direct sales?

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cattlepower

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Was talking with a local friend who only sells about 15-20 calves a year. He was wondering where he could sell his beef direct to someone instead of the crappy sale barn? I don't mean directly to the customer but any company etc. that wil buy his calves direct for more than the sale barn.
 

Angus Cowman

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cattlepower":22csmwz0 said:
Was talking with a local friend who only sells about 15-20 calves a year. He was wondering where he could sell his beef direct to someone instead of the crappy sale barn? I don't mean directly to the customer but any company etc. that wil buy his calves direct for more than the sale barn.
it is hard to sell a small amount such as this directly
The best thing is if he and several other small producers can get together and market their calves together in a larger lot then the buyers will be more interested in them
I beleive Kenny Thomas does this and would have more info than I have
 

grannysoo

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Angus Cowman is right on track. The numbers are too small to justify a higher price. Pooling with others would be helpful.

And as to the "crappy salebarn", don't knock them too hard. It's just a matter of supply and demand. How many other investments can you liquidate once a week and have a check in hand for the same day?

The sale barn, however frustrating, has its purpose in the grand scheme of things.
 

HerefordSire

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grannysoo":33ss5cnr said:
Angus Cowman is right on track. The numbers are too small to justify a higher price. Pooling with others would be helpful.

And as to the "crappy salebarn", don't knock them too hard. It's just a matter of supply and demand. How many other investments can you liquidate once a week and have a check in hand for the same day?

The sale barn, however frustrating, has its purpose in the grand scheme of things.
''

Excellent point. There are a couple but not very many. If the sale barn check is wrote on a different bank than your checking account, make sure you go to the bank the check is written on and cash it, then deposit with your bank. Alternatively, you may want to get a cashiers check from the bank the check was written on. This strategy may prevent you bank from holding the funds for 10 days, depending on how inflential you are.
 

Angus Cowman

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HerefordSire":1k7i4r2u said:
grannysoo":1k7i4r2u said:
Angus Cowman is right on track. The numbers are too small to justify a higher price. Pooling with others would be helpful.

And as to the "crappy salebarn", don't knock them too hard. It's just a matter of supply and demand. How many other investments can you liquidate once a week and have a check in hand for the same day?

The sale barn, however frustrating, has its purpose in the grand scheme of things.
''

Excellent point. There are a couple but not very many. If the sale barn check is wrote on a different bank than your checking account, make sure you go to the bank the check is written on and cash it, then deposit with your bank. Alternatively, you may want to get a cashiers check from the bank the check was written on. This strategy may prevent you bank from holding the funds for 10 days, depending on how inflential you are.
Ihave only had 1 check bounce from a sale barn and it was the banks fault and I have never had them hold a check on me but I know my bankers not many banks left that you ca call and tell them you are buying something and they say well just call and let me know how much the check is for and come in and sign the papers sometime next week
Also when the son died I had some notes due ,I called and told them it might be a day or so before I got in and they said not to worry about it just wait and come in next month and they would take care of it then and never charged a late fee or extra interest
Not many small town banks left anymore
 

DFF

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HerefordSire":38ggqskk said:
grannysoo":38ggqskk said:
Angus Cowman is right on track. The numbers are too small to justify a higher price. Pooling with others would be helpful.

And as to the "crappy salebarn", don't knock them too hard. It's just a matter of supply and demand. How many other investments can you liquidate once a week and have a check in hand for the same day?

The sale barn, however frustrating, has its purpose in the grand scheme of things.
''

Excellent point. There are a couple but not very many. If the sale barn check is wrote on a different bank than your checking account, make sure you go to the bank the check is written on and cash it, then deposit with your bank. Alternatively, you may want to get a cashiers check from the bank the check was written on. This strategy may prevent you bank from holding the funds for 10 days, depending on how inflential you are.
Probally not any of my business, but, do you not trust anyone? or is this some more financial advice, kind of like your advice to make all purchases of chemicals and fertilizer last August?
 

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I also sell 20 to 25 feeders every fall. I belong to the Beef Producers assc. in NY. A members catalog is produced every 2 years. I just went through the book looking for members that finish feed out feeders. I eventually found a guy 25 miles away and he has bought my calves for the past 4 years.

