We've been doing some thinking on weaning and feeding calves this year. For probably 5 years now we've weaned around this time of year, fed until mid April, and sold in July or August. This has worked out really well for us. This year with feed @ $401 a ton it's going to be really expensive to feed yearlings. What's yalls thoughts on feeding for 60 days vs holding out and hoping for really good prices next summer? I hate to change course from something that's been working but just don't see high prices next summer.
Mid Summer 2023 Prices
- Thread starter Lucky
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kenny thomas
Well-known member
You can lock in the prices now for next summer delivery. Check out Livestock Risk Protection and see if your gain and value is worth keeping them.
Jeanne - Simme Valley
Well-known member
Kenny - don't you need a certain number of cattle - like a pot load?
kenny thomas
Well-known member
Not for Livestock Risk Protection. Your actually not selling just guaranteed a price. Kinda like an insurance on the price protection.
farmerjan
Well-known member
My son is thinking seriously about the LRP for this year. He says that if you sell for more, you pay for the premiums, and you keep what you sell them for; and if they don't bring what you have them insured for, they cover the difference... I have been to one seminar about it... need a little more going over it to get it right in my head but I like the principle....
kenny thomas
Well-known member
Jan, the Virginia Cattle Association has a person that can lead him through it.
Personal opinion is I think it's going to be a very good year in 2023 compared to the last few years. Futures prices which is what LRP is based from is over 20 cents higher than now. Seem like it would have to make money to keep them even without the LRP.
bird dog
Well-known member
What you are doing is buying a put on cattle prices where you have the right to sell them at a certain price. To participate in the USDA program you have to have the animals to back it up. This is not for gambling or investing. Its risk protection.
Its a good program where the USDA pays some of the premium and swings the advantage to more in our favor. Its like playing a casino game where you are the house and have a slight favor. Its similar to forage insurance where you should win more times than you lose. You don't pay anything until the contract ends. If it ends in your favor, they mail you a check for the difference between the price at closing versus the price you contracted for. If it closes not in your favor, you pay the agreed upon premium price, no more or no less.
You can buy coverage on one calf or 1000 even if they are unborn. The gal that handles mine is suggesting the coverage for half of your spring calves that expires in mid October. A steer and heifer contract for for $2.12/lb selling price based on 599 lbs ( I think). Your cost if it doesn't go your way is about $40 per head. Keep in mind all this changes daily. You can set it up for a lesser closing price for less premium. You can do steers, heifers or a combination. There are many contract options.
Its a good program where the USDA pays some of the premium and swings the advantage to more in our favor. Its like playing a casino game where you are the house and have a slight favor. Its similar to forage insurance where you should win more times than you lose. You don't pay anything until the contract ends. If it ends in your favor, they mail you a check for the difference between the price at closing versus the price you contracted for. If it closes not in your favor, you pay the agreed upon premium price, no more or no less.
You can buy coverage on one calf or 1000 even if they are unborn. The gal that handles mine is suggesting the coverage for half of your spring calves that expires in mid October. A steer and heifer contract for for $2.12/lb selling price based on 599 lbs ( I think). Your cost if it doesn't go your way is about $40 per head. Keep in mind all this changes daily. You can set it up for a lesser closing price for less premium. You can do steers, heifers or a combination. There are many contract options.
farmerjan
Well-known member
He is much more "up on it" than I am. We went to one seminar that the rep from Weyers Cave area insurance put on. I think that we will make money this year like you said... but he is thinking about putting a group into it. One of the guys in the Rockbridge cattle assoc did it last year and he talked to Mike about it. He has been buying some bulls and working them and some steers... we are tight on operating capital and he doesn't want to borrow too much since the cost has gone up quite a bit. Had to pay for that 26x93' concrete slab and the concrete "blocks" for the sides.... that was over 14,000.... took a real bite out of any operating money.
If this stupid mess with the house in NH (of my parents) would get sold, he would have some cash to buy some more as he finds them. Oct and Nov and into Dec are good months to buy..... He hopes to have a good big group to sell in the spring... and he needs 35 to go to the WV place he is in partners with our friend and since he is getting up in age, Mike has been doing more and more of it.
