Trying something new

[Blaithin]

If you've got the feed sitting around and need to utilize it, I don't see an issue. While the markets don't look like they're going to skyrocket any time soon, I agree that they should at least be steady and similar next year. Barring any catastrophes like TB, BSE, NAFTA... acronyms seem to love the beef industry.

I understand where you're coming from in wanting to carry them over the summer to use up grass instead of having to hay, however if it were me I would be keeping in mind the grass market next spring. Pick up some cheaper animals this December when the market does it's pre Christmas dip. Nut them, dehorn them, or just look at all their pretty spots that allowed you to buy them cheap, then feed them up for a few months. Generally the market to get grass animals is high enough to be tempting, even if you only sell half and keep the rest to deal with your grass and risk whatever fall prices might do. Not huge profit margins by any means, but will handle your excess silage and grass issues. Although the profits are also going to depend on how you think you're going to manage them. Antibiotics, vaccinations, implants, handling, etc. If you've got a good set up for the handling then that would make things so much easier.

[smcgrath76]

If you know your costs, then I would look ahead at the WLPIP program as an option to secure a profit. If you can't do it on there, then I would probably steer away from buying feeders. There is sometimes money if you can buy cattle similar to your own and put together bigger lots, or if you can buy tail end cattle and clean them up.

[woodland]

Blaithin

I have kept track of what we could have sold our calves for at weaning vs what they sold for 10-12 months later and the only year we worked for a "break even" scenario was last year. We got enough to cover all the expenses so at least we didn't lose on the deal.

You mentioned possibly selling some in the spring as grass calves and we always keep that in mind in case we are dry or lose some pasture at the last minute (has happened a few times).

We've got a decent working system and are planning on rebuilding it after harvest and trenching 3 miles of water line in this fall. Hopefully the weather cooperates better than last year...

Thanks for the ideas.

[woodland]

Go back and read this article I posted from the US last winter.
[URL="https://www.agriville.com/threads/32794-bluegrass-stockards"]http://https://www.agriville.com/threads/32794-bluegrass-stockards[/URL]
That's the way I see it - not the real opportunities that we used to see when things were simpler.
I look at the scenarios often and it doesn't tempt me any longer - the potential margins are so small relative to the capital risk. I certainly wouldn't be laying out huge sums buying cattle on the "hope" or "gamble" that the market might be good or better next year. You can decide the risk you are comfortable with though.

Grassfarmer what is the difference between buying calves and keeping them for a year and hoping you make a profit above your expenses vs keeping a cow for a year and selling a calf for hopefully more than your expense of raising it? Unless your cows, land, and equipment is all paid for and free labor is available there is definitely a "break even price" on those calves which the market may or may not pay.

Just curious since most guys around here have no idea on their cost of raising a calf. They gauge success on if they got a higher price than last year.

[woodland]

If you know your costs, then I would look ahead at the WLPIP program as an option to secure a profit. If you can't do it on there, then I would probably steer away from buying feeders. There is sometimes money if you can buy cattle similar to your own and put together bigger lots, or if you can buy tail end cattle and clean them up.

A fellow not far from here buys 3,000 scruffy light calves from the local auction marts every winter and sorts them into decent packages to go out to custom graziers. He then sells them when the grass runs out and repeats it again. He does quite well at it.

We would be aiming to buy ones similar to our own to run and sell as bigger packages and to make management easier. We only run herds for the winter. Cows and bulls on a quarter and calves and bred heifers on another quarter. Makes chores simpler.

[grassfarmer]

Grassfarmer what is the difference between buying calves and keeping them for a year and hoping you make a profit above your expenses vs keeping a cow for a year and selling a calf for hopefully more than your expense of raising it? Unless your cows, land, and equipment is all paid for and free labor is available there is definitely a "break even price" on those calves which the market may or may not pay.

Just curious since most guys around here have no idea on their cost of raising a calf. They gauge success on if they got a higher price than last year.

I've always found it easier to make money with cows than any of the "add on operations" like backgrounding or fattening as you are producing #s of new cattle each year rather than just trying to take a margin off cattle that already exist. Saying that we market unconventionally in that we set the price on most of the cattle we sell. By setting the price we want on breeding bulls, breeding females and grass fat cattle it leaves us with only a proportion of our calf crop entering the lottery of the commodity auction ring.