The key to having a small number of calves is marketing and doing a little research in your area. Talk to your local vet or the extension agent. Talk to other farmers. Once you find a source, you will need to work together to form a good working relationship. I wean, vaccinate and start my calves on feed. It works out for both of us. It pays to network. :)
 

Workinonit Farm

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nagwag":16qrjhyn said:
I belong to the Beef Producers assc. in NY.

The key to having a small number of calves is marketing and doing a little research in your area. Talk to your local vet or the extension agent. Talk to other farmers. Once you find a source, you will need to work together to form a good working relationship. I wean, vaccinate and start my calves on feed. It works out for both of us. It pays to network. :)

Excellent advice!

The Cattleman's Assoc. in my area will work with its members who sell 'smaller' amounts of calves in order to put together larger uniform groups , backgrounded etc and giving the producers an opportunity to get a few more dollars for their calf crops, and being sold directly to buyers or be sold at 'special' sales.

Katherine
 

HerefordSire

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DFF":2ximmbsa said:
HerefordSire":2ximmbsa said:
grannysoo":2ximmbsa said:
Angus Cowman is right on track. The numbers are too small to justify a higher price. Pooling with others would be helpful.

And as to the "crappy salebarn", don't knock them too hard. It's just a matter of supply and demand. How many other investments can you liquidate once a week and have a check in hand for the same day?

The sale barn, however frustrating, has its purpose in the grand scheme of things.
''

Excellent point. There are a couple but not very many. If the sale barn check is wrote on a different bank than your checking account, make sure you go to the bank the check is written on and cash it, then deposit with your bank. Alternatively, you may want to get a cashiers check from the bank the check was written on. This strategy may prevent you bank from holding the funds for 10 days, depending on how inflential you are.
Probally not any of my business, but, do you not trust anyone? or is this some more financial advice, kind of like your advice to make all purchases of chemicals and fertilizer last August?

I don't trust anyone completely. Do you? I trust some more than others. TY for making me think about possibly posting an incorrect fertilizer and chemical price projection. Do you have a link I can view to verify your comment? In reference to the above text I just wrote, the meaning of the text has nothing to do with trust, as a bank can hold funds behind a deposited check for ten days (maybe longer..you may want to ask a banker) to make sure it clears the issuers bank (sale barn's bank in this case). This is more of an issue than it used to be because of the credit crisis.
 

Workinonit Farm

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HerefordSire":1xwcw4ex said:
[/i] If the sale barn check is wrote on a different bank than your checking account, make sure you go to the bank the check is written on and cash it, then deposit with your bank. Alternatively, you may want to get a cashiers check from the bank the check was written on. This strategy may prevent you bank from holding the funds for 10 days, depending on how inflential you are.[/i]

Several banks in my area will charge anywhere from $3.00 to $5.00 to cash a check at the bank the check is written on if you don't have an account with that bank. Many banks in my area aslo charge a small fee for a cashiers check.

I have never had a check bounce from the market/barn where I have sold my animals. The bank I have my account with has never given me a hard time about cashing the checks. Most of the time I just deposit the check anyhow.

BUT I think I understand the message, to protect what little money we get from loss. I will say, there is one sale barn in my area, that if a person does sell through them, I would suggest they follow your suggestion.

Katherine
 

kenny thomas

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cattlepower, i sent you a PM but the posts here are good advice. Start a cattleman's association or at least get a few friends together and the power of the group is much greater that the one. Some other advantages of the group that has been discussed the last month is the power of buying. I am still learning but it works. Look at the December Progressive Farmer magazine for some of the things me and a friend are doing.
The check. Well I have seen several on a small market here in the last two years that have been returned even after the 10 days. The local banks will tell you when you try to cash or deposit it not to figure on using it until they tell you it is ok. Only one example but it could happen. About 10 years ago we sent 10 loads of 8wt steers to a person in the midwest. The check was no good. Got to go on vacation to Iowa to get it made good. Not a good feeling when you are out of state either trying to get your money or move the steers.
 

buckmaster33

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Workinonit Farm":cu0n5lkk said:
HerefordSire":cu0n5lkk said:
[/i] If the sale barn check is wrote on a different bank than your checking account, make sure you go to the bank the check is written on and cash it, then deposit with your bank. Alternatively, you may want to get a cashiers check from the bank the check was written on. This strategy may prevent you bank from holding the funds for 10 days, depending on how inflential you are.[/i]

Several banks in my area will charge anywhere from $3.00 to $5.00 to cash a check at the bank the check is written on if you don't have an account with that bank. Many banks in my area aslo charge a small fee for a cashiers check.

