Cattle questions

[C4Ranch]

Fantastic information. I don't really see how I could make enough to live off given my size and according to the IRS, based on the hours I can put into it it'll be classified as a hobby but need to keep my ag exemption.

There is also tons of stuff I need to do beforehand, Shore up parameter fence/look into a hot wire, rebuild cross fencing, tanks are holding water but want to put in a well as a backup, need to build out the pins/chute, need a stock trailer, I also don't have any ground working implements so that's another investment.

I've clearly got a lot to learn which is kinda my primary objective right now.

Keep up the great advice!

J

 

[greasemonkeyok]

...There is also tons of stuff I need to do beforehand, Shore up parameter fence/look into a hot wire, rebuild cross fencing, tanks are holding water but want to put in a well as a backup, need to build out the pins/chute, need a stock trailer, I also don't have any ground working implements so that's another investment.
I've clearly got a lot to learn which is kinda my primary objective right now.
Keep up the great advice!
J

Consider making your initial step a business plan, and possibly enlist the help of an ag economist. They can give you general guidelines that may not be perfect indicators, but should be in the ballpark.

I bet Texas A&M has an extension service in your area that has a wealth of information.

 

[Western]

J, I am very familiar with that area (Eastland Co). I have no doubt you could make a go of it, so dont get discouraged. Only invest what you can classify as "play money" So to speak. Over all I ever lost money, actually did pretty good. Cows paid my taxes, hunting trips to Colorado and between them and excess sold hay, I did pretty good. (By pretty good, I mean, didn't go broke:thumbsup

Everything yo need to operate cattle there, you will likely want in either case, good fences, water supply and graze, cows or not. So the gamble for you will be a learning curve.. I will suggest the AG agent again, just to drive the point home.

It isn't without having problems, but IMO, the biggest problem may be the distance. Worst case scenerio, see if yo can work with the Eastland Co FFA at the high school, those kids usually know cattle well enough to keep an eye out and may earn a credit taboot.

I think the experience for you and "the boys" is worth the risk of a few head, but that's just my opinion. If it doesn't test your resolve and patience at some time, then your doing it all wrong!!:laughing:

 

[jack43]

Check into Lowline Angus.I just got 4 heifers two weeks ago,really like them.Very docile,good natured.Average size mature cows weigh about 650 to 950 pounds and stand from 36 to 42 inches,bulls from 950 to 1350 pounds and stand 39 to 46 inches. Small size Eazy on fence great for kids . Good luck, Jack

 

[C4Ranch]

Thanks Dennis! Kinda where my head is, need a well for the Cabin anyway, gonna need a disc for food plots and stuff, need the get the fields in shape anyway (fences, clear out the mesquite thats started to encroach, etc). All should add value to the land.

I'm starting my list of questions for the Ag agent already.

Also need to clear out a little hog problem.

 

[Western]

Also need to clear out a little hog problem.

Da'um, I would say so!!! That will be a constant battle, but fun for you and the boys!

 

[DrRod]

Don't be too quick to drop your "business" status with the IRS. Conventional wisdom is that you need to make money 3 out of 5 years or something like that. But Chrysler didn't do that and they are still a business. There is a longer list of criteria that includes the time you spend, level of expertise, business like records, and so on. What they are looking to cut out are passive investments used as a write-off -- like buying an Arabian horse you never see. Naturally you will want to get professional help on this but it doesn't have to be complicated.

I was once audited for a horse business where I bought horses off the track for $500 and sold them as pleasure horses or hunting horses for around $2000. The expenses and equipment ate up most of the profit but I had a few years where I could show a small profit. But the fact that I grew my own hay, fed them and trained them myself, and had a wife who was a professional rider made the difference. While at the audit, I could hear numerous other interviews going on [it was horse day at the Baltimore office -- seriously, thats what they called]. I heard the most ridiculous stories and rationale for calling a kid's pony or a friend's race horse a business. But I came out ok.

Also, ask your local agent about land improvement grants. There are all sorts of programs for water quality and land management where the government will share some of the cost. In my experience, most are way under funded and you can't ever seem to get a grant. But I have a friend who got Maryland to pay for half a bridge so that his 40 sheep wouldn't walk through a stream. He was 50 miles from the Chesapeake but they will do anything to keep silt out of the watershed.

 

[DrRod]

Maybe you should consider going into the free-range pork business.

 

[greasemonkeyok]

Maybe you should consider going into the free-range pork business.

They are pretty nasty. DVM from Mississippi State who specializes in wild hog eradication advises to always wear protection when handling the carcus. After attending a seminar, I would never eat wild hog and fully understand why it is not kosher.

For more information:
http://msucares.com/pubs/publications/p2659.pdf

 

[cqaigy2]

Maybe you should consider going into the free-range pork business.

Ok, that there is funny.