Beef Cattle Management Success Failure or Modified by Georgia Agriculture Education Curriculum Office June, 2002

Business or Hobby?

Tax Strategies for Cattlemen IRS determines if you operate a business or hobby In order to qualify for tax deductions you must have 2 profit years in a 7 year period A small profit still counts as a profit If Audited, present evidence that you consulted a Tax Attorney Obtain a tax opinion letter justifying expenditures Letter shows you operated in a business-like manner Consistent with IRS regulations Maintain proper ledgers, cost projections, and business plan

Planning Your Profit Year Cut costs Sell off unprofitable animals (opens,culls, old cows) Retain fewer heifers Reduce the herd size Sell some hay and feed Sell off unprofitable equipment Lease out animals Eliminate mortality insurance

Objectives Analyze your business. Establish budgets. Make cost effective decisions. Weigh your options. Establish your benchmarks.

The 80% - 20% Rule 80% of the efforts expended 20% expended 80% of the results 20% results “Critical Few” situations or problems “Trivial Many” situations or problems

Goals & Plans Establish your goals and benchmarks Design workable plans to reach these goals Short term Long range Implement your plans Evaluate your plans Revise your plans

The Planning Process Analyze Resources Determine Objectives Identify Problems Develop Alternatives Adequate? Choose Plan Evaluate Feasible? Implement Re-evaluate Monitor Ye s NoNo NoNo

Topic for Discussion Artificial Insemination Bulls Body Condition Scores Calving Castration Controlled Breeding Cost Sharing EPDs Facilities Forages Feed Heifers Herd Health Plan Implants Marketing Plan Records

Keeping Up - To - Date Sources of Information Scientific Journals Books Popular Press(Magazines) Extension Booklets Web Sites Short Courses Young Farmer Meetings Cattlemen’s Meetings Other Experienced Cattlemen Beef Specialists Economist Banker Tax Accountant

Parting Thoughts Reproductive efficiency rate is a good indication of the overall management of the cattle operations! Raise the kind that sells Be a life-long learner Never be satisfied Enjoy what you do Good fences make good neighbors! Two miles of bad road is better than one mile in the ditch!