How to Turn Your Land into a Profitable Cattle Farm

Here are the most important factors to consider when starting a cattle farm:

1. Location and zoning — Find a good location with good weather conditions, pasture land, and water availability. Different areas have different regulations concerning livestock farming, including zoning laws, environmental regulations, and animal welfare standards. It’s important to choose a location where the regulations align with your farming practices.
2. Building — Build all the farm features you need such as animal shelters, fences to protect your livestock, and other facilities. 
3. Grants — Choose one of many grants to get your cattle farm business started such as Government Agricultural Grants, Sustainability and Conservation Grants, or Rural Development Grants.
4. Licenses and permits — You will need livestock brand registration if you plan to brand your livestock. This helps in identifying and proving ownership. Depending on the scale of your operation and its potential impact on the environment, you might need permits related to waste management, water usage, and pollution control.
5. Register your business — A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple. Form your business immediately using ZenBusiness LLC formation service or hire one of the best LLC services on the market.
6. Legal business aspects — Register for taxes, open a business bank account, and get an EIN.
7. Veterinary expert — Build a relationship with a reputable veterinary practice that will help you manage your cattle more efficiently and support the health of your lifestock.
8. Income diversification — You can earn money by selling your cattle for meat, breeding, or dairy products.

Step 1: Decide if the Business Is Right for You

Pros and Cons

Starting a cattle farm has pros and cons to consider before deciding if it’s right for you.

Cattle Farm Industry Trends

Industry Size and Growth

• Industry size and past growth — The US beef cattle production industry is worth $97.9 billion after expanding 4.2% annually over the last five years.
• Growth forecast — The US beef cattle production industry is projected to keep growing in the next five years.
• Number of businesses — About 762,000 beef cattle production businesses are operating in the US.
• Number of people employed — in 2022, the US beef cattle production industry employs about two million people.((https://www.ibisworld.com/united-states/market-research-reports/beef-cattle-production-industry/)) 

Trends and Challenges

Trends

• Greater understanding of cows’ nutritional needs is producing better feeds, which in turn means better yields.
• Technology is increasingly used in farming, including robotics for feeding and even herder bots. Drones are also being used to track and monitor herds.

Challenges

• Cattle prices are extremely volatile, and income can be unpredictable. 
• Millennials are seeking sustainably-produced foods, which is putting pressure on cattle farms to avoid antibiotic use and growth promoters.

Consumer Spending

• Average consumer spend — The average consumer in the US spends over $11 on beef per trip to the grocery store.((https://www.statista.com/statistics/1086365/household-expenditure-on-meat-products-us/))
• Potential customer base — 89% of people in the US consume meat.((https://www.ipsos.com/en-us/news-polls/nearly-nine-ten-americans-consume-meat-part-their-diet))
• Average prices — Beef prices range from $5 to $11 per pound.((https://www.bls.gov/regions/mid-atlantic/data/averageretailfoodandenergyprices_usandmidwest_table.htm))

Demand Hotspots

• Most popular states — The most popular states for farmers are Pennsylvania, New Jersey, and New York.
• Least popular states — The least popular states for farmers are Louisiana, Tennessee, and South Dakota.((https://www.zippia.com/farmer-jobs/best-states/))

What Kind of People Work in Cattle Farms?

• Gender — 26.4% of farmers are female, while 73.6% are male.
• Average level of education — The average farmer has a bachelor’s degree.
• Average age — The average farmer in the US is 47.8 years old.((https://www.zippia.com/farmer-jobs/demographics/))

How much does it cost to start a cattle farm?

Startup costs for a cattle farm range from $300,000 to $1 million. Costs include the land, land preparation, equipment, starter cattle, and an initial operating budget. 

To learn cattle farming, you can get an associate’s or bachelor’s degree in agriculture. You can also get an online agribusiness degree from established institutions like Penn State. Another option is to work as an intern or volunteer for a local cattle farmer to learn the business.

You’ll need a handful of items to successfully launch your cattle farm business, including: 

• Feeders
• Watering system
• Fencing
• Cattle healthcare equipment
• Cattle handling equipment
• Cattle trailers

Start-up Costs	Ballpark Range	Average
Setting up a business name and corporation	$150–$200	$175
Business licenses and permits	$100–$300	$200
Insurance	$100–$300	$200
Business cards and brochures	$200–$300	$250
Website setup	$1,000–$3,000	$2,000
Down payment on property	$100,000–$500,000	$300,000
Tools and equipment	$20,000–$30,000	$25,000
Land preparation and fencing	$100,000–$300,000	$200,000
Operating budget	$50,000–$75,000	$62,500
Starter cattle	$25,000–$50,000	$37,500
Total	$296,550–$959,100	$627,825

How Much Can You Earn From a Cattle Farm Business?

You should be able to bring in $2,000 per cow once they’ve reached full maturity. It will take a year or two to get your calves to that point, so you won’t see a profit for at least 12 months. Your profit margin after all expenses should be about 30%. 

