Why do people have cattle if its so unprofitable?

[Apodz]

Ag exempt tax break. You have to be on ag exempt at least 1 year to get the wildlife exempt i believe so to get the tax break of ag or wildlife either way you gotta go with the ag exemption first. Y’all correct me if I’m wrong. that’s the way i understand it.

[Texans42]

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.

Umm that’s/was a drought “insurance” program that paid per acre not per head. So doesn’t matter if he had 20 head or 20k head, it’s per acre enrolled. No insurance program covered the drought losses in any real percentage. When you have to drop stocking rates by 90% min, your screwed no matter where you ship/sell those cows too.

As with any insurance program, add all your premiums up the insurance provider is the percentage winner not the insuree

[Big Red 82]

For the love of raising cattle is why I do it. If your smart you can sell calves in the spring and make pretty good profit if you’ve had a wet year and a cool winter. Late freeze helps grass go longer cutting hay costs. And I as well as others appreciate my Ag exemptions. But I was raised on a working cattle ranch so it’s in my blood. Those of you who do not raise beef should be glad it is still happening. Beef it’s whats for dinner. Lol. Hope this helps.

[tex4k]

I've got friends and family in agricultural business', the best answer I've got so far! The only way they make any money is gathering aluminum cans off the side of the road! They know that I know that, that's an out and out lie! The truth is they make money off the cans and their wives having a good job in town!

[Burnadell]

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)

Kyle, how do you find time to hunt?

[El General]

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)

You gonna raise soy beans and grow almond trees for the new milk?

edit: That was a joke. Did not mean to belittle your hard work.

[Low Fence]

Kyle, how do you find time to hunt?

I’ve hunted a total of 7 hours since opening day. It just happened to be the perfect times both times.

Only positive is I don’t have a “boss” to answer to. I don’t have the final say... but not a “boss”

[Low Fence]

You gonna raise soy beans and grow almond trees for the new milk?

edit: That was a joke. Did not mean to belittle your hard work.

Lol. They call it almond milk... cause nobody would buy “nut juice”...... well very few would. It’s definitely hurt an already major wounded industry

[DeadEyeB]

Ag exemption. Can you imagine the fall in land prices if the government took all the exemptions off of it. You can have 2 million in a CD and no tax. Two million in land you get property taxes. What is the difference? Just curious.

you don't need the ag exemption. You can get a wildlife exemption. Losing money on cows is a silly way to maintain an exemption frankly. Also you can't get the tax exemptions if you aren't making money. Hobby farms do not qualify for the tax exemption.

[Worksalot]

I’ve hunted a total of 7 hours since opening day. It just happened to be the perfect times both times.

Only positive is I don’t have a “boss” to answer to. I don’t have the final say... but not a “boss”

Haven’t been able to hunt at all. Hopefully sometime this month or next will get to. We had so many equipment repairs right at end of haying and planting. Still not done.

[JTCowpoke]

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)

I love it, the minimum you work is 19 hours/day 365, so most of the time you work more. Plus you make zero profit and have to use savings to pay the bills. Wait.....how did you get savings if it is a money loser?

[RiverRat1]

So do they make money on cattle or not?

How can they afford to lease grazing rights? Or why would they lease grazing rights if they didn't make money?

[Low Fence]

I love it, the minimum you work is 19 hours/day 365, so most of the time you work more. Plus you make zero profit and have to use savings to pay the bills. Wait.....how did you get savings if it is a money loser?

Lol. Side hustles and the 90’s were great/good

Hay
Welding
Hauling
Planting

Got to do it all and make equipment last FOREVER to make it. My newest tractors are 12ish years old now. Would cost nearly double to replace them and they will resale now for more than we paid new.

Land when we started $600-$850 ace.. now $3500-$8000

Feed now $12cwt.... milk $17ish cwt... ain’t much margin in there for labor, repairs, upgrades, rent

Calves- tanked. A bull calf is worth more born dead now. That’s the sad truth. Take it to the sale barn and after commission you get a bill. If trailer ain’t locked people will put them in trailer
Heifers were down to $20 not long ago (we are a closed herd, so I don’t keep up there)
Steers-700 weight..... $0.63 pound. Go grow one for that on $6k acre land

All we have are the things we’ve acquired over the years. Whatever’s left when the wheels come off is what we will have. I could make more part time at McDonalds (that’s being serious). And if I had the hours in that we currently run ... I’d be in a new tax bracket

[Burnadell]

Tax break


Sent from my iPhone using Tapatalk Pro

Tax benefits

I am still waiting for an explanation of why folks lose money for the tax breaks. Can you please explain the accounting?

[Ramball36]

Lol. Side hustles and the 90’s were great/good

Hay
Welding
Hauling
Planting

Got to do it all and make equipment last FOREVER to make it. My newest tractors are 12ish years old now. Would cost nearly double to replace them and they will resale now for more than we paid new.

Land when we started $600-$850 ace.. now $3500-$8000

Feed now $12cwt.... milk $17ish cwt... ain’t much margin in there for labor, repairs, upgrades, rent

Calves- tanked. A bull calf is worth more born dead now. That’s the sad truth. Take it to the sale barn and after commission you get a bill. If trailer ain’t locked people will put them in trailer
Heifers were down to $20 not long ago (we are a closed herd, so I don’t keep up there)
Steers-700 weight..... $0.63 pound. Go grow one for that on $6k acre land

All we have are the things we’ve acquired over the years. Whatever’s left when the wheels come off is what we will have. I could make more part time at McDonalds (that’s being serious). And if I had the hours in that we currently run ... I’d be in a new tax bracket

I'll buy as many 700 weight steers as you got at $.63/lb cash