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Is it possible to sketch out a high level but step-by-step plan that can build a cattle ranch that generate about $60K in annual profit?
Like for example, how many heads of cattle, how big a piece of land, what might the initial investment be, and what might a reasonable profit/loss outlook, etc.
The business doesn't have to operate at such efficiency as commercial corporations. I am just thinking about this as a retirement activity. Capital is not really a problem, and I can absorb a few years of loss, but obviously eventually it should reach my (hopefully modest) goal of $60k annual profit.
There are plenty of beef and dairy farms in California.
It would be easy to locate and visit them. That is where you will get your best and most reliable information. If you don’t know how to seek them out, visit a few feed stores who cater to the cattle ranchers and ask where they are.
Feed stores almost always have rags (area magazines) that cater to the ranchers. Those rags always have ranch ads in them.
Even where beef cattle are concerned, there’s a lot more to the operation than meets the eye. Gleaning start up information from the internet is an unhealthy way to get started.
Having been raised on a dairy farm and now surrounded by several hundred beef cattle on even more acres, I will say the cattle business is NOT something you can do in an instant. If this is what you want for a retirement “project”, I hope you are either taking a very early retirement or your family DNA says you should live into your 90’s.
Is it possible to sketch out a high level but step-by-step plan that can build a cattle ranch that generate about $60K in annual profit?
Like for example, how many heads of cattle, how big a piece of land, what might the initial investment be, and what might a reasonable profit/loss outlook, etc.
The business doesn't have to operate at such efficiency as commercial corporations. I am just thinking about this as a retirement activity. Capital is not really a problem, and I can absorb a few years of loss, but obviously eventually it should reach my (hopefully modest) goal of $60k annual profit.
Considering that the profit per head on a cow/calf operation is only `<$250/hd, to make $60Gs, you'd need at least 240 cows....Stocking rates depend on how good your pasture is-- anywhere from 240- 1500ac needed.
You either need several bulls or an expensive vet or the willingness/ability to do artificial insemination every year..and when the cows start dropping those calves, you'll be pretty busy supervising things-- MotherNature needs a hand quit often or you could lose an expensive element of the business.
Ranching is not a "retirement business" at the level you're talking about. I know many guys here who run 10-20 head just to maintain tax benefits on the land that's already paid for for many yrs (lower input costs if you don't have to rent or buy land) and they have family/partners to share in the work.
If you're located near a city (usually loaded with liberal TreeHuggers ) consider raising "organic, grass-finished cattle" and marketing it yourself. You may find profits in the $1000/hd range.
For a change I agree with guido....find a retirement income/hobby that you can run out of your garage/shop building. Unless you are in a niche market, there is no appreciable retirement income from hobby farming....only a tax write-off.
But we know small ranches exist all over. What gives?
Guys want soooo badly to own a Ford/Chevy/Dodge crew cab, diesel, 4x4 with all the necessary accoutrements and to throw 5 square bales of hay in the bed (lined, natch) and say they are "ranchers" on their 11 acres.
Don't get me wrong...it can be enjoyable if you look at it as a hobby. As an income producing business??? Maybe, but it will be W.O.R.K.
I was raised on a ranch and had cattle all my life. I just bought a small 160 acre ranch to retire on.
I still have some cattle, but they wouldn't support me for a years income.
Cattle prices fluctuate wildly each year up or down. Usually down. Your costs for fuel, equipment, repairs, vet bills, feed, go up each year.
As a business to get funding for retirement, it's a poor choice. As a hobby or because you love it like I do, there's nothing like it.
There's an old saying in the ranching community. How do you make a million dollars ranching? Start out with 10 million.
Is it possible to sketch out a high level but step-by-step plan that can build a cattle ranch that generate about $60K in annual profit?
Like for example, how many heads of cattle, how big a piece of land, what might the initial investment be, and what might a reasonable profit/loss outlook, etc.
The business doesn't have to operate at such efficiency as commercial corporations. I am just thinking about this as a retirement activity. Capital is not really a problem, and I can absorb a few years of loss, but obviously eventually it should reach my (hopefully modest) goal of $60k annual profit.
My cousins did. They are farmers, for many years, very knowledgeable about raising farm animals. Kids did 4H for years, and the daughter wanted to start a business. They started with 5 head of bred heifers. That was just a few years ago. They have about 50 head now, and a very profitable local beef market, and actually have local restaurants selling their beef on the menus now. It's been pretty cool to see them succeed in this. I don't know anything about how much the startup costs were, but this is a really hardworking family - they don't take any shortcuts either. They love farming.
My cousins did. They are farmers, for many years, very knowledgeable about raising farm animals. Kids did 4H for years, and the daughter wanted to start a business. They started with 5 head of bred heifers. That was just a few years ago. They have about 50 head now, and a very profitable local beef market, and actually have local restaurants selling their beef on the menus now. It's been pretty cool to see them succeed in this. I don't know anything about how much the startup costs were, but this is a really hardworking family - they don't take any shortcuts either. They love farming.
Cool story. Sounds like they’re doing their own butchering and distribution also. That helps maintain quality and increases the brand’s value without depending on a middleman. More profit also if this is the case.
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