Cattle Set Aside Program ?

[Stocker Steve]

What is your take on this proposal?

 

[SBMF 2015]

Haven't heard about it can you shed some light on the proposal for me? Thanks.

 

[Stocker Steve]

Pays cattle feeders for putting fats on a maintenance diet for up to 90 days.

 

[Aaron]

It worked very well when we did it here in 2004. Gives the market a chance to breath and process the cattle that have to die when weight limits are in place at certain plants.

 

[SBMF 2015]

Besides having it possibly slowing down the replacements in the feed lots (which is probably already happened)
I think it sounds great! We can use all the help we can get to get through this year.
People are finally starting to realize how important livestock producers and processors are to this country.

 

[Stocker Steve]

Cattle Set Aside could help the entire supply chain. I am surprised that feeder prices are as high as they are.

I asked my banker this week what they were using for figur'in - - he said they set the 2020 feeder calf planning price at $145 back in February. That is about our current steer sales barn price. How can feedlots sell fats for $ 90 and then buy back 5 wt. steers for $ 145 ?

 

[SBMF 2015]

I've mentioned in a different thread that feeding cattle is an addiction.
Corn is roughly $0.60 under the cost of production. Some speculators think that we could see $2-2.10/bu corn this fall.
If that 5wt eats 70 bu of corn to finish that's roughly $100 less per hd just in corn/feed costs.
And if it's not worth anything any way why not run cheap corn through some strs and see what happens.

 

[Stocker Steve]

Yes, it is a bad addiction. I just started feeding hogs for fun and profit.

Just in case we don't have $2 corn this fall - - I am experimenting with a pearl millet mix for Nov/Dec grazing. This is my self funded cow set aside.

 

[BC]

I've mentioned in a different thread that feeding cattle is an addiction.
Corn is roughly $0.60 under the cost of production. Some speculators think that we could see $2-2.10/bu corn this fall.
If that 5wt eats 70 bu of corn to finish that's roughly $100 less per hd just in corn/feed costs.
And if it's not worth anything any way why not run cheap corn through some strs and see what happens.

Interesting observation, but I always heard cheap corn makes cheap cattle because the farmer feeders feed up the corn by getting too big instead of buying a second set of cattle.

 

[rollinhills]

Where's this set aside money going to come from?

 

[SBMF 2015]

I've mentioned in a different thread that feeding cattle is an addiction.
Corn is roughly $0.60 under the cost of production. Some speculators think that we could see $2-2.10/bu corn this fall.
If that 5wt eats 70 bu of corn to finish that's roughly $100 less per hd just in corn/feed costs.
And if it's not worth anything any way why not run cheap corn through some strs and see what happens.

Interesting observation, but I always heard cheap corn makes cheap cattle because the farmer feeders feed up the corn by getting too big instead of buying a second set of cattle.

Hadn't thought of it like that.
I am a farmer, cow calf guy that for the last 20 years has been a herdsman for a cow/calf & feedlot operation that farms. We used to keep between 4-600hd of yearling in feed. My mentor had always told me he would rather feed cattle when corn was a little high, because when its cheap all the amateur cattle feeders are willing to pay to much for feeders.

 

[sim.-ang.king]

Wonder who's going to cover the death loss, and value loss? Steer aren't intended to live forever. Joints give out, heart gives out, increased chance of clostridial infection. Steers that are a few weeks out from finishing are going to have a rough time going from a finishing diet, to maintenance, and then back to finishing on a macro scale. The loss in gains, then trying to regain the loss is going to be an astronomical cost. Sure it would work fine on a small scale, and steers that are a couple months away would be fine.

Best solution?
Quit allowing importers to keep increasing imports, and tell the packing plants to get back to work, and threaten to prosecute for price gouging if they don't.

 

[Ky hills]

Wonder who's going to cover the death loss, and value loss? Steer aren't intended to live forever. Joints give out, heart gives out, increased chance of clostridial infection. Steers that are a few weeks out from finishing are going to have a rough time going from a finishing diet, to maintenance, and then back to finishing on a macro scale. The loss in gains, then trying to regain the loss is going to be an astronomical cost. Sure it would work fine on a small scale, and steers that are a couple months away would be fine.

Best solution?
Quit allowing importers to keep increasing imports, and tell the packing plants to get back to work, and threaten to prosecute for price gouging if they don't.

