Cattle farmers not cashing in..............

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You see here how many argue with conviction that there is nothing wrong with the beef value chain
I doubt many would say there's nothing wrong with the current system. I'm just not convinced higher long term prices would mean everybody makes a profit. Certain expenses would just increase to make it about break even.
 
Businesses that survive are the ones that take risks and solve their own problems. This is a lesson from our American history; cattle drives came into being because there was no local market. Cattle that were worth $2/head in Texas would bring $20/head at the rail head in Kansas. There were significant risks involved in driving cattle north across rivers and through Indian territory. Those that did it successfully reaped the rewards, some today may even call it huge or unjust profits.
When was the last time the CEO's, board of directors, etc ever faced SIGNIFICANT fines, or jail time for breaking the law? You can see it in so many industries, the fines are just considered a cost of doing business. So something illegal, 5 years later you get caught, drag it through trial for 5 years, get a fine of a few million while it doing it made you billions.
I can't remember the exact quote or who said it, but it was along the lines of "I refuse to accept a corporation as a 'person' until one gets hanged" (Kinda sounds like Samuel Clemens)

I doubt many would say there's nothing wrong with the current system. I'm just not convinced higher long term prices would mean everybody makes a profit. Certain expenses would just increase to make it about break even.
Most expenses are rising anyhow
 
Those are the up-front costs that can be amortized over the life of a low interest loan. Many towns will kick in money or the land if you will employ a certain number of people. It's the monthly operating costs that are the killer, payroll, taxes, utilities, outside services like accounting, and insurance are the big expenses.
That's socialism though
 
For starters the USDA should be questioned as to why they never enforce the Packer and Stockyards Act. Before retiring I had to work closely with the NRCS. Believe me they are afraid of being sued. So is every other federal agency. Blink the wrong way toward the endangered species act and someone will have your rear in court in a heart beat. Forward contracting and feedlots owned by the big four help to depress market more than anything else. The only way to solve that is to get the USDA to enforce a law that is already in existence. Sue them. Name the people who work in the tiny group tasked with enforcing the law. Name their bosses for under funding them. And sue the USDA in general. But doing this will take some organization and funding.
Would be money well spent! Let's organize.
 
You can call it that or you can say that it is an incentive to come build your facility in my town and employ local workers that will now be employed and paying taxes rather than collecting government benefits.... in short, capitalism!
That is how most businesses do it
 
If someone is booked a year behind eventually they realize they might be working to cheap so they raise prices.
The business becomes more profitable and others jump in. Competition lowers prices until a reasonable middle is found. That's capitalism. You just gotta keep the government out of it. They'll f$#k it up every time.
 
Something happened in India that would never happen in America.

More than 86% of India's land is controlled by small landholder farmers. These farmers own less than two hectares individually. India is home to 1.3 billion people, where about 58% of them rely on agriculture to make ends meet​

The Indian government wanted to modernize their agriculture industry. The laws passed to do that would have displaced the small farmers and handed Indian ag over to Big Ag, similar to what we see in America today. After months of protests by Indian farmers those laws have now been overturned.

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I suspect the next time India tries to join the global ag industry they will learn from their mistakes and eventually kill the small farm in India while opening the door for a dominate Big Ag
I am guessing the market for beef in India might not be terribly lucrative.
 
If someone is booked a year behind eventually they realize they might be working to cheap so they raise prices.
The business becomes more profitable and others jump in. Competition lowers prices until a reasonable middle is found. That's capitalism. You just gotta keep the government out of it. They'll f$#k it up every time.
I would love for the government to get out. The government is why we are in this mess.
 
