Would you?

[raymondb]

Right on GMJ. Know your cost of production-that also includes your cost of capital and your expected return on investment. I also concentrate on what I can do to lower my input costs. I know what price I need for my products to break even and what I need to make a dollar. I also try to use the value of my properties today rather than the price I paid for them. The numbers are interesting and they all say I have to get larger all the time to show continued growth and keep up with inflation and maximizing the use of my capital.

[cowman]

I agree that you need to know your cost of production including capital cost valued at todays markets. Lets see: Land $2500/acre- need 4 acres for each cow = $10,000! at 5%(GIC) = $500
I guess I'd better quit before I even start adding up the feed, vet costs, bedding, machinery, taxes,labour etc.!
Have to move to Saskatchewan I guess?

[kato]

I may have given the impression we are part time farmers. Not so. As soon as the cattle came back up again, one job was dropped. I kept my job, but just with the intention of getting the finances in order, and since May 20, have been glad I did. If not for this paycheck, it would have been a much nastier summer. It helped get us into a position where we don't have to fear losing the whole works, like back in 95.

We run 180 cows, with no grain land at all. We buy and background a couple of hundred calves each year. We have worked almost 30 years to build this up from nothing, which is supposed to be impossible, and are not about to let one or two bad years blow it out the window. If it means going to town for work for a while, so be it.

It's sad that a person has to turn to off farm work. It would be nice to be able to afford to have high principles about living strictly off the income from the cattle, but in our area, very few do. In our neighbourhood, I can only think of a very few women who are not working in town. On the other hand, I can think of even fewer who are what you would call true "hobby" farmers. We are too far from a large city for that sort of thing.
Everyone here is just trying to survive any way they can.

[rookie]

I was wondering ( now that we have estasblished we all should know cost of production, aswell as a few othere things ), what does all the years of experience and instinct out there reading this think will happen with the livestock indudtry? (maybe another thread)

If another dry year sweeps the country side or if another cow turns up sick ( the spot light is on now ), how close are we all sitting to the edge of some potentially nasty times? (I mean as a industry and personally)

Cowman makes those economic comparisons that are pretty clear in a certain way. It's all about dollars and cents. Right? Or just some of the time to some of us?

I guess our costs of doing business will vary for each of us. Some have worked with parents, taken over, bought out etc, some have started from scratch long ago and some just yesterday...
Personally, I would quit if need be. To me it only makes cents

[redhen]

There are no right or wrong decisions, Cowman... just choices. Each path you consider is valid. You have to decide what works for you.

I'm looking at farm land from the perspective of a city girl who has rented small farms for the past 12 years. My heart breaks each time I see a farm swallowed up by developers and urban sprawl.

If I was blessed with land of my own, I would investigate every possibility afforded by the topography and soil type.

Niche markets and farm-gate sales are definitely worth considering and developing. Canada's rare and heritage livestock breeds need our support, and we need their genetic diversity. If your passion is farming, you'll find a way to make it work.

Long-term, I feel that the family farm will be extremely viable.

[cowman]

Rookie: You ask the million dollar questions! Another drought? Another cow? I think we all have a fear of that. Yesterday I went to another bred cow sale and I was amazed at the optimism! The place was packed and the cattle sold very well considering. The auctioneer gave a little speech about how there never was a BSE cow in his opinion! Just a mix up at the lab! Maybe that whole idea is gaining ground and we might finally get some answers?
All my life I have tried to be what I consider "money smart". If the figures don't add up I don't do it. And while deploring the sad state of farming and cattle in particular, still here I am! Why? Well I do enjoy the lifestyle and I like owning cattle! My son calls it my expensive little hobby! But it was cattle that paid for this farm and let my old man raise 6 kids who have all done fairly well.
So after ranting away about what a losing proposition it is I imagine I'll hang in there! Not rational thinking but thats just how it is!
Elizabeth: So good to see you back here. Hows the chicken business?

[redhen]

Thanks Cowman. :-)

We're still selling as many eggs as our hens can produce.

Our philosophy is that the worst day on a farm is better than the best day living in the city. I'm glad to hear that you are not giving up your farm just yet. In my mother's family, we have seen two century farms sold to developers in Manitoba. We weren't in a financial position to make an offer.

Long, long term, I think we'll need to find a way to make five acres of pasture for a cow-calf pair more productive, and in doig so, more profitable. We have so much land in Canada that we've forgotten the skills of our farming ancestors in Europe and the UK.

[cowman]

Well Elizabeth I'm glad to hear you still have the faith! I'm starting to think small is the way to go. Forget producing quantity and start going for quality, type of thing. I guess it's not the way to get rich but it might be more enjoyable?
The day will come when my century old farm will be sold to developers. You just can't stop the march of the city! But thats okay. Everything changes and there are better places to live. I've always liked the coast and the Island. At least you don't freeze for eight months of the year!

[redhen]

Yes, quality is becoming more important to consumers. When McDonald's changes its Chicken McNuggets from fatty dark meat to lean breast meat, you know it's a sign of things to come.

From my personal experience, niche markets and community-supported agriculture are worth considering. They offer greater potential for profit on a much smaller land base.

If you combine the above with heritage livestock breeds and heritage seeds (do you like gardening?) you could tap into some very lucrative specialty markets.

Perhaps you could consider selling part of your farm to raise seed capital? (forgive the pun)

Have a look at:

The New Farm
http://www.newfarm.org

Rare Breeds Canada
http://www.rarebreedscanada.org

Seeds of Diversity Canada
http://www.seeds.ca/en.htm