"Cull Cow" Sales ?

[Stocker Steve]

Bred cow prices are soft here other than entire herd dispersals. Many sort offs are perhaps 5 cents over kill market, which is currently 10 to 17 cents less than last summer' kill market price. So you could have sorted off and sold surplus cows for 5 to 12 cents more back then. Since light calf prices collapsed last summer - - you may also have needed to back ground their light calves. Seems like a reasonable approach during this part of the cattle price cycle unless you have way too much grass in the fall. What am I missing?

 

[Dave]

I always believed is shipping culls by mid September. I pulled the bulls July 1. Preg checked September 1 or close there after and shipped opens ASAP. I use to buy a lot of broken mouth cows this time of the year. They were planned one and done. I generally weaned the calves off them the last week in August by shipping the cows. The difference in cull cows prices between September and January is always 10 - 20 cents. Cull cow prices are a substantial portion of the income to a commercial cow calf operation.

 

[W.B.]

Bred cow prices are soft here other than entire herd dispersals. Many sort offs are perhaps 5 cents over kill market, which is currently 10 to 17 cents less than last summer' kill market price. So you could have sorted off and sold surplus cows for 5 to 12 cents more back then. Since light calf prices collapsed last summer - - you may also have needed to back ground their light calves. Seems like a reasonable approach during this part of the cattle price cycle unless you have way too much grass in the fall. What am I missing?

I guess hindsight is 20/20 but there are a lot of cows to liquidate yet. Hub City Livestock Aberdeen SD had over 2500 weigh ups on Tues. at least that is what I was told. Fat cows still bring $72-76/cwt. With the weather pushing preg testing back for everyone there are still cows to test at least that is what local veterinarian says. Thinner cows of course are much cheaper.

 

[Stocker Steve]

[quote=W.B. I guess hindsight is 20/20 but there are a lot of cows to liquidate yet.

Are you seeing unusual entire herd liquations ?

 

[W.B.]

I can't say there is unusual herd liquidation because we have an older generation that is simply aging out. What I don't see is any new blood in the business. We need a new generation of cow men and that is not happening. If we get a bad spring for calving then I see a tipping point that could get ugly. The immediate area here is under duress and honestly needs a break from bad weather and underperforming markets. I don't necessarily see things improving for the cow calf guy even if the cowherd shrinks a bunch. The sheep industry from 25 years ago comes to my mind where packer concentration forced liquidation and lamb was imported from New Zealand and Australia. I hope I am wrong on this possibility by the way. The industry needs to be more proactive against environmentalists and packer concentration. The 50 and under crowd is getting discouraged.

 

[Aaron]

The 50 and under crowd is getting discouraged.

You mean they don't all have an 80k off-farm job, running 80 cows and 300-500k in debt? Because a bunch around here do and they seemed tickled pink. :shock: I don't know what it would take to get rid of some of these guys that flood the market with 250% subsidized calves, but I certainly wouldn't complain if it happened. Maybe if interest rates skyrocketed, but I doubt that will happen in the near future.

 

[Stocker Steve]

You mean they don't all have an 80k off-farm job, running 80 cows and 300-500k in debt? Because a bunch around here do and they seemed tickled pink. :shock:

Are these producers making their money in the land business, or just running cows to write off a big pick up?

 

[Aaron]

You mean they don't all have an 80k off-farm job, running 80 cows and 300-500k in debt? Because a bunch around here do and they seemed tickled pink. :shock:

Are these producers making their money in the land business, or just running cows to write off a big pick up?

Very expensive hobby. I think they would have more fun and actually have money left over if they just spent it on hookers and blow.

But then they would still have to feed the wife's horses.

 

[Stocker Steve]

Sounds like good guys to sell your cull cows to?

 

[W.B.]

Are these producers making their money in the land business, or just running cows to write off a big pick up?

Very expensive hobby. I think they would have more fun and actually have money left over if they just spent it on hookers and blow.

But then they would still have to feed the wife's horses.

Maybe I am just getting grumpy in my old age but this cow business is not a hobby. Way too much work for that but it looks to me like the only real money to be made is buying undermanaged calves and grading them up through backgrounding or finish phase. The weather here has just kicked our butt. We run cows here and the costs associated with the our environment dictate a different direction if things continue as we are going. I never thought we would be considering a huge change but as with anything in life never say never.

 

[Aaron]

Sounds like good guys to sell your cull cows to?

Yeah, guys like that don't buy anything 'cull' due to pride. That being said, neither do I, but because of biosecurity.

 

[Stocker Steve]

Been there and may be going back.

There is also money in thin undermanaged cows or small undermanged bred heifers, but you can usually generate more turns with calves.

 

[Aaron]

Been there and may be going back.

There is also money in thin undermanaged cows or small undermanged bred heifers, but you can usually generate more turns with calves.

Provided the heifers aren't bred to a big Char or Simm. There are guys here that will do that. Breed 'em all and sell the smalls in fall, let feedlot sort it out.

 

[Stocker Steve]

[quote=W.B. I can't say there is unusual herd liquidation because we have an older generation that is simply aging out. What I don't see is any new blood in the business. We need a new generation of cow men and that is not happening. If we get a bad spring for calving then I see a tipping point that could get ugly.
[/quote

Are existing SD beef producers expanding as a generation ages out?

 

[1982vett]

Are these producers making their money in the land business, or just running cows to write off a big pick up?

Very expensive hobby. I think they would have more fun and actually have money left over if they just spent it on hookers and blow.

But then they would still have to feed the wife's horses.

:clap: :clap: :lol:

 

[W.B.]

No, economics won't allow it. We have fed an unreal amount of feed the last 12 months. That is likely to continue with the rest of the winter. For those who have tried the economy method of winter feeding, their cows look like crap.

 

[Stocker Steve]

So there are empty pastures?

 

[gcreekrch]

For those who have tried the economy method of winter feeding, their cows look like crap.

Most often the case.

 

[W.B.]

So there are empty pastures?

Renting out pasture is easy. Most come from the east.

 

[Stocker Steve]

[quote=W.B. For those who have tried the economy method of winter feeding, their cows look like crap. [/quote

Mine are bale grazing cheap wild grass hay, along with 30 cents of a DDG protein mix every third day. They look OK even though the calves are still on them. I did have three thin cows last fall but I sold them. Problem solved. :cowboy: