow utilizing borrowed money. Just be careful not to get in too deep. I would never finance more than 50% in cattle. You can be pretty well sure that the market won't fall that much. If it does you are only losing your money and not the banks. Losing your money stings. Losing the banks money will really hurt. And hurt for a long time.
4 x

Jrebyank
Beginner
Beginner
Posts: 13
Joined: Fri Aug 22, 2014 11:06 pm
Location: Morton, MS

Re: Loan or grow?

Postby Jrebyank » Mon Jan 29, 2018 9:57 pm

ddd75 wrote:well.. you can wait 8.. 10.. 15 years to build up your herd.. or if you are like me.. don't see that ever penciling out.. then just get the loan, go buy your cattle, and then make your payment. most cattle loans for brood cows are 7 years.

50k loan for around 25 hd. will run around 8850/yr. with 36 calves to take in you should be able to easily make your payment.


I’m sorta leaning this direction. I’m a math guy and when you figure time spent to go from 10 to 40 that would take several years and income loss, even with the interest repayment. I can see the other side too. I’ve had my cows for 2 years now and haven’t had a single calf yet that I raised. Should have my first one this spring.
0 x

5S Cattle
Trail Boss
Trail Boss
Posts: 266
Joined: Thu Aug 18, 2016 9:55 am
Location: Brenham, Tx

Re: Loan or grow?

Postby 5S Cattle » Mon Jan 29, 2018 11:46 pm

Jrebyank wrote:
ddd75 wrote:well.. you can wait 8.. 10.. 15 years to build up your herd.. or if you are like me.. don't see that ever penciling out.. then just get the loan, go buy your cattle, and then make your payment. most cattle loans for brood cows are 7 years.

50k loan for around 25 hd. will run around 8850/yr. with 36 calves to take in you should be able to easily make your payment.


I’m sorta leaning this direction. I’m a math guy and when you figure time spent to go from 10 to 40 that would take several years and income loss, even with the interest repayment. I can see the other side too. I’ve had my cows for 2 years now and haven’t had a single calf yet that I raised. Should have my first one this spring.

Why haven't you had a calf in two years?
0 x

User avatar
Jeanne - Simme Valley
GURU
GURU
Posts: 8651
Joined: Thu Dec 09, 2004 6:46 am
Location: Central Upstate New York
Contact:

Re: Loan or grow?

Postby Jeanne - Simme Valley » Tue Jan 30, 2018 6:15 am

He didn't say he didn't have a calf - he didn't raise a calf. I am "assuming" you mean you didn't keep any replacements?
0 x
Simme Valley of New York - http://www.SimmeValley.com
"We make a living by what we get,
we make a life by what we give."

ddd75
GURU
GURU
Posts: 1655
Joined: Thu Feb 19, 2015 10:47 am
Location: KY

Re: Loan or grow?

Postby ddd75 » Tue Jan 30, 2018 7:27 am

buying heavy bred cows will bring you some quick money for the first payment.

I do not recommend buying brood cows at the yard that are older. WHY? I tried that and bought over 70 head that way. I had around 65% calving. Eden shale (vet run / cattle association run) farm tried the same way to replicate how many producers buy their cattle. They got around 55% calving rate.

It almost ALWAYS pays to buy a proven program, from proven people.
=
0 x

Allenw
Trail Boss
Trail Boss
Posts: 212
Joined: Mon Jun 12, 2017 3:37 pm
Location: NW OK

Re: Loan or grow?

Postby Allenw » Tue Jan 30, 2018 8:49 am

ddd75 wrote:buying heavy bred cows will bring you some quick money for the first payment.

I do not recommend buying brood cows at the yard that are older. WHY? I tried that and bought over 70 head that way. I had around 65% calving. Eden shale (vet run / cattle association run) farm tried the same way to replicate how many producers buy their cattle. They got around 55% calving rate.

It almost ALWAYS pays to buy a proven program, from proven people.
=


Preg checked, solid mouth or broken mouth, or just buying kill cows on speculation they were bred or had teeth?
0 x

ddd75
GURU
GURU
Posts: 1655
Joined: Thu Feb 19, 2015 10:47 am
Location: KY

Re: Loan or grow?

