How to Start a Cattle Farm
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Starting a cattle farm requires research and planning. While the investment of both time and money can be substantial, you will benefit from being well-prepared before getting started. It's important to take into consideration multiple factors to help you move closer to becoming a successful cattle farmer.
As of 2021, the USDA Economic Research Service has recorded 72.9 billion dollars in cash receipts from the cattle industry. This value means that there is now a renewed interest in cultivating land for raising livestock - more specifically cattle.
Now before digging into a whole weekend of doing research, it’s important to know rought figures and estimates so you will know what to expect and, more importantly, if cattle farming is really for you.
Research The Business
To ensure that your venture is profitable, it’s essential to understand how to raise and manage a herd of cattle. Consider how much space you will need, how much feed is necessary, what type of health care is required, and how you plan to market and sell your product.
With over 800,000 beef cattle production businesses as of 2022, it’s understandable why you want to invest into this industry. But it’s important to be prepared. This article is one good place to start. You’ll have an idea of the average costs that you may need to shell out when running your own cattle farm.
Rough Figures for Capital
Start-up costs can be substantial as you'll need land, equipment, livestock, and more. Make sure to factor in how much you'll need to spend before you start your business.
Taking into account the cattle farm size, type of equipment, cattle-raising strategy, and number of people employed, starting a cattle farm in the United States can range from $300,000 for a small farm to as much as upwards of $900,000 dollars for a sprawling cattle ranch.
Purchasing Land
When looking for a piece of property, consider how much land is necessary to support your herd, how suitable its topography is for raising cattle, and how close it is to markets where you can sell your product.
In the United States, the average pasture value per acre is $1,650 per acre as of 2022 where you’re looking at higher prices in the eastern coast at upwards of $5,000 per acre.
Cattle & Equipment
You'll need to buy the right type of cattle for your climate, as well as additional supplies such as fencing, feeders, water troughs, barns, and tractors. Make sure you invest in quality livestock and equipment that will stand up to frequent use over time.
As of 2021, the average annual cost per livestock farm for equipment in the United States is at $9,798. This data provided by the United States Department of Agriculture (USDA) includes expenses taken from self-propelled machinery, vehicles and other farm equipment.
Marketing Plan Development
Having a clear marketing strategy is essential to success when starting a business. Research how you will reach potential customers and how much you can charge for your product to make it profitable.
Traditionally, cattle farms in the United States develop ties with their local auction markets where cattle is commonly auctioned off. Other cattle farms, like in Texas, opt to have their cattle butchered and pack it themselves in-house to be sold online or through local distributors or farmers’ markets.
Starting a cattle farm in the US involves many steps that must be completed before you can begin to raise your herd. Before getting started, it is important to identify the key elements and develop an understanding of the requirements associated with each task.
Raising Cattle in Texas
The cattle raising industry in Texas has seen generations of cattle ranchers throughout the years. And based on 2021 data from the USDA, livestock purchases in the State of Texas have amounted to 5.68 billion dollars.
And this is why it’s tempting for both locals and people who are looking to move into Texas to invest in the livestock industry - specifically cattle raising. But it’s not that simple if you really want to set up your own sprawling acres of longhorns or Angus-Wagyus.
State Regulations on Farming Beef Cattle
The first step is to research the regulations, laws and permits required in the state of Texas or where you plan to start your farm. This is because there may be varying regulations for each area that you may be eyeing to establish your own cattle farm.
Make sure you understand the specific regulations for owning and operating your very own cattle farming business, especially if you are planning to raise organic or grass-fed animals. You will also need to research zoning laws and restrictions in your locality.
Look for Adequate Real-Estate
The next step is to find suitable land with adequate space for grazing and housing. Consider factors such as the size and location of your farm, access to water, and what type of grasses will be available in contrast to the climate of your specific area.
Be sure to research the soil quality and fertility of the land you are considering purchasing. A great way to go about this is to ask around where you can submit soil samples. This is going to help you gauge the scope of work you're going to need to do to keep up with the quality of pasture land for raising beef cattle.
As of 2022, the average price of land per acre in Texas can go as low as $1,350 in far West Texas to $10,200 per acre in the Gulf Coast and the Brazos Bottom. Apart from these given price ranges, you’ll also have to take into consideration the relative operating costs you may incur in a given area.
Get Good Cattle Genes
After securing suitable land, determine the type of cattle you want to raise. This will highly depend if you want to raise dairy cattle, beef cattle, or breed-specific breeds to build up a good stock for selling. For this, you'll need specialists in the field or you can strike up a conversation at your local farmers' markets where you'll find other cattle farmers.
Consider factors such as climate resistance, meat quality, growth rate, and other characteristics. You may want to consult with a local veterinarian or agricultural agent for advice on the type of cattle that will best suit your needs.
The going rate for bull semen ranges from $20 to even up to 1000 dollars per unit for more expensive breeds like Akaushi cattle from Heartbrand.
Purchase Cattle and Equipment
Once you have chosen the breed of cattle, it is time to purchase the animals and equipment necessary to set up the farm. Invest in a tractor, fencing, hay feeders, stalls, and other necessary farm equipment. You may also need to purchase hay, grain, minerals, and supplements for your animals [depending on the approach to cattle raising you fancy].
Based on the 2021 annual expenditures summary from the USDA, Texas has a total average of $10,850 for annual costs in maintaining farming machinery, vehicles, maintenance, and other self-propelled equipment.
Hire Competent Staff
In addition to buying the cattle and equipment needed for a successful cattle farm, you must hire experienced staff such as veterinarians, nutritionists, and livestock handlers. Additionally, you will need to make sure that you have the right insurance coverage.
It’s also important to have an idea of what costs you might build up when hiring staff to help you run your cattle farm. Based on the data provided by USDA on farm labor rates as of April of 2022, the wage rates of both Oklahoma and Texas field and livestock workers for 40-hour work weeks are 14.20 and 14.56 dollars per hour respectively.
By following these steps, you can start a successful cattle farm in the US or, specifically, in Texas. With careful planning and research, you can create a profitable cattle farm that produces high-quality, all-natural meats that your family and potential customers will enjoy. And through your experiences in starting your cattle farm, you’ll find that it’s both rewarding and enjoyable. Good luck!
For more information on how to become a farmer, click here.
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