Why do people have cattle if its so unprofitable?

[DirtyDave]

I'd like to know one thing. Why don't the sale barns have to 1099 the people who sell cattle?

What are you? The Tax Police?
Just what we need is the Gov taxing something else.
Were you that kid in school nobody liked because you tattled on everyone?

[Worksalot]

We farm and raise cutting horses in addition to beef cattle. This operation would be difficult to lump together with most. It is run quite differently than any other place I’ve ever been on. That’s about all I can say.

[WT]

I trade a few show steers every year and make way more on that than I do on the cow/ calf deal. If I time it right I can swing $2000/hd on the show cattle but barely $200 on the others. The tax write- off is where it's at.

[Cajun Blake]

I make less per pound of milk today than we did in the early 80’s.... land then was $400 an acre and a new truck was $16k

Just out of curiosity what would be the need to be working with cattle at 3 in the morning until 10 at night? I have plenty of friends and family in the business some part time some full time. I'm not saying from time to time they might not have to take care of some things in the middle of the night but a 365 schedule from 3am until 10pm sounds unreal. Also being in the cattle business is somewhat of a passion, there has to be for the amount of work involved. I couldnt imagine hating something as much as it sounds like you do to " just make a living at it"

key word highlighted above ..... his family are dairy farmers.

low fence, my parents live in Washington Parish, LA. Growing up, I can remember dozens of dairy farmers with black and white cows as far as you could see. Around 15 yrs ago the dairy plant shut down and many of the farmers sold out to developers who are building homes on 2-5 acres sites.

dairy farmers are struggling all over the US and getting up at 3am to milk cows 2 to 3 times per day sucks big time.

[Roscoe]

I get $20/acre to lease 70 acres out behind our house to a guy who runs cattle on it. I have no idea how he makes enough money on it to justify it, but he’s been doing it for years. He’s got several places he runs cattle on.

I get $1400 a year and the ag exemption and DONT have to screw around with cattle. Works for me! [emoji1787]


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[JJtomball]

[ame="https://m.youtube.com/watch?v=2nk8-MqnHlw"]Corb Lund - Cows Around - YouTube[/ame]


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[miket]

I get $20/acre to lease 70 acres out behind our house to a guy who runs cattle on it. I have no idea how he makes enough money on it to justify it, but he’s been doing it for years. He’s got several places he runs cattle on.

I get $1400 a year and the ag exemption and DONT have to screw around with cattle. Works for me! [emoji1787]


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One article I read stated just that, you can make just as much money on grass lease as cattle, without the work.

[TX_Hoghunter]

I only read some of the responses but most people keep cows for 2 reasons...1 is the tax break and 2 is because their parents and grandparents did......It is just what you do. If you do not overgraze or have any big issues you can make a little but not enough to brag about. One of my cousins ran 600 momma cows for a long time. Back during the drought of 2011 ( if memory serves ) he lost right at $500,000.00. Most people could not take that hit and survive. Now he is running about 150 head of momma cows and then just running feeders on the rest. He is now taking the stock all the way through the feedlot. Talking to him a few weeks ago he thinks he has figured out how to make a little money but you have to have deeper pockets than mine to get there.

-john

[Texans42]

I can guarantee no cattle rancher is making that much per calf. Meat packers are but not the bottom man, the producer.

You can on retained ownership, but takes big pockets

[Texans42]

Near going rate up here, you could never pay for land farming it. Even in NW Oklahoma where its cheaper you could still not pay it off farming. Tack on a hundred thousand plus for wellls and irrigation pivots

Yes you can

[adam_p]

There are a far too many people leasing land for $20 an acre for grazing for it to be unprofitable. The ones that are telling you that are blowing more money than is necessary or are just FOS.

[Runnin4D]

I was drug into it. We work 365 days a year. No Christmas, birthday, MLK Jr day... Easter... 365. 3am- 10pm minimum. Land paid for and equipment. And we take money out of savings to pay bills.

I make less per pound of milk today than we did in the early 80’s.... land then was $400 an acre and a new truck was $16k

I can’t imagine the day when my dad leaves this world, but when he does there will never be another head of livestock in my ownership. It’s not a living it’s a hardship. I won’t leave my dad hanging out to dry he’s done too much for me but there’s a reason the state prison system stopped farming... it’s cruel unprofitable punishment (most of our original herd came from the prison sell out)

what are you talking about? I have a buddy who works for TDC. all he does is run cattle..

[Low Fence]

what are you talking about? I have a buddy who works for TDC. all he does is run cattle..

Not dairy cattle he dont

[Lostacresranch]

Why do people have cattle if its so unprofitable?

key word highlighted above ..... his family are dairy farmers.

low fence, my parents live in Washington Parish, LA. Growing up, I can remember dozens of dairy farmers with black and white cows as far as you could see. Around 15 yrs ago the dairy plant shut down and many of the farmers sold out to developers who are building homes on 2-5 acres sites.

dairy farmers are struggling all over the US and getting up at 3am to milk cows 2 to 3 times per day sucks big time.

Dairy farmers in Louisiana are gone. In the late 70s early 80s I put myself through college milking cows for dairy farmers. Up to milk long before daylight, then to class...there were half a dozen dairies around Ruston alone. Now they are gone. I don’t know a single dairy left from dozens in north louisiana. I was raised in a ranching family. We had raised cattle on open range from the 1700s when the first settlers showed up. You gathered the yearlings in fall and sold them. It was a hard life, and when open range closed, it was over. I hung on for a few years, but my herd never understood that a fence was a boundary. I sold out. I miss the life, not the work. The cattlemen left have been in it long enough to own the land. No one can get into this business without spending a fortune on cattle, equipment, land, for a small return. I see the individual cattle producer as an endangered species.

[lck90]

I only read some of the responses but most people keep cows for 2 reasons...1 is the tax break and 2 is because their parents and grandparents did......It is just what you do. If you do not overgraze or have any big issues you can make a little but not enough to brag about. One of my cousins ran 600 momma cows for a long time. Back during the drought of 2011 ( if memory serves ) he lost right at $500,000.00. Most people could not take that hit and survive. Now he is running about 150 head of momma cows and then just running feeders on the rest. He is now taking the stock all the way through the feedlot. Talking to him a few weeks ago he thinks he has figured out how to make a little money but you have to have deeper pockets than mine to get there.

-john

I'd be curious to know how much disaster assistance he received for that $500,000.00 loss. Many farmers and ranchers around here "lost" a lot of during the drought, but they also received pretty hefty checks from the government to help offset their loss. I know a couple that received enough to happily brag bout it. Not saying your cousin is in the same boat by any means. Many did take a hit during those dry years and were forced to sell down.