Need help with hobby farm

Bkpigs · Feb 16, 2010

Guys,

Need an outside opinion on this one. My parents are wanting to let me take over the hobby farm. It is only 3 steers a year operation now. My plans were to turn it back into 5 a year like Dad used to have it.

Well since the opportunity is here my wife and I are in limbo over whether or not to take it over. If we do not take it over my parents are going to go down to 2 steers.

The wife and I have plans to buy a farm of our own someday (hopefully soon) and worry that the money we would tie up in the steers would come in handy if we found a farm soon.

Right now I am kinda in the "poor, poor me" mood for some unknown reason. Hopefully sleeping on it and reading your guys' opinions will help me make up my mind. Ohh, and by the way we live 15 min. from my parent's house/farm but it is on my way to work.

So do you guys think this would help my wife and I get our farm or should we just sideline and wait for our own.

larry@stinescorner · Feb 16, 2010

how old are your parents?

larry@stinescorner · Feb 16, 2010

how old are your parents?

Anonymous-0 · Feb 16, 2010

bkpigs: look at it this way, what would your parents do if the shoe was on the other foot? But I do understand your problem. Good luck Mike

kyplowboy · Feb 16, 2010

Need more info here. By 2,3, or 5 steer are you say'n they buy litle'ns and sell'm when they are bigger? Are you marketing them as finished beef? Are they eat'n mostly grass or are you talking bout 5 steers eat'n out of a bucket? Like some one else said how old are your folks? Why are they cutting back (are they getting to where they can't do it or are they loose'n too much money)?

If you have mostly grass and not have'n to buy all the feed see if you can work out a deal with your folks. Tell'm you will stop by and feed'm come'n or go'n to work, they buy the feed, yall split the cost of the calves and split the money when sold. You won't be out much (meaning you can't loose much) and you might make a little to stick back for your farm when you get it.

2-5 steers should not be much work depending on what your doing with them but ain't gonna make your rich.

Good luck.

Dave

paul · Feb 16, 2010

I guess living conditions are what I'd worry about. Are you moving to the house, what does it cost you, more or less driving to your real job?

Three steers is a small investment in the bogger picture?

Or don't I understand the situation? What really are you taking over?

--->Paul

ACKen from Wisc · Feb 16, 2010

I would think it depends on how much more work it would be to take care of more steers. Also depends on how much land is involved. You would need more feed. That means you would have to plant more acres of corn. On and on. Otherwise two or three more steers don't take longer to feed or take care of. Just my two cents worth.

JayinNY · Feb 16, 2010

Why would he have to plant more acres of corn? He could finish his steeres on grass/hay, NO? I had at most 5 cow calfs pairs, and never grew a stalk of corn.....

2-banger · Feb 16, 2010

ive had two cows and 15 cows, if you have to go to barn to feed them it doesnt matter if you have 2 or 5 its still going to take the same amout of time. If you have your own hay, corn is cheap now. For me i can buy corn cheaper than i can grow it. just my 2 cents

Vito · Feb 16, 2010

Don't really see any downside to this.How much money are you going to invest into this?

Vito

kyhayman · Feb 16, 2010

At most we are talking 3000-4000 dollars. Upside income potential is not great, particularly for the time invested. To me, it boils down to 'is it something you 'want' to do'.

cockshutt446 · Feb 16, 2010

I do not understand the problem here. If they want you to take over on it you allready must know the operation and what it is cappable of and where to make your improvements to make it work. I think im hearing the magic word here and that word is wife. i think its nice that you value her thoughts but i just couldnt see going out to buy a farm when there is one staring me in the face

Formerly PaMike · Feb 16, 2010

You and I are in the same boat. I farm my dads land. Never make money on it. Mainly cause I do things "right" and dont cut corners. I build the best fences so I dont have to do it twice. I want things to last and look good. The end result is me losing money every year on a farm I cant afford to buy at $1-$2 million. I would be better off not farming his land and save my money to buy my own farm some day...
If you find the magic answer let me know...

Anonymous-0 · Feb 16, 2010

I can tell you this much. The only reason I don't have a hobby farm and run a few cattle is because I can't afford to lose money at that kind of rate. The reason I'd lose money is because I'd have to buy or rent the land and buildings, etc. If you are being offered the land and buildings at low or no cost, you could possibly even make some money.

