Local Feedyard Closings ?

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Stocker Steve

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We have had a number of small feeders shut down over the past several years. Some were back grounding and some were feeding fats. I am told we see an increasing amount of calves being trucked out of state. Makes sense if no local is willing to bid...

Are you seeing consolidation in your area?
If so, where does it end?
 

Aaron

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It ends when cow/calf guys get tired of low bids and quit, causing buyer interest to wane and auction marts to shut down. Those who can background at low prices and make money doing it will thrive, as will those cow/calf guys that can live with the prices given by those same backgrounders. Everybody else will likely perish. High-cost producers have high mortality rates in this industry, especially in downturns, which we have yet to see in the last 5 years. But even that is unreliably skewed as more producers take off-farm income to subsidize a money-losing high-cost operation or enter land into crop production to do the same thing.

Cattle will never go the way of hogs and chickens. In fact, hogs and chickens will go the other way as the public clamps down on animal welfare regarding animals being raised in confinement systems. Can see pig and chicken barns without open air/sunlight access being banned in my lifetime. Doesn't mean the price will go up, just means the standards will change and producers will have to adapt or leave.
 
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Stocker Steve

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Aaron":22iknlw7 said:
It ends when cow/calf guys get tired of low bids and quit, causing buyer interest to wane and auction marts to shut down. Those who can background at low prices and make money doing it will thrive, as will those cow/calf guys that can live with the prices given by those same backgrounders. Everybody else will likely perish. High-cost producers have high mortality rates in this industry, especially in downturns, which we have yet to see in the last 5 years. But even that is unreliably skewed as more producers take off-farm income to subsidize a money-losing high-cost operation

I agree cow/calf will not vertically integrate when calf prices are often less than total cost.

I know there is "local" opportunity to background with silage and byproduct, but there are also probably some economies from shipping calves SW from MN, and feeding them silage and byproduct there.

I think we may need to dial back the ag specialization, and go back to some level of crop/cattle integration to do biological things :? that others can not do.
 

Caustic Burno

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Aaron":1b312ud8 said:
It ends when cow/calf guys get tired of low bids and quit, causing buyer interest to wane and auction marts to shut down. Those who can background at low prices and make money doing it will thrive, as will those cow/calf guys that can live with the prices given by those same backgrounders. Everybody else will likely perish. High-cost producers have high mortality rates in this industry, especially in downturns, which we have yet to see in the last 5 years. But even that is unreliably skewed as more producers take off-farm income to subsidize a money-losing high-cost operation or enter land into crop production to do the same thing.

Cattle will never go the way of hogs and chickens. In fact, hogs and chickens will go the other way as the public clamps down on animal welfare regarding animals being raised in confinement systems. Can see pig and chicken barns without open air/sunlight access being banned in my lifetime. Doesn't mean the price will go up, just means the standards will change and producers will have to adapt or leave.


You better wake up regulation is already pushing it that way in the name of food safety.
Thirty years from now most of our type of operation won't exist.
The local sale barn and slaughter plants are already disappearing due to regulation and urbanization.
 

shaz

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Anyone who doesn't like confinement operations for pigs needs to raise a few. Problem with those nice barns is that they're too good for pigs.
 
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Stocker Steve

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Regulators are after some of the older farmer owned set ups here.

I also think many of the small lots are not into risk insurance as much as the big guys, and they get hammered more in a price down turn.
 

GAonmymind

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Stocker Steve":hg4waemk said:
I think we may need to dial back the ag specialization, and go back to some level of crop/cattle integration to do biological things :? that others can not do.

Stocker Steve can you elaborate on this and/or give examples please?
 

Turkeybird

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All city folk need to live with at least 6 pigs, a dozen chickens and a milk cow in their mini backyard for a few months,and then they will appreciate the way that animals are raised. Those critters will either be in, under or on the house by the end of day one
 
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Stocker Steve

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GAonmymind":x6ogjf9j said:
Stocker Steve":x6ogjf9j said:
I think we may need to dial back the ag specialization, and go back to some level of crop/cattle integration to do biological things :? that others can not do.

Stocker Steve can you elaborate on this and/or give examples please?

The specialized corn/bean boys have little flexibility. Chemical companies are in control of input costs and traders computer algorithms are in control of market volatility. I refuse to work for Monsanto, so some of my goals are to improve soil fertility and improve soil organic matter while reducing purchased inputs. A legume focused rotation example would be:
1) bale graze
2) cover crop graze
3) grow high gross margin soybeans with no chemical fertilizer required, but may need lime for legumes
4) grow high gross margin under seeded small grain with no chemical fertilizer required
5) high productivity legume/grass forage with no chemical fertilizer required. After three to four years with mostly grazing and an occasional hay cutting, my K values are down to 130 to 160 ppm.

For someone who already has livestock - - the only downside I have seen is a huge flush of manure weeds.
 

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