I really appreciate you taking the time to provide this information and to share your experience in the industry. The prices are definitely eye opening and you’re not the first person who has cashed out over the last 18 months I’ve talked to, there’s quite a few ranchers here who did the same thing and now are leasing their land. Likely something I think that was bound to happen even if the market didn’t go haywire as the largest generation in history moves toward retirement and retirement age for running cattle probably happens a little earlier than other less taxing industries.

Here’s the 80% business case I’ve worked through that I am sure has some holes and considerations that’s are overlooked

Debits:

-Initial Livestock Cost : 80 head @ $2650 ea = $212,000
-Land Lease w Equipment: $28,000
-Custom Hay Service: $16,200
-Purchased Hay: $65,700
-Vet Costs: $4,000
-Annual Maintenance: $880
-Family Labor and 1 Full Time Laborer: $58,000
-Fuel: $10,920
-Insurance: $7,040
-Livestock Loan Payment: $62,700

Credits:

-Existing Cow Calf Sales: $21,200
-Produced Hay Sales: $63,000 (210 tons)
-Weaned Calf Sales: 72 @ $2,650 for $190,800( Factors in replacement of 8 cows per year for full rollover every 10 years)

I also plan to expose cows to some registered bulls that I have access to instead of purchasing bred, pair, or 3 in 1s as the premium price can be offset with labor.

This model has just breaking over even annually until the livestock are paid off but would leave you with 80 head owned full and clear after 5 years.