Ways to Set Up a Cattle Farming Operation

Develop a Business Plan. Start by creating a SWOT analysis of yourself and the cattle farming industry you are about to enter. Plan the type of cattle you want to raise (without yet focusing on breeds) and the type of farm you intend to manage.

• Remember to start small. Avoid spending too much money in the first two years after purchasing or inheriting your farm. If repairs are necessary, prioritize fixing fences and barns before considering upgrades like hay storage, housing, or other amenities. Purchase equipment at auctions rather than buying new. Only buy equipment and supplies you immediately need, not things based on future desires. You will buy what you need in 5 to 10 years when your business reaches a new level.
• Try to produce low-cost products, as this is the most reliable way to generate profit and a great approach if you're starting with limited funds!

Choose the Location for Your Cattle Farm for the Next 20-30 Years or More. This is essential as you need to find a location you're familiar with or genuinely enjoy, and be confident that you can successfully raise livestock there.

• Ideal regions for cattle farming range from areas in North America like Alberta, Canada, to South America's Uruguay. Climate, seasonal changes, vegetation, and terrain will vary depending on the region.

Once you've decided where to establish your farm, start searching for land that is for sale. Keep in mind that you may need a down payment, a loan, or a mortgage for the land if you don't have enough funds to pay upfront.

• Land prices in highly populated areas or regions with high demand are usually higher than in other areas.
• It's a good idea to look for existing farms that already have the necessary amenities and fences for cattle, rather than buying a farm that requires conversion into a livestock operation.

Research the location you're interested in. Contact local authorities to gather information about the land's previous usage, soil type, vegetation, livestock density, and pasture area (for grazing or natural grasslands), as well as market demand, etc. Meet with people living in the area where you plan to establish your farm.

• Often, neighbors can provide more valuable information than government agencies.

Study and purchase the necessary barns, equipment, and machinery for the type of cattle you plan to raise. Analyze your financial situation and operations to determine what you need (not want) in terms of tools, equipment, and machinery. Prioritize essentials such as fences, water systems, and feeding troughs. Tractors, hay processing equipment, trailers, care tools, and other construction projects are also important.

• If you're raising dairy cattle, you'll need more housing and milking equipment, as well as barns for calves and non-milking cows.
  • When selecting milking equipment, consider whether your cattle have been milked before and which type of equipment they are accustomed to. It's best to choose the same equipment they’ve been used to. If you're raising cattle from a young age, research different milking devices to determine the best option for your conditions.
• For beef cattle, typically you only need fences, barns, and a water supply, especially if you're raising cattle on a grass-based feeding system, unless you're willing to invest in winter feed and supplementary grain or fattening beef cattle.

Decide on the type of cattle you want to raise based on your budget and goals. The most common options are dairy cattle and beef cattle. Keep in mind that raising dairy cattle requires significantly more time, effort, and expense than beef cattle, and also involves more equipment as required by government regulations.

Learn about the breeds of cattle you can raise or wish to raise. Choose a breed based on your goals for farm development, not personal preference.

• If you're focusing on beef cattle, start with docile breeds that require less care. Herefords, Red Polls, Shorthorns, Galloways, and British Whites are known for their ease of handling.
  • If you’re set on raising Angus cattle to meet market demand, be extremely careful when selecting your herd. Read articles on raising Black Angus cattle for more information.
• For dairy cattle, the best and most popular breeds are Holstein, Jersey, and Brown Swiss. Guernseys and Ayrshires are also good options if you're located in North America.

Start with a few cattle. Don’t rush into it; begin by purchasing just enough cattle to sustain on your land for the first year. Focus on buying quality cattle, meaning those with good body structure, temperament, reproductive capacity, and feed conversion efficiency (among other factors). Avoid skinny or lethargic cattle. Heifers can be a good choice if you're planning to wait 2 years to sell calves; another option is to purchase cows with calves, as you can sell the calves after one or two months, then wait a few more months before expecting additional calves. Cows that have calved before are typically easier to manage than heifers.

• Avoid buying bulls if you only have 4-5 cows; only purchase a bull if you have at least 10 cows or if you no longer wish to use artificial insemination. For a herd of 2-5 cows, artificial insemination is the most cost-effective and efficient breeding method (though it’s not always the most successful). Alternatively, you could hire a bull for breeding or arrange an agreement with another farmer to keep your cows for a few months and allow their bull to breed with them.

