Optimum age for trade?

[rdbigfarmboy]

It depends on a lot of factors. Cash flow, profit, useability, parts availability, condition, and do you like it.
I use a 1978 model hay baler GEHL 1500A and roll about 500 rolls per year. I recently switched to new 4wd drive tractors. Generally tax breaks in farming just dont cut it unless you have some off farm income to hide. Farming on any scale is not that profitable. And the actual saving by tax break is spend $1 to save maby .30 depending.
Around here anyone buying lots of new stuff is trying to hide non production income or a new comer wanting to make the cover of Progressive Farming. I like new stuff but I cant make the payments.

 

[MessickFarmEqu]

farmers are also experts in working with other peoples money... its the only way you can afford the millions of dollars in equipment that it takes to run a full time operation. By flipping machines from year to year you can take advantage of the super low rates offered by the manufacturers.

 

[cowboydoc]

Generally tax breaks in farming just dont cut it unless you have some off farm income to hide.


Not necessarily. We have had significant farm income the last five years, especially from the cattle side of it.

 

[rdbigfarmboy]

What level of cattle profit are you seeing. I generally see about 110 to 150 per breeding cow after all expenses both long and short term not counting my labor. I generally sell calves in the 500 to 600 # range.

 

[cowboydoc]

What level of cattle profit are you seeing. I generally see about 110 to 150 per breeding cow after all expenses both long and short term not counting my labor. I generally sell calves in the 500 to 600 # range.

In this market you're only seeing a $110 profit?? Our registered cattle the last three years average has been $600 profit/cow at the registered sales. At the sale barn for culls and unregistered cattle that don't go to the registered sales our average has been $1.46/lb and we're averaging $949 per calf and about $400 profit on the registered culls and unregistered stock. Our average expense per cow is about $32/month and then $14/month per cow for capital investment in land and machinery. If you can't make more than $110 profit off of $1.46/lb cattle then you need to rethink your business plan, your type of cattle, or you are really upside down in debt.

 

[rdbigfarmboy]

Yes
that explains it. The last 2 or 3 calf sales were in the 1.10-1.29 area. The only time I see calves near 1.50 recently is the light weight 300-400#.
I have no debt am totally green. I do admit my grass cost (fertilizer, seed, lime) are too high some thing like $200 per cow per year. Hay cost me $20 per roll to grow and thats too much.
Locally there are so many registered breeders around I dont know how they make it. Several are quitting and cross breeding. It is very difficult to find clean young herd bulls.

 

[HayDR]

Cow-Calf operations are profitable if you control what you spend. You have to live within your budget and new paint often a pride thing has broken many a farmer. Farming pays off in the quality of live and increased land values over time. There are some years you can make a handsome profit and other years you just try and survive. Live within your budget. Watch the successful producers in your area and copy them. And one more thing, WORK in the operation so you really know the difference in wants and needs.

 

[rdbigfarmboy]

Yes
Very true . I was making about 100 more per cow 4 years back before the cost of fuel and everything related went up. Cattle prices were about the same and I made around 250 per cow selling mixed angus salers brangus black calves in the 500 to 600# range.
As far as buying equipment its based on need and function. I bought 2 of the Rural King chinese tractors last year. The fotons run well on used cooking oil.
So I have a plan for dealing with purchased fuel cost thats dont buy it. Doesnt fix the $46.00 per acre pasture fertilizer situation.
Many in the area did not fertilize at all for the last 2 years.

 

[Hard Knocks IV]

I'm way behind you guys I have a cow/calf-- meat goat operation make about
400 bales a year with 2 NH 851 balers that cost me $1300 combined. Bale with an Oliver 1650 ($3000) rake with a Yanmar 330 ($2300) NH 256 rake ($2000) mow with Zebra 3520 and an Allis Chalmers 82T mower ($3000/both)
and load bales with an Oliver 1365 ($1000)