An Alternative Solution

[rsomer]

cakadu: I think it must have been a Freudian think, er thing, typed Thing about it instead of Think about it. Oh well...
Spell checkers do not do it all :--)

[cowman]

I suspect feeding cattle might be very profitable this year. I believe we had about the largest calf crop on record and it looks like a good part of the west is headed for a bumper crop?
So here we have an ideal situation for the feeder/packer? Cheap calves, cheap grain? A captive market with no competition? Watch for the packers to move into owning feeder cattle in a big, big way this fall.
I wonder what would happen if the federal government tried to bring in a regulated market? What would happen if Cargill/IBP just said no we won't play that game and mothballed the plants?
That really could happen you know? These kind of companys know how to handle little tinpot banana republics, like Canada. How long do you think it would take until the feds caved in? Do you think they would last a week? I doubt it.

[rsomer]

I don't see Cargill and Tyson Foods being forced to do anything for the very reason you outline.

They could still be persuaded to some kind of solution though. Whether that persuasion comes from the Parliamentary Committee not asking to see their books or the industry not pointing out to the public just what the packers are doing to the producers, the packers can still have their arm twisted. Cargill and Tyson still are vulnerable to public opinion and need to maintain some kind of reasonable image of fairness in front of the consumer.

[kato]

There's one sure fire way to keep calves out of the packers hands.

Don't sell them.

I know we won't be selling calves any more until this thing straightens out, and most of our neighbours are doing the same.

If everyone who has the resources and financing (LOL) to feed out their own calves did so, then the market would be a little shorter for the feeders to be buying calves out of.

In theory, those who "had" to sell calves would get a bit better price.

If there's only so much money in a finished steer, cut out the middleman and keep it for yourself. They will calculate a profit (or at least a safety margin) when they are buying the calves which will darn sure come out of your margin.

[cswilson]

I was being facetious about taxing the crap out of them-as for those who are going to venture into retained ownership for the first time-it's not as easy as it looks-you still better crunch your numbers and not just keep them so those awful feedlot guys can't get them. In most situations you are better off getting them custom fed.

[kato]

True, but there's quite a few who can do it themselves, and if they can, then they should.

Custom feeding calves in a neighbourhood feedlot is also good for the local economy, so I sure wouldn't discourage that either.

[cowman]

I just wonder about that? Consider last fall?
A lot of people held back their calves because they thought the market was too low. They fed them out and it was fairly costly? I mean what was barley worth, how about hay/silage? I assume most of those calves are finished or closing in on it? Did anyone make any money?
I kept my heifers back. Have done that for years. Feed them tough for the grass market in the spring. Usually works pretty good as the "heifer" discount of 10 to 15 cents usually disappears in the spring. How about this year? Well...dumb move on my part! So now I have them out on expensive grass(my neighbor informs me the going rate here this year is $42/month/cow/calf) and it looks like another dumb move!
But it will be my last dumb move! Really looking forward to being able to sell my hay this year and reap some big bucks for it! The hay crop is very good and we intend to leave it until the middle of the month before cutting. Getting it custom baled(small squares for the pleasure horse trade. If it gets rained on will big bale it) let it grow back a bit and get it roundupped and broke. The 100 acres I broke this year has a really good clean barley crop on it and is doing very well...it's amazing what a little moisture can do!

[cswilson]

Square bales are worth a small fortune here from deer outfitters-sucks if you want a few for barn. How can anybody in their right mind pay 1.40 a day for grass-you gotta add some freight to that yet. Why not leave that home and feed theput the manure back on your grassland. I can see why some people are unprofitable-were way overstocked here but are supplementing young cows with 10lb of pellets a day(costs 50 cents a pair) seems to be working.

[cowman]

Well I sure wasn't paying $1.40 a day! You can bet on that! But apparently that is the going rate here. In a way cswilson you boys up there have a whole lot better deal if you are raising cows.
You don't have to deal with all the old boys who are doing this for a hobby?
It is very tough for anyone raising cattle here( based on actually making money) to compete with guys who only want a tax write off and the chance to play John Wayne! In fact it is impossible!
This darned country out here is just so good and yet it is going to hell in a hand basket because we have all this darned money chasing a dream! Maybe you should be very thankful you live in the sticks?

[cswilson]

Cowman wouldn't it be interesting if they just totally removed the tax incentives for sundowners-let the farmers farm-the ranchers ranch and the feeders feed-itis soo totally b.s. when someone who is a tax rancher drives pasture rent up like that. Were not as in the sticks as you'd think with all our mills-i have to compete with-pulpies-mind you the equipment dealers and feed stores love 'em.