Cattle dealer $ problems?

[kenny thomas]

Interesting, how can a stockyard having 4,000 head a week get by with a $130,000 bond. That will only cover a small part of the sales. Several on the list that I am familiar with looks very low.

 

[john250]

Interesting, how can a stockyard having 4,000 head a week get by with a $130,000 bond. That will only cover a small part of the sales. Several on the list that I am familiar with looks very low.

Be interesting to know how the requirement is calculated.

 

[Howdyjabo]

From USDA website

Bonds Market agencies and dealers must maintain a bond as a measure of protection for livestock sellers against non-payment. The size of the bond is based on the volume of business, generally an average 2 days' business with a minimum of $10,000 bond. Packers whose annual livestock purchases exceed $500,000 are also required to be bonded.

 

[kenny thomas]

Using that what should the bond for a stockyard selling 4,000 head in two days which is the one I quoted. Not $130,000. Less say they averaged $500 per head which is easy to figure would that not be $2,000,000. What am I doing wrong or is the bond way too low?

 

[Howdyjabo]

Hense my comment "bonding, what a joke"

I think they are being very liberal with the "generally"

 

[john250]

Using that what should the bond for a stockyard selling 4,000 head in two days which is the one I quoted. Not $130,000. Less say they averaged $500 per head which is easy to figure would that not be $2,000,000. What am I doing wrong or is the bond way too low?

These bonds might be reasonable. I would like to know how they are calculated. Remember, the security for this is alive and breathing (with a reasonable death loss %) and still has value. Which leads to the question--how is that security being managed. I know that Eastern has a lot of pasture rents where they place calves while they market the calves. And even a cow/calf herd now and then. As we all know, someone has to put out salt and check the water and the fences and keep things moving.
We'll see if a bankruptcy judge can run a ranch.

 

[kenny thomas]

Don't know how these are calculated but I had to get a bond to handle a $450,000 estate and I had to pay for a bond for $450,000. The bond only cost a % of that but I still had to get it for the full amount of value of the estate.
Why would their bond not be for the value of the cattle they sell. Otherwise if they went under owing $2,000,000 their $130,000 bond would only cover 6.5%.

 

[Howdyjabo]

Most cattle stay in the pipeline and buyers just get commissions and never take physical control of 90% of the animals.
I wouldn't count on a whole lot of money coming from cattle Eastern has on hand-- and I THINK the banks would have the leans on those that are still owned by Eastern. Sellers have only the bonds to go after.

 

[kenny thomas]

There is a warning on the LMA website to their members about buying Eastern owned cattle that the feedlots are trying to sell. You cannot access it unless you are a LMA member though so I am going to have to wait to see what it says.

 

[Jogeephus]

From USDA website

Bonds Market agencies and dealers must maintain a bond as a measure of protection for livestock sellers against non-payment. The size of the bond is based on the volume of business, generally an average 2 days' business with a minimum of $10,000 bond. Packers whose annual livestock purchases exceed $500,000 are also required to be bonded.

Lets look at a from the standpoint of a Pennsylvania lawyer. The stockyard is normally open seven days a week but might only sell cattle one day a week. Lets say Tuesday. So the stockyard could use the average of Saturday's and Sunday's business and the list you posted would indicate that they more than meet the requirments of the USDA rule. The bonding company is then happy since their exposure is limited, the USDA is content because it looks like they are actually doing something and the stockyards are happy since they receive a cheaper rates and no one is the wiser unless something like this happens and then its just the producer who gets screwed but they are used to it and their voice is rarely heard in the halls of congress. Just a dark thought.

 

[ALACOWMAN]

Heard today at the Load out chute, Eastern took Kilpatrick stockyard for $30,000, Ashville stockyard for 136,000 and Fort Payne for 151,000. Forgot the price they said about Cullman.Of course that's hear say.

thats all kilpatrick needs is more loss's... they already operating on a frayed shoe string

 

[oscar p]

Yes,they are. Fewer and fewer cattle each week.

 

[ALACOWMAN]

Yes,they are. Fewer and fewer cattle each week.

guess my next load is going to Arab,, more buyers and the same distants for me

 

[oscar p]

As far as Weigh cows and calves, I carry mine to Arab or Ashville, As far as bred cows and pairs, I do Kilpatrick (saturday sale) or Ashville. The thing about Kilpatrick, I hate, is the darn pin hookers,Man they just harass the crap out of people. I counted 11 last Saturday.

 

[ALACOWMAN]

As far as Weigh cows and calves, I carry mine to Arab or Ashville, As far as bred cows and pairs, I do Kilpatrick (saturday sale) or Ashville. The thing about Kilpatrick, I hate, is the darn pin hookers,Man they just haress the crap out of people. I counted 11 last Saturday.

yep their saturday sales is ''was'' great for that, use to buy my hard calves from them on saturday's but no matter how hard they we're you better doctor them as soon as you could and quarantine em last time i was at the sat. sale the pinhooker was racking up,,, he had a bib full of 100 dollar bills

 

[spectator]

What is a pinhooker? That's not a term I've heard before, thanks for clarifying.

 

[oscar p]

Pin hooker is a guy that stands, outside the sale at the unloading shute and tries to buy your cattle,before you unload them, for Cash money,For less than their worth. He then inturns, sales them thru the sale for a profit.

 

[tytower]

Sales yard would have to be dumb or uninformed to sell them anything with this going on . I sure would not sell them any cattle .

 

[etowah-county-farmer]

I've got about a dozen bred cows that I'm going to sale....any suggestions on which sale to take them to? I went to Arab about a month ago. They were bringing more at SMS but you know how quickly the market changes. Any advice?

 

[ALACOWMAN]

I've got about a dozen bred cows that I'm going to sale....any suggestions on which sale to take them to? I went to Arab about a month ago. They were bringing more at SMS but you know how quickly the market changes. Any advice?

well sandmountain was great for that,, guys who work all week and cant haunt the stockyards, go there on a saturday to buy replacements.... but keep in mind, if you buy there,,, theres traders there that bought culls at other stockyards during the week and bring them there.... no shots, and have been stressed to he$# wont have em