Future shortage of bulls?

[kjonesel]

Just wondering but with the high price being paid for feeders right now does anyone anticipate higher prices for bulls next year. The reason I ask a local cattleman who normally holds back 10 bulls is only holding back 3 this spring. He's getting older, grain is expensive, and he likes the thought of paying off another note as his reasons for cutting back.

 

[Isomade]

I don't know about a shortage, but they are definitely getting higher. I believe several things happened last year that will have an impact for years to come. The drought and resulting sell off of cattle and shortage of hay will effect the base price of feed, hay, replacements, and breeding bulls for many years. JMHO

 

[SRBeef]

Just wondering but with the high price being paid for feeders right now does anyone anticipate higher prices for bulls next year. The reason I ask a local cattleman who normally holds back 10 bulls is only holding back 3 this spring. He's getting older, grain is expensive, and he likes the thought of paying off another note as his reasons for cutting back.

It would seem to make financial sense that if you owe money to a bank etc to sell cattle at these prices to pay off any financial obligations.

However selling cattle just to put the money in a bank CD etc does not seem to make financial sense. At the ridiculously low (if any) interest rates paid on cash savings these days, those cattle are making you much more money in the pasture than an equivalent amount of cash in the bank.

It's good to have some cash reserve, but I think folks are going to realize they are better off having most of their money in cattle than cash.

This would mean those bulls are likely to cost more but they will make more for you - sort of like buying a machine tool in a factory. It doesn't really matter what that machine tool costs as long as it earns more than it costs (= has sufficient ROI).

Bull = Cattleman's machine tool = produces your end product.

Jim

 

[jedstivers]

If you need a tool and don't buy it you pay for it and don't have it. Henery Ford I think.

 

[Kingfisher]

I don't know about a shortage, but they are definitely getting higher. " What do you mean
by that statement? I've been to a couple of big bull sales this year. One Hereford and one Angus. 3-4 K for
a quality Virgin bull seemed like a bargain compared to auction prices on todays cattle. I passed on a nice Virgin
" Blonde" bull the other day that looked good for 1250.00. The 79 year old seller prolly did not help himself by telling the bidders he had " exhibited some aggression" and he was too old for an agressive bull. By the way what exactly is a " blonde" breed of cattle? I thought he was a Charlois but he was presented as a Blonde.

 

[3waycross]

http://cattle-today.com/Blonde.php

 

[SRBeef]

Jim

I don't know about a shortage, but they are definitely getting higher. " What do you mean
by that statement? I've been to a couple of big bull sales this year. One Hereford and one Angus. 3-4 K for
a quality Virgin bull seemed like a bargain compared to auction prices on todays cattle. I passed on a nice Virgin
" Blonde" bull the other day that looked good for 1250.00. The 79 year old seller prolly did not help himself by telling the bidders he had " exhibited some aggression" and he was too old for an agressive bull. By the way what exactly is a " blonde" breed of cattle? I thought he was a Charlois but he was presented as a Blonde.

$1250 was probably less than the hamburger price on bulls. He may be in a big Mac by now.

May be the best place for an aggressive bull.

 

[Stocker Steve]

This would mean those bulls are likely to cost more but they will make more for you - sort of like buying a machine tool in a factory. It doesn't really matter what that tool costs as long as it earns more than it costs (= has sufficient ROI).

Jim

Return on Insemination?

 

[SRBeef]

This would mean those bulls are likely to cost more but they will make more for you - sort of like buying a machine tool in a factory. It doesn't really matter what that tool costs as long as it earns more than it costs (= has sufficient ROI).

Jim

Return on Insemination?

Depends on your costs to do it. Keeping in mind that everyone I know that uses AI also keeps a "cleanup bull" I would say folks doing AI are not doing it for the ROI but for other reasons such as bull selection.

Jim

 

[VanC]

There will always be enough bulls to go around. Whether there are enough quality bulls is another story.