The ever increasing costs of inputs makes Elizondo's "total grazing" style of management more attractive as time goes on, no matter how high cattle prices are at any given moment.
EXACTLY.....While I'm not complaining about today's prices.
But when coupled with today's input prices I'm making roughly the same money I did when I only got $1.25 for calves.
I know lots of people in TN that are working for less that $10 an hour. The minimum wage is 7.25 there. Here in VA 6 miles from TN its $12 but there are very few jobs . Probably a good thing because it seems few want to work. Had one tell me recently that he would work a little but cash only. He explained what he was getting from our government to do nothing and he couldn't chance loosing it. It amounted to about $3500 a month. $3500 tax free with no expenses is pretty darn good in this area.
thats why they came out with LRPI have a friend who bought 200 steers in 2014 and put them on feed. Couldn't lose. By the time they were finished in 2015 the market dumped and he lost $450 a head. That was a $90,000 loss. Enough to take a lot of people down. I knew another guy who was rolling big in '94 and '95. '96 came along and he lost everything he owned. There was a guy who posted on here back in '04 - '05 that went bankrupt in 96. If you don't think it will crash....... I wish you luck.
I was just talking to a man at church about LRP yesterday. Not worried about this year but next year I will have LRP on the calves. And this year I will be selling before the election.thats why they came out with LRP
Cowboy hat sermon on keeping input prices low...
Why so negative? Catlemen are retiring, droughts everywhere, cattle prices should stay reasonably where they are...inflation is everywhere, why not with cattle prices too.Brace yourself. In a year or two they will be worth half what they are today.
I'm with you...i understand...but right now....i'm having a ball...if it ends it ends.Best not to get too exited, this too shall pass.
I have been through at least four of these cycles. It seems the higher the level of optimism, the greater and more sudden the fall.
Yes, absolutely more risky if you're "buying" cattle this market....i would not be a buyer. I brought my cattle-heifer-yearlings beginning of covid, early 2020 at 1.10 to 1.30 CWT. I can see the prices (calves) drop from 3.00/3.50 CWT to 2.00/2.50 CWT...but I believe the days of under 1.50 calves ARE over with. Inflation has hit all markets (never goes down)..higher cattle prices will remain.I have a friend who bought 200 steers in 2014 and put them on feed. Couldn't lose. By the time they were finished in 2015 the market dumped and he lost $450 a head. That was a $90,000 loss. Enough to take a lot of people down. I knew another guy who was rolling big in '94 and '95. '96 came along and he lost everything he owned. There was a guy who posted on here back in '04 - '05 that went bankrupt in 96. If you don't think it will crash....... I wish you luck.
You run for President and I will vote for you. You couldn't have explained and spoke the truth anymore than you did in this post. One of the top 10 post I have read in my 20 years of visiting this forum. And I am sincere in saying so. Good post farmerjan.Don't know how old you are @cowman82 , but I too remember the days of $.10-.20 cull cows, and feeder steers bringing less than $.50..... I remember seeing the replacement cattle in the $2-3,000 a head in the mid 2010's , and then the price drop as more came available and things went through the swing.
The record low inventory and record low retainment of replacement heifers, the droughts, have all gone through these same cycles..... Our huge increase in exports to China especially has caused higher prices and lower inventory faster than some of the previous cycles...
But as the world economy gets more intertwined, and the inflation rate gets worse and worse in what the average person can manage, even with the increased wages, it will get to a point where people will not be able to afford things...
Add to that the unrest with the different countries vying for control over the world... hostilities that are being pushed, that we as a nation are getting more and more "weak kneed" and they see as potential for a very real possibility for takeover if we do not get back to where we are an important player in things... AND different countries now going away from the US dollar as the "world's currency" will bring things to a halt and possibly even put us in worse shape than we have ever been in.
And there is one more thing that many do not see... the younger generation of people OVERALL, do not see the same value of hard, sweaty, physical labor as a way to "get ahead". It is a different mindset with the technology today; and the levels of people wanting to just push buttons to make things happen. They are looking at the whole "fake meat" and being able to "create" food in a lab and mass produce it, as the "modern way to go" and it will save the planet and all that claptrap BS..... It will not save the planet with using 10 times the resources in order to create this stuff that will stop the animals from polluting the planet...