Postby ddd75 » Tue Jan 30, 2018 9:23 am

Allenw wrote:
ddd75 wrote:buying heavy bred cows will bring you some quick money for the first payment.

I do not recommend buying brood cows at the yard that are older. WHY? I tried that and bought over 70 head that way. I had around 65% calving. Eden shale (vet run / cattle association run) farm tried the same way to replicate how many producers buy their cattle. They got around 55% calving rate.

It almost ALWAYS pays to buy a proven program, from proven people.
=


Preg checked, solid mouth or broken mouth, or just buying kill cows on speculation they were bred or had teeth?


preg checked cows.
0 x

Dave
GURU
GURU
Posts: 6617
Joined: Mon Jul 12, 2004 1:35 pm
Location: Klickitat County Washington

Re: Loan or grow?

Postby Dave » Tue Jan 30, 2018 10:02 am

ddd75 wrote:
Allenw wrote:
ddd75 wrote:buying heavy bred cows will bring you some quick money for the first payment.

I do not recommend buying brood cows at the yard that are older. WHY? I tried that and bought over 70 head that way. I had around 65% calving. Eden shale (vet run / cattle association run) farm tried the same way to replicate how many producers buy their cattle. They got around 55% calving rate.

It almost ALWAYS pays to buy a proven program, from proven people.
=


Preg checked, solid mouth or broken mouth, or just buying kill cows on speculation they were bred or had teeth?


preg checked cows.


I have bought 100's of bred cows from the sale. Lots of those cows were broken mouth old girls out of the high desert country. I can't remember ever having one that didn't calf. I always weaned over 90%. Don't buy bottom of the barrel old cows. Those real thin old cows aren't a good investment. Just sound middle of the road cows with some flesh on their bones. Don't get carried away buying too cheap or too expensive.
1 x

User avatar
Caustic Burno
Crusty
Crusty
Posts: 22279
Joined: Sun Sep 26, 2004 3:02 pm
Location: Big Thicket East Texas

Re: Loan or grow?

Postby Caustic Burno » Tue Jan 30, 2018 10:15 am

Brute 23 wrote:Remember we are at record highs right now. If you choose to go the loan rout make sure you can pay it with $.8-.9 calves. We are due.


Seen many a fellow loose his shirt financing cattle. Besides a volatile market your getting in bed with Satan.
Your one day away from the worst drought and dumping cattle at rock bottom prices.
We dumped here in 2011 seen a many a cow trucked in Mo. in 2012 that went for pennies on the dollar.
0 x

User avatar
Brute 23
GURU
GURU
Posts: 7058
Joined: Thu Apr 19, 2007 7:59 pm
Location: South Texas Gulf Coast

Re: Loan or grow?

Postby Brute 23 » Tue Jan 30, 2018 10:39 am

Caustic Burno wrote:
Brute 23 wrote:Remember we are at record highs right now. If you choose to go the loan rout make sure you can pay it with $.8-.9 calves. We are due.


Seen many a fellow loose his shirt financing cattle. Besides a volatile market your getting in bed with Satan.
Your one day away from the worst drought and dumping cattle at rock bottom prices.
We dumped here in 2011 seen a many a cow trucked in Mo. in 2012 that went for pennies on the dollar.


I enjoy cattle but the money is not good enough to be stressing over paying a loan back.

I would take out a loan and invest it in the stock market before cattle. It has the same risk and WAY more reward.
0 x
Brimmer Pimpin Ain't Easy

"Don't let schooling interfere with your education" - Mark Twain

User avatar
RanchMan90
GURU
GURU
Posts: 1299
Joined: Thu May 19, 2016 1:07 pm
Location: Southeast Oklahoma

Re: Loan or grow?

Postby RanchMan90 » Tue Jan 30, 2018 10:46 am

Only borrow money if you're not independently wealthy. One year loans cash flow for me. 4 year cow loans scare me. With sell buy marketing I only have to worry about what cattle are worth today.
Last edited by RanchMan90 on Tue Jan 30, 2018 11:09 am, edited 1 time in total.
0 x
The secret to getting ahead is getting started ~ Mark Twain


Return to “Beginners Board”

Who is online

Users browsing this forum: No registered users and 6 guests