Most of those solutions are good points, however I would suggest that the when the packing plants get back to work that safety of the workers should be a priority. I would also suggest that the regulations be dramatically eased on individual producers to sell direct. Local producers should be able to have a viable option for supplying locally or regionally.

 

[sim.-ang.king]

Wonder who's going to cover the death loss, and value loss? Steer aren't intended to live forever. Joints give out, heart gives out, increased chance of clostridial infection. Steers that are a few weeks out from finishing are going to have a rough time going from a finishing diet, to maintenance, and then back to finishing on a macro scale. The loss in gains, then trying to regain the loss is going to be an astronomical cost. Sure it would work fine on a small scale, and steers that are a couple months away would be fine.

Best solution?
Quit allowing importers to keep increasing imports, and tell the packing plants to get back to work, and threaten to prosecute for price gouging if they don't.

Most of those solutions are good points, however I would suggest that the when the packing plants get back to work that safety of the workers should be a priority. I would also suggest that the regulations be dramatically eased on individual producers to sell direct. Local producers should be able to have a viable option for supplying locally or regionally.

Good points, but for safety of the workers, you're going have to get them to quit living 12 to a house.

 

[SBMF 2015]

Wonder who's going to cover the death loss, and value loss? Steer aren't intended to live forever. Joints give out, heart gives out, increased chance of clostridial infection. Steers that are a few weeks out from finishing are going to have a rough time going from a finishing diet, to maintenance, and then back to finishing on a macro scale. The loss in gains, then trying to regain the loss is going to be an astronomical cost. Sure it would work fine on a small scale, and steers that are a couple months away would be fine.

Best solution?
Quit allowing importers to keep increasing imports, and tell the packing plants to get back to work, and threaten to prosecute for price gouging if they don't.

Most of those solutions are good points, however I would suggest that the when the packing plants get back to work that safety of the workers should be a priority. I would also suggest that the regulations be dramatically eased on individual producers to sell direct. Local producers should be able to have a viable option for supplying locally or regionally.

What kind of regulations do you have that I'm unaware of?

We used to ship finished cattle all over the country. Now we don't feed as many as we used to, so we just go to our local Tyson plant. I'm BQA certified, that cost $20. I'm BQA transport certified, that was free on line. I call our Tyson buyer, he comes out and looks at the cattle, bids, if I like it we set a date. That simple.
I haul for a couple neighbors. I took a split load on Christmas afternoon. 2 for one owner 3 for another. Tyson didn't fuss a bit about those little groups.

 

[Ky hills]

Wonder who's going to cover the death loss, and value loss? Steer aren't intended to live forever. Joints give out, heart gives out, increased chance of clostridial infection. Steers that are a few weeks out from finishing are going to have a rough time going from a finishing diet, to maintenance, and then back to finishing on a macro scale. The loss in gains, then trying to regain the loss is going to be an astronomical cost. Sure it would work fine on a small scale, and steers that are a couple months away would be fine.

Best solution?
Quit allowing importers to keep increasing imports, and tell the packing plants to get back to work, and threaten to prosecute for price gouging if they don't.

Most of those solutions are good points, however I would suggest that the when the packing plants get back to work that safety of the workers should be a priority. I would also suggest that the regulations be dramatically eased on individual producers to sell direct. Local producers should be able to have a viable option for supplying locally or regionally.

Good points, but for safety of the workers, you're going have to get them to quit living 12 to a house.

That brings up another issue, the packing plants rely heavily on certain socioeconomic groups, and it begins to be a question of what comes first. Why are folks living in those conditions? You and I realize that it is a mutual need, the plants are looking for workers and those are the folks willing to do the job. Otherwise they likely would not be living in those numbers in and around the areas that typically hire labor for that kind of work. It is also noteworthy that over recent years there have been several large immigration raids on some packing plants. With having influence and control of the cost of their products coming in as well as on their selling end, it’s a logical conclusion that working conditions are not the greatest for their workers.

 

[Ky hills]

Wonder who's going to cover the death loss, and value loss? Steer aren't intended to live forever. Joints give out, heart gives out, increased chance of clostridial infection. Steers that are a few weeks out from finishing are going to have a rough time going from a finishing diet, to maintenance, and then back to finishing on a macro scale. The loss in gains, then trying to regain the loss is going to be an astronomical cost. Sure it would work fine on a small scale, and steers that are a couple months away would be fine.

