Soapweed's Ranch
Ramblings |
Well, we didn't exactly hit a "home run" with the sale of
our cows, but did make it past second base. They are all now in the pastures
of their new owners. A buyer from Kansas ended up getting forty steer calves
and their mothers, for the price of $1650 per pair. A more local buyer from
southern South Dakota bought forty heifer calves with their mothers, and the
remaining fifteen steer calves with their mothers, at a price of $1575 per
pair on the fifty-five pairs. He also purchased the remaining six pairs of
heifers and their mothers for $1550 per pair. Altogether, the cattle averaged
$1603 per pair and selling expense ate up over forty dollars per pair, which
made take home pay of $1560 per pair. Couldda' been better, but couldda' been
worse.
There are a few advantages to selling now. For one thing, taxes will hit less
hard at this point. On a cow-calf pair, the value of the calf can be plugged
into the equation at a more minimal level than if they were sold at weaning
time separately from their mother. On the value of the cow, capital gains taxes
are figured at the rate of 15% federal, and 7% to the state of Nebraska, totalling
22%. Total taxes on the value of the calf is figured on the basis of earned
income, with self-employment taxes also, which could be a tax burden of 40%
on the value of the calf.
Another advantage is that the summer grass bill is saved, and also the money
can go to work almost six months quicker than if the pairs were split and sold
in the fall. At this point, all the calves are present and accounted for, and
sold accordingly. Also, the expense and hassle of giving pre-conditioning shots
has been eliminated on the 101 calves already sold. Guess a bird in the hand
is worth two in the bush.
I am all in favor of opening the Canadian border, but it is nice to get one
more bunch of cattle turned into "money in the bank" before this happens and
possibly slightly rocks the boat.
Copyright © 2005 Steve
Moreland
All Rights Reserved