J HL - 5/8/2024 10:07

I'm going to vary a little from some others on here and say go for it! It's all about what you are willing to risk and what you are willing to do to make it up if it doesn't work. 20 years ago, we bought our first 30 head of cows with 100% financed at 9 or 10% interest and not nearly enough cash to get to the end of the year with them and put in our first crop. Like you figured we were in it for the long haul and needed to get something started. 30 head wasn't enough to live on but it was a start in the business and we just figured it out how to get to sale time with the calves and go again. Still seem to be chugging ahead, growing the herd a little as we can. There's several ways to make it work if you want to.

If your bank won't go for it with your 20% down and off farm income to back it up, I'd find another bank. You are right about needing to have about so many to make it worth while and justify some of the needed overheads. Yeah they might drop in value and lose some money but it's going to be hard to turn a true profit on less than your 25. If you were looking to borrow 100% of 500 head, that'd be a little different and would need some additional equity somewhere because if it got wrong you can't work out that very easy. 25 -30 head even at today's prices, with your 20% down wouldn't be any more risky than buying yourself a brand new 1 ton diesel pickup, and I'm sure there's banks loaning money for those yet, and we know they usually depreciate!