As promised, here are some options for the young producer looking for a start in production agriculture. Grazing livestock offers a great way to begin an ag business with a small investment.
Click to read the full transcript
As promised, here are some options for the young producer looking for a start in production agriculture. Grazing livestock offers a great way to begin an ag business with a small investment. Very little equipment is required to begin a grazing operation. Some have started out by using leased land and other people’s livestock however, that may require a year or two proving yourself while working for someone else.
Don’t be afraid to start small on your own. It is possible to begin with only a few animals and some electric fencing. Keep an eye out for neglected unused pasture. Electric fence allows you to graze almost anywhere there is grass. If you improve a piece of land through grazing, you will gain a reputation among other landowners. In our part of the world, landowners welcome grazing as it reduces property tax rates.
If you live near an auction market, you can purchase lower priced animals and give them a better home, improving their condition over time. Grouping similar animals together will increase their resale value. Sell/buy marketing is a great tool to grow your business relatively quickly, however it requires a thorough understanding of the market.
A crop/share agreement has helped many producers get started. One common option is for the operator to receive ½ the produce in exchange for 1 year’s care and keeping of the herd while the owner receives the other half. Share amounts can vary depending on who provides what, but the most important thing is to spell everything out in a contract to avoid conflict. Share agreements have been instrumental in the progress of PCC®. During a lengthy drought, Kit found grazing for his cow herd with bull customers in other locations. He received the bull calves enabling him to continue his bull business while the producer kept the high-quality heifers, slowly building a herd of his own. The eventual result is cooperative cow herds with PCC genetics in other locations.
If you are a cattleman nearing retirement, it is possible that you have spent your life building a ranch with no one to carry on. Would you consider connecting with a young producer who has the desire, energy and integrity to continue? I recently saw an ad in the PCC classifieds looking for a young partner to manage a cattle operation. Next week, I’ll share some advice from a PCC Cooperative producer who started from scratch. I’ll see you next time on the Herd Quitter® Minute.
0 Comments