Feeder calf and stocker trader

Cattle ranchers, stocker operators, feedlots and neighboring farmers looking for animals to buy.

You earn the margin between your purchase price (plus hauling, feed, vet and sale-barn fees) and your sale price. Margins swing with the cattle market, so careful buying matters. Most of your startup money is working capital to buy the cattle, which is tied up until they sell.

• Judging cattle condition, weight and health
• Negotiating and reading local prices
• Basic animal handling
• Record keeping and cash flow planning

• Dealer licensing and bonding: check your state's livestock dealer rules and whether federal registration applies to your volume
• Price risk: animals can sell for less than you paid, so start with money you can afford to lose
• Animal health and disease: check health certificate, brand inspection and identification rules for moving cattle across state lines
• General liability and livestock or cargo insurance, plus hauling safety and any commercial driver rules
• Slow-paying buyers: confirm how and when you'll get paid at every sale

Estimates suggest startup costs typically around $40,000 to $200,000, depending on how many animals you buy, and whether you rent pasture or arrange direct delivery. Prices can fall below what you paid, so use money you can afford to lose.

Monthly revenue is typically estimated at around $1,000 to $6,000, depending on how many animals you trade and your margin on each. The estimate assumes about 10 or more hours a week. Slow-paying buyers can affect cash flow.

Check your state's livestock dealer licensing and bonding rules, and whether federal registration applies at your volume. Also check health certificate, brand inspection and identification rules for crossing state lines, plus insurance and any hauling or commercial driver rules.