A Midwest Journal

(For part one, part two – visit those links. Meanwhile, we join our author after he just explained how he figured out how to make more money doing less on his grass fed beef farm…)

Now, this all doesn’t look like much money for having to go out and check our beef cattle twice a day, every day. Certainly wouldn’t pay your expenses if you think you have to make $50K per year to make a living. Practically, the Feds say you are below “poverty level” if you make less than $24K for a family of four (which is something like $16K if you are an individual – but they still take taxes out of almost every paycheck and hold it for you until the end of the year. Such nice folks we have in government.)

Means that most rural families are “poor” according to the government and are so eligible for massive handouts from the rest of the country which are comparatively “rich” and can afford to pay for everything we “need.”

But when you look at a lifestyle where you can raise everything you eat and if you don’t buy the hype that you have to have a color TV and a boat to take to the lake on summer weekends – or a 3,000 square foot house and all the latest gizmo’s which make life easier. When you look at life as a very simple operation (if you leave Madison Avenue and the Government out of the equation), then your actual cost of living is very small.

Once I got my credit card bills paid off and started working as a contracted laborer (freelance web design), I found out that I didn’t have the commuting expense to work and back so many times a week. I quit watching TV and suddenly didn’t feel “compelled” to buy this or that – or even see the latest movies which were coming out.

I started having more time to myself, and felt more at ease and secure and healthier.

No, I don’t “make” anywhere near the $50K slot. But I don’t have to work for someone else except every now and then – and I don’t have to leave home to do it. The quality of my food is completely under my own control. What vegetables and beef and fruit I eat are how industrious and efficient I am with my time and the resources around me.

True, my parents bought and paid for this farm with their own jobs and I am simply reaping this harvest based on their work. But I also keep the farm running and my Mother live a comfortable retired life, not having to fix things or simply rent out the farm because she can’t manage it.

My income is also taken out in non-taxable ways – such as barter and payment in other “currencies” than money. Working for my room and board is one example.

I then spend the bulk of my time on stuff I want to do, and am not taxed for thinking or writing or blogging. I give tons of stuff away that is really useful.

So I don’t really feel I need a lot to live on. My health is excellent and I don’t carry insurance. Don’t really need to. Isn’t insurance something a little counter-productive, since you are hedging a bet against yourself?  The taxes I do pay whenever I buy something or license something – all these go toward supporting the schools and hospitals and roads. Even though I mostly don’t use them.

I don’t need a lot of income, so don’t need to pay tax on it.

The result is that I can say that a farm which makes $16,000 a year from raising beef cattle is sustainable and outrageously profitable. At that rate, I could buy a used tractor every year. Or get a loan for more land and pay it off in a decade or so.  Or simply stockpile some savings instead of giving it away to insurance companies – so if I did have to get medical treatment, I could simply pay the bill that way. (Like I do with my dentist – I was paying more for insurance and the deductible than I was in just paying for the treatment when I needed it.)

That’s the Kool-Aid I make. Look at the incredible prosperity you are already surrounded with. And quit listening to people who say you have to buy this and that. Quit figuring that you need approval from others, or inflated ideas of security, or that you need to be controlled or control others. These three points – approval, control, security – Levenson’s Sedona Method says are the base for all the chronic thinking we have floating around our heads. Get rid of those base considerations and the thought can simply be let go, released. Keep doing that consistently or intensively, and your mind quiets right down. You aren’t habitually thinking so much – and can actually quit having to “think your way” through life.

And you can come up with ideas about how you don’t need to “make a lot of money” to be abundantly prosperous and fulfilled.

There’s also the benefits of going through the pasture, checking your cows, scratching them where they seem to like it – and getting the satisfaction from those simple actions. Raising calves and watching them grow – like any crop, but more mobile.

The point is that all your “pay” for living in this universe isn’t coming to you in a check or through an electronic account somewhere. And it doesn’t need some government approval or license. Take a walk in the early morning or at sunset and see if you are getting paid very amply for the little time you invest.

That’s the meal I cook, the Kool-Aid I drink . Join me.

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(While I don’t raise Holsteins, we’ve certainly had some tall grass this year.)

For grass fed beef, you really have just two major profit points – as long as you’re feeding hay:

1. When they’re weaned.
2. When they’re yearlings.

Anything else gets eaten up in the winter hay cycle. While a grass fed beef is only about 22 months old at harvest, it’s gone through at least 2 winters, usually 3. Because you have to add in the 9 months of gestation to the cost – which takes it up to nearly 2 1/2 years.

Cost of hay isn’t just baling it, you also have to fertilize the land it came from, or it won’t produce as well for you the next time (and eventually, you’d only be raising short, unpalatable weeds – or sand.)

