Loan or grow?

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Jrebyank
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Loan or grow?

Postby Jrebyank » Sun Jan 28, 2018 5:53 pm

I have been fooling with cattle for the most of my life. My family shut down our operation several years back and the last year or so I’ve been getting back to it. I have hustled up 11 Moma’s on 25 acres with no loans or assistance. Here’s my question. I have bought(financed), cleared and fenced 60 acres recently. Would it be better to get a loan to buy cattle. It seems like it is taking for ever to raise heifers from what I have? If so what are the best options out there?
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Re: Loan or grow?

Postby 5S Cattle » Sun Jan 28, 2018 6:48 pm

How many more cows are you wanting to get?
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sim.-ang.king
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Re: Loan or grow?

Postby sim.-ang.king » Sun Jan 28, 2018 6:50 pm

Put feeders or old boney bred cows on the 60 acres. Be a lot cheaper investment, with a some what quicker turn around.
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Re: Loan or grow?

Postby angus9259 » Sun Jan 28, 2018 7:03 pm

Jrebyank wrote:Would it be better to get a loan to buy cattle. It seems like it is taking for ever to raise heifers from what I have? If so what are the best options out there?


Unless you're ok losing your capital, a loan on something as risky as cattle is a bad deal. Be patient. Never seen patience be a bad investment.
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Re: Loan or grow?

Postby Farm Fence Solutions » Sun Jan 28, 2018 7:21 pm

Pick up a part time job and roll the paycheck into a pair at the sale every other week.
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bird dog
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Re: Loan or grow?

Postby bird dog » Sun Jan 28, 2018 7:44 pm

I agree with the others. Never borrow money for cows unless you have many years of experience and know what your doing.

I would buy some old cheap bred cows to get your feet wet and generate some cash flow. Sometimes you get lucky and they throw a heifer you might want to keep.
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Re: Loan or grow?

Postby ALACOWMAN » Sun Jan 28, 2018 7:59 pm

I use to be bad at borrowing on a 6 mo. Note...I'd pay it off with money from saving,cattle,or income tax..I have just payed the fn charges and roll it over again in a pinch...not recommending you do it just what I've done in the past....
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Re: Loan or grow?

Postby wacocowboy » Sun Jan 28, 2018 8:02 pm

Why not buy a few 5 weight heifers and raise them up. As others have suggested buy old bred cows maybe you will get heifers to raise. If she is old odds are she was a good cow might pass on those genetics to the daughter.
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Re: Loan or grow?

Postby Silver » Sun Jan 28, 2018 8:38 pm

Sometimes leasing cattle can be a good option.
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Caustic Burno
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Re: Loan or grow?

Postby Caustic Burno » Sun Jan 28, 2018 8:39 pm

wacocowboy wrote:Why not buy a few 5 weight heifers and raise them up. As others have suggested buy old bred cows maybe you will get heifers to raise. If she is old odds are she was a good cow might pass on those genetics to the daughter.


SS heavies are cheap here right now.
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Re: Loan or grow?

Postby 5S Cattle » Sun Jan 28, 2018 9:49 pm

Caustic Burno wrote:
wacocowboy wrote:Why not buy a few 5 weight heifers and raise them up. As others have suggested buy old bred cows maybe you will get heifers to raise. If she is old odds are she was a good cow might pass on those genetics to the daughter.


SS heavies are cheap here right now.

$650 here last time I sat at the sale two weeks ago. 2 were 7 months bred. Was be nice I left my checkbook at the house
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Caustic Burno
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Re: Loan or grow?

Postby Caustic Burno » Sun Jan 28, 2018 10:02 pm

5S Cattle wrote:
Caustic Burno wrote:
wacocowboy wrote:Why not buy a few 5 weight heifers and raise them up. As others have suggested buy old bred cows maybe you will get heifers to raise. If she is old odds are she was a good cow might pass on those genetics to the daughter.


SS heavies are cheap here right now.

$650 here last time I sat at the sale two weeks ago. 2 were 7 months bred. Was be nice I left my checkbook at the house


Dang good cheap way to get started.
The girls know how to work and most are good for a few more calves.
Even if she isn’t you bought her and the calf for kill cow prices.
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Re: Loan or grow?

Postby Coosh71 » Mon Jan 29, 2018 7:52 am

I'm not trying to be anyone's "finance guy", but we started out years ago with 9 old cheap bony cows and a rented bull on 7 sections. We could have went to the local land bank and filled up every pasture. We decided to do it the ole fashion way and I'm glad we did. We didn't and haven't borrowed a dime for anything. We have bought and sold cattle for years and reinvest every bit that we can back into our place and our animals. It's slow at first but once you build up replacements and buy more bred cows it speeds up quick. Took us about 7-8 years to get about where we wanted on stocking numbers. I sleep well at night for sure. Oh and when we goto the sale we see guys selling their calves and their banker is there with them to get "his" check. I'm prolly different than most but I don't like owing anyone if I can help it. Good luck.
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Re: Loan or grow?

Postby ddd75 » Mon Jan 29, 2018 8:03 am

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.
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Re: Loan or grow?

Postby ddd75 » Mon Jan 29, 2018 8:07 am

if you were to buy older cows, I'd look for a ranch making room for younger ones.

That'd be the best bang for your buck.
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