Cost 1.5 million here to get started with 100 cows. Cost $1,200 to produce a calf if your being honest with your numbers. Sell calves for $1,800 each and that's a 4% return on investment.
How many guys are looking to spend 1.5 million to buy themselves a job that pays 4% return on investment?
Though there is less cattle the amount of meat produced has been consistent, demand is up and that drives pricing.
How do you come up with these numbers.iam not saying your not correct but I would like a breakdown.
These are the numbers from my farm, it wont be the same everywhere.
Need 4 acres per cow here 400 acres @$3,000 an acre is 1.2 Million, bred cows $400,000, Need a skidloader or tractor to feed, 4 wheeler, fencing, etc. Realistically $1.5 million is low, I just managed it by getting two really great deals on farms (were at 70 cow capacity but I upped the numbers to 100 to make it simple)
I figure 5 tons of hay per head, we should use a little less but that is not something you want to run short on. So 5 tons of hay $150 a ton =$750.
My land cost is $90 per acre (yes I own the land but that's what it would rent for) so $360 in land cost.
Add in some wormer, ear tag, vaccines, vet visits, fence and gate depreciation and our cost is around $1,200 to produce a calf.
I've had people tell me I shouldn't add my "land cost" in but to me that's just lying to myself on my actual returns, I like my numbers to be as close to correct as I can.