1. Beef Cattle Management Failure Success or Modified by Georgia Agriculture Education Curriculum Office June, 2002

2. Business or Hobby?

3. Tax Strategies for Cattlemen • IRS determines if you operate a business or hobby • In order to qualify for tax deductions you must have • 2 profit years in a 7 year period • A small profit still counts as a profit • If Audited, present evidence that you consulted a • Tax Attorney • Obtain a tax opinion letter justifying expenditures • Letter shows you operated in a business-like manner • Consistent with IRS regulations • Maintain proper ledgers, cost projections, and business plan

4. Planning Your Profit Year • Cut costs • Sell off unprofitable animals (opens,culls, old cows) • Retain fewer heifers • Reduce the herd size • Sell some hay and feed • Sell off unprofitable equipment • Lease out animals • Eliminate mortality insurance

5. Objectives • Analyze your business. • Establish budgets. • Make cost effective decisions. • Weigh your options. • Establish your benchmarks.

6. The 80% - 20% Rule 20% results 80% of the efforts expended “Trivial Many” situations or problems 80% of the results 20% expended “Critical Few” situations or problems

7. Goals&Plans • Establish your goals and benchmarks • Design workable plans to reach these goals • Short term • Long range • Implement your plans • Evaluate your plans • Revise your plans

8. The Planning Process Analyze Resources Determine Objectives Identify Problems Develop Alternatives Re-evaluate Choose Plan Adequate? Yes No Evaluate No Feasible? Yes Implement Monitor

9. Topic for Discussion • Artificial Insemination • Bulls • Body Condition Scores • Calving • Castration • Controlled Breeding • Cost Sharing • EPDs • Facilities • Forages • Feed • Heifers • Herd Health Plan • Implants • Marketing Plan • Records

10. Keeping Up - To - Date • Sources of Information • Scientific Journals • Books • Popular Press(Magazines) • Extension Booklets • Web Sites • Short Courses • Young Farmer Meetings • Cattlemen’s Meetings • Other Experienced Cattlemen • Beef Specialists • Economist • Banker • Tax Accountant

11. Parting Thoughts • Reproductive efficiency rate is a good indication of the • overall management of the cattle operations! • Raise the kind that sells • Be a life-long learner • Never be satisfied • Enjoy what you do • Good fences make good neighbors! • Two miles of bad road is better than one mile in the ditch!