You can resell the land later on and it is likely going to be worth more than what you paid for it. You can also dive straight in to our feeder cattle … Profits here are taxed at a fixed 6% of sales, or if you have a very small margin you can deduce your real expenses and be taxed at 31% on the profit. This app allows you to invest in cattle – here’s how much it costs, This is how much you can save by paying R100 extra towards your car each month, Ramaphosa eases lockdown level 1 restrictions – including international travel and alcohol sales, Ramaphosa to address South Africa on coronavirus lockdown tonight, Job cuts, fewer leave days, and wage freezes at the SABC, How much you will be paying for medical aid in 2021: Discovery vs Bonitas vs Momentum. Cattle Feeding Spreads. We decided to sell before they reached 1000lbs because the weight curve is slowing down between 800 and 1000lbs (you learn something every day, don’t you!) Investors can get in for as little as $500 and as much as $100,000 per interest. I am interested. I wouldn’t know the first thing about doing it but it sounds like a good investment. when you sold them. A few phone calls to the zoning board to get it rezoned as farm land, and your taxes drop significantly while you hold the land waiting for the commercial development market to turn around. my phone No.03417176593, Assalaamu Aleikum wa rahmatullaha wa barakatuhu. This is especially true when combine with a stock portfolio. Returns sound great, but like you pointed out the risks seem fairly high. Terrific returns there Pauline. from the sale of the meat. Returns are not as much as Paulines annually but structure is such that the investment is of negligible risk and better lo g term. I have never considered it because I don’t know anyone in the business that I could trust to do it with. I would get a better price by the pound. I noticed in one of your post you had mentioned that the steers you had avg weight was 700lbs. In 2018 financial services provider, FedGroup, released an app which allows users to generate an income by owning assets in various farming ventures. Would you like to add a question or comment? I like the idea of a tangible investment, real estate, land, livestock, something palpable, with all the crazy around stocks and shares, you may end up with a worthless piece of paper. They even each other’s own spikes out, smoothing the income stream. And having three employees overseeing the cattle in Guatemala doesn’t cost what having one employee in the US could cost. Last month I sold 44 heads so let’s have a look at that. As you said the cost for employees to look after them is so much cheaper as well. The animals were sold around 30 months so they are not fully grown, but apparently if you keep them longer the weight curve slows down quite a bit. Weigh it at the location when it arrives.That total weight is your investment. When the cattle has been purchased, it is transported to the farm management partner farms. So I got back ((770*.76)-250)/2= $167.6 on my $250 investment, a return of 67% in 15 months. and 15% p.a. Comments section policy: Any attacks on BusinessTech, its journalists, or other readers will result in a ban. contact me at nelore11@hotmail.com if you want to hear more about it. Thank you Jim, how is your arrangement over there, do you pay a monthly fee or split profits with the ranch owner? The average calf weighted 770lbs. If you want to participate in one of the main Argentinean Economic Pilar, Argentine Beef, you can do it. (10.000 m2) of land, animals are kept on open fields the entire year and gain up to 1.65 pounds (0,75 kilogram) per day grazing naturally, no additional or unnatural feeding is required, projected ROI based on conservative weight (500 kg) and price (US$ 1,65 / kg) values, part of the land lease retainer is reimbursed if the animal reaches slaughter weight before 24 months, if the client does not make money, the cattle investment program partner doesn't make money either. Thank you so much for sharing. Pay the transport to the location. So I visit the ranch once in a while to check on the cattle, but not much more. Thanks for sharing. Good luck with the remainder! That’s so cool! Are you actively following all coronavirus prevention measures. Reuters reports that mobile app, Livestock Wealth, allows users to buy shares in a cow from their mobile phone starting at R576. At the time of buying, living calves were selling for $.53 a pound. Did I get the expected investment back so far? At launch, the choice of assets included blueberry bushes, beehives where sustainable honey is produced, and urban solar farms that generate electricity. Before we went traveling, BF needed some cash. I never for a second have considered such type of investment. I bought the calves in