looking for wisdom

[Shorthornguy]

If it's what you want to do....Get a good contract and go for it....Thank God for the opportunity. Good Luck.

 

[Ben Roberts]

I am looking for some advice, there is a ranch that backgrounds yearlings
about four miles from my house up for sale and I have been looking to by a place for some time now. there is aprox. 1200 acres with two houses hay shed and barns and two large harvestor silos, used to be a dairy farm.
they fellow who owns it is willing sell it for contract for deed. my problem is that i would't have enough capital to buy the calves to run on the place. talked to him and he would be willing to buy the calves and have me custom graze and feed them on the property. would have to quit job in town to take care of the 500+ calves :shock: . not sure if this is a good deal or not ? so many varialbles to consider since most people on this forum have their head on straight thought i would throw it out there, since the yearlings would be gone in october there is also the oportunity for some guided white tail hunting in beautiful northwestern ontario, also room to board horses up to twenty head. The reason he wants to sell is he is getting in the upper seventies and it is only him and his wife his children want nothing to do with farming

young gun, you say you are looking for advice, but will you take it, more than likely not. None of us see very clearly through starry eyes! Today, huge debt can ruin you for the rest of your life. With the unstable economy we have today, I believe waiting for a few years would be to your advantage.

Best Regards
Ben Roberts

I would disagree wait for what until your 40 or 50 or 60 after awhile what's the point.If it pencils out that you can make a living pay ALL the bills and add a few head of livestock each year I'd go for it.I am a gambler If I lose my a$$ so what scrape up whats left and start over.

Read some history on alot of successful people many have went broke but never quit and in the end they made it.We add about 30 to 50 cows each year now and as the herd gets bigger I just work a little harder.I don't have a hired man and the kids are either in college at work or to young to be much help at present..My wife put's in 50 to 60 hours a week at her jobs so she does'nt have alot of free time either.But I keep expanding even when I'm told not to.

I waited to buy land what would have cost $500 an acre now is $1200 to $2000 see what sitting on the fence get's a guy.Maybe it will go down in value or maybe someone else will buy it and you won't get a chance at it again....I'd go for it.

Denny, the young man ask for wisdom, just because my opinion doesn't agree with you, doesn't make you right and me wrong! Failure, has never been an option for me, i've got more guts than a packing house! I couldn't fail, I had no place to go. Today is different than fifty two years ago though, my generation has always had inflation to protect most of our investments, today, I don't believe that would be enough protection.

Remember this post in the future Denny, time will tell who is right or wrong.


Best Regards
Ben Roberts

 

[Sandhusker]

The time to take risks is when you're young, and you're not getting any younger. Pencil it out and do all the what ifs - the negetive ones. The positive ones take care of them selves. Get any agreement in writing and make it legal. Have all the "who pays what" on paper.

What about the kids? They might not want the place, but what if the people die? The kids might want their inheritance in cash now.

Do a cashflow and when you're done, add 20% on the bills and take 10% off the income and see if it still works.

 

[greg]

It seems many are forgetting this owner is turning over his cattle & his land to a young man. He certainly is taking his share of the risk also! Young Gun must have made quite an impression on him. If this man has that much faith in him, he must be able to handle it.

Your VERY right about that,he most certainly must think alot of him and have the faith he can do it.....just make sure all the ducks are in order,we've seen bad things happen when its not all done legally.Guess one gets headshy after a while.

Good Luck young gun

8) It is not goin' to take good luck?Sorry don't know people on here like should-so yur goin' to get it from hip.Plus got to make up for Mrs. advice.She IS right about getting EVERYTHING in writing(she watched me"us" get bit on a hanndshake.)Still think at his age worth the chance,sound young enough to work, and married so have to??With your name "Young pup"-means everything yu do now, you will look back on at at a little older age than me and say "could of-should of"?

 

[High Plains]

Young Gun,

I still fit in the "young" category so maybe I should just perk my ears up and listen to everyone else. However, one thing that I am learning is that you need to do what makes you happy. Make a decision that you feel in your gut is a good one. I've listened to older and wiser folks that have tried to help me, just to find out that it wasn't in line with my own goals or vision. That's not to say that the Ranchers.net crowd isn't a little wiser than the general population when it comes to these things. :wink: One of the best over-used quotes ever stated is "to thine own self be true". Heck, you probably already know if this is a good decision or not, at least as much as you can know about it ahead of time.

What do I know? I'm not on the right track myself right now. Gotta keep trying :!: For what it's worth...

HP

 

[RobertMac]

Can you AND your wife live an acceptable life style on her income only?
Is this life style what you AND your wife really want to do?
If possible, look at the owner's books to know what the ranch is returning.
If it pencils out using Sandhusker's adjustment and you AND your wife answers yes to the above question, go for it!

Check out Greg Judy in this link...

http://agebb.missouri.edu/mfgc/2000mtg/producer.htm

 

[Mrs.Greg]

What about the kids? They might not want the place, but what if the people die? The kids might want their inheritance in cash now.

THIS is what I was trying to say,it doesn't matter if its legal,so is settling an estate....look into this.This happens...TRUST ME.

Personally I think its a great oppurtunity,I'm most certainly NOT saying don't go for it,I'm saying cover every angle,you may be young but I have a feeling your not stupid,your family will come first in any desision you make.

 

[Kato]

All things totalled, there's also the fact that custom grazing cattle for someone else, (assuming they pay their bill :!: ) is a lot less risky than sticking your neck out to buy 500 feeders yourself. Until you get some equity you're vulnerable, especially the way our markets have been over the past few weeks. If you go for it, take his money, invest it wisely, and build a cushion for the day that you go it alone.