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Analysis of Cattle Sales and Profitability

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13:10
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Dream of owning a farm? Can you earn a living with cattle? Surprised?

What happens here

The farmer presents a detailed breakdown of his recent cattle sales. He sold 15 animals (a mix of adult cows, young bulls, and heifers) at the market. An adult cow weighing 1135 lbs sold for $1.19/lb, totaling $1350.65. This particular cow, purchased pregnant for $1200 two years prior, generated a $150 profit on the animal itself, in addition to two calves born during its time on the farm, indicating a solid return on investment (over 10% interest for two years). Younger, lighter animals (bulls and heifers between 300-500 lbs) fetched significantly higher prices per pound, ranging from $2.60 to $3.30. The highest per-pound price was $3.30 for a 315 lb bull, yielding $1039.50. The average price per head for the 15 animals was $791.41. The total income from selling these 15 animals was $16,281.63, which covered all hay costs for 2023 and 2024. He estimates a net profit of $8,000 to $10,000 for the year, with potential to earn up to $32,000 from 32 mama cows if each calf sells for $750-$1000.

Goal: This step involves reviewing the cattle market prices and profitability from selling animals, highlighting how the income covers operational costs and generates a significant return on investment.

What they say

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keystone predator species when it comes to raising cattle it's something that's a fact of life life is about Seasons life is about growth and life is about death if not for death we wouldn't have anything if not for microbes and if not for mushrooms and fungi we need it we need it in our soil we need it in our bodies so that being said let's talk a little bit about the profitability if I process a beef Calon let's say I process a400 lb beef Calon I take home 1,000 pounds of beef the minimum cost for any beef that comes off the farm is going to be about $10 per pound so you do the math there that's $10,000 right a lot of leg work it takes 24 to 28 months to finish out a grass-fed animal like this that's a lot of leg work I was significantly impressed here with the prices that I got for my beef so what we had we took 15 animals and this is just the sheet with 15 animals that we took actually get you a picture of that and we'll pop it up on the screen so I sold one adult cow one adult cow was a female she wasn't thriving she wasn't doing very good she wasn't very parasite resistant meaning I could tell she was losing weight she was wormy she was always wormy and I always had troubles with her so she had to go that one cow weighed 1135 lb and the price and this is the cheapest one was $119 so $1,350 65 for that cow when I bought that cow it was pregnant and I paid $1,200 for it okay okay so it set out here in the pasture for 2 years and it gained $150 I don't know anywhere that you can invest $1,200 and make it bring back $150 worth of profit in two years of doing nothing okay that's significant that's significant that's 10% interest so yeah interest rates are up a little bit uh so the next thing that we did we had some Bulls we'll talk a little bit about this so our weight in our in our animals really matters so at 510 lbs they brought $260 per pound so a 510 lb cow bull young bull brought $1,300 okay 1326 a755 lb bull brought $1,457 at $1.93 per pound a 380b young heer brought $760 okay so that's $2 per pound the most I got for any young animal was a 315lb bull which was the smallest bull out here and I ended up getting $330 per pound for that small bull $139.50 for that 35lb bull so the magic number is between 300 and 500 pound is what I'm finding out that's where the money is a little bit better I have no idea why that bull brought that much money we look back through here I've got some at 620 lbs the minimum cost that I got was that cow and it was $119 a…

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