Best solution?
Quit allowing importers to keep increasing imports, and tell the packing plants to get back to work, and threaten to prosecute for price gouging if they don't.

Most of those solutions are good points, however I would suggest that the when the packing plants get back to work that safety of the workers should be a priority. I would also suggest that the regulations be dramatically eased on individual producers to sell direct. Local producers should be able to have a viable option for supplying locally or regionally.

What kind of regulations do you have that I'm unaware of?

We used to ship finished cattle all over the country. Now we don't feed as many as we used to, so we just go to our local Tyson plant. I'm BQA certified, that cost $20. I'm BQA transport certified, that was free on line. I call our Tyson buyer, he comes out and looks at the cattle, bids, if I like it we set a date. That simple.
I haul for a couple neighbors. I took a split load on Christmas afternoon. 2 for one owner 3 for another. Tyson didn't fuss a bit about those little groups.

Most farmers and ranchers nowadays are probably BQA certified. I was speaking in terms of regulations and restrictions in terms of individuals selling meat direct to consumers as well as regulations on small packing companies. Obviously you are a large outfit and close enough to a company to have an inroad to them. Most producers don’t have that. For reference we are in the largest cattle cattle producing state east of the Mississippi and 8th nation wide. Nearly all of our calves are shipped west when sold. There are several cow/calf outfits in this county with well over 100 cows, I know of a few with 500-800 cow outfits. There are no feedlots here that I know of even as there is quite a bit of corn grown in the state as well as some of the neighboring states. If there were small local packing houses allowed to process meat for resale then we as a state could supply a significant of amount of beef locally.

 

[SBMF 2015]

Okay I'm following now you mean sell direct to the consumer, not direct to the packers.
Where is the closest big packer?
Does KY have some stricter laws on meat processing?
Back in the '80's when every farm in the county fed cattle in the winter there were a lot of KY cattle shipped to our part of the country.

 

[SBMF 2015]

Most of those solutions are good points, however I would suggest that the when the packing plants get back to work that safety of the workers should be a priority. I would also suggest that the regulations be dramatically eased on individual producers to sell direct. Local producers should be able to have a viable option for supplying locally or regionally.

What kind of regulations do you have that I'm unaware of?

We used to ship finished cattle all over the country. Now we don't feed as many as we used to, so we just go to our local Tyson plant. I'm BQA certified, that cost $20. I'm BQA transport certified, that was free on line. I call our Tyson buyer, he comes out and looks at the cattle, bids, if I like it we set a date. That simple.
I haul for a couple neighbors. I took a split load on Christmas afternoon. 2 for one owner 3 for another. Tyson didn't fuss a bit about those little groups.

Most farmers and ranchers nowadays are probably BQA certified. I was speaking in terms of regulations and restrictions in terms of individuals selling meat direct to consumers as well as regulations on small packing companies. Obviously you are a large outfit and close enough to a company to have an inroad to them. Most producers don’t have that. For reference we are in the largest cattle cattle producing state east of the Mississippi and 8th nation wide. Nearly all of our calves are shipped west when sold. There are several cow/calf outfits in this county with well over 100 cows, I know of a few with 500-800 cow outfits. There are no feedlots here that I know of even as there is quite a bit of corn grown in the state as well as some of the neighboring states. If there were small local packing houses allowed to process meat for resale then we as a state could supply a significant of amount of beef locally.

Okay I'm following now you mean sell direct to the consumer, not direct to the packers.
Where is the closest big packer?
Does KY have some stricter laws on meat processing?
Back in the '80's when every farm in the county fed cattle in the winter there were a lot of KY cattle shipped to our part of the country.

 

[Ky hills]

Okay I'm following now you mean sell direct to the consumer, not direct to the packers.
Where is the closest big packer?
Does KY have some stricter laws on meat processing?
Back in the '80's when every farm in the county fed cattle in the winter there were a lot of KY cattle shipped to our part of the country.

Honestly I have no idea where the closest big packer for beef is. The closest stockyards that I know of that has an actual fat cattle market is in Hillsboro Ohio. If we were to take fat cattle to market anywhere around here they would get hammered and docked. I don’t know if they are stricter laws or same as other places but it should be legal to sell meat direct without having to have it inspected. The big problem is a lack of USDA inspected slaughter facilities there are only a few options for that and one of those has now gone commercial and doesn’t do for individuals anymore.