I have never had a check bounce from the market/barn where I have sold my animals. The bank I have my account with has never given me a hard time about cashing the checks. Most of the time I just deposit the check anyhow.

BUT I think I understand the message, to protect what little money we get from loss. I will say, there is one sale barn in my area, that if a person does sell through them, I would suggest they follow your suggestion.

Katherine

Just to clarify all the banking items...(I am a banker full time off the farm)...my apologies, dont hate me! :cboy: But dad, was a smart man and made me get a college degree even though I loved to farm! Although, not sure why I chose finance.

Banks can and will put a hold on large checks being deposited. Ten days is extreme. 3-5 days is common. Its very common for people using the convenience checks for their credit card...you'd be amazed how many people write one of these checks, but dont have enough available on their credit card?! But for my particular bank...they're all individual cases. Ironically, I work for a large bank in a small, rural community. So, all my customers that I work with and know...I can waive any holds that might come into question....and of course, I do all I can for my fellow farmers! And yes, if you have a good banker with a small town community bank....dont become his enemy!! It's only going to get worse for the farmer to borrow money....but still a little easier with the small bank.

Most banks do charge $5(in this area) for cashing a check drawn off their bank for a non customer. They(we) know whether the check is good or not...so honestly, its just another way for the bank to make revenue because they can. Most non customers that cash a check dont have an account anywhere(usually because they had one and messed up badly), so they dont argue.

Yeah, I personally only sell 20-25 feeders every year, so I'm constantly checking all the local market reports to see what one is bringing the best for what I have to offer. This is especially true since the Central Livestock market in South St Paul shut down last year....dad and I sold lots of cattle there over the years. Its really missed. And never gave me a bad check! Anyways, sorry for being long winded.....and get back to the real subject of the thread!
 

kenny thomas

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Hope the small locally owned banks stay forever. We still have two with each having several branches. It is good when you see the president and several members of the board of directors at the calf sales. At least they know what it is like to farm.
 

Angus Cowman

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kenny thomas":4nwdjuz8 said:
Hope the small locally owned banks stay forever. We still have two with each having several branches. It is good when you see the president and several members of the board of directors at the calf sales. At least they know what it is like to farm.
I lease the exec VP bulls every yr and sell the CEO hay so it helps and they are more than my bankers they are my friends I can call and talk to them and bounce ideas off of them and they give me their honest opinions not just financial ones
 

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Another thing to consider is a bull buyers program-If you buy one of their bulls- they will buy or pool your calves with other calves sired by their genetics.
And as others have said ---Going outside of a stockyard makes getting ripped off alot more of an issue. Sometimes getting less money is better than getting none.
There are people out there that when they know they are going under anyhow- go on the rampage and try and find some fast easy money to hide. The way the market has been theres gonna be a rash of people getting taken to the cleaners. Be especially careful about getting involved with out of state deals.
 

HerefordSire

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Howdyjabo":1ptaxije said:
Another thing to consider is a bull buyers program-If you buy one of their bulls- they will buy or pool your calves with other calves sired by their genetics.
And as others have said ---Going outside of a stockyard makes getting ripped off alot more of an issue. Sometimes getting less money is better than getting none.
There are people out there that when they know they are going under anyhow- go on the rampage and try and find some fast easy money to hide. The way the market has been theres gonna be a rash of people getting taken to the cleaners. Be especially careful about getting involved with out of state deals.

Excellent advice about doing business out of state and the odds of getting taken advantage of now relative to a couple of years ago.
 

BC

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cattlepower":2sh10gjv said:
Was talking with a local friend who only sells about 15-20 calves a year. He was wondering where he could sell his beef direct to someone instead of the crappy sale barn? I don't mean directly to the customer but any company etc. that wil buy his calves direct for more than the sale barn.
I don't own a sale barn, but take exception to your term "crappy sale barn". Most markets have enough buying power that animals bring all they are worth on that particular day. If you want to sell directly off the farm, I would suggest that if you live close enough to an order buyer that you may contact them and see if they will buy your calves. Your calves won't bring anymore per pound than they would at the sale ( an order buyer is trying to put together cattle for his customer and has to deliver those at a set price), but you will not be out the commission.
 

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