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Why do people have cattle if its so unprofitable?

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    Originally posted by ken800 View Post
    Longhorn can be pretty cheap to raise if you have good genetics and the calves will bring enough to make it worthwhile. They are much hardier (MUCH) than angus or other breeds of beef cattle. Though they return half of what a big beef cow would, they cost next to nothing. Cows rarely have birthing issues. Calves are up and running quick. Herd is very protective of newborns against predators. They'll eat a lot more native browse than other breeds. All that said, you can't make good money in cattle on small land. It's for the tax benefit and a little side income.
    My neighbor just sold 8 longhorn calves at Nixon sale barn, they brought a grand total of 1277.00 . Never even covered a years worth of hay and cubes.

    He has 18 head left, just for an ag exemption on property tax and not to pay sales tax at Tractor Supply

    Comment


      Originally posted by Burnadell View Post
      I hope you realize that you don't get 100% tax savings.

      Let say for argument sake, that you lose $30,000 of real negative CASH flow, and you are in a 22% tax bracket. You will save $6600 in taxes.

      So you spend $30,000 to save $6600??? Please explain how smart that is. I must be missing something.

      After posting the above reply I realized that I had some tax papers on my desk. Here is what I am talking about in regards to tax savings.

      Here at the house 50 acres. They evaluated it at 346,140.
      Minus the ag stuff -208,090
      Tax value 138,050

      a 16 acre spot 43,230
      -41,620
      Tax value 1,610

      an 8 acre spot 52,440
      -51,390
      Tax value 1.050

      a 4 acre spot 13,840
      -13,290
      Tax value 550

      A 30 acre spot 75,830
      -72,080
      Tax value 3,750

      So having cows cuts my taxable value on my land from $531,480 to $145,010

      Here at the house I get some other exceptions as well so it makes the math a little cluttered but trust me saving almost $400,000 in taxable value helps.

      -john

      Comment


        Originally posted by RiverRat1 View Post
        If you were already going to buy that 30k (whatever) then you actually only pay $23,400 for it. It's like when women shop and "save" all that money on sale items
        Not many people would buy fertilizer, lime, feed, hay, cattle shoots, etc., and pay vet bills if they were not raising cattle, would they?

        Comment


          Originally posted by Radar View Post
          My neighbor just sold 8 longhorn calves at Nixon sale barn, they brought a grand total of 1277.00 . Never even covered a years worth of hay and cubes.

          He has 18 head left, just for an ag exemption on property tax and not to pay sales tax at Tractor Supply
          Yea but anything showing longhorn blood gets docked really hard at the sale barn. If he had "better" cattle he would probably do better in the long run.

          -jhon

          Comment


            Originally posted by TX_Hoghunter View Post
            Yea but anything showing longhorn blood gets docked really hard at the sale barn. If he had "better" cattle he would probably do better in the long run.

            -jhon
            Oh yes sir I agree, I was replying to that feller ken800. My neighbor would be much better off leasing his land for pasture, he would have nothing invested(livestock,feed) and reap the Ag exemption benefit.

            Comment


              Originally posted by TX_Hoghunter View Post
              After posting the above reply I realized that I had some tax papers on my desk. Here is what I am talking about in regards to tax savings.

              Here at the house 50 acres. They evaluated it at 346,140.
              Minus the ag stuff -208,090
              Tax value 138,050

              a 16 acre spot 43,230
              -41,620
              Tax value 1,610

              an 8 acre spot 52,440
              -51,390
              Tax value 1.050

              a 4 acre spot 13,840
              -13,290
              Tax value 550

              A 30 acre spot 75,830
              -72,080
              Tax value 3,750

              So having cows cuts my taxable value on my land from $531,480 to $145,010

              Here at the house I get some other exceptions as well so it makes the math a little cluttered but trust me saving almost $400,000 in taxable value helps.

              -john
              You are talking about real estate taxes. Those can/may be mitigated by a wildlife or timber exemption.

              I am taking about INCOME tax savings which is what was being implied by those to whom I responded. It is simple accounting, but I don't think some understand accounting. You certainly can reduce your INCOME tax bill by losing money, but you don't recover 100% of those losses. Perhaps an accountant/CPA can tell me if I am wrong.

              Comment


                Another thing that always gets over looked is the time spent tending the cows fences etc.. people say I sold x amount worth of calves but there's a mile long list of stuff that don't get figured in to the price of keeping cows.. other than breaks on the land taxes it doesn't make any sense to spend 50k to save 15k in taxes.. my land is farm exempt because I lease it to a friend to run cows on. I charge him what it cost to pay the taxes on the land as his lease payment.
                For 4 years I kept a log of what I spent . Wrote it down everytime i left the house to fool with the cows. Every penny was wrote down. I charged for my time just like I was at work. I now spend a lot more time hunting and fishing..

