Question for the board

[Soapweed]

Thanks for the responses, everyone. I have alerted my friend to this website, and hopefully he can glean some valuable information that will do him some good. You all didn't let me down--I knew you could be counted on to share your experiences. :wink:

 

[Richard Doolittle]

The problem with share arrangements is that when the market is down, neither party makes money. I also think that the risk/reward ratio is too high when looking at feeding calves.

I guess the operator knows what their strengths are, but I would seek out other methods of trying to increase revenues. If I had extra time and feed, I'd be looking at breeding quality heifer calves or broken mouth cows right now.

 

[Cal]

A good friend of mine is considering putting his cows out on shares, and then taking in calves for the winter to eat his feed. This is all still in the "considering" stage and no particular ranch is in mind to put the cows out with, and no commitments have been made for calves to take in.

There are three main elements to ranching--land (feed), livestock, and labor. Another crucial element is capital (money to operate). My friend has feed, his place is stocked with his own cattle, and he has labor. His trouble is he is in debt quite a ways. From my point of view it seems like he would be better off keeping his own cattle at home to eat the feed, rather than taking a chance having his cows out with some unknown operator. Then finding calves to take in for the winter might be hard to do also. Even from a banker's point of view, does any of this make cents? :?

Not knowing anything else about this situation, however, I'd have to say that there's another element to ranching and that would be management, as well as some diversification. Every decision and every exspense needs to be considered and reconsidered carefully, and the debt analyzed.....so maybe some change in day to day operation can be implemented if need be, to a greater or lesser extent. I share your skepticism, Soapweed. I don't think what you've described is the answer.