Increase in dispersal sales?

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mncowboy

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Anyone else seeing an increase of dispersal sales? Locally or nation wide? If so, do you think its price related or more so the average age of cattle producers?
 
Probably both. The old for health reasons and the not so old with financial savvy when they see the ....... coming. Course a lot of the financial reasons are probably because they don't possess a great deal of financial savvy.
 
Also probably both, but the sale prices and increasing input cost have made it to the point that just about anything else is more attractive. I see the trend of dispersal sales increasing......
 
jltrent said:
Also probably both, but the sale prices and increasing input cost have made it to the point that just about anything else is more attractive. I see the trend of dispersal sales increasing......
thinning out the Angus breeders,,waaaaayyy too much competition..make bull Prices unrealistic..why pay for pretty much the same animal here,what I can buy for a lot less there...
 
ALACOWMAN said:
jltrent said:
Also probably both, but the sale prices and increasing input cost have made it to the point that just about anything else is more attractive. I see the trend of dispersal sales increasing......
thinning out the Angus breeders,,waaaaayyy too much competition..make bull Prices unrealistic..why pay for pretty much the same animal here,what I can buy for a lot less there...

In theory competition lowers prices. Are you saying that's not the case with seed stock breeders?
 
No I'm saying lower cattle prices make for lower bull prices..making to much input for the breeder to produce and develop..then turn around and give them away..commercial breeders are the first ones too put the seedstock mans nads in a vice..
 
ALACOWMAN said:
No I'm saying lower cattle prices make for lower bull prices..making to much input for the breeder to produce and develop..then turn around and give them away..commercial breeders are the first ones too put the seedstock mans nads in a vice..

I can see how that would happen. Supply and demand.
 
I did read a internet story about John Deere dealers sitting on a lot of inventory. They were stating because tariffs and loss of markets and also weather the farmers not in the mood to buy. I also see this on the equipment dealers lots in my area. Lots are full and really no place to park any more. Also looks like the car dealers are overloaded with stock also all of the used car dealers in my area have a huge inventory. Caterpillar having some tough times with plans of laying people off. Also Deere saying the same thing. A lot of the smaller oil operators in my area are laying off a third to a half of all personnel.
 
Can't buy equipment when you aren't making enough to pay for normal yearly expenses. Plus look at the prices of the new equipment..... when we can fix the old, we do. Don't need a new piece of equipment payment on 1.50 steers.
 
TennesseeTuxedo said:
farmerjan said:
Can't buy equipment when you aren't making enough to pay for normal yearly expenses. Plus look at the prices of the new equipment..... when we can fix the old, we do. Don't need a new piece of equipment payment on 1.50 steers.

$1.50 will be a distant memory in 6 months.
Forward or backward. Your guess and mind might be just a guess. I expect a lot of cows to come on the market and no one willing to put any capital in them such as feed.
 
hurleyjd said:
TennesseeTuxedo said:
farmerjan said:
Can't buy equipment when you aren't making enough to pay for normal yearly expenses. Plus look at the prices of the new equipment..... when we can fix the old, we do. Don't need a new piece of equipment payment on 1.50 steers.

$1.50 will be a distant memory in 6 months.
Forward or backward. Your guess and mind might be just a guess. I expect a lot of cows to come on the market and no one willing to put any capital in them such as feed.

Unfortunately I think we're headed down.
 
farmerjan said:
Can't buy equipment when you aren't making enough to pay for normal yearly expenses. Plus look at the prices of the new equipment..... when we can fix the old, we do. Don't need a new piece of equipment payment on 1.50 steers.

500-600 pound steers here are going $0.95-$1.39
 
Wonder how much Urbanization and Land Defragmentation has to do with people getting out. Be interesting to know if producers in rural areas are getting out or if it's producers that are getting swallowed up by population growth. Lots of folks move here from bigger city's because "Wal-mart" bought their land for a chunk.
 
Due to the huge fire at the Tyson fresh meats processing plant in Ks, this past Friday night, there will be a BIG backload of ready to kill beef that will have to be swallowed up by other plants. Since so many have shut down in the last few years, most plants have been running at 80-90% capacity.... so that is going to make it difficult. So that will back up into the feeder side some. Plus waiting on the results of the new update on acres of corn planted. If it runs near average or so of 88-89 mil acres, then corn prices should be down. If due to the wet spring, alot of those acres did not get planted, and it runs short of 86 mil or so, then corn prices will go up, feeder prices always drop when corn gets too high. I unfortunately see prices dropping also.

Many of the small farm sell outs here are a combination of 2 things. Farmers older, and the next generations do not want to work that hard for little or no return. And in this area, population growth, and land prices going so high that you cannot make it pay. Since this area here is more a grazing area due to restricted amounts of tillable land in any size, a farmer cannot pay the 5-10,000 an acre, or more, and ever expect to make it pay. Not with the prices we are getting for feeders. There is also getting to be a problem with outsiders moving in, and all the BS with pollution and protecting the land and water quality.... they don't want ANYTHING to go into the streams that is animal related, but their chemicals on their perfect lawns aren't part of the problem...... and they fight against a farmer that wants to build a poultry house to help spread out his investment into something that he feels will help his cash flow and enable him to keep his dairy that is not paying the bills..... We are fighting here against people such as that. The thing is, if you do give in, or sell out, they are going to continue to "run things" and sooner or later, they will have a stranglehold on every farmer. Got some now that are fighting against the cell tower because it is going to ruin their view......even though it will greatly improve our cell service and take some of the load off the already existing towers in the area.
 
Doesn't specifically state dispersal sale but just saw 35 head of 4-5 year old bred red Angus cows up for auction this week at our local sale barn. NE origin and there's been a lot of them go through lately. There's been a number of dispersal sales around here, primarily due to age and kids/grand kids simply not interested in maintaining the legacy. Or the hard work that goes along with it.
 
mncowboy said:
Anyone else seeing an increase of dispersal sales? Locally or nation wide? If so, do you think its price related or more so the average age of cattle producers?

Sure do and I don't think it will get better. Cattle biz is not as fruitful as other businesses that actually make money and younger people are not trying to struggle all their lives and kick cow turds much anymore. I like cattle always have but im not such a fool to keep bailing water on a sinking ship. I am not calling anyone a fool BTW I just cant afford to throw away anymore $
 
Just saw another one for Illinois. PVA. Werner, JP, Curtin, now PVA, all from Illinois, but Illinois is a different situation, get out as soon as you can!! Seen at least 2-3 from Inidana too

As much as there is/has been disperals, i'm still seeing a few "inaugural" sale books, and all the 2nd-5th annual production sales. There's been some big money start ups that have started to take market share that has to be considered

XLAR
BM Angus
GMC farms
High Roller
Pearcy
Ingram
Flying W Diamond
Graber's
Crouch Angus Valley

pretty sure Square B is young also if Im not mistaken
 
I just found out there is a big dispersal sale near me in two weeks. Fairly large Angus operation. Given the state of the industry right now, they may be some deals on some nice cows, calves, embryos, and semen.
 

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