Cattle farmers not cashing in..............

[jltrent]

Good read

Some good info in the article.......

"A lot of people don't understand how trapped ranchers are in this really broken system," said Jeanie Alderson, whose family has run cattle in southeastern Montana for more than a century. "We don't have a market."

In past decades, when beef prices rose, so would payments to cattle ranchers, who claimed over half of what consumers paid for meat. But that relationship began to break down in 2015. Last year, cattle ranchers received only 37 cents on every dollar spent on beef, according to federal data.

Beef Prices Are Soaring, But Cattle Ranchers Aren't Cashing In

 

[HDRider]

I cannot begin to understand why some people on here have completely squelched the idea that beef producers are being squeezed.

Some tidbits from your link

But somewhere between American dinner plates and his 8,000-acre ranch on the high plains of Montana, Mr. Charter's share of the $66 billion beef cattle industry has gone missing.​

​

Mr. Charter has long imagined his six grandchildren continuing his way of life. But with no profits in five years, he is pondering the fate that has befallen more than half a million other American ranchers in recent decades: selling off his herd.​

​

The distress of American cattle ranchers represents the underside of the staggering winnings harvested by the conglomerates that dominate the meatpacking industry — Tyson Foods and Cargill, plus a pair of companies controlled by Brazilian corporate owners, National Beef Packing Company and JBS.​

​

Since the 1980s, the four largest meatpackers have used a wave of mergers to increase their share of the market from 36 percent to 85 percent, according to the U.S. Department of Agriculture.​

​

Their dominance has allowed them to extinguish competition and dictate prices, exploiting how federal authorities have weakened the enforcement of laws enacted a century ago to tame the excesses of the Robber Barons, say antitrust experts and advocates for the ranchers.​

​

But the shock landed atop decades of takeovers that closed slaughterhouses. The basic laws of economics suggest what happens when the packers cut their capacity to process beef: The supply is reduced, increasing consumer prices. At the same time, fewer slaughterhouses limits the demand for live cattle, lowering prices paid to ranchers for their animals — an advantage for the packers.​

I could go on and on just using this one article, and I have been for some time now and from many different sources., but I am labeled a crybaby.

 

[ClinchValley86]

The "fill in the blank" administration is going to "fix" things. Not holding my breath.

 

[TennesseeTuxedo]

Truth tellers and crybabies are underappreciated in their time.

 

[ClinchValley86]

I cannot begin to understand why some people on here have completely squelched the idea that beef producers are being squeezed.

Some tidbits from your link

But somewhere between American dinner plates and his 8,000-acre ranch on the high plains of Montana, Mr. Charter's share of the $66 billion beef cattle industry has gone missing.​

​

Mr. Charter has long imagined his six grandchildren continuing his way of life. But with no profits in five years, he is pondering the fate that has befallen more than half a million other American ranchers in recent decades: selling off his herd.​

​

The distress of American cattle ranchers represents the underside of the staggering winnings harvested by the conglomerates that dominate the meatpacking industry — Tyson Foods and Cargill, plus a pair of companies controlled by Brazilian corporate owners, National Beef Packing Company and JBS.​

​

Since the 1980s, the four largest meatpackers have used a wave of mergers to increase their share of the market from 36 percent to 85 percent, according to the U.S. Department of Agriculture.​

​

Their dominance has allowed them to extinguish competition and dictate prices, exploiting how federal authorities have weakened the enforcement of laws enacted a century ago to tame the excesses of the Robber Barons, say antitrust experts and advocates for the ranchers.​

​

But the shock landed atop decades of takeovers that closed slaughterhouses. The basic laws of economics suggest what happens when the packers cut their capacity to process beef: The supply is reduced, increasing consumer prices. At the same time, fewer slaughterhouses limits the demand for live cattle, lowering prices paid to ranchers for their animals — an advantage for the packers.​

I could go on and on just using this one article, and I have been for some time now and from from many sources, but I am labeled a crybaby.

I am with you. There is a movement occurring now, since covid. Consumers, that can afford it, want to know where their food comes from.

The time is now to try and grab a share of the market. Open custom facilities. Start feeding them out. No government anything is going to fix this situation as they're the ones who have let it get to this point.

Has to be a grassroots type of effort. But it is happening.

If you get them ready for slaughter and reasonably market them, someone will buy.

 

[HDRider]

I am with you. There is a movement occurring now, since covid. Consumers, that can afford it, want to know where their food comes from.

The time is now to try and grab a share of the market. Open custom facilities. Start feeding them out. No government anything is going to fix this situation as they're the ones who have let it get to this point.

Has to be a grassroots type of effort. But it is happening.

If you get them ready for slaughter and reasonably market them, someone will buy.

I am having great luck doing just that.

It is hard. People just do not have the freezer space. They cannot afford a freezer. They don't have space to add a freezer. They are afraid to add freezer space after hearing horror stories of spoiled beef after a power failure. And a myriad of other legitimate reasons to be be reluctant to buy halves and wholes.