In your first year or two after cows reach their ideal weight, you could sell two cows per week, bringing in $208,000 in annual revenue. This would mean $62,000 in profit, assuming that 30% margin. As your herd grows, sales could climb to five cows per week. With an annual revenue of $520,000, you’d make a healthy profit of $156,000.

What Barriers to Entry Are There?

There are a few barriers to entry for a cattle farm. Your biggest challenges will be:

• The high startup costs of starting a farm from scratch
• Learning the skills necessary to succeed

Step 2: Hone Your Idea

Now that you know what’s involved in starting a cattle farm, it’s a good idea to hone your concept in preparation to enter a competitive market. 

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an Opportunity

Research cattle farms in your area to examine their products/services, price points, and customer reviews. You’re looking for a market gap to fill. For instance, maybe the local market is missing an organic dairy farm or a sustainable, grass-fed beef farm.  

This could jumpstart your word-of-mouth marketing and attract clients right away. 

What? Define Cattle Types and Methods for Raising Them

You’ll just need to decide what types of cattle you want to raise. You could raise dairy cows, or you can raise cows for beef. You could raise them with chemicals and growth hormones or go fully organic and sustainable. You could also raise other livestock like chickens and pigs for additional revenue.

How Much Should You Charge for Cattle?

Prices for cows are very volatile, so it will depend on the market at any given time. Cows are sold by their total weight. They are currently being sold for about $130 per 100 pounds. You should aim for a profit margin after operating expenses of about 30%. 

Once you know your costs, you can use our profit margin calculator to determine your markup and final price points. Remember that the prices you use at launch should be subject to change if warranted by the market.

Who? Identify Your Target Market

Your target market will be food production companies, butchers, grocery stores, and restaurants. You can find those business owners and connect with them on LinkedIn, but your best bet is to find them on Google or Yelp and call them directly. 

WhereWhere? Choose Your Cattle Farm Location

Selecting the right location for your cattle farm is essential for its success. Look for a spot with abundant pastureland, access to clean water, and good drainage. Consider accessibility and convenience, ensuring that the location is easily reachable by transportation vehicles and has easy access to veterinary services and other supplies.

Additionally, assess the local regulations and zoning laws to ensure compliance and obtain any necessary permits. By strategically choosing the right location, you can establish a thriving and profitable cattle farm that produces high-quality meat and dairy products.

Step 3: Brainstorm a Cattle Farm Name

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• Name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “cattle farm” or “Grade-A beef,” boosts SEO
• Name should allow for expansion, for example, “Legacy Cattle Farms” over “Wagyu Beef Producers”
• A location-based name can help establish a strong connection with your local community and help with the SEO but might hinder future expansion

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Cattle Farm Business Plan

Here are the key components of a business plan:

• Executive summary — Brief summary outlining the core elements of the cattle farm business, including its objectives, target market, and financial projections
• Business overview — Comprehensive introduction to the cattle farm, encompassing its mission, vision, and key operational details such as location and scale
• Product and services — Details on the specific types of cattle to be raised, breeding practices, and any additional services offered, such as consulting or educational programs
• Market analysis — Examination of the demand for beef products, consumer trends, and potential challenges and opportunities within the local and broader market
• Competitive analysis — Assessment of other cattle farms in the region, highlighting strengths, weaknesses, and distinctive features to identify the farm’s competitive edge
• Sales and marketing — Strategies for promoting the cattle farm, reaching target customers, and maximizing sales, including online presence, advertising, and promotional activities
• Management team — Profiles of key individuals responsible for running the cattle farm, outlining their expertise and roles in ensuring effective business operations
• Operations plan — Detailed plan outlining day-to-day activities involved in cattle farming, covering feeding, breeding, healthcare, and other essential processes
• Financial plan — Comprehensive financial projections, including startup costs, revenue forecasts, and break-even analysis, providing a clear picture of the business’s financial viability
• Appendix — Supplementary materials, such as permits, licenses, and additional documentation supporting the information presented in the business plan

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose Where to Register Your Company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people register their business in the state where they live, but if you’re planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to cattle farms. 

If you’re willing to move, you could really maximize your business! Keep in mind that it’s relatively easy to transfer your business to another state. 

Choose Your Business Structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your cattle farm will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

• Sole proprietorship — The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General partnership — Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) — Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corporation — Under this structure, the business is a distinct legal entity, and the owner or owners are not personally liable for their debts. Owners take profits through shareholder dividends rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corporation — This refers to the tax classification of the business but is not a business entity. Either a corporation or an LLC can elect to be an S Corp for tax status. In an S Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization, and answer any questions you might have.

Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number or EIN. You can file for your EIN online or by mail/fax. Visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship, you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

It is important to consult an accountant or other professional to help you with your taxes to ensure you’re completing them correctly.