Determine the pasture area necessary to feed the number of cows you’ve chosen. Calculate whether the land you’ve purchased is enough, or if you need to lease additional grazing space.

• Decide whether you will harvest hay for your cows or purchase it. Ensure that you only use high-quality hay that fits within your budget.
• Keep in mind that feed costs account for about 26% of cattle farming expenses. You can significantly reduce these costs if you have enough pastureland for grazing during the summer months and improve the quality of your hay. Remember to plan for winter grazing if you don't want to continuously buy or process hay. The approach to winter grazing will vary depending on your region, so you should consider the available options carefully.

Keep detailed records of costs, breeding schedules, health checks/vaccinations, and buying/selling information. The most important records are financial ones, as they will help you determine if your business is profitable or not. Canadian law requires you to maintain records for all livestock on your farm, along with RFID tag information for each animal that is purchased, sold, or born on your farm.

Most importantly, have fun! Life on a cattle farm will be challenging and demanding, but you will learn a lot and remain busy tending to your herd’s feeding and health care needs.

• Start small. Initially, you should only raise a few heifers or young cows, and gradually expand your herd as you gain more experience from the cattle you’re already raising.
• Try to keep your farming costs as low as possible; if you can, allow your cattle to graze year-round and work towards moving them out of confined spaces and onto pasture throughout the year.
• Keep detailed records, from breeding and reproduction to health conditions and financial documents.
• Consult with your local veterinarian about livestock care programs and any available incentives that may apply to your herd. You should do this right after purchasing your cattle.
• Make sure that fencing, water, and food are your top priorities, and these must be in place before acquiring cattle. Use the most suitable watering trough for your area, such as an automatic waterer with heating capabilities, which works best in regions with cold winters lasting 4-6 months.
  • Ensure your herd always has access to fresh water. In colder climates, check the water supply several times a day to prevent it from freezing over.
• Stock up on extra hay. You can never have too much hay.
• There is no “best” breed of cattle. You should purchase the breed that seems most appropriate or that you think will bring the highest returns. Angus may be a good choice if you live in a region with high demand for Angus beef and Angus-cross cattle. Brahman cattle might be your best option if you live in a hot, humid area with many insects.
  • Pay attention to standards set by organizations such as FFA (Future Farmers of America) when choosing and buying cattle. Select the healthiest animal in the herd if buying directly from the seller, or the healthiest and best-behaved one in a market auction. Consider factors like body structure, alertness, symmetry, and other positive traits of the breed you choose.
• Check the nutritional value of your cattle feed. Be aware of when your cows will need the most and least nutrition.
• Avoid purchasing bulls if possible. Artificial insemination was developed to lower costs and eliminate the risks associated with managing bulls.
• Do not allow the first calf of a heifer to remain in the herd. These calves will not develop as well as those from older cows.
• Ask for the contact number of the nearest large veterinary clinic and save it in your speed dial for emergencies you can’t handle yourself.
• Look for second-hand equipment. Check bulletin boards at feed stores and other locations to find good deals.

• Always pay attention to the signs when working with cows and bulls. You need to be able to recognize these signs.
• Raising cattle isn’t a 9-to-5 job; it’s a job that requires work day and night with no days off. Cattle don’t know what weekends or holidays are, and they don’t care when your vacation starts or when the New Year holiday begins.
• Remember Murphy’s Law: Anything that can go wrong will go wrong.
• Sometimes raising cattle can be a tough, grueling, and exhausting job. It can be very stressful, and you will sweat and shed tears, even sometimes regretting starting this business.
• Always be cautious with bulls, no matter how gentle they may appear.
• Don’t step into something you believe you can’t handle.
• Don’t spend all your money in the first two years buying the latest farm equipment or expensive care tools. You’ll run out of funds faster than you think. Avoid borrowing as much as possible.
• Remember, cows are faster and stronger than you. Cows can become dangerous when protecting their calves; bulls are unpredictable, especially if you don’t notice the warning signs or if you’re unaware of what to look for. Bulls tend to be most dangerous when they’re among their herd of females and during mating season, as they might see you as a potential rival for their harem.
• Avoid buying cattle that are sick, emaciated, or generally unhealthy, even if you feel sympathy and want to “rescue” them. These cattle are often sold for slaughter for a reason, and that reason is usually that they’re beyond saving.