waves, 50, then 50, then 10, reaching my maximum of 110 heads, and also sold in waves. You will have a lot of sleepless nights to read them soon . I would never embark on a niche investment like this without the first hand help of someone like your BF. Your employee can steal a calf and pretend it was still-born. I don’t think I would have either. We live in a rural area with lots of farmers and ranchers, so I know that cattle are going for crazy prices right now. Will get back to you soon. I’ve never heard of investing in livestock unless you were a farmer. Selling to a fancy restaurant would be hard due to the ranch being about 300 miles from the capital city, where most restaurants already have a good butcher. Would you consider some non traditional investment because you know the right people? Individually, a six to eight-month old calf, which is sourced from preferred farmers, is raised at the farm until it reaches a mature age of 30 – 33 months, after which it is slaughtered to produce high value free-range, hormone-free, grass-fed beef. This is why going into debt is so nerve-wracking. Cattle are a valuable commodity across industries like agriculture, clothing, sporting goods, and even musical instruments. Set up in 2012 to allow those interested in investing in grazing livestock to do so with no risk. One of the things that I have learned is if you want high yielding weight not only is the care involved but also the genetics. The deal was that I would pay for each calf that was weaned a set price and then we would keep them on his ranch, and split profit at the time of selling. We do rotational grazing where im at along with feeding them salts and of course we have man made ponds which collect rainfall thru out the year along with a water well during the dry season. Maybe in the future! I have not had problems thinking about the slaughterhouse since I eat meat myself, and while it lasted, they lived a pretty happy life eating grass with little stress. This includes costs relating to the land use, transportation, insurance and overheads. There are three employees looking after them. A pregnant cow costs R18,730 and takes 12 months before the newborn calf can be sold for a return, while investing in a calf costs R11,529 and takes six months for it to grow enough to be sold. All Rights Reserved -. Your intentions were good in I would have never thought of doing this, ever! that sounds like a great deal too! What BF paid for his land 30 years ago is ridiculous compared to today’s value. I have Googled it and many farms are offering some kind of investing systems, every one is different, I would always try a nearby farm, so I can go check that everything is going well. Nope! He wanted to sell some bulls and I asked if I could buy them and come to some sort of arrangement for him to keep them in his ranch. For the company that does virtually all of the dairy cattle artificial insemination supply in Canada. Does someone else do all the work with taking care of them? Hi can you send me your number I want to see what you offering hereduced this is my number 07840811952 or wattapp me I know more about business return and figure I have. Thanks for the kind words, glad you enjoy my posts! Hi there I myself have cattle in Guatemala Im actually in El peten area near Rio San Pedro in a small town called El Naranjo. And don’t forget that we are talking about bulls here. insurance for seniors, That is an excellent return and it sounds like things worked out perfectly for you (as you mentioned). No animal has been sick (it happens often, and they generally die), still-born can happen with cows, and people can steal your cattle. I have never had it but would like to try. Hi, Regarding Paulines comments. I had bought that lot 15 months ago. I sell for $.75 alive, so it is about $1.50 for the meat without transport and slaughtering costs. I’ve never considered it because I would have to hire it all out. I am only afraid of a vet emergency, like they can’t give birth or something. Not quite a baron, I think the ranch next door has some 10K heads of cattle! If you have cows, every year, on top of the return, you would get another animal, doubling your investment! In addition to buying shares, users can also buy their own cows and calves or shares in a pregnant cow or young calf. I have heard stories about some guys using the bulls to transport drug through the border as well, poor animals. In any case, thanks for sharing this info. By the time you realize you’re in it deep, it’s We keep the animals on our farms until it they reach slaughter weight of >948 lbs (>430 kg). They were about 9 months and BF suggested we keep them for 2 years, saying they would weight about 1000 lbs by then, and sell for $530. He had a lot of space per head so he said yes.