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Running on all leased land

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It's as low as 5 or 6 dollars per AU here per month. Land is 1500 to 5000.
Somewhere from $20 dollars to 40 dollars per acre per year. 2 to 5 acres per cow. Rough numbers.
 
Most of mine is $15 per pair per month 6 months of grazeing hay around here varies low meadow hay $10 pretty good alfalfa mix $40 dairy alfalfa $55 to $65 a bale 1000#s.I figure my hay at $25 per bale 6 bales per cow per winter we feed some silage or distillars so our hay is in the 4 bale range.
 
I can even beat that- Katrina...I was looking at a section of grazing to buy...All just grazing...Will run a cow on about 20-30 acres so will run 20-30 cows- maybe a few more on a wet year... Thats for 6-8 months grazing... Guy that was renting it was running about 50 yearlings thru the fall and winter on it- but its bared down to where it looks like a parking lot....But it does have a creek bottom with lots of deer...

Anyway they wanted, and I heard it sold the other day for, $650 an acre- which I couldn't find any pencil that could pencil it out for ever paying for itself.....
 
If your going to carry some debt I'd rather have it in cattle than in iron-liquidity and cash flow are pretty important in todays cattle business. If you could find some lease to own deal it might work out too-calf share leases on cows are a disaster waiting to happen -I've seen a few friendships ended over them throughout the years-cash lease is probably better-but in reality if you can make a lease payment you can make a loan payment. If you took cows on lease if the owner just culled them as they go and you replaced with heifers you own it might get you in the business. By the way do you know the guys at MillIron Livestock from Buffalo,Wy-good friends of mine.
 
Denny said:
Most of mine is $15 per pair per month 6 months of grazeing hay around here varies low meadow hay $10 pretty good alfalfa mix $40 dairy alfalfa $55 to $65 a bale 1000#s.I figure my hay at $25 per bale 6 bales per cow per winter we feed some silage or distillars so our hay is in the 4 bale range.
I spend my hay money in fertilizer. I fed .3 bales per cow . I used most of that as bedding calving on snow. We are open with decent grazing all winter long unless you over stock.
 
milliron,

I am in the same situation as you. I have been wanting a ranch lease so bad I about can't stand it for 5 or 6 years now. I don't see any way to make land pay for itself either and I really think leasing is the only way for us to go. I started buying cows about 11 years ago and am currently over 100. It does take a while to grow the herd, but the limiting factor for me has always been lack of grass/stalks/calving ground. I absolutely refuse to calve cows in a dry lot so I have to find grouind all year long. The part of Kansas I used to live in was very farm-i-fied and finally moved out to western Kansas where there is a lot more opportunity. Best thing I've done, too!. Keep looking for that lease and keep heeding peoples advice on this website. Taking in someone elses cows is a good idea. Never, ever sacrifice on quality. $40 a head premiums at whatever stage you sell your calf crop might enable you to stay in the business when other people have to sell out or enable you to pay a little more for a lease!. We'll find something if we keep looking. Good luck.
 
Northern Rancher said:
If your going to carry some debt I'd rather have it in cattle than in iron-liquidity and cash flow are pretty important in todays cattle business. If you could find some lease to own deal it might work out too-calf share leases on cows are a disaster waiting to happen -I've seen a few friendships ended over them throughout the years-cash lease is probably better-but in reality if you can make a lease payment you can make a loan payment. If you took cows on lease if the owner just culled them as they go and you replaced with heifers you own it might get you in the business. By the way do you know the guys at MillIron Livestock from Buffalo,Wy-good friends of mine.

Northern Rancher. Thanks. No, I don't know the folks at MillIron Livestock, although I note that a few of us use the name "Mill Iron" for one thing or antoher.
 
movin' on said:
milliron,

I am in the same situation as you. I have been wanting a ranch lease so bad I about can't stand it for 5 or 6 years now. I don't see any way to make land pay for itself either and I really think leasing is the only way for us to go. I started buying cows about 11 years ago and am currently over 100. It does take a while to grow the herd, but the limiting factor for me has always been lack of grass/stalks/calving ground. I absolutely refuse to calve cows in a dry lot so I have to find grouind all year long. The part of Kansas I used to live in was very farm-i-fied and finally moved out to western Kansas where there is a lot more opportunity. Best thing I've done, too!. Keep looking for that lease and keep heeding peoples advice on this website. Taking in someone elses cows is a good idea. Never, ever sacrifice on quality. $40 a head premiums at whatever stage you sell your calf crop might enable you to stay in the business when other people have to sell out or enable you to pay a little more for a lease!. We'll find something if we keep looking. Good luck.