The "age of the Jetson's" with being able to take a pill to get your total nutrition, is fast becoming a reality.... yet there is more and more unrest and unhappiness in the world, and it is a sign that we are getting more and more away from what we need in our lives to both live and thrive.... that things like physical work and toil in the soil is good for the body AND the soul.... and that by letting things "go back to nature" and all this gobbledy gook, is showing me that people have not yet learned that they cannot go forward without learning from the past... yet the current thoughts of the governing class is to get everyone on board with this idea of the government knows best and we should learn to "trust them" to have our best interests at heart. And that the past should be erased.
There are advantages to the modern age of farming, the equipment and things that have made "one man" able to farm thousands of acres instead of barely managing to farm his 160 acre piece..... But each new technology brings a new set of problems... which in turn brings a new set of "solutions"... This also brings in another set of influencers to the cycle of cattle as we have seen over the last 100 years.
We will see another drop in the cattle cycle... it is at it's peak now, MIGHT even last for another year or 2... but when it does crash, it will be worse than the last one because the younger generation of today does not want to see that it happens this way, and the prices of things are so inflated that spending 100,000 for a pickup that will NEVER be able to last long enough to even make it "pay for its self", so a person will never get out of the debt cycle that has become a way of life now.
When this does crash, the foreign countries that have been buying up farmland.... namely China and such, ESPECIALLY around and near military bases and strategic areas of production and distribution... they will dictate to us how we will live as they are taking over what has been one of the best places in the world to live and BE FREE. Ask anyone that has escaped communist and socialist rule in other countries.... We are headed that way...
When the cattle cycle swings, with the other influences that were not near as prevalent in the past ones, those that are still able to own cattle, and land, will be at the mercy of controlling interests that will TELL you what you can raise, what you can get for your product, and how to do things.
With the amount of debt now, and the riding high on cattle prices, when it drops, there will be those with money that will come in and own things and those that will become the "serf's" to do the work.... Many will lose so much when these prices fall.... and they will.
Sorry if I came off negative. I was trying to express reality. Yes, "cattle prices should stay reasonably where they are". But the key word is should. I seriously doubt that they will. I say that speaking from experience. Cattle have never kept up with inflation. In 1969 I sold hanging halves of beef for the same price that the slaughter houses were getting. That was $0.73 a pound hanging. Right now at high prices of today if you sell on the rail the price they pay is about $3.00 a pound. Inflation has been way over 410% in those 55 years.Why so negative? Catlemen are retiring, droughts everywhere, cattle prices should stay reasonably where they are...inflation is everywhere, why not with cattle prices too.
Thank you for the compliment... I just call it as I see it and it is hurting me to see where this country is going. We have so much going for us and a past that shows that there were people willing to work hard and FIGHT hard to keep it. I only hope that there are enough left to feel that way in the younger generation coming along... and enough young people that are "NOT CONFUSED" as to who and what they are to be able to fight to keep this country free.You run for President and I will vote for you. You couldn't have explained and spoke the truth anymore than you did in this post. One of the top 10 post I have read in my 20 years of visiting this forum. And I am sincere in saying so. Good post farmerjan.
It works great too.The ever increasing costs of inputs makes Elizondo's "total grazing" style of management more attractive as time goes on, no matter how high cattle prices are at any given moment.
I understand what you're saying and agree with you 100 %. I am not downing the younger generation because we were that younger generation ourselves at one time.Thank you for the compliment... I just call it as I see it and it is hurting me to see where this country is going. We have so much going for us and a past that shows that there were people willing to work hard and FIGHT hard to keep it. I only hope that there are enough left to feel that way in the younger generation coming along... and enough young people that are "NOT CONFUSED" as to who and what they are to be able to fight to keep this country free.
I am someone who believes in tolerance, but not in stupidity.... and many in the younger generation has crossed into the stupidity and just outright insane territory.
Hoping we will ship steers we weaned... we are getting very dry here, already into the moderate drought level... would rather keep some of the heifers at this point, keep numbers down to make sure we make it through this weather situation. You can always eat heifers or breed them... can only feed the steers and eat them....
I hope you are correct but i sure aint betting the farm on it.Yes, absolutely more risky if you're "buying" cattle this market....i would not be a buyer. I brought my cattle-heifer-yearlings beginning of covid, early 2020 at 1.10 to 1.30 CWT. I can see the prices (calves) drop from 3.00/3.50 CWT to 2.00/2.50 CWT...but I believe the days of under 1.50 calves ARE over with. Inflation has hit all markets (never goes down)..higher cattle prices will remain.