New money rumour

[k-way]

I think the real point here is that OK the feedlots got some help. Wether or not it was enough, or stayed in their pockets (or ended up with the packers) is something they know for themselves. But us cow/calf operators need help too. All the media attention has focussed on everyone but us, except for the governments' spending announcements (none of which has ever filtered down to our farm!). Somebody should try to get us some more press, especially since CAA and ABP aren't doing it for our $3 checkoff. If something doesn't happen for our part of the industry, and soon, all the aid doled out to the packers and feedlots will have been a waste of money. And CAA/ABP will go broke along with them because there won't be any cow/calf operators left to provide stock for them to profit from.

[johnboy555]

The money did filter down to the cow calf boys and lots of it. To be exact about 200 dollars per head last fall in feeder prices. Every cow calf guy that sold calves last fall got it threw the market place. A lot of cow calf guys did not sell their calves last fall instead they bought some, gambling on the border opening in jan. Well bad gamble, now a lot of the cow calf boys are in the same boat as are a lot of feedlots. Welcome boys to the world of losing real money.

[cropduster]

Right on JB Triple Nickel!Now we`ve got to get adjusted to reduced `feeder`numbers for this fall.As this `thing`comes to the wall everyone will be reaching into their back pockets to pull out more equity.Lots of other business operators would be abandoning ship.Should we be any different??????

[cowman]

Well johnny boy I will admit prices did improve for some cow/calf guys if(and that is a big if) they hit the right market. I sold my steer calves in late January at $1.12 average and I think they averaged in that 680 range. But did I make money? Maybe...
I got out some records. In 1992 I sold 56 steers calves Nov. 7 and they averaged 760 lbs. Never on feed, just off momma and what hay they could eat(we have to start feeding about Nov. 1 up here in the frozen north. They averaged $1.22 or $919.60! That year I bought a 1992 new truck...all the bells and whistles $21,000! This year I bought a new truck... not all the bells and whistles $39,000! You tell me did I make a lot of money off the generous cattle market?
The cattle business has been doing a slow slide since about 1994, or so I believe? I guess there comes a time when you need to decide...how low can I go? I don't love them that much that I will pay to work!
I find it offensive when people like Rick Pascal tell me he subsidized me by buying my calves for an over inflated price! I just think "If you think this is "overinflated" then you can raise the bastards!"...and incidently I like Rick! But I refuse to raise food for people for a loss! I guess I'm mad as hell and I'm not going to take it anymore...and luckily I don't have to!

[cowman]

Sorry if I vented a little to harshly on this one! Came home from a lovely day, helping a buddy drag a dead cat out of a lease to find the damned bulls had decided it would be a good idea to have a battle royale and destroy the corral they were in! Further my son decided it would be a good day to check out the local Legion! You can just bet he got told a thing or two!

[cowman]

Oh and further the first post should have read " I sold my calves in late November"! I guess I'm a little stressed!
Does anyone else ever have days like this????

[countryguy]

Welcome to my world Cowman.

[rsomer]

The feedlots cannot have it both ways. On the one hand they say the $1Billion went to the packers. On the other hand they say they took the multi-million dollar government cheque they received and turned around and paid the cow calf sector $200 more for weaned calves then they were worth. I think both statements are misleading. I have been told the packers were buying the fall calves anyway so I am not sure I need to thank the feedlots for last falls calf prices.

I can understand why the feedlots are more than a little embarrassed by all the money they have received and want to look like the good guys. But the fact is $1Billion of government BSE support was split between 130 multi million dollar mega feedlot operators and two American packers and any one of them would not hesitate to take that money and buy American calves if they got the chance. So much for supporting the Canadian cow calf producer.

If anyone believes that giving money to one sector such as feedlots trickles down to the cow calf level then they would have no problem believing that the portion of the $1Billion that went to the packers trickled down to the feeders. Personally I don’t think so on both counts.

What really happened is last fall the Canadian fat market had improved as Canadian boneless beef was moving into the U.S. at record levels. As well the fall market was looking towards the border opening to live cattle early in the New Year. U.S. fat prices were at outrageous levels and investors saw incredible profits to be made buying Canadian calves and selling them later into the U.S. No one was doing anyone else any favours.

The best way to get money into the hands of the cow calf producer is to pay it directly to the cow calf producer not to the feedlots. The money is needed now not later.

[grassfarmer]

I was disapointed to read the ACC daily email update today that we should all keep quiet about packer profiteering. The fact that they have tripled their margins at producers expense is OK, we are further warned not to tell consumers that by buying our beef they are not in fact helping the ranchers/feedlots all that much as the money is going into packers back pockets.... BS!! I for one think it is outrageous that the packer sector has been doing this and I think most consumers would be interested to find out the truth. Perhaps with ACC/ ABP showing such great leadership and committment to their industry we should reward them by putting them out to pasture (or sending them to work for their masters - the packers?). It looks to me like the NFU is a better informed organisation as to what is going on here.

[johnboy555]

rsomer......stop and think a little first of all the packers did not get that billion but they did get 40 to 60% of it and yes some of it came back to the feeder market. As a matter of fact, i sold IBP 1000 lb strs. for 1100 dollars.......thank you much...........i went right back into the feeder market with that money. Had that money not been there, well you figure it out.

As far as Rick Pascal goes. I will say it one more time, now pay attention.......1600 lb steer x .30 = 480 dollars plus govt. funds of 400 = 880 equals shortfall of somewhere about 500 dollars. All this to anyone that understands money is that most if not all of your working capitol has vanished. Try to get a new loan with out working capitol. Do the math rsomererere. I don't like big feedlots myself but by george this will hurt the whole industry. The feedlots don't look like the good guys. They look like the broke guys.