kenny thomas":3r8mrrtl said:Don't know about input costs there but I would think they would be as high or higher than here. If that is so I could not blame anyone for getting out. I would have to. That just would not work.
Alberta farmer":3f66injh said:I was at the sale barn in Innisfail Alberta yesterday and 800 lb. steers coming off grass were right around 97 to a dollar(Canadian) or about 90 to 93 USA dollars.
A good portion of these steers were bought in late April at 650 lbs. for around $1.18/lb. or $767(Canadian$) so the profit is pretty bleak? Those sellers certainly never got anything for their grass. Selling costs and transport would eat up the $30 fairly easily. Selling costs here are: 2% commission($16), checkoff($3), hartford insurance, producer insurance, brand inspection(about $2). Transportation costs depend on distance. Doesn't leave much to pay for the grass, water, salt and mineral, any vet costs, interest. fence repair or death loss!
There is a fair bit of interest right now in breaking up any land that can possibly be farmed. Bez is exactly right when he says Canada is going to be eating a lot of South American beef real soon! Our governments solution is to give us a tax deferal for one year as we liquidate the national beef herd!
Incidently, I was talking to a cattleman who said 1200 lb. hay bales sold last week at the Ponoka sale barn for $150/bale(108 bales). It takes about 5.5 bales to feed a cow through the winter up here...it would cost $825/cow! Not very good economics in cows right now.
Alberta farmer":24t5vrlo said:Bez: On the tax deferal thing: It is helpful in a way? If a person has to liquidate a whole herd, even with poor prices, they could be getting a pretty hefty check/taxes...although I guess that would be offset by a reduction in inventory? Not really sure how that works...need to check with accountant.
Personally I am doing the same as you. I am totally disgusted with both our provincial and federal governments for their short sighted approach to livestock in Canada. Through their stupid policies they get us in these wrecks and then try to forget we even exist!
If you owned cattle in 2003 you want to make sure you keep the old records of cattle owned and prices recieved. There is a class action suit against the feds for their complete screwup with BSE that somewhere down the road could result in a good payback. A feed company(Ridley) has already settled out of court for $6 million in this lawsuit and that money is being used to sue the Canadian government for $11 billion. Ag minister Ritz has refused to settle and the lawsuit recently got approval to proceed. It might take years but I think we've got them!