The real solution is going to be smaller processors that cater to retail sale of hamburger and piece sales with the smaller processors getting live animals from local beef producers like us.

The current value chain of sale barn, backgrounder, feed lot are under the thumb of the mega processors.

 

[faster horses]

Such a sad situation.
In our country, ranches are selling to rich people from outside the state. Many don't want cows on their property and they don't want anyone hunting or fishing either. They lock the gates. We have lost our heritage in MT and WY. and we are losing our cattle producers. The drought of 2020 has added to the situation. One of our ranching friends whose family has been ranching in SE MT for generations, says that if he has to sell his cows this spring because of no moisture, he's getting out. He has culled diligently and has a fine herd of cattle. He has done everything right, but you can't survive with so much against you. He said it is costing him up to $5/head a day to feed them hay that was purchased elsewhere and shipped in because the drought caused a hay shortage in that area. There is no irrigating there, just dryland. The last really bad drought was in 1988, but in ways 2020 was worse.

The Matador Ranch near Dillion MT sold to Rupert Murdock of Fox News. He says he is going to keep it as a viable cattle operation, which is a relief. He's an old guy so I hope his heirs will continue with what he is doing. You never know.

Matador Beaverhead Ranch sells - highested priced ranch in Montana history

The largest and highest price ranch in Montana history has sold, breaking the previous record set by the sale of the Climbing Arrow Ranch in September of this year. The Matador - Beaverhead Ranch totals 113,000 deeded acres with approximately 226,000 leased public land acres for a total...

mtlandsource.com

 

[ClinchValley86]

I am having great luck doing just that.

It is hard. People just do not have the freezer space. They cannot afford a freezer. They don't have space to add a freezer. They are afraid to add freezer space after hearing horror stories of spoiled beef after a power failure. And a myriad of other legitimate reasons to be be reluctant to buy halves and wholes.

The real solution is going to be smaller processors that cater to retail sale of hamburger and piece sales with the smaller processors getting live animals from local beef producers like us.

The current value chain of sale barn, backgrounder, feed lot are under the thumb of the mega processors.

I am awful tempted to start selling by the cut, usda or not. More government bovine scatology. Keeping the honest farmer/rancher pinned in the corner.

When I first got on the farm and sold the first crop of calves, it was an instant ! Unfair off the jump.

Began reading up on legalities of selling beef. It is udder ridiculousness.

 

[Rmc]

No one else is going to make your ranch profitable. If you aren't making a profit adapt what you are doing. Big brother is not going to help or should we expect them to . Government can't give anything that they first don't take away from someone else.
Adapt or fail. Look at other ideas to produce a profit.
Look at raising beef direct sales to consumers, if you can't sell whole or halves . Look at starting up a csa and sell shares. Look at hosting weddings , trail rides , tours ect. Look at moving from cow /calf to feeders. Their is always a way to make profit if you are willing.
"If you aren't the lead dog the view never changes."
"If you always do what you have always done . You will always get what you always got"
If you don't like the destination you always arrive at . Then take a different road.

 

[Stocker Steve]

There is an increased cow cull due to current markets, but US beef production has not dropped yet.

Here we see forage acres going into CRP or hunting land or grain production when cow numbers drop.

Is the end game importing more ground beef?

 

[HDRider]

Is the end game importing more ground beef?

It is bigger than that.

What is unsaid, but understood if you take the time to connect the dots - It is about carbon production. The idea is to diminish or lessen carbon production in developed countries and move it to developing or undeveloped countries. Packers are able to profitably ride that wave.

 

[callmefence]

No one else is going to make your ranch profitable. If you aren't making a profit adapt what you are doing. Big brother is not going to help or should we expect them to . Government can't give anything that they first don't take away from someone else.
Adapt or fail. Look at other ideas to produce a profit.
Look at raising beef direct sales to consumers, if you can't sell whole or halves . Look at starting up a csa and sell shares. Look at hosting weddings , trail rides , tours ect. Look at moving from cow /calf to feeders. Their is always a way to make profit if you are willing.
"If you aren't the lead dog the view never changes."
"If you always do what you have always done . You will always get what you always got"
If you don't like the destination you always arrive at . Then take a different road.

Like button won't work twice so.....

 

[KAstocker]

Why are cows worth anything if nobody is making money? A cow is an investment, and I value an investment that cash flows nothing at $0 - kill price at the most I suppose. People have still been buying nice bred heifers for $1500+ these past 5 years though.

If cattle prices continue to climb, cow prices and land prices will climb too eventually making it break even. I'm not convinced that a higher share of the pie will make a long term difference in a commodity market.

 

[HDRider]

Something happened in India that would never happen in America.