Step 7: Fund Your Business

Securing financing is your next step, and there are plenty of ways to raise capital:

• Bank loans — This is the most common method, but getting approved requires a rock-solid business plan and a strong credit history.
• SBA-guaranteed loans — The Small Business Administration can act as a guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan.
• Government grants — A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Friends and family — Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding — Websites like Kickstarter and Indiegogo offer increasingly popular low-risk options in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal — Self-fund your business via your savings or the sale of property or other assets.

You can visit the USDA website to find various loan and grant programs for startup farms. That’s probably your best bet for financing, although bank loans may also be an option. 

Step 8: Apply for Cattle Farm Business Licenses and Permits

Starting a cattle farm business requires obtaining a number of licenses and permits from local, state, and federal governments.

You should contact your state’s Department of Agriculture to find out if any specific cattle farm licenses or permits are required in your state. 

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration (OSHA), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package. They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account.

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your cattle farm business as a sole proprietorship. Opening a business bank account is quite simple and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability — The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business property — Provides coverage for your equipment and supplies.
• Equipment breakdown insurance — Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation — Provides compensation to employees injured on the job.
• Property — Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto — Protection for your company-owned vehicle.
• Professional liability — Protects against claims from clients who say they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP) — This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential Software and Tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks. 

You may want to use industry-specific software, such as CattleMax or folio3, to manage your herds, quality, sales, and reports. 

Accounting

• Popular web-based accounting programs for smaller businesses include Quickbooks, FreshBooks, and Xero. 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences of filing incorrect tax documents can be harsh, so accuracy is crucial.

Develop Your Website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using website builders. This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech savvy, you can hire a web designer or developer to create a custom website for your business.

However, people are unlikely to find your website unless you follow Search Engine Optimization (SEO) practices. These are steps that help pages rank higher in the results of top search engines like Google. 

Marketing

Here are some powerful marketing strategies for your future business:

• Local SEO — Optimize your website to highlight sustainable cattle farming and ethical practices, boosting visibility in local search results. Regularly update your Google My Business and Yelp profiles to strengthen your local search presence.
• Professional branding — Ensure all branding reflects your farm’s commitment to quality and ethical standards, from logo to packaging.
• Direct outreach — Forge relationships with local butchers, restaurants, and farmers’ markets to secure a consistent demand for your products.
• Social media engagement — Use platforms like Facebook, Instagram, and LinkedIn to showcase your cattle rearing practices and farm life.
• Farm life blog — Publish engaging content about daily operations and sustainable farming techniques.
• Educational content — Produce videos and infographics to educate on the benefits of grass-fed beef and sustainable practices.
• Farm tours and events — Invite the public to tour your farm, enhancing transparency and customer trust.
• Direct sales model — Offer beef directly to consumers through sales or subscription services to build loyalty.
• Referral programs — Encourage word-of-mouth marketing with a referral program rewarding loyal customers.
• Targeted advertising — Place ads in local and regional publications that align with your target demographics.
• Email personalization — Segment your email list to provide tailored updates and promotions to different customer groups.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that set it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your cattle farm meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your cattle farm could be:

• 100% grass-fed, sustainably-raised beef
• The best Angus beef you’ve ever tasted
• Top quality free-range veal, from our home to yours

Networking

You may not like to network or use personal connections for business gain but your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a cattle farm business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in cattle farms for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in cattle farms. You’ll probably generate new customers or find companies with which you could establish a partnership. 

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a cattle farm business include:

• Farm hands — assisting with farm chores
• Farm manager — herd management, accounting
• Marketing lead — SEO strategies, social media

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed, Glassdoor, or ZipRecruiter. Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Run a Cattle Farm — Start Making Money!

If you’ve always dreamed of farm life, your dream can become a reality. You can join an important and thriving industry, make a good living, and provide quality foods to growing families. It will take time, diligence, and a significant investment, but if you have a passion for farming and for producing good food, you can build a lucrative cattle operation. 

You’ve got a good understanding of the business now, so it’s time to put on your work boots, roll up your sleeves, and launch your successful cattle farm.

FAQs

Is a cattle farm profitable?

Yes, a cattle farm can be profitable. It will take time to start making money since you have to wait until the cattle get to their ideal weight to sell them, but after a few years, you should be turning a nice profit.

How should I price my beef products?

Prices for cows are very volatile, so it will depend on the market at any given time. Cows are sold by their total weight, with the price set per 100 pounds.

Which state is best for cattle farming?

Kansas, Oklahoma, and Texas are good states for cattle farming because they have a solid infrastructure to support farmers. Land in those states is also inexpensive.

Where is the cheapest place to start a farm?

Montana, Oklahoma, and Wyoming have the cheapest farmland prices. South Dakota and North Dakota are also affordable.

How do I start a cattle farm with no money?

You can’t start a cattle farm with no money. Costs are at least $300,000. However, the USDA can help you access financial resources, and they offer other support services to help beginning farmers.