Farming Question

[Cam-Mac]

There IS money.........at times. But it aint no "Dolla dolla bill yo" buisness. and its nothing to go into without background, or hands on help from those that know whats going on, and can predict futures.

Yes good point low fence. Futures are an important tool. I have done well with my cattle, but i shouldve pointed out that a lot of the benefit has come from playing futures market/contracts. If you're gonna do it- learn from someone who understands the markets & futures.

You might also talk to a commodity trader. They have some good pointers as well.

[Smokeater]

Better look at it as a hobby....

[okiedoke]

Who will you sell it to? 60% of Texas cattle are GONE! and at market prices at and above $2.40/ lbs........anyone buying in will be bankrupt

Just for reference, I do irrigate and I wont count that cost into the over $200,000 worth of hay equipment I own+...and I put $1,300 in my pocket from custom bailing this season

Is that $1300 in your pocket after paying yourself a salary? Or your bills?

[RdRdrFan]

Reminds me of a joke.

Three best friends (farmer, doctor and a lawyer) die in a crash. They show up at the pearly gates and the doctor steps up to St Peter and gibes his name. St Peter looks his name up and says "You have lived a horrible life. You were a womanizer. You have to pay $250,000 or you can't get into heaven.". So the dic whips out his wallet and throws down $250,000 so St Pete let's him in. Next up is the lawyer. He gives St Peter his name and St Pete begins to shake his head. "You were much worse than your doctor friend. Not only were you a womanizer but you were a drunk as well. It will cost you $500,000 to get in." So the lawyer whips out $500,000 and steps through the pearly gates. Finally the farmer steps up and gives his name. St Peter can't believe it. "You sir, are the worst of all! You were a womanizer, a drunk AND you were mean to babies and dogs. You must pay $1,000,000 to join your friends and enter into heaven.". Farmer shrugs his shoulders and says "No problem. That's what an operating line of credit is for. Where do I sign?"

May not be as funny to those of you who haven't spent time around the farming communities. I just laugh when I see guys who have made one decent crop in the last 5 years getting brand new trucks and a new suburban for mama EVERY SINGLE YEAR. it's crazy. Most farmers I know are great guys but they all can spend some cash..........even in the "down" years.

[Low Fence]

Is that $1300 in your pocket after paying yourself a salary? Or your bills?

That was after before fuel, net, and parts............so $1,300 Gross income on 200,000K worth of equipment

[Low Fence]

Is that $1300 in your pocket after paying yourself a salary? Or your bills?

That was after before fuel, net, and parts............so $1,300 Gross income on 200,000K worth of equipment



"I make it rain, up in heerrraa"

[Low Fence]

Reminds me of a joke.

Three best friends (farmer, doctor and a lawyer) die in a crash. They show up at the pearly gates and the doctor steps up to St Peter and gibes his name. St Peter looks his name up and says "You have lived a horrible life. You were a womanizer. You have to pay $250,000 or you can't get into heaven.". So the dic whips out his wallet and throws down $250,000 so St Pete let's him in. Next up is the lawyer. He gives St Peter his name and St Pete begins to shake his head. "You were much worse than your doctor friend. Not only were you a womanizer but you were a drunk as well. It will cost you $500,000 to get in." So the lawyer whips out $500,000 and steps through the pearly gates. Finally the farmer steps up and gives his name. St Peter can't believe it. "You sir, are the worst of all! You were a womanizer, a drunk AND you were mean to babies and dogs. You must pay $1,000,000 to join your friends and enter into heaven.". Farmer shrugs his shoulders and says "No problem. That's what an operating line of credit is for. Where do I sign?"

May not be as funny to those of you who haven't spent time around the farming communities. I just laugh when I see guys who have made one decent crop in the last 5 years getting brand new trucks and a new suburban for mama EVERY SINGLE YEAR. it's crazy. Most farmers I know are great guys but they all can spend some cash..........even in the "down" years.

lol.