MovinOn, so are you also working a town job?
 
I suppose as part of this I should ask if anyone has run into any really good alternative sources of funding for getting started, or land purchases. Agreeing to conservation easements, etc?
 
Just for informational purposes- the National Agricultural Statistic Service says that the average US value for pasture land for 2006 is $1000 per acre- which is a +22% yearly change and a +79.5% 5 year change...

Montana's pastureland value is $650 an acre - up 76% for 1 year and up 171% for the 5 year period....Don't think calves are up 171% since 2001 :roll:

Shouldn't gripe tho- they say Florida pastureland value has went up 305% in the last 5 years and is valued at $7500 an acre....
 
Oldtimer said:
Just for informational purposes- the National Agricultural Statistic Service says that the average US value for pasture land for 2006 is $1000 per acre- which is a +22% yearly change and a +79.5% 5 year change...

Montana's pastureland value is $650 an acre - up 76% for 1 year and up 171% for the 5 year period....Don't think calves are up 171% since 2001 :roll:

Shouldn't gripe tho- they say Florida pastureland value has went up 305% in the last 5 years and is valued at $7500 an acre....

Depressing.

Well, off to an exciting week in my "town job", that all my friends and relatives think I'm lucky to have, as I get to go "on the road". Yippee.
 
If you don't already own land I don't think there is any way you can buy it today and make it cash flow with beef cows. If you are buying it for appreciation maybe, or if you can average it with land purchased earlier, okay. Leasing is the only hope for starting or expanding a beef program. I'll bet that is true for Montana, Colorado, Nebraska or anywhere else. Example, land here is $2,000 / ac. plus. Takes 3 acres per cow. That is min. of $6,000 per A.U. At 6% the interest is $360 per A.U. plus about $5 per acre taxes. I can lease that same land for $20 per ac. per year. That's $60 per A.U. vs. $375. Some of the examples above in this thread aren't much different. Land at $600 per ac, run 30 hd per quarter, that is $3,199 per A.U. at 6% equals $192 per A.U. plus taxes. You indicated could lease it for $38 per A. U. In my case I can lease it for 5% of the ownership cost, the $600 land can be leased for 20% of the ownership cost. I know leasing can be a headache, but it's the one that will pencil...
 
milliron,

No, when I moved to western Kansas I leased a small starter yard. It's a little painful to say "never skimp on quality", and then start groups of cattle that have no genetics or uniformity at all, but I suppose it is a little better than a town job. I have great facilities to use for my own calves and am able to but larger quantities of feed to help keep costs a little lower (for me and my customers). The reason I chose the name movin' on though is because that's what I plan to do. I have gone through a lot of changes and jumped through a lot of hoops in my 30 years to reach the "ultimate" destination which is a working cow ranch. Until then, I'll keep chipping away at it and movin' on! Sorry it took me so long to reply. I'd like to hear your thoughts or questions.
 
efb said:
If you don't already own land I don't think there is any way you can buy it today and make it cash flow with beef cows. If you are buying it for appreciation maybe, or if you can average it with land purchased earlier, okay. Leasing is the only hope for starting or expanding a beef program. I'll bet that is true for Montana, Colorado, Nebraska or anywhere else. Example, land here is $2,000 / ac. plus. Takes 3 acres per cow. That is min. of $6,000 per A.U. At 6% the interest is $360 per A.U. plus about $5 per acre taxes. I can lease that same land for $20 per ac. per year. That's $60 per A.U. vs. $375. Some of the examples above in this thread aren't much different. Land at $600 per ac, run 30 hd per quarter, that is $3,199 per A.U. at 6% equals $192 per A.U. plus taxes. You indicated could lease it for $38 per A. U. In my case I can lease it for 5% of the ownership cost, the $600 land can be leased for 20% of the ownership cost. I know leasing can be a headache, but it's the one that will pencil...

I imagine it is limited were you can buy and make it in cattle. I never crunched the numbers but here in South East KS you can still get land for $1,000 per acre and as cheap as $700 an acre that can support a cow on 2 or 3 acres. I bought 75 acres that adjoined our property three years ago at $670.00 an acre all fenced pasture with a nice pond and creek through it.
 
Shorthornguy said:
You might want to read "No Risk Ranching" "Custom Grazing on leased Land" by Greg Judy. It is available through "
"The Stockman Grass Farmer" Good Luck

Thanks!
 

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