Anonymous-0 · Feb 16, 2010

Most people with a hobby farm just do it for something to do that they like doing. I wouldn't think they're too many people just starting up a farm since a lot of established farmers are losing money and really hurting financially. Taking over your parents place might be a good way to see if you like it, or not, without having to get in real deep buying your farm and starting from scratch. What ever you decide should be your's and your wife's decision and not your parents. I'm not trying to sound harsh but a lot of people have been pushed and/or pressured into a family business that they weren't really wanting. A lot of times because they aren't motivated, they run the business into the ground. Do what you will be most comfortable with in the long run, if things don't work out. Dave

Anonymous-0 · Feb 16, 2010

No offense intended here but 2 or 5 steers is nothing more than a few pets to go along with two dogs, ten cats, one horse and 3 goats.
More like an Old McDonald petting zoo than a farm.
If 2 steers vs. 5 steers determines your decision then I think your only kiddin yourself.

If you have your money tied up in 5 steers and that prevents you from buying a farm of your own, then you must not be buying much of a farm.
Around here the price of 5 steers wouldn't buy you the mailbox and front gate to a farm.

GeneMO · Feb 16, 2010

Hobby farm. A hobby. A hobby is something you spend extra money on. I have a radio controlled plane that cost $180. I had spare money so I splurged. The profit differential between 3 and 5 steers is about the same as what I spent on the toy airplane.

Dont sweat hobbies.

Gene

schmuck · Feb 17, 2010

Depends on your taste buds. I suppose someone will argue with me (seems like someone is ALWAYS itchin' to on here) but I would not consider buying a grass finished steer. Grain finished or nothing for me.

smallbaleboy · Feb 17, 2010

your statement worried about the money we would tie up in the steers,tells me right there you really don't want to do it. Cause if you cannot afford to buy them then how are you going to afford to FEED them. Are you really committed,coming and going to work to daily chores. This is like mentioned before is just a hobby with this amount,but it must be taken care of at least twice daily,unlike what was mention earlier about model plane hobby it doesnt care whether it was played with today or year from now. good luck but sounds to me like you don't need them.good luck

Keith Molden · Feb 17, 2010

I really think you're looking in the wrong place for your answer. There is just no way anyone on a forum can tell you whether to do it or not. It has to be you and your wife's decision. You should know going into it that it's not going to be a big money maker. (it's a hobby) so it's gotta be something you enjoy, therein lies the profit.
I put up hay in the summer months. I have no livestock and usually don't make enough on it to really say there's a profit, but I still enjoy doing it, that's why I do it. Just my thoughts, Keith

Bkpigs · Feb 17, 2010

Thanks guys,

To answer some of your questions; Dad is 56 and Mom is 50. The way I understand it is they are wanting to get out of it for me to get a start. The reason they would cut back to two is because of the shakey market. One year a cousin wants a half and the next year only a quarter.

We buy the calves weaned (holstiens) and sell them to individuals when they are ready for slaughter. They are fed a mix of grass and grain. More grass in the begining and nearly all grain by the end. It takes about 60 bu. of corn per steer this way. One advantage is we can set our price, within reason. This year we sold them for $0.92/pound and made a slight profit.

The reason I asked on this board is because sometimes I find it more valuable to get an opinion from people who don't know my family or I. It takes any emotion from it and gives me your straight opinion.

They way it sets right now, I am about 90% sure I will do it but with 4 steers. I know not much difference between 3,4, or 5 steers but I have to have the buyers for them. 3 steers does not leave much to find new buyers and 5 steers leaves too much to chance for the first year.

rrlund · Feb 17, 2010

Traveling 15 minutes each way 7 days a week for a hobby? That's everyday you know? Do you want to have a life? As somebody who was tied down 7 days a week milking cows right here at home,the whole concept is laughable. It would take you about 5 days to start asking yourself why the h3ll you did that!
In reality,what difference does it make whether they have 2 steers or 5? It's not like they're threatening to sell the whole place are they?

Bkpigs · Feb 17, 2010

My parent's place is on my way to work. I work 12 on and 2 off. So being there everyday is not that big of an issue. It is a good point though and is definetly something that needs to be thought over and over again.

