Beef Cattle Question

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SoonerP226

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Educate me about inheritance tax. I never heard of it.
It’s usually called an estate tax, and it’s paid by the estate, not the inheritors. IIRC, it only applies to estates worth more than $5 million (it used to be lower, but has been ratcheted up over time), so most folks won’t ever have to deal with it.
 

murphranch

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Making a living in the cattle business is like wiping your ass with a piece of broken glass. You can do it but you got to be careful and take your time. My father didn’t like the feedlot/stocker business very much. He was all about cow/calf operations. Bankers like to loan money to someone who wants to build a cow herd on land they OWN compared to someone wanting to borrow X amount of dollars for stockers and a grass lease. You can survive a market crash in the cow/calf business because you have the factory-the cow-still in your possession. Pay your interest and some on your note and try again next year. Always remember that if you own cattle you really aren’t in the cattle business, you are in the grass business. You can lose all your money and all your cattle but never lose your grass. If you still have managed grass pasture you can get the money and cattle back eventually.
I capitalized a word in the above paragraph-OWN. It’s a tough if not impossible business to get started in if you have to borrow money for land, cattle, equipment and Natural Light. Having a wife with a damn good job doesn’t hurt any either. It seems vehicle, vet supplies, fertilizer, fuel and all other ranch costs keep getting higher while the profit margin hasn’t in many years. We are under so much control of the monopoly that the packers have created it’s ridiculous. My family has been doing it since 1896 in northern Osage county and the only way we’ve been able to was because my great grandfather had the foresight in 1906 to put the ranch into estate. It’s good to know as long as our family is alive the ranch will always be here. I think he had a good idea what the future was to hold with the Osage murders-my family is Osage, inheritance taxes, family disputes with siblings wanting their share of the ranch in dollars not acres, outside pressure to sell, environmental control and the loss of land management. I’ve seen several old ranches that had to sell off land to pay inheritance taxes or to satisfy a family member and it’s sad to see the hard work and pride put into a place be for naught.


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CHenry

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Making a living in the cattle business is like wiping your ass with a piece of broken glass. You can do it but you got to be careful and take your time. My father didn’t like the feedlot/stocker business very much. He was all about cow/calf operations. Bankers like to loan money to someone who wants to build a cow herd on land they OWN compared to someone wanting to borrow X amount of dollars for stockers and a grass lease. You can survive a market crash in the cow/calf business because you have the factory-the cow-still in your possession. Pay your interest and some on your note and try again next year. Always remember that if you own cattle you really aren’t in the cattle business, you are in the grass business. You can lose all your money and all your cattle but never lose your grass. If you still have managed grass pasture you can get the money and cattle back eventually.
I capitalized a word in the above paragraph-OWN. It’s a tough if not impossible business to get started in if you have to borrow money for land, cattle, equipment and Natural Light. Having a wife with a damn good job doesn’t hurt any either. It seems vehicle, vet supplies, fertilizer, fuel and all other ranch costs keep getting higher while the profit margin hasn’t in many years. We are under so much control of the monopoly that the packers have created it’s ridiculous. My family has been doing it since 1896 in northern Osage county and the only way we’ve been able to was because my great grandfather had the foresight in 1906 to put the ranch into estate. It’s good to know as long as our family is alive the ranch will always be here. I think he had a good idea what the future was to hold with the Osage murders-my family is Osage, inheritance taxes, family disputes with siblings wanting their share of the ranch in dollars not acres, outside pressure to sell, environmental control and the loss of land management. I’ve seen several old ranches that had to sell off land to pay inheritance taxes or to satisfy a family member and it’s sad to see the hard work and pride put into a place be for naught.
I guess you missed the part where he said he has a real job and doesnt plan to make a lot of money in cattle, just raise a couple and put one in the freezer when needed.

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