So working to finish cattle actually takes the remaining profit out of that last 8-10 months. They are going to put on their final weight, but this is also where they lose their efficiency of gain – each pound of gain takes more and more pounds of forage to achieve. And so the relative efficiency of grain-fed beef, who are harvested at about 14 months. That is, if you have the cheap grain to feed them.

Trying to finish cattle on grass usually means another winter of hay, which is additional cost. Auction prices for beef gets you paid commodity prices, which are as low as buyers can get away with. So your fertilizer cost, plus equipment and fuel, eat up any profit from those last few hundred pounds.

Now Missouri has lots and lots of tough, but tasty fescue grass. So this is why it is one of the top beef-producing states. Mostly, it has feeder or stocker (yearling) calves which are then shipped off to feedlots for fattening.

What’s becoming more popular are grass-finished beef, locally marketed. This is where you get your premiums and the reason for finishing anything at all. When you can jump the final price up above your costs for that last year, you can then simply be able to make any profit you want that the final consumer will pay for.

Example is that while a cow at auction will bring about $800 and your 600-pound carcass will cost you another $300 for processing – this comes to somewhere around $2.00 a pound for the whole animal. Visiting the local big-city market found that just hamburger from a verified grass-fed beef was bringing $5.50/lb. and sirloin steak was $18-19.00 per pound.

Now, that was individually wrapped, USDA-inspected. But it shows that farmers taking over their own market can reap the profit harvest to the tune of somewhere around $3,000 per animal.

Without taking your own marketing into your own hands, you are really stuck with sellling yearlings at auction, your next best profit margin.

To create a sustainable farming solution, increasing profit on grass fed beef at commodity prices is to take out the hay costs – which entails something called mob-grazing. By intensively grazing cattle and letting the land recover (one expert at this says his cows only see the same spot twice a year) – this actually make the grass lusher and means you don’t have to feed hay at all, there’s plenty out there if you ration it during the winter.

The other point would be to get a premium above commodity levels – in other words, quit selling a commodity.

But I’ve got far more to study on this. I sure would like to move onto finished cattle, but there’s going to have to be some changes in order to “mine them them hills” of grass to see more gold.

Thanks for visiting my blog and reading this entry.
If you’ve found it valuable, please consider donating via PayPal to enable my continuing research.

Our latest upcoming release, “Freedom Is — (period.)”

I’d heard recently about Joel Salatin moving over to part-ownership in a local abattoir. A logical extension, but the reason was in the management, not vertical integration. He simply had to protect that end of the production line.

This article does point out that for anyone wanting some real profit, it’s in the middle, not the farmer nor the supermarket. Grass fed beef roughly twice what conventional commodity beef is.

From my experience, farmers are happy to simply get a guaranteed auction/commodity price per live animal. But read down to the bottom. This guy can’t get enough beef to supply his clientele. And it’s a USDA inspected abattoir, meaning they can sell their parts direct instead of by wholes, halves, and quarters.

Figure out of the cost of grass fed beef, the farmer is taking a third, the middleman taking two-thirds. And that is just for hamburger. The whole animal can bring as much as $3,000 – so your farmer is getting roughly $800 of that and the middleman can rake in $2,200 per animal.

Can you say “six-figure income”?

Access to an abattoir was tough even for Joel Salatin <http://voices.washingtonpost.com/mighty-appetite/2008/07/a_day_at_polyface_farm.html> of Polyface Inc., a high-profile farmer thanks to his role in Michael Pollan’s book “The Omnivore’s Dilemma.” He had relied on T&E to process the cattle and pigs he raises on his farm near Staunton, but it became clear several years ago that the owners would soon retire. “It was absolutely our weakest link,” Salatin said. He paraded many potential buyers through the 70-year-old plant, but said “it took a lot of hooks in the water before I got a bite.”

Cloud was a good prospect because love of food and wine runs in his family. His brother Roy Cloud runs Vintage ’59 Imports <http://www.vintage59.com/home.php> , a French wine importer in the District. After his father’s plans to start a vineyard on farmland near Staunton were thwarted by an accident, Cloud began helping his mother manage the farm. Soon, he was wondering whether to trade his office in Seattle for a herd of cattle in Virginia.

Salatin, who was leasing a few of their fields, proposed that Cloud buy the slaughterhouse instead. “You certainly don’t have the allure of the country life in a slaughterhouse, the kind of thing sought out by the weekend farmer,” said Salatin. “But processing plants and distribution are the two biggest hurdles in the local food movement.” Cloud eventually agreed, sinking 40 percent of his retirement savings into the deal and signing up his mother, Helen, and Salatin as partners. They bought the plant in July 2008, and Cloud has been pulling 50- to 60-hour weeks ever since, managing a workforce of 20 and fielding calls from restaurants and farmers.