It's "those" that make it look easy to everyone else. There were tons of "fly by night" hay bailers in my area in past years. New trucks, and new equipment across the board. They were burning up the roads bailing crap I turned down. They never knew why I wouldn't burn $150 in fuel, $30 in blades, $100 in wrap, wear and tear on everything all to get a check for $300 Now IF there are any cattle opperators left in my area I'm the only one the bank don't haves equipment.

It takes lots of work to justify a $50K truck.......and I dont know how some do it seems every 2-3 years. IF there are ZERO breakdowns (which dont happen) after fuel and supplies (last year prices) I could make about $18 on a bale...........takes lots of those to break even, then maintanance and fix things

[BadtotheBow]

There IS money.........at times. But it aint no "Dolla dolla bill yo" buisness. and its nothing to go into without background, or hands on help from those that know whats going on, and can predict futures.

Oh trust me I agree with you... Just saying some people can do better than others. Thats why some keep getting bigger and the rest get smaller...

[whitie]

Well my intension was not to stir the hornets nest...Let me clear some things that have come up as questions.

My great uncles were cotton farmers in south texas, my uncle ran cattle in south texas, my brother in law runs cattle and horses in the panhandle.

I know that around the farm in question people are planting hay, milo and very small amounts of other crops. I see a lot of wheat in some areas. There are cattle all around the farms adjacent. The farm has been used minimally in the past being leased for cattle grazing by locals or I have been told crops in the past but from what I have seen nothing more than grazing.

I may have opened up a can of worms...and certainly didn't want to offend anyone with my question. I have a huge respect for farming/ranching...hence asking the questions I have vs just thinking I was smart enough to jump out there on my own.

Thanks for all the input.

[huntresss]

whitie- the first step I would take, is to call out an ag extension agent in your county and have them come look at the land and give you an idea what it would be best suited for. The soil may not be good enough to grow any crops or grasses, but may have enough brush to raise a bunch of goats on. You'll need to consider how much water you have, what kind of fences and how much money you want to invest in start-up. Regardless of what you decide, make sure you're in it for the long run as it will take a couple of years to recoup your investment.

We've got several tracts of land that we utilize for different purposes. Some that we raise cattle on, some that we run sheep and goats on, some that we grow hay on and some that we run hog hunts on. The only one that consistently outperforms the rest is the hunting land, but that's also where we've invested the most money (in fencing, cabins, etc). The other tracts may lose money in some years while making money in other years, depending on what the market's doing. It's good to be diviersified though, as it all balances out in the end. Sometimes they just end up giving us a tax deduction and agricultural exemption...but that's still an asset in our books.

Good luck with whatever you do. Let us know what you decide on and keep us posted on your progress.

-Cheryl

[T-Bolt]

Might look into leasing it to a local farmer like some have already said.

[Andy]

Dry land farmers the largest gamblers in the world. Gambling with mother nature...too wet or too dry...too cold or too hot ........Andy

[12 point]

A fellow farmer I know farms several thousand acres, but he doesn't own very much of the land he works. An investment firm bought most of the land. Not sure who owned it before, but he appears to be doing quite well. But, he is deep deep in debt.

His father and grandfather started farming and thus he was able to learn from them and also inherit land and equipment. He also raises cattle to add additional income. Since the tractors, combines, cotton pickers, trucks, and implements and other machinery get so much use, most of them are less than 5 years old. He updates his machinery once each item accumulates a certain amount of hours in use.
I remember him saying that he owes his soul to John Deere, because he is so in debt. If you drive past the main area where most of his equipment is stored, you'll see why.

[Hart8]

Lease it..Til' you figure it out on your own...Osceola is right...Good luck.

[Garrett G]

I have to disagree with this, with prices at all time highs there is very little margine for error. Yearlings are about the worst thing someone will little to no experience could get into. You would need to be able to check them several times a day to catch any that need doctoring, if you were to have many calves get sick and not catch it, you could loose thousands in a heartbeat.

Your best bet is to find a farm or ranch to work on, or find someone who will let you help them on weekends. Wait till you have a couple of years experience to strike out on your own.

However, if your bound and determined to do this we need more info before we could offer any help. How much of the land is pasture vs. cultivation? and a more specific area. How much money you have to spend, and so on.

Good luck

Very well said!