Profit from Cattle
Typically, a single head of cattle can bring in a profit ranging from $200 to $500 per year. However, it’s essential to remember that unforeseen circumstances, like agricultural market fluctuations or natural disasters, can impact your bottom line. In 2023, the value of a head of cattle can vary based on location, breed, size, and market conditions. As a rough estimate, you can expect to pay anywhere from $1,200 to $3,000 per head.
Salaries in Cattle Industry
- The salaries of Cattle Ranchers in the US range from $35,115 to $50,787 with a median salary of $40,225.
- While Ranch Owner salaries currently range between $27,000 (25th percentile) to $78,000 (75th percentile) with top earners (90th percentile) making $137,000 annually across the United States.
Profitability of Beef Cattle
- Beef cattle are generally the most profitable and easiest livestock to raise for profit.
- The profitability of beef cattle farming businesses is measured by their profit margin, which averages around 15-20% in the US.
- Most cattle are raised for beef. The average beef cow produces about 500 lbs of beef per year. The average price of beef per pound is $1.50, and the average cost of raising a beef cow is about $0.85 per pound. That means the average profit per beef cow is about $0.65 per pound. Over the course of a year, that comes out to about $325 in profit per beef cow.
Factors Affecting Profit
- The amount of profit that a farmer can make per cow depends on:
- Price of the cow
- Cost of feed and other necessary supplies
- Availability of market for selling cows
- Size of farm and number of cows
- Generally, smaller herds (under 50) of high quality cattle can be more profitable due to the increased focus that can be placed on their individual care and maintenance.