Pasture steers?

[freewheat]

Hey, I am usually over at the commodity forum as a grain guy, but I have some land conducive to grassing some steers. I could put about 40 out there. Is this feasible? Worthwhile? What kind of gains on grass? Is it too risky? I would like to put this ground to good use for a few years, until I decide what I should do with it. No one has cattle around hardly anymore, so no real rent demand for 1 quarter of land.

TIA.

[grassfarmer]

I'm familiar with managing grass and cattle and
wouldn't consider buying cattle at current prices
to summer graze. Way too risky in my opinion.
Decide yourself how much risk you want to take
based on your experience and comfort level but
I would think you are better finding someone
needing pasture, rent it out and let them take
the risk.

[freewheat]

Thank you grass guy. Is the risk more of a
price drop risk? I appreciate your
honesty. What kind of gains could a guy
get from June to October, all else being
equal, in a wet area with no limitation on
grass, and perhaps supplementing them if
necessary? I would not be looking at it as
a fortune builder, break-even plus a
"free" beef in the fall???

[grassfarmer]

Lots of risk - price drop from current very high
prices and a small death loss risk. Biggest thing that
catches you is price slide as cattle get heavier they
bring less per pound. Picking realistic prices today
but assuming they will be the same on June 1st a
550lb steer calf might be $1.75/lb or $962.50
standing in the auction. If your pasture lasts 120
days June 1-October 1 and he gains 1.75lbs a day
he would weigh 760lbs Oct 1st but after shrink his
pay weight might be 720lbs. 700lb calves today are
worth $1.45 or $1044 which only leaves you a
difference of $81.50.
From this you need to deduct selling expenses
@$20, trucking calf from auction and back again at
the end, minerals, interest on capital if you borrow
to buy the calf, before you start to pay yourself to
check the animals, repair fences etc and before you
allow for any drugs that may be needed or for death
loss.
Not trying to make it look hopeless but in my
opinion you need to be a fair gambler to want to try
this. It has become a commodity game which is why
the guys doing this for a living run hundreds or
thousands and make a small (hopefully positive)
margin per head, spreading their overheads over
more cattle. When prices were lower and prospects
poorer there were better opportunities. Buying at
the top of the market the risks are higher. There are
a lot of unknowns in here - how fast the cattle grow
depends on their condition and genetics as well as
your grass and the growing season. Gain can be
anywhere from 1.5lbs to 3.5lbs but on unmanaged
pastures (i.e. no intensive grazing, cross fencing
etc) I wouldn't bank on getting 2lbs a day over that
long a grazing season.

If your land was close to mine I'd maybe pay you 85
cents/day to graze my pairs on your pasture. The
grass to keep 40 steers would support 26 pairs for
the same period so I'd pay you @$2700, do the
work and take the risk. Why would you want to own
the cattle and take the risk?
I'm sure others have different ideas but those are
mine.

[Happytrails]

Have to go with GF this time...save the remarks. Grassing yearlings this year could mean you give all your grass away plus some of your money.
As far as gains go you will do well to make 2 lbs/day. If you know cattle and have some facilities then heck, 40 grassers won't hurt you. If you aren't there then renting the grass is a much better choice.

[freewheat]

Yeah, I hear you guys. I was working on
similar numbers, and that is why I asked
what you thought. Thanks for your input!

I am a gambler at heart, but I think I'll
pass. thanks again.

[forage]

Where abouts is the pasture? Is there a good water supply? What condition are the fences in? There is a lot of people looking for grass but it depends on what part of province you live in.

[rkaiser]

Buy some damn heifers and put a bull out with them for crying out loud...

Best outlook for breds than there has been in years.

If your grass is good and the heifers settle they will be worth good money in the feeder market as well.

[burnt]

Yup, what Kaiser said! No Guts, no Glory!

[freewheat]

Thank you for giving me an alternative option! Maybe I'll be a cattleman.

[forage]

RK better tell him what breed to buy and what type of bull. Better off to rent the pasture out and forget the risk. I don't think he is all that serious if he couldn't answer whether there is water and good fences. I know alot of young guys looking for pasture at good rates.

[freewheat]

Water and good fences? Why would I think
of putting animals where there are not
good fences and water?

I lean towards black angus myself.

[freewheat]

Rent for pasture in eastern Sask runs 50
buck a head a season, not really much
demand, btw. Which is why I asked about
grassers originally.

[rkaiser]

I know where you can find a good bull for those black heifers....

[riders2010]

Oh yeah and freewheat the bull, umm that would be the docile slow moving one with the two sort of round things hanging at the back! Just trying to help out!lol
Oh yeah since you are a big breast dreamer person I'd suspect to see a field of holsteins near kelvington this summer!