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Senior Contributor

Re: Pulling a Loan at 17

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First, best wishes on your efforts to enter ag production.  Second, this project will help you think through some important business concepts that will carry you through in future years.  Start small, do not grow faster than you can financially handle and discover your level of risk aversion.  Rarely does a "go for broke" strategy succeed, the only one that is broke is you.  But learning to handle risk and your level of acceptable risk is important.  Sometime it's a gut instinct that works well for you.  Sometimes, it's learning from experience and being able to gather the facts and learn from them.

 

I also understand some of the reasons why you want to enter the cattle business.  Historical evidence, however indicates a low level of returns, unless you have a niche market that is underserved or you have an opportunity in the future to carry the enterprise from conception to slaughter or dinner plate.  Let this experience teach you important lessons.  Observe, question, never accept things at face value but work to learn the fundamental principles of the business and it will help you.  Glean from the experiences of those you respect that are role models, from your parents and others in the community.

 

 

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Veteran Advisor

Re: Pulling a Loan at 17

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MYT Well you got the bug! You'll be indebt the rest of your life. Don't rush it. I had one of those USDA young farmer loans. I got it to buy feeder pigs with. Made some real good money on those fat hogs.  Then I used that money to buy steers with. I worked it up till I got to college. Than college got to be a bigger load so I sold off all my steers and din't replace. I waited till after college to buy dairy cattle. I would suggest you go a little slower. 

My Son who is 15 wants to do the same thing. I told him he had to wait till he was 16 and could drive himself to do the errands.  Go the low interest way as that will keep you and your parents finances seperate. ALso you will recieve more satisfaction from doing it on your own. just my 2 cents. Most important keep asking questions!

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Veteran Advisor

Re: Pulling a Loan at 17

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I get charged for talking to the secretary!

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Frequent Reader

Re: Pulling a Loan at 17

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Wow, this one sort of took off on me! Speaking with Dad, he also agrees with the roll a little slower idea in order to get the quality of females I need to sell a higher return product. The USDA Youth loan, however, is more geared towards such things as 4-H projects, although I would qualify being rather heavily involved in 4-H.

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Advisor

Re: Pulling a Loan at 17

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Certrainly, the USDA/FSA loan program is an exception, and th poster knows that; but, this young one was asking about $30 K from a lender...and I am pretty sure that will not happen at 17. 

Wouldn't you agree that my reply was correct on that question?

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Veteran Advisor

Re: Pulling a Loan at 17

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yea yea yea! Woman are always right! Smiley Very Happy I know that I had a hard time getting my first loan of 30,000 after college. at 17 If he does get it I hope he puts up the bank and the bankers name.

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Frequent Contributor

Re: Pulling a Loan at 17

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Yes i would Agree Kay

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Advisor

Re: Pulling a Loan at 17

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  Yes it's true I don't.  I thought it was common practice.  Maybe it's because we are members of the same community or because I went to school with both.  Don't worry, they get enough of my dough when I get my taxes done and have real estate closings. 

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Advisor

Re: Pulling a Loan at 17

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  I thought you guys lived in real farming country out there where it is more like the old days.  Not like here where we farm on the edges of suburbia.  But then again I've heard it's pretty cutthroat out there.

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Advisor

Re: Pulling a Loan at 17

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  MYT   Being involved with cattle will make you a better marketer and buuyer of all things involved. You will look down the road so to speak at cattle prices and feed buying opportunities.  For example right now I would be far ahead to sell every steer I have and the corn I bought last year for less than $4.  This wouldn't work with you building up a herd but I think you know what I mean.  A year is a long time when one is 16 but a year is not long in cattle marketing when you figure 1 year and a half from birth to slaughter.

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