                Comment


                  Originally posted by jds247 View Post
                  Another thing that always gets over looked is the time spent tending the cows fences etc.. people say I sold x amount worth of calves but there's a mile long list of stuff that don't get figured in to the price of keeping cows.. other than breaks on the land taxes it doesn't make any sense to spend 50k to save 15k in taxes.. my land is farm exempt because I lease it to a friend to run cows on. I charge him what it cost to pay the taxes on the land as his lease payment.
                  For 4 years I kept a log of what I spent . Wrote it down everytime i left the house to fool with the cows. Every penny was wrote down. I charged for my time just like I was at work. I now spend a lot more time hunting and fishing..
                  Thank you. You understand because you have done it. It is simple math and accounting.

                  Comment


                    Originally posted by jds247 View Post
                    Another thing that always gets over looked is the time spent tending the cows fences etc.. people say I sold x amount worth of calves but there's a mile long list of stuff that don't get figured in to the price of keeping cows.. other than breaks on the land taxes it doesn't make any sense to spend 50k to save 15k in taxes.. my land is farm exempt because I lease it to a friend to run cows on. I charge him what it cost to pay the taxes on the land as his lease payment.
                    For 4 years I kept a log of what I spent . Wrote it down everytime i left the house to fool with the cows. Every penny was wrote down. I charged for my time just like I was at work. I now spend a lot more time hunting and fishing..

                    I hear ya but some people spend way too much money when raising cows. I see so many people that try to keep the maximum number of cows on a place thinking they will make more money if they do. They would do a lot better cost wise but thinning the herd to half.

                    Comment


                      Originally posted by Burnadell View Post
                      You are talking about real estate taxes. Those can/may be mitigated by a wildlife or timber exemption.

                      I am taking about INCOME tax savings which is what was being implied by those to whom I responded. It is simple accounting, but I don't think some understand accounting. You certainly can reduce your INCOME tax bill by losing money, but you don't recover 100% of those losses. Perhaps an accountant/CPA can tell me if I am wrong.
                      Your right they will all save you money but I prefer cattle myself.

                      -john

                      Comment


                        Originally posted by TX_Hoghunter View Post
                        I hear ya but some people spend way too much money when raising cows. I see so many people that try to keep the maximum number of cows on a place thinking they will make more money if they do. They would do a lot better cost wise but thinning the herd to half.
                        Yep you can't starve a profit out of them.. I miss fooling with my cows . November was Christmas for me I got to see what the new bulls genetics added to the caves.. I really enjoyed it as a hobby but as an actual job I found it much more profitable to punch the clock at the plant.. I'll probably move back to where I can have a few cows when my kids graduate from high school..

                        Comment


                          Originally posted by jds247 View Post
                          Yep you can't starve a profit out of them.. I miss fooling with my cows . November was Christmas for me I got to see what the new bulls genetics added to the caves.. I really enjoyed it as a hobby but as an actual job I found it much more profitable to punch the clock at the plant.. I'll probably move back to where I can have a few cows when my kids graduate from high school..
                          Agree with this 100%.

                          -john

                          Comment


                            Originally posted by doghouse View Post
                            I can guarantee no cattle rancher is making that much per calf. Meat packers are but not the bottom man, the producer.


                            This right here....
                            It’s time for farmers to partner with a local processor and sell direct to consumer. Get a little savvy on social media, develop a brand identity, and draw in buyers by producing a superior, local, product. There’s a lot of people willing to pay more for exclusively grass-fed, hormone free, and holistically managed meats. I know I do when I have the opportunity.


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                            Comment


                              Originally posted by IkemanTX View Post
                              This right here....
                              It’s time for farmers to partner with a local processor and sell direct to consumer. Get a little savvy on social media, develop a brand identity, and draw in buyers by producing a superior, local, product. There’s a lot of people willing to pay more for exclusively grass-fed, hormone free, and holistically managed meats. I know I do when I have the opportunity.


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                              We were talking about this just a minute ago. Have you ever ate grass fed beef?


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                              Comment


                                Originally posted by IkemanTX View Post
                                This right here....
                                It’s time for farmers to partner with a local processor and sell direct to consumer. Get a little savvy on social media, develop a brand identity, and draw in buyers by producing a superior, local, product. There’s a lot of people willing to pay more for exclusively grass-fed, hormone free, and holistically managed meats. I know I do when I have the opportunity.


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                                Hell....YES!

                                Someone just opened one in my hometown and it always seems busy.


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