We will suppose an individual or a firm to have found a ranch
to suit him or them in Southern Colorado, and to have bought
it. The cost is hard to fix; but one of 10,000 acres, in com-
plete order, could not stand in at more than................. $50,000
A herd of 4,000 good cows could be bought at $18 each, or...... 72,000
And 80 good short-horn and Hereford bulls at an average of
$50 each, or................................................ 4,000
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Making a total investment of.................................. $126,000
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By careful buying in the spring one should get 70 per cent of
calves with the cows, or say 2800 calves. Of these, on the
average, one-half, or 1,400, will be heifer calves. At the end
of the first year affairs should stand as follows:--
The 1,400 heifer calves will be yearlings, and worth........... $14,000
There will be also 1,400 yearling steers, worth $10 each, or... 14,060 $28,000
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With a herd of this size expenses may be put at not more than.. $5,000
And for contingencies, sundries, and ordinary losses it is safe
to take 4 per cent on capital invested in stock, say on
$76,000...................................................... 3,040 8,040
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Profit at end of first year.................................... $19,960
At the end of the second year the 1,400 heifers are two years old,
and worth $5 more apiece, or say............................. $7,000
And of the 2,800 (70 per cent of 4,000) new yearling calves,
an average of one-half, or 1,400 will be heifers, and worth
$10 each, or................................................. 14,000
1,400 two-year-old steers are worth an additional $6 each, or.. $8,400
And the 1,400 new yearlings are worth $10 each, or............. 14,000 $43,400
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Deduct expenses................................................ $5,000
And 4 per cent on $76,000 + $19,960 = $95,960.................. 3,838 8,838 $34,562
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At the end of the third year the original 1,400 heifers are three
years old, and worth an additional $3 per head, or........... $4,200
The yearling heifers of last year are two years old, and worth
an additional $5 each, or.................................... 7,000
There are 1,400 yearlings from the original stock, worth....... 14,000
And of the offspring of the three-year-olds (70 per cent of 1,400
= 980) one-half, or 490, are heifers, and worth 4,900
The original 1,400 steers are three years old, and worth an ad-
ditional $10 each, or........................................ 14,000
The 1,400 steer calves of last year are two years old, and worth
an additional $6 each, or.................................... 8,400
And there are 1,400 yearlings, offspring of original stock, and
490 offspring of new three-year-olds--in all, 1,890-at $10
each......................................................... 18,90 $71,400
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Deduct expenses on 5,400 cows, say............................. $6,050
And 4 per cent on $95960 + $34,562) $130,522................... 5,221 11,271
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Profits at end of third year................................... 60,129
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Total net profits for three years.............................. $114,651
