we still have those "hobby loss" rules so you have to demonstrate an intention to make a profit if you intend to write off the costs...no big deal really since at our low rates there is no incentive to lose $1 in order to get 30 cents back via taxes (if you disagree then forget cattle and get in touch with me...I'll gladly rebate 30 cents for every dollar you send).
It's like a hobby, you do it because you like to do it. My dad is almost 95 and still has cattle. It's his life. It's now too much for him, but not having them would kill him.well, It seems like the majority that is in the cow business,or has been, are suggesting I just forget about the cow/calf business.
I owned an HVAC / Plumbing business. I sold out several yrs ago. I haven't worked in 3-4 yrs so I thought I would get into this, give me a little something to do, and make money at it.
If someone 60 with no experience in the HVAC /plumbing business ask me if they should venture into it, I would say no. But, it wouldn't because you can't make money in that business, it would just be too much to learn at 60 yrs old
I have a few chickens . I had no experience with chickens until I got them. They aren't much trouble to take care of. But from the comments I'm getting, cows would be allot more trouble to take care of than these dozen chickens I have.
Perhaps the old guys up here are shooting me straight. I was beginning to think it was in this big click, making good money, and they were just trying to keep the new guy from getting in on the action . LOL
I understand the write off thing. That is something they they keep telling me. It's all a tax write off.
Well, you still spend real money, and you don't get back 100% of what you write off .
So, what does a write of really do for you? They look at me like I'm crazy !
I may be, but they seem to think you get back more than they write off
Kind of like the guy up the hill that told me he made money off baling hay.
He has 100k in equipment, pays someone to fertilize and spray his fields, his fuel, his time, his maintenance of equipment, etc,. .
He says he sells his hay for $25.00-$30.00 per bale.
He hasn't been able to explain to me where the money is in this operation. I don't want to do as much work for no real gain
Been thinking about getting into the cattle business. It would be small (10-15) cows.
I have no knowledge of the business, or what to do. So it would be a learning process.
Just thought I would try to make a little money, and have some help with the grass.
I just don't know if there is any money to be made in a small operation. d
As far as hay. I would have to buy. I have the grass but no haying equipment. Around here, large round bales go for $25.00-$30.00/ It would most likely cheaper to buy the hay than to invest in the equipment
I have 50 acres here that is fenced. Would just have to make a few repairs to some of the wire.
As far as the vet stuff. I would have to learn to perform the basic shots, worming, etc,.
Travel ? I really don't travel that much. At the most I would be gone would be two weeks. Most people I have talked to say that you could leave them for that long without any problems. I have no idea if this is true,or not as those around me have sons, Brothers, brothers in laws, etc, that can see after their cows when they are gone
I would do the cow /cave operation. Sell off the caves when they get to around the 600# mark is what I'm being told.
I have the means to get the cows to market, so that wouldn't be an issue
A guy I know that has about 150 head of cattle stated he has several cows slaughtered a year and all is good except the steaks. He said no matter what the does, or how he feeds, the steaks always come out tough.
He said he has tried different processors and the steaks are always tough. He said he thinks it's because processors aren't allowing the beef to hang in the cooler and age very long. He said the processors get them in , cut up and processed as fast as they can and won't let the beef hang and age.
I have contacted my insurance company, and they tell me I would have to get a farm /business insurance policy instead of the regular H O policy I now have. This other /different policy would increase my insurance cost
I'm just wondering at 60 yrs old and having no knowledge of cows, or the cow business, if I should jump in with both feet,or stay away from it.
I really don't care to put in hard work for no profit.
On another note. There is an older guy up the road from me that cuts hay, I asked him what he does with the hay ? He says, I sell it and make money.
So I ask, how much do you sell your round bales for ? ''He says $25.00-$30.00 per roll''
I say you pay the co-op to spray your hay fields, you have approx 100 K in hay equipment, your time, your fuel,etc.
I ask him, where is the money ? ''He looks at me puzzled and says, I guess you could say I do it for something to do''
I'll sell you mine.