Cattle business help

[jbonney1986]

Alright needing some help....

I've always worked for others and looked after their cattle. I got lucky enough to meet a gentleman who is willing to front money to help me buy cattle. He has cattle of his own and is wanting more as well. So what we are going to do is use his property to run the cattle on, which will be a mix of his cattle and ours if we end up letting him front Me the money. So what I'm needing help figuring out is how do all the finances work out, how does he pay us for taking care of his cattle, with ours being mixed in as well, while at the same time paying him back for the cattle he fronted us the money for? Just trying to figure it all out and make it work for both of us and make it worth my while...anyone had someone front money for cattle or a similar situation? Any help would be greatly appreciated, ideas welcome too

[Passthrough]

Your wanting to buy cattle now??? As high as they are???

[jbonney1986]

Your wanting to buy cattle now??? As high as they are???

Sure am, when they are high you can sell high....not wanting negative comments just seeing if anyone has been faced with or dealt with the situation and how it was handled

[Steve_243]

Alright needing some help....

I've always worked for others and looked after their cattle. I got lucky enough to meet a gentleman who is willing to front money to help me buy cattle. He has cattle of his own and is wanting more as well. So what we are going to do is use his property to run the cattle on, which will be a mix of his cattle and ours if we end up letting him front Me the money. So what I'm needing help figuring out is how do all the finances work out, how does he pay us for taking care of his cattle, with ours being mixed in as well, while at the same time paying him back for the cattle he fronted us the money for? Just trying to figure it all out and make it work for both of us and make it worth my while...anyone had someone front money for cattle or a similar situation? Any help would be greatly appreciated, ideas welcome too

First off, I hope ya'll have a good relationship. Second, you are going to have to weigh what he is paying you to tend his cattle verses what a lease pasture would cost along with feed costs and make sure that there is enough acreage so that the pasture is not overgrazed. I've been in this situation before with an older gentleman that was a family friend. It ended up being the worst 3 years of my life because once I was on the line with him for the money, he went out of his way to find the smallest things to complain about...didn't spray weeds the exact day he wanted it done, mowed the pasture too short, tree limbs on the ground, my calves were growing better than his.....I can go on and on about this. Think it through and good luck,.

[Hawkins]

How my bank operates is, I take out a loan for 10,000 for cattle. They send a letter to the sale barn there is a lein against them. When I sell them all the money goes to the loan, I don't get to keep any till the loan is paid in full. Interest rate is 6%, so I have to pay the interest out of pocket.

[JP135]

Yes, cattle are high, but the market is stable and expected to hold steady for the next hree to five years. The profit is there, but it's not dirt cheap to play like it was in the 70s and 80s. It is what it is.

We bought bottle calves last year at the sale. We ended up with 10. We lost three and raised seven. Buying prices ranged between $120 and $170 each. We did ok, but dang it was a lot of work, not to mention the cost of milk replacer is outrageous if you get the good stuff. Each calf needs a separate pen to keep sickness from being spread and wiping out the whole bunch. Get on top of scours and fever immediately.

If you go the bottle calf route, look at the calves before the sale. Don't bother with anything that's down or depressed looking and cant get around well. Don't buy anything with a wet umbilicus and certainly don't buy anything with swelling where the umbilicus comes out of the belly. Don't buy anything with swollen knee joints or runny noses. Lots of the bottle calves were pulled off their mamas immediately and haven't had colostrum - it's an uphill fight to keep em alive if they haven't had their colostrum and they'll turn septic on you and die within hours. Heat and tress have a huge effect on babies - dont haul em long distances, keep em cool (our pens are in complete shade and we put up fans too and our vet is convinced that's what kept ours alive last year.) We'd hit every calf with 5 way shots as soon as we got em home.

This year we're buying calves that are weaned and are coming yearlings - not that much more expensive and so much less work. We're buying some for our little Longhorn herd and hoping to get about 30 for our neighbor to fill out his Angus herd.

I can't give you advice on the finances and what to work out with the guy you're working with, just do your homework and make sure you're going to come out ok. As far as estimating expenses, I figure what I think my expenses are going to be then I double that figure to be safe.

[jbonney1986]

We bought bottle calves last year at the sale. We ended up with 10. We lost three and raised seven. Buying prices ranged between $120 and $170 each. We did ok, but dang it was a lot of work, not to mention the cost of milk replacer is outrageous if you get the good stuff. Each calf needs a separate pen to keep sickness from being spread and wiping out the whole bunch.

If you go that route, look at the calves before the sale. Don't bother with ny thing that's down or depressed looking and cant get around well. Don't buy anything with a wet umbilicus and certainly don't buy anything with swelling where the umbilicus comes out of the belly. Don't buy anything with swollen knee joints or runny noses. Lots of the bottle calves were pulled off their mamas immediately and haven't had colostrum - it's an uphill fight to keep em alive if they haven't had their colostrum.

This year we're buying calves that are weaned and are coming yearlings - not that much more expensive and so much less work. We're buying some for our little Longhorn herd and hoping to get about 30 for our neighbor to fill out his Angus herd.

I can't give you advice on the finances and what to work out with the guy you're working with, just do your homework and make sure you're going to come out ok. As far as estimating expenses, I figure what I think my expenses are going to be then I double that figure to be safe.

Ya I've raiser quite a few bottle calves in my day, a lot of work tied up in that and time...looking for mamma cows

[Big H]

I don't know, but good luck. I would like to be back in the cattle business one day.

[Bear82]

Check with the FSA about a 2.5% int loan if you can't get another loan from bank. I would have to know the person very well for him to front them. See if you can just lease part of his pasture. If you find any cheapskate pairs let me know. I need about 30-40 in September.

[KR-oldmexico]

I would figure you take care of everything, his payment is you tending to everything and yours is free grazing.... Pretty simple in my book...

[jbonney1986]

I would figure you take care of everything, his payment is you tending to everything and yours is free grazing.... Pretty simple in my book...

I agree....and was thinking when it comes time to sell what we need and want to sell, he gets 100% of his cow sells and I get 100% of mine, or am i thinking of that wrongly?

[jbonney1986]

that part is easy, I'm trying to add in the way it would work if he fronted us money for cattle, how we would go about paying him back

[txwhitetail]

This sounds like a cluster.

[jbonney1986]

This sounds like a cluster.

thanks?....

its not a cluster yet, thats why I'm trying to get some ideas so it won't become one

[TP3]

Do what KR Mexico said. Then at sale time you give him an agreed upon percentage from your sales until the debt is paid off. If yall are friends you should be able to hash out the details. The return on his investment would be in the form of free labor on your part. That or he could get a small interest on the note.