Anonymous-0 · Feb 17, 2010

2, 3, or 5 steers? And you are WORRYING about it? If for real, don't even think about it. That small of a deal is only for "fun" and certainly shouldn't have worries of any consequence. There is nothing wrong with doing this, but it should be "for the fun of it" (You like to look at them and be outdoors piddling around).

No offense at all intended. I am just saying if you are the type who will worry about CONSIDERING 2 vs 5 steers, then actually HAVING them might worry you to death.

As far as workload the only reason to have 5 vs 50 is to keep the risk down. Not much more work to have a bunch as to have a couple. Either way you have to tend them daily.

Personally, I don't like doing this kind of stuff "for fun". I like to make money. So I would figure your actual costs, and see what the futures market offers. When a profit appears likely, I'd do it on a decent-sized scale(and forward-sell on the CME or buy puts). Otherwise I wouldn't. For instance, right now my feedlot is full. The previous couple of years I couldn't figure out how to possibly make a profit, so my lots sat empty.

You could buy 10 the first year as a trial run, to see how you get along. (you have to walk before you can run). And if you think you like it and are good at it, the next year I'd buy 50 and use the above-mentioned marketing tools to lock in a selling price.

A few calves to eat some "free" grass is ok. I just can't believe someone actually is agonizing on 2 vs. 3 vs. 5 head. Life has too many REAL worries.

kyplowboy · Feb 17, 2010

Schmuck, not argue'n with you at all but grass fed is the new cool thing. I guess I have never had good grass fed cause what I had taste like deer to me.

Dave

thurlow · Feb 17, 2010

Probably most of us don't understand; I know I don't. I've got numerous hobbies; they all COST money, though I realize some folks turn hobbies into businesses or manage to make a little money out of 'em. I don't get the get the 2 steers or 5 steers or even more; it's still a hobby. Seeing about a dumb animal 365 days a year doesn't sound like much of a hobby; it sounds like a JOB. I was in the cattle business for 47 years; been out for about 5. Unless I'm forced to do so by by circumstances beyond my control (given the situation in the country right now, it might happen), no way in Hail, I'll ever own another cow............

larry@stinescorner · Feb 17, 2010

do you have any brothers and sisters? If not it seems like your parents would like you to continue with their farm would that be a good thing for you? It sounds good but only you know the answer you cant get an answer from us

Bkpigs · Feb 17, 2010

The reason I am debating this is not only do I debate everything with myself (sometimes I look like the crazy homeless guy talking to himself), but I just didn't want to end up with loose ends everywhere if we found a farm of our own. So I guess that I am answering my own question. Thanks everyone for your opinions. And NO, I don't take anything you guys said offensive. I asked for your opinions and I got them.

You never make good decisions surrounding yourself with "Yes" men.

I have decided that I wll NOT take my parents place over this year. I feel that it would be better to wait a year and see where my wife, daughter, and I are at. If we have a farm of our own then I might have a place to backround some calves at. If we don't have one of our own, then I will start there. My parents are not going to sell the farm if I don't take over. They are just trying to help me get going.

I know I want to raise steers (more than what Dad has but not huge). I have done it with my dad my whole life. So it isn't a matter of "Will I like it?"

Again, thanks everyone for your help.

Anonymous-0 · Feb 17, 2010

(quoted from post at 08:30:10 02/17/10) Schmuck, not argue'n with you at all but grass fed is the new cool thing. I guess I have never had good grass fed cause what I had taste like deer to me.

Dave

Neighbor raises beef on just grass, hay, and silo grass. What a shame....
They look good, but don't taste any better that a goat or deer... He gives us a couple steaks ever now and then. They get cut up and put in a stew in order to get some taste in to them.

Dave

Anonymous-0 · Feb 17, 2010

(quoted from post at 08:30:10 02/17/10) Schmuck, not argue'n with you at all but grass fed is the new cool thing. I guess I have never had good grass fed cause what I had taste like deer to me.

Dave

Neighbor raises beef on just grass, hay, and silo grass. What a shame....
They look good, but don't taste any better that a goat or deer... He gives us a couple steaks ever now and then. They get cut up and put in a stew in order to get some taste in to them.

Dave

Anonymous-0 · Feb 17, 2010

My exact thoughts.

Anonymous-0 · Feb 18, 2010

You obviously have North European grass, get some grass from down under the equator and enjoy the [to die for] beef taste.

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