Money left on the Table

[Dylan Biggs]

Management. To me, it's all management.

If I manage my soils, everything I grow will be healthy and nutritious, tender and delicious.

If I manage my marketing, I can sell the spit out of anything at the price I choose.

If I do NOT manage my soils, everything I grow will require more and more inputs, increasing my costs.

If I do NOT manage my marketing, I will be reduced to selling when and where the market dictates I should, at the price the market players are willing to pay.

Alas, it all comes down to management.

Obviously, but, and this may be semantic, most management decisions made on farms and ranches are ultimately an expression of personal preferences and biases which may or may not compromise profitability.

 

[flyingS]

Dylan wrote:Obviously, but, and this may be semantic, most management decisions made on farms and ranches are ultimately an expression of personal preferences and biases which may or may not compromise profitability.

This is true. I believe some people are so willing to fall into this kind of management, that they would rather sell the ranch than change in order to make the ranch profitable enought to justify keeping it. Ulitmately it backs up the idea that there is no money in ranching and discourages young people from coming back to the ranch. The other scenarion is that the young people do come back and try to make some changes, their parents won't allow change because what they are doing is still working. Things get tighter and tighter pretty soon the young family has nothing to show for their hard work and fore sight, except a small pay check. They get tired of fighting with the boss and move to town and say to hell with it. That is really unfortunate.

 

[PureCountry]

Obviously, but, and this may be semantic, most management decisions made on farms and ranches are ultimately an expression of personal preferences and biases which may or may not compromise profitability.

I agree with you Dylan. My post was simply stating my opinion. However, in my case, our choices to change almost everything that the previous generations had done was not based on my own preferences, other than the one to be profitable. If we could have seen profit in the way we USED TO DO IT, I would have been happy to stay on a horse a few hours/day, calve in March, brand in July, sell in November and never really question why it's so dang hard to get by.

We looked at alot of options on how to make our land base profitable, from guiding/outfitting to organic veggies. We saw good potential in direct marketing and multi-species grazing, and it stayed fairly close to our old preferences of being on the farm, and gives us the opportunity to raise/home school our kids, grow our own food, and still have time to host visitors like you and that crazy loon from Meadow Lake. :wink:

 

[Northern Rancher]

I'm more like a mallard lol.

 

[Soapweed]

The majority of people manage based on their personal preferences and biases which take precedent over profit. Myself included. If I was managing strictly for maximum profit I would not be running a cow calf operation but I like cowcalf and as long as I can manage this enterprise without going broke I am willing to leave some money on the table.

As assanine as this may be it is the truth.

You summed up my thoughts to a T, Dylan. One of the most satisfying ventures of ranching for me is watching home-raised heifer calves turn into good producing cows.

 

[Justin]

The majority of people manage based on their personal preferences and biases which take precedent over profit. Myself included. If I was managing strictly for maximum profit I would not be running a cow calf operation but I like cowcalf and as long as I can manage this enterprise without going broke I am willing to leave some money on the table.

As assanine as this may be it is the truth.

You summed up my thoughts to a T, Dylan. One of the most satisfying ventures of ranching for me is watching home-raised heifer calves turn into good producing cows.

well said, Dylan. nothing more for me to add.

 

[RSL]

I think that personal lifestyle, etc. is a big part of it. It is uncomfortable to make yourself uncomfortable...
As well, cash flow probably determines more decisions than economics ever will. There are often a lot of sleepless nights in a time of change...
If you are truly joyful in pursuing your pursuits, have at it!!!

 

[flyingS]

Soap, I am a little surprised at how many people mention how much pride they take in their replacement heifers. You hear more talk about sell weights and calf crops. I can sure see why people take so much pride in their heifers, they just don't usually come up in conversation. I have a customer that would tell you that raising his own replacements is a must because that is what he enjoys the most.
I think that you can make any enterprise work. I would say the very most important thing to me is quality of life. I defineately enjoy the cow calf side of the business, I also like to run yrlings.

 

[Northern Rancher]

All parts of the beef deal are pretty fun-a set of good cattle be it on feed-on grass-or calving is satisfying-at times they even make a little money.

 

[Dylan Biggs]

One of the most satisfying ventures of ranching for me is watching home-raised heifer calves turn into good producing cows.

Soapweed I am with you on the replacement heifers my most gratifying venture though is seeing bull calves mature into worthy herd sires.

 

[RSL]

There is an interesting comment in SGF this month about cattle inventories and the cow/calf guy moving into the driver's seat. Apparently the money left on the table for other participants (backgrounder/feeder/packer/retailer) is coming back down the chain as supply gets more limited.
I think the biggest challenge may actually be overcapitalization of beef cattle operations. By that I just mean "how much stuff" does it take to run a cow. I don't have a problem with having stuff, as long as the decisions are made with consciousness. In other words, I don't care if you drive an $80,000 truck, but if a $15,000 truck will do the job, please don't complain to me about not making any money.
For the record, I think we are overcapitalized at home. We have a 30 year old tractor, a 15 year old haybine, a 10 year old baler, a cultivator/seeddrill and hayrake that are all over 30, and a barn that is approaching 95. :lol:

 

[WyomingRancher]

The majority of people manage based on their personal preferences and biases which take precedent over profit. Myself included. If I was managing strictly for maximum profit I would not be running a cow calf operation but I like cowcalf and as long as I can manage this enterprise without going broke I am willing to leave some money on the table.

