Calf prices

[ALLFARMER]

Well this is what some of my black angus steers brought at Triple J 11 averaged 601 lbs 124.25/lb 9 avg weight 501 128.5 1 710lb 121.75 So we grossed $17946 on 26 or $690/calf. This spring we sold 7 heifers we wintered over and never made $500/calf I guess I'll buy another 40 cows this winter.

[wilagro]

Got better prices 11 years ago. If you added 20 cents a lb. to current prices received that would be much closer to what is needed to make a profit in today's world.

[PureCountry]

I have a hard time telling anyone that today's prices aren't enough. If you can't make money on $700 calves, I think you ought to have a hard look at your costs. I know how hard it is to make it if you have alot of debt, but if you don't, $700/head ought to be just fine. I guess it's different for everyone, so that is just my opinion.

What's interesting to me is there appears to be a trend toward big calves selling better. The 710lb steer mentioned above brought almost as much per pound as the others. There may be alot of cheap feed out there, but I think feeders are seeing the merit in getting them in and out quicker.

[kato]

I don't have that problem. So I'll say it! Seven hundred dollars isn't enough. Why should people who work the long hours and invest the big money for the privilege of running a cow herd feel bad about making a profit? And why should they all expect that they're receiving good enough money as long as they have no debt. No other business has an operating model like that. Start-up debt, carrying costs and equipment upkeep and replacement are all things taken into consideration when deciding the feasibility of a business plan.

If it's impossible to raise calves while paying off a cow loan and the overhead needed to operate a farm, then that's the end of new people entering the business. It's a fact of life that no one starts up a cow herd debt free, unless they do it one cow at a time over many years, or unless someone leaves them a herd.

In any business there should be enough of a return for paying cash expenses, as well as depreciation, long term debt on equipment and facilities, and a reasonable amount for the labour involved. Just being able to pay for what the cow eats isn't going get anyone very far.

Unless they have a good job on the side, that is.

[greybeard]

You said it pretty well Kato.
A sustainable business can’t operate at $700. We often choose to overlook that we don’t sell 100% of the calves. Cows come home open, calves die, and we have to keep replacements. If we sell 75 per 100 bred is probably realistic long term. Throw in some trucking and marketing and you’re down to about 50K per 100 bred. As pointed out above out of that you have to finance expansion. Obviously, unless you have a big off farm cash supplement you need to finance over longer term.
We are turning into a generation of caretakers. Bred heifer prices in recent past support that statement.
100 acres of Canola will gross you about the same as 100 cows. Nobody is trying to live on 2 or 300 acres.

[brian99]

Well, be prepared for higher costs in the future. Prices for good young cows are rising already. Allfarmer, if you are looking for 40 cows, buy em quick! I'm hearing $1200 and up for good young stuff.

At the end of the day, complain all you want, the market is the market. It's not wrong. Buyers pay as little as possible for calves. The only way we bring discipline to the market is to bring less calves to town. If we hold on to too many cows and are willing to lose money doing it, that's the real tell. Higher prices will come as more heifers are held back and will eventually be ruined by the same. It's already started.

[kato]

The Cattle Cycle. It's been a while!

I see that as a sign of a market beginning to function again. There were times when it looked like we'd never see it again. We've got a way to go yet, but it's a start.

We sold some calves today as well. The steers brought just under $800, and the heifers around $750. Sure better than this time last year, but I wouldn't say no to a bigger cheque either. Got some catching up to do....

[Kathy]

According to Lindsay Williams the author of the Oil Non-Crisis, oil prices are going to reach $150.00 per barrel in the next four months. You might want to buy your fuel right away also. He's been awfully accurate in the past!

[ALLFARMER]

Ya I won't be paying $1200 that won't happen. We paid $950 for Bred Heifers last year and $750/850 for good bred cows. I could be wrong but I don't think bred cattle prices are going to climb much this winter... $1100 for good bred cows would be my top.

[grassfarmer]

$750/850 must have been top dollar cows last fall. I think the cows that brought that much then will be 1200 this fall(not of my money I would add)
I got my pick of a real nice herd of red cows last fall for $625 - one subsequently aborted a calf and was shipped, the rest all reared and are all pregnant again. Shipped a few culls last week including my two biggest cows - a whopping 1670lbs after an overnight stand that brought just shy of $800 gross. Long time since we got that for a cull cow.

[brian99]

You'll save 30 bales of feed by not feeding her this winter! I know what you mean, I bought good red pairs this spring for under a $1000 and some old cows for $200 less than cull price now(nothin but money). With all the high prices out there for everything, I just don't see cow prices staying down. There's too much money around.