Some ranchers keep their own animals until they are ready for market, then sell them directly to buyers who want their meat. In general, Texas ranchers make a good living. The largest ranch has over 800 acres and over 100,000 cattle.
- By this logic, 100 cows would produce $34,000/year.
- 200 cows selling 200 calves/year would produce $68,000/year.
They hired cowhands to take cattle on drives to railheads. Cattle ranchers realized selling wild steers by rail to cities was profitable, as much as $30-50 per head. Rail transport prevented Texas fever ticks.
In a stocker operation, cattle from 200-650 lb are obtained after weaning and put on pasture to gain weight before feedlots. A purebred operation raises registered, single-breed cattle. A commercial operation may have crossbreds. Backgrounding prepares weaned calves for feedlots.
Ranchers can make $70,000-140,000 a year depending on ranch size. Large ranches make the most money per cow. Cash profit margins in 2020 were projected at $51 per cow for cow-calf producers and $10 per head for feedyards. Packer margins were $281 per head.
The average price of a cow is $2,000. To maximize profits, many ranchers offer additional services like feed, water, and racing.
Ranchers can sell cattle directly or through auctions. Auctions allow buyers to bid and pay their price. Large ranches with over 100 cattle make the most money, about $275 profit per cow. Small ranches with less than 200 cows make around $160 profit per cow.
- Slaughter cows average $50 per 100 pounds.
- 550 pound steers average $145 per 100 pounds, while 520 pound heifers average $130.
Large processors prefer working with big farms, limiting small farmer options. Lack of local processors increases transport stress on livestock. Supporting local farms is important.