More than 86% of India's land is controlled by small landholder farmers. These farmers own less than two hectares individually. India is home to 1.3 billion people, where about 58% of them rely on agriculture to make ends meet​

Here is why farmers are protesting in India

After silently waiting for things to change, farmers in India, marched upon Delhi in protest against the new agriculture bill passed under the government.

thetempest.co

The Indian government wanted to modernize their agriculture industry. The laws passed to do that would have displaced the small farmers and handed Indian ag over to Big Ag, similar to what we see in America today. After months of protests by Indian farmers those laws have now been overturned.



I suspect the next time India tries to join the global ag industry they will learn from their mistakes and eventually kill the small farm in India while opening the door for a dominate Big Ag

 

[SBMF 2015]

I cannot begin to understand why some people on here have completely squelched the idea that beef producers are being squeezed.

The cow/calf guys are just starting to see what the cattle feeders have been dealing with forever.
Welcome to the party!

 

[Stocker Steve]

Why are cows worth anything if nobody is making money? A cow is an investment, and I value an investment that cash flows nothing at $0 - kill price at the most I suppose. People have still been buying nice bred heifers for $1500+ these past 5 years though.

Aside from burger value:

Some folks are operating a tax loss hobby
Some folks are speculating cows will be worth more in the future
Some have low cost grazing or byproducts
Some are good at marketing and run a margin business

 

[Stocker Steve]

It is bigger than that.

What is unsaid, but understood if you take the time to connect the dots - It is about carbon production. The idea is to diminish or lessen carbon production in developed countries and move it to developing or undeveloped countries. Packers are able to profitably ride that wave.

Converting sod to grain production will reduce carbon?

 

[Ky hills]

The cow/calf guys are just starting to see what the cattle feeders have been dealing with forever.
Welcome to the party!

I've been seeing it from both of those points for a long time, nothing new at all.

 

[Dave]

Learn to be fluid. If old Bessie is raising a good calf every year but you are losing money. Sell Bessie and her calf. There is always some sector of the cattle business which will make you money. Since 1996 I have raised cow/calf, stockers, back to cow calf, bred heifers, one and done, under priced purchased heifers, one and done again. This year over priced hay has me on the side lines. But I still bought some small cheap #2 cattle. Small cattle don't eat as much so hay isn't killing me. Improving on them as once spring arrives people will be wanting cattle to go grass with.
Learn to research and push a pencil. Figure out what the best markets and how you can capitalize on them. Figure out where the worse markets to sell are and go buy there. Selling and buying are two of the most important ways money is made in this business.

 

[Ky hills]

I cannot begin to understand why some people on here have completely squelched the idea that beef producers are being squeezed.

Some tidbits from your link

But somewhere between American dinner plates and his 8,000-acre ranch on the high plains of Montana, Mr. Charter's share of the $66 billion beef cattle industry has gone missing.​

​

Mr. Charter has long imagined his six grandchildren continuing his way of life. But with no profits in five years, he is pondering the fate that has befallen more than half a million other American ranchers in recent decades: selling off his herd.​

​

The distress of American cattle ranchers represents the underside of the staggering winnings harvested by the conglomerates that dominate the meatpacking industry — Tyson Foods and Cargill, plus a pair of companies controlled by Brazilian corporate owners, National Beef Packing Company and JBS.​

​

Since the 1980s, the four largest meatpackers have used a wave of mergers to increase their share of the market from 36 percent to 85 percent, according to the U.S. Department of Agriculture.​

​

Their dominance has allowed them to extinguish competition and dictate prices, exploiting how federal authorities have weakened the enforcement of laws enacted a century ago to tame the excesses of the Robber Barons, say antitrust experts and advocates for the ranchers.​

​

But the shock landed atop decades of takeovers that closed slaughterhouses. The basic laws of economics suggest what happens when the packers cut their capacity to process beef: The supply is reduced, increasing consumer prices. At the same time, fewer slaughterhouses limits the demand for live cattle, lowering prices paid to ranchers for their animals — an advantage for the packers.​

I could go on and on just using this one article, and I have been for some time now and from many different sources., but I am labeled a crybaby.

There are some people that will defend and make excuses for the monopolies no matter what. Everybody that I know of regardless of 20 cows or 1000 have cried the blues for as long as I can recall. Yet a few of them will spew the same rhetoric that the NCBA spouts while defending the big packers and working against the producers every step of the way.
I was confronted one day by someone who saw my Eat Beef plate on the front of my truck. He was angry, he said I would eat it if I could afford it, but you cattle people are too high. I just said the cattle producers are not getting those prices, the cattle change hands several times and we are at the bottom of the chain.
In my opinion we need to be able to sell however be it by whole or half or by the cut our beef processed by any slaughterhouse.
Inspection should be out the window, because it's near impossible to get into an inspected facility if there is even one within a reasonable distance.
We should be able to sell how ever we want, that would make a lot more sense to supply food locally instead of having to rely on multinational companies that ship food all over the country and then have frequent large scale recalls that waste a tremendous amount of food, and affect many areas.