ElTheo
5/20/2016 06:01 EST
It is easy to make a small fortune from farming, all you need is a big fortune.
Farming, like any other occupation is pretty specialized. All an accountant does is subtract expenses from income right? Farming might sound simple, but it is not and you need to calculate your investment in human capital.
If you plan to have a turnover of about $80k a month, you should sell about 300 heads of cattle a year.
So what do you need to sell 300 cattle a year? Well first off, are you selling at weaning, are you fattening them, are you setting up a mini feedlot on your ranch, etc,etc.
I am also guessing you want to run them extensively. Even if you run them extensively you need to manage them actively or at least hire someone who is an experienced rancher. Anyway, you should consider the following - you need to manage grazing, you need to feed supplementary feed, you need to schedule breeding seasons, you need to assist in calving, you need regular visits from the vet.
Are you going to grow high energy feed (for fattening)? - then you need to essentially be a small scale crop farmer as well (think tractor, etc).
The best production systems has a inter calving period of about 370 days and a 95% reproduction rate.
You also need to produce replacement heifers, thus they need to be kept until they are productive.
Think about 1.6 animal units for every calf you produce.
300 x 1.6 = 480 animal units and I am guessing best rangeland will need about 2 ha per animal unit.
Anyway there is money to be made in farming, but you have to know what you are doing. If it was so simple, everyone would do it.
If you are serious about being a rancher, you can PM me, I can give more advice.
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