As assanine as this may be it is the truth.

You summed up my thoughts to a T, Dylan. One of the most satisfying ventures of ranching for me is watching home-raised heifer calves turn into good producing cows.

Agreed

I shouldn't tell this on myself, but while picking replacements this week, I just couldn't bring myself to cut many back, so... I called the buyer and asked him if he'd mind if he ended up with fewer head. He wasn't surprised since I did this to him last year, and said he'd be happy with whatever I sent him . The sale calves ship next Monday.

 

[Soapweed]

One of the most satisfying ventures of ranching for me is watching home-raised heifer calves turn into good producing cows.

Soapweed I am with you on the replacement heifers my most gratifying venture though is seeing bull calves mature into worthy herd sires.

Pert' near sam ting onlee difrent. :wink:

 

[Dylan Biggs]

There is an interesting comment in SGF this month about cattle inventories and the cow/calf guy moving into the driver's seat. Apparently the money left on the table for other participants (backgrounder/feeder/packer/retailer) is coming back down the chain as supply gets more limited.
I think the biggest challenge may actually be overcapitalization of beef cattle operations. By that I just mean "how much stuff" does it take to run a cow. I don't have a problem with having stuff, as long as the decisions are made with consciousness. In other words, I don't care if you drive an $80,000 truck, but if a $15,000 truck will do the job, please don't complain to me about not making any money.
For the record, I think we are overcapitalized at home. We have a 30 year old tractor, a 15 year old haybine, a 10 year old baler, a cultivator/seeddrill and hayrake that are all over 30, and a barn that is approaching 95. :lol:

RSL I would venture to guess that you are right about over capitalization. Like you mentioned in an earlier post if the sale listings at farm and ranch sales are any indication, the rust, rot and depreciation money pit is not a lonely one. I don't know exactly how or where you cross the line from under to adequate to over but to be honest we are probably over capitalized also.

 

[Dylan Biggs]

One of the most satisfying ventures of ranching for me is watching home-raised heifer calves turn into good producing cows.

Soapweed I am with you on the replacement heifers my most gratifying venture though is seeing bull calves mature into worthy herd sires.

Pert' near sam ting onlee difrent. :wink:

Soap am I correct in assuming you raise all your own replacements?

 

[Dylan Biggs]

The majority of people manage based on their personal preferences and biases which take precedent over profit. Myself included. If I was managing strictly for maximum profit I would not be running a cow calf operation but I like cowcalf and as long as I can manage this enterprise without going broke I am willing to leave some money on the table.

As assanine as this may be it is the truth.

You summed up my thoughts to a T, Dylan. One of the most satisfying ventures of ranching for me is watching home-raised heifer calves turn into good producing cows.

Agreed

I shouldn't tell this on myself, but while picking replacements this week, I just couldn't bring myself to cut many back, so... I called the buyer and asked him if he'd mind if he ended up with fewer head. He wasn't surprised since I did this to him last year, and said he'd be happy with whatever I sent him . The sale calves ship next Monday.

Sounds like a good thing to me!
I would rather have it that way then the other!

 

[Soapweed]

Soapweed I am with you on the replacement heifers my most gratifying venture though is seeing bull calves mature into worthy herd sires.

Pert' near sam ting onlee difrent. :wink:

Soap am I correct in assuming you raise all your own replacements?

Most of our cows are home-raised, but occasionally I am prone to purchase what looks to be a good buy from other sources. Right now we have 32 nice Charolais calves of weaning age, none of which were conceived on our own ranch.

 

[Dylan Biggs]

Pert' near sam ting onlee difrent. :wink:

Soap am I correct in assuming you raise all your own replacements?

Most of our cows are home-raised, but occasionally I am prone to purchase what looks to be a good buy from other sources. Right now we have 32 nice Charolais calves of weaning age, none of which were conceived on our own ranch.

Do your purchases typically work as well as your own?

 

[Soapweed]

Soap am I correct in assuming you raise all your own replacements?

Most of our cows are home-raised, but occasionally I am prone to purchase what looks to be a good buy from other sources. Right now we have 32 nice Charolais calves of weaning age, none of which were conceived on our own ranch.

Do your purchases typically work as well as your own?

Several times through the years I have taken preg checked open heifers to a fall sale and bought back bred heifers at the same sale, often not being out too much "difference on the trade." Some of these heifers have turned into real nice cows and some have been marginal. Probably 95% of our herd is home-raised, but I have "dabbled" in others. This year the Charolais calves are nice, but they mostly calved later than our own so aren't quite as big. They will be more of a package type deal when they arrive at the sale barn since we don't have any home-raised white calves.

 

[WyomingRancher]

You summed up my thoughts to a T, Dylan. One of the most satisfying ventures of ranching for me is watching home-raised heifer calves turn into good producing cows.

Agreed

I shouldn't tell this on myself, but while picking replacements this week, I just couldn't bring myself to cut many back, so... I called the buyer and asked him if he'd mind if he ended up with fewer head. He wasn't surprised since I did this to him last year, and said he'd be happy with whatever I sent him . The sale calves ship next Monday.

Sounds like a good thing to me!
I would rather have it that way then the other!

How true .

It's been recommended I enroll myself into a 12-Step Heiferaholic program