T&E now processes meat for more than 100 farms, up from just a handful before the sale. The number of animals he slaughters has shot up 70 percent — during the worst recession since the 1930s. Cloud sells local beef, pork, lamb and poultry out of T&E Meats’ store, but unlike Blue Ridge, he can’t make the business work without buying some beef from the Midwest and pigs from Pennsylvania.

He can’t get enough locally, nor can he sell it at a price his longtime customers are used to paying. “For 40 years it was the cheapest place in town,” says Salatin. “Now we’re trying to make it the best.” T&E, for example, sells conventional ground beef for $2.67 a pound. The local ground beef, from animals without antibiotics or hormones, goes for $3.50 a pound, and local grass-fed beef runs $3.99 a pound.

Cloud is putting every dollar he makes back into the business, expanding into poultry processing this year and hoping to grow again in 2011.

Now, I’ve got a lot more on this, as I just finished a whitepaper on the subject, entitled “Feed More By Farming Less. And you are invited to digest all 56 pages of it.

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Some grassfed beef links:

Family raises, produces grass-fed beef | savannahnow.com

Savannah Morning News
Names: Debra and Del FergusonJobs: Owners and cattle farmers, Hunter Cattle Co. in Brooklet What they do: As owners and cattle farmers with their business, Hunter Cattle Co., the Fergusons make it their mission to …

More Ohio Producers Exploring Grass-Fed Beef Production

GILEAD, Ohio – Ohio livestock producers are exploring grass-fed beef production to meet market demands for what many consider to be a healthful and ecologically sustainable product. However, the production side of the system can be …

Is Grassfed Beef Too Pricey? | Free The Animal

by Richard Nikoley
I recently got an email from a reader asking that if grassfed beef was out of the question budget wise, whether a paleo dietary style still ought to include meat. Of course, a resounding yes. I think that most people will gravitate to …

Trader Joes Fan : Recipes and Favorite Product Reviews – Grass Fed …

I highly recommend this if you enjoy beef but may be avoiding it because of saturated fat worries. If you search online you will discover grass fed beef is lower in saturated fat 35-65% to its grain fed counterparts and …

Jim Fiedler: Raising Grass-Fed Beef On Green Acres | Earth Eats …

by Annie Corrigan
Earth Eats’ Annie Corrigan talks with Jim Fiedler, the man behind Fiedler Farms, about grass-fed beef and his return to Indiana after 20 years in New York City.

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PS. Here’s the recipe that goes with our Flickr image above:

Red-braised Beef with bamboo

1.1 – 1.3 kg beef for stewing
5 cm piece of fresh ginger
2 spring onions
3 T peanut oil
6 T chili bean paste (from pixian)
1 litre beef/game stock
4 T Shaoxing ricewine
2 t dark soy sauce
2 t whole Sichuan pepper
1 star anise
1 cao guo
salt, to taste

Blanch the beef in boiling water for a minute or two until scum has risen to the surface, then remove the meat and rinse it under the tap. Cut the beef into 3-4 cm chunks. Crush the ginger slightly. Cut the spring onions into 2 or 3 sections.

Heat the oil in a flat-bottomed saucepan over a medium heat. When it is hot, add the chili bean paste and stir-fry for about 30 seconds until the oil is red and richly fragrant. Add the stock, the beef, the wine, the ginger, the spring onions, the soy sauce, and the spices. Bring the liquid to the boil, skim if necessary, then turn the heat down and simmer gently until the beef is beautifully tender. This will depend on which cut of beef you are using, but it should be at least 2 hours. (if using a crockpot, longer)

This time I added this special kind of fresh bamboo shoots that needs some time to cook. I’ve sliced them up and added them half an hour before the end of the cooking time.

Although I liked it, I was also a little bit disappointed. It wasn’t that spicy and I couldn’t taste much of the sichuan peppercorns. Maybe I was expecting it to taste more like the “water boiled beef”. But once you’ve accepted that is still is a very nice stew and I actually think it would be served best with mash potatoes!

What I would do differently next time: not use the pixian douban jiang but the one from Lee Kum Kee. I would increase the other ingredients like ginger, sichuan peppercorns, etc. And I would leave out the cao guo. I just don’t think I like that taste. Maybe I need to get used to it, but for now I give up.

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Many thanks to Fotoos VanRobin

Thanks for visiting my blog and reading this entry.
If you’ve found it valuable, please consider donating via PayPal to enable my continuing research.

Our latest upcoming release, “Freedom Is — (period.)”