David in TN's avatar
David in TN 11 months ago
#homesteading The economics of homesteading for our family (7people living ar home right now): Jersey milk cow and beef calf cost $1000, eats $700/yr in feed, plus $450 in hay. Fence was $1000. First year cost $3150. Milk cow on average has produced 4 gallons milk per day, we sell half @ $7/gallon, $5100 income. Plus we keep half the milk, making yogurt, butter, sour cream, and cheese. And we get about 240# grassfed beef from the calf plus dog food and tallow. Seeds for garden $100/yr. not selling any at the moment, consuming about 75%. 15 egg chickens were free, cost annually $4000 in feed, produce roughly 3000 eggs. We consume all of these. Rabbits are fed with leftover cow hay and garden greens, produce roughly 70 kits, 2# meat each. Milking the cow takes 2 hours per day Caring for other livestock and gardens take 15 minutes/ day on average. Butchering takes about 30 hours /year. Total out of pocket cost to us: $2100. We still buy some things at the grocery store that we can't grow or raise here, or produce during the winter.

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npub12m8r...2jq0 11 months ago
This is the way.
David in TN's avatar David in TN
#homesteading The economics of homesteading for our family (7people living ar home right now): Jersey milk cow and beef calf cost $1000, eats $700/yr in feed, plus $450 in hay. Fence was $1000. First year cost $3150. Milk cow on average has produced 4 gallons milk per day, we sell half @ $7/gallon, $5100 income. Plus we keep half the milk, making yogurt, butter, sour cream, and cheese. And we get about 240# grassfed beef from the calf plus dog food and tallow. Seeds for garden $100/yr. not selling any at the moment, consuming about 75%. 15 egg chickens were free, cost annually $4000 in feed, produce roughly 3000 eggs. We consume all of these. Rabbits are fed with leftover cow hay and garden greens, produce roughly 70 kits, 2# meat each. Milking the cow takes 2 hours per day Caring for other livestock and gardens take 15 minutes/ day on average. Butchering takes about 30 hours /year. Total out of pocket cost to us: $2100. We still buy some things at the grocery store that we can't grow or raise here, or produce during the winter.
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We've been surprised by home quickly our cost of living dropped after starting homesteading full time. The overall quality of what we eat has improved significantly and the cost reduced. We have our first steer going in the freezer in 2 weeks and I grow almost all of our vegetables. Community has been outmost valuable resource and we trade for anything we don't have. Thanks for sharing your experience.
awesome. Great to get insight into how it works out. Appreciate you sharing your experience 🫂
Node Runner's avatar
Node Runner 11 months ago
To calculate the ROI considering the value of the food you consume, we need to assign a monetary value to the food produced and consumed by your family. This will help us understand the true financial impact of your homesteading efforts. ### Step 1: Estimate the Value of Consumed Food 1. **Milk:** - You produce 4 gallons of milk per day, selling half and consuming half. - Daily consumption: 2 gallons - Annual consumption: \(2 \text{ gallons/day} \times 365 \text{ days} = 730 \text{ gallons}\) - Value of consumed milk: \(730 \text{ gallons} \times 7 \text{ dollars/gallon} = 5,110 \text{ dollars}\) 2. **Eggs:** - You produce roughly 3,000 eggs annually. - Assuming a market price of $0.25 per egg: - Value of consumed eggs: \(3,000 \text{ eggs} \times 0.25 \text{ dollars/egg} = 750 \text{ dollars}\) 3. **Beef:** - You get about 240 lbs of grass-fed beef from the calf. - Assuming a market price of $5 per pound: - Value of consumed beef: \(240 \text{ lbs} \times 5 \text{ dollars/lb} = 1,200 \text{ dollars}\) 4. **Rabbit Meat:** - You produce roughly 70 kits, with each kit yielding about 2 lbs of meat. - Total rabbit meat: \(70 \text{ kits} \times 2 \text{ lbs/kit} = 140 \text{ lbs}\) - Assuming a market price of $5 per pound: - Value of consumed rabbit meat: \(140 \text{ lbs} \times 5 \text{ dollars/lb} = 700 \text{ dollars}\) 5. **Total Value of Consumed Food:** - Total value = Value of milk + Value of eggs + Value of beef + Value of rabbit meat - Total value = \(5,110 + 750 + 1,200 + 700 = 7,760 \text{ dollars}\) ### Step 2: Calculate Net Income Including Consumed Food Value 1. **Total Income:** - Income from selling milk: $5,100 - Value of consumed food: $7,760 - **Total Income:** \(5,100 + 7,760 = 12,860 \text{ dollars}\) 2. **Total Costs:** - Total out-of-pocket costs: $2,100 (as stated) - Annual operating costs: $5,250 - **Total Costs:** \(2,100 + 5,250 = 7,350 \text{ dollars}\) 3. **Net Income:** - Total Income - Total Costs - \(12,860 - 7,350 = 5,510 \text{ dollars}\) ### Step 3: Calculate ROI \[ \text{ROI} = \frac{5,510}{7,250} \times 100 \approx 75.86\% \] ### Conclusion Considering the value of the food you consume, the ROI for your homesteading investment in the first year is approximately **75.86%**. This indicates a positive return on your investment when accounting for the savings from the food produced and consumed at home.
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Daniel Shays 11 months ago
Cool post. Makes me want to go deeper into learning about homesteading. Can you share land usage (square feet or average per animal) and climate you’re in?
David in TN's avatar
David in TN 11 months ago
whoops! the cost of chicken feed is way too high, we're actually spending about $800 in chicken feed!
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mister_monster 11 months ago
I was about to say bud, that's $16 a dozen for those eggs.
David in TN's avatar
David in TN 11 months ago
you're right. bottom line, out of pocket expenses to us, 0 BTC
Arci 's avatar
Arci 11 months ago
This is an awesome post. How many cows do you have? What climate do you have? Any winter?
David in TN's avatar
David in TN 11 months ago
We only have one milk cow and one beef calf right now. Middle Tennessee, some mild winters (5 degrees Fahrenheit this morning)