We are on here discussing how 4-5 beef packers are taking advantage of every single cattle owner in America. How is this even possible? I'm gonna go out on a limb here and say that everyone saying they can't make a decent profit, buy equipment, land, afford to expand, and thrive would be singing the same old sob story if cattle prices went up 50 cents tomorrow. It's never been easier to learn about cattle or market cattle than it is today. All the information in the world is at your fingertips. Nutrition is key and producers won't feed their stock. You don't like the local Cattle barn, sell on video, you don't have a truck load split it with a neighbor. You're not a risk taker find a safe and happy medium. Every old man sitting in a coffee shop talking about how when land was $10 he just couldn't afford it and now that it's through the roof he still can't afford it. We'll guess what someone was buying at $10 and someone is buying today. The old story about buying a new pickup with 10 calves is a thing of the past for sure, it takes 50 today. That's just the way it is. Times have changed and we have to change with them. There's no easy days but, It's all easy. Like allot of you I never take a day off because that's what it takes these days.

Feeders are supposed to be $1.80-$2 in August. I sell @ 825# in August every year. How many of yall are making plans to take advantage of the good prices? There's plenty of time.
 
Sheep take a lot more management and have a higher death loss then cattle,especially if you don't have a top notch predator control program
It's true that sheep are quicker to die if not treated fast when it comes to illnesses, but when you lose a lamb or ewe, your out $200 instead of $600-$1000. Therefore you can lose 3-4 for every calf or cow. Cattle eat way more then sheep due to larger size and cattle require heavier duty infrastructure to house them and hold them (head chutes) where sheep can be cornered by hand and doctored. I grew up with cattle since I was born and never Ed had sheep until I bought my own farm and wanted to keep cattle out of my ponds, but didn't want to bush hog around them. I started with wool sheep. Never again for me because of shearing! That is the hardest back breaking thing I've ever done all day in my life! Ever since I went with hair sheep, I've not had to worm much as long as I keep them moving from paddocks. And some times they will double lamb crop in a single year, for me, usually every third year and that's with feeding them good alfalfa and clover hay during winters, but I was doing that with my calves anyways and getting docked at stockyards selling feeders because they were too fleshy according to the pot load buyers. I can tell you personally I definitely make 2-3 times the amount of money with my sheep compared to cattle if you use 7 ewes per cow like they tell you. I still have cattle and when I was getting $2.50 per pound for feeders at Bluegrass Stockyards in Lex. Kentucky, me and my Dad were finally making some decent money for our time. That was 2011-2012. Unfortunately my Dad passed in 2013 and didn't get to see his fall feeders bring $3.15 per pound average (yes steers and heifers). That was good profits, but unfortunately dropped in two years to half that price. Meanwhile, the lamb market went the exact opposite way going up since then. I like seeing cattle out in the pastures, but their time on our farms is limited if these prices dont keep up with cost. Which they haven't since 2015. I'll spend my $ on hair lamb ewes.
Another tid bit is how do bull sellers think that cow calf guys are going to continue paying $4,000-$5,000 for good genetics when we don't get the end reward and the feed lots are, but they are being gouged too by the big 4 meat packing Monopolies? That market will be vanishing soon too!
 
What is it you are proposing doing? Slaughter on farm? Sell from the coldroom out the back similar to wineries with the cellar door sales? The big hurdle I see is food safety, yes I know that you can produce a safe wholesome product but do you think governments are going to trust everyone to get it right and be accountable? It has been said that your governments don't like being sued, won't take much, power outage, coldroom failure, with a lot to lose some will take a chance that things didn't heat up too much.

Ken
 
I'm gonna go out on a limb here and say that everyone saying they can't make a decent profit, buy equipment, land, afford to expand, and thrive would be singing the same old sob story if cattle prices went up 50 cents tomorrow.
I was pretty happy in 2015.. when the price of cattle had actually finally caught up with the price increases of everything else over the previous 20 years.

Sorry, couldn't help myself
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I was pretty happy in 2015.. when the price of cattle had actually finally caught up with the price increases of everything else over the previous 20 years.

Sorry, couldn't help myself
View attachment 11702
Chart proves one thing for sure.....rain is more important than politics. ......
 
I was moving all my stuff out of a gun safe a few months back and found an envelope from a sale barn. I thought why in the heck would this be in here. It was my check from when prices were high. It was pretty nice that year. I still remember how many people tried to jump in like they was gonna get rich, might be why we got so many singing the blues.
 

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