Cattleyard that sits empty...

[Big Muddy rancher]

That's a little more information to work with.
Maybe we get to many newcomers that come on here and ask "How much does it cost to become a rancher" :roll:
Might be the best time or it could be the worst time to jump back in. This last year was a great time with grain markets going down and cattle going up. Anymore to compete you need a marketer that can hedge and lock in cattle and feed costs a nutritionist to formulate rations so you're cost effective as you can compete with the big boys and you need help 7 days a week. Custom feeding you will have feed bills to get out (which you probably do custom trucking anyway). I guess so many things depend on your situation besides that cattle market and this market is in uncharted territory who lnow what's going to happen. :shock:

 

[mrj]

My comprehension/attention span are still lacking, not to mention dexterity on the keyboard!, but I've not seen mention of the fact our feedlots have more capacity than we have cattle, these days.

Beautiful fall weather in much of the country sure might encourage one to jump into that deal, IF that is a strong desire, along with skills that seem only to need a little updating.

Best wishes in whatever the decision!

mrj

 

[Brad S]

mrj, gave you the answer. You are going to have to compete for cattle against other yards that want to feed, and have banked $200 or more on several turns. There is more space than cattle is a fact. When fed prices plateau, this competition will result in a lot of red ink. It's simple history.

All that said, you can feed cattle anywhere you have a nitch. The corn belt has considerably cheaper corn (but the mud expense). There is no perfect place, but you'll need an edge. Also, small yards need an exit strategy, basically the day you place a pen. This was coming about perhapse 15 years ago. I'd say look at a 5 year plan to renovate and let the cattle cycle work in your favor. Also if you are raising most of your grain, origination friction is profit from jump-that alone is a pretty good nitch.

Now for the bad. Have you kept up your permits? If not, I'm suggesting you may have a 599 head lot. A 5 year plan gives you time to develop a nutrient management plan. Again, farming your own turns poop into more of an asset than liability.

 

[Big Muddy rancher]

I'd say that was excellent advice.

We have friends and customers that feed some cattle to run as yearlings. They do it every year. This year they are playing a waiting game to see what happens before they jump in and buy.

Good luck whatever you decide.

I agree that I don't think this is the time to jump in after 20 years away. Could be an expensive lesson learning how to feed cattle again.
I know some that bought grassers in the spring still making $500/hd but I don't see that margins being that good with these $1500 calves. Different if your reinvesting back in cattle but it will still hurt to lose.

You didn't see the 500 dollars per head in the spring either or the 500 dollars before that. No one can predict the future.[/quote


I didn't see the $500 but I did lock in a break even covering the what I could have sold for in the spring and my grass cost. I also owned the calves and didn't borrow money to go buy them. I don't think I would have bought in the spring and I didn't think I would make much keeping them but that's what we do and staying the course has worked in the long run. :?