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Question for you ranchers and cowboys

H

hank

New member
Joined
Aug 15, 2012
Messages
4
Location
Venice fl
Been watching for a while. First post.

Me and a buddy have about 20 head of cows. We would like to get some more. A couple of things holding us back. Money and grass. LOL
Have any of you gotten a loan on cattle?
Do you feel like getting a loan on cattle is a good business decision?
If you were getting a loan on cattle where would you go? Is there a bank that specializes in that sort of thing?
There are some people that will lease pasture around here by the head. What do you feel is a fair price to pay per head? I'm in
south Fl.
Any suggestions would be appreciated.
 
Just about everyone in this part of the world, owes money on cows. Wish it wasn't so, but the banks own more cows then most individuals do.
As to where to borrow money for them, almost any of the local banks loan money for cows. But this is central Nebraska too.
 
If you are a rancher around here, if you borrow money, your cows and your equipment is what you use for collaterol. To buy land you often use some kind of a long term loan.
 
First off, Welcome! :D My advice is to be conservative. With things they way they are, getting into debt over anything sure is risky to me. :shock: By building your numbers as you can with your own money or the money the cows you already own bring in, you won't be beholding to a banker. If a guy put a pencil to it and it worked out and he had plenty of grass, that might be another story. But leased grass stocked with borrowed money cattle would make for a nervous guy if he was me. :D I'd insist on a long term lease on any grass you pick up. Improvements like fencing, water and feed all cost money and take time. I'd hate to see you put in lots of work to get the rug jerked out from under ya. Ten years with the first option of renewal and the right to match an offer if it get's sold would be a starting point for me. One other idea might be what Gcreek here on ranchers did. Pick up cheaper old cows or pairs and run them for a year hoping for heifers to keep long term when they calve. It's a tightrope cause they can go downhill quick. But if a guy keeps his eyes open and uses his head, it is one way to go. Good luck and let us know how ya'll do! :D
 
If you have grass for a few years locked up. I wouldn't be affraid to borow money. If raising cattle is what you want to do for a living. It takes money to make money. The only people I know of that don't borrow any, (farmers or ranchers) are old men 75 to 80 years old that bought ground forever ago and the money they made on it the first year paid for it.
 
If it wasnt for the beginning farmer program through fsa and a good bank/banker to work with i wouldnt be where i am today. 6 years ago, right out of college i had nothing to speak of and now i am fulltime rancher without supplemental income from a job. And my parents work in town. My wife works in town for insurance but money from her job goes into a seperate acct from the ranch. Ya i got "hellacious" payments but you cant make money if you dont spend money.
 
4Diamond said:
3 M L & C said:
hank said:
Thanks for the info. Some people on another form mentioned FSA loans. Whats your experience with those.
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Don't do it
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Care to expand???
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my son bought some bred hiefers when he was in High School with a FSA loan His first name was the same as mine, every time I sold cattle FSA name was on my check and I didn't have the loan.Finally got it paid off after my son got killed, it just irritated me going to the FSA office before I could deposit a check.
 
I am the same as beefeater if it wasnt for fsa i wouldnt own any cows. Personally i think i would sooner deal with fsa than any bank around here at least fsa knows what eat to feed all the banks around here dont even know what a cow looks like.
 
Depends on your work ethic.If your lazy then don't do it.If you can secure some pasture and with low interest money I'd do it but keep working at whatever it takes to survive.Don't buy a hundred cows or two hundred for that matter and think I'm a cowboy and I'm on easy street.I have a shop and do welding not because I love it but because it's part of my cash flow plan. I bale about anything my tractor will float on because with enough feed on hand I have options.The partner deal would'nt work the only partner that works is a wife in my opinion and picking a wife needs to be done carefully trust me I've had two 2nd one's a keeper and will travel thru hell and back for me as I will for her.In this business there are great challenges and great risk and great rewards. Come to think of it in my welding business there were great risk's challenge's and rewards go figure.

Good luck.
 
eatbeef said:
If it wasnt for the beginning farmer program through fsa and a good bank/banker to work with i wouldnt be where i am today. 6 years ago, right out of college i had nothing to speak of and now i am fulltime rancher without supplemental income from a job. And my parents work in town. My wife works in town for insurance but money from her job goes into a seperate acct from the ranch. Ya i got "hellacious" payments but you cant make money if you dont spend money.
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I like your attitude. I owe ALOT of money mostly on land and I sleep very well each night. It helps that I'm dog tired at days end but very satisfied.You won't here doom and gloom from me as I've worked in the town jobs and remember it well.Still do it every winter.
 
I know its a broad question.
Here is a little background on me and what I'm looking for. I have a full time job. I work a 24 on 48 off schedule, so I have time. The only thing I owe money on currently is my house, but there isn't much extra $'s laying around.
So my bills are payed and I enjoy working with the cows. I don't have to make money the first couple yrs. If I can get a small herd started and pay the note off I would be happy. From that point forward I would think more along the lines of staying out of loans. I hate being in debt.
I don't have cows or grass, so I was hoping if I could get approved for a loan, I could find someone willing to sell me cows, and lease me pasture.
 
Good luck and Gods' blessings on whatever you decide to do in this situation. You will need both! Of course, the latter brings the former.

We seem to be seeing some articles in ag papers promoting the idea of pairing up older farmers who don't have a family member with younger ones who want to farm but don't have any family connection with it.

Both parties would need to be very careful not to get 'taken' by someone, but I believe it could work, whether with the younger person eventually buying out the elder, or simply leasing the land leaving ownership with the original family.

Honesty and fair play take a person a long way toward success in this world with so many who have neither......but honest people have to be wary, too.

mrj
 
4Diamond said:
3 M L & C said:
hank said:
Thanks for the info. Some people on another form mentioned FSA loans. Whats your experience with those.
Click to expand...

Don't do it
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Care to expand???
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Where I live is all agricultural, farm or ranch. If you look around you can find a bank to loan money close to what the fsa will loan it. I looked into it when I was younger. I started farming my own ground when I was 15. The paper work was a headache, and no matter what when you deal with the gov the people making rules and what not are someone behind a desk that dosn't know squat about farming or ranching. They have programs to help pay to put in undergound pipe and tanks, but they make you build it about three times bigger than you need, so end the end you spend the same money, and have to put up with them telling you how to basicly wipe your but. Some people do well with it like eatbeef, but I wouldn't mess with them. Like I said here is all ag banks so they are competitive and not worth the little savings. Maybe elswhere is different.
 

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