Not sure I fully understand cattle prices, a little help

[EAT BEEF]

Well then I'm the other 5% cause I'm wanting to explore the option of buying/selling truckload sizes on a 90 day pre-conditioning program.[/quote]

Are you wanting to have a yard or just invest in cattle and pay them to pre-condition?[/quote]

Definitely no yard. Invest and pay them to pre-condition is what I'm looking into.[/quote]

So why don't they buy the cattle If it was a good deal they would, they could eat some labor and overhead and come out better than you with a loss.I never looked into it the way you are so I don't really know.It might work for you but in the end I bet you won't come out more than -5% to 5% either way.

 

[Cowdirt]

I can't explain it. If you are like 95% of the cattle farmers east of the Mississippi who have 40 cows or less and sell calves through your local stockyards, then I don't think it matters much.

Well then I'm the other 5% cause I'm wanting to explore the option of buying/selling truckload sizes on a 90 day pre-conditioning program.

tncattle, you're my neighbor so I hope you take this constructively. I've watched your posts with interest. Seems to me, after all the talk is done, the most productive thing that you have actually done toward learning the cattle business is working cattle with a local farmer. That's productive. I may be way off base.

 

[tncattle]

I can't explain it. If you are like 95% of the cattle farmers east of the Mississippi who have 40 cows or less and sell calves through your local stockyards, then I don't think it matters much.

Well then I'm the other 5% cause I'm wanting to explore the option of buying/selling truckload sizes on a 90 day pre-conditioning program.

tncattle, you're my neighbor so I hope you take this constructively. I've watched your posts with interest. Seems to me, after all the talk is done, the most productive thing that you have actually done toward learning the cattle business is working cattle with a local farmer. That's productive. I may be way off base.

Just being honest here but yes you are way off base. There are simply some things I don't share for various reasons. Working with the local cattle farmer has been great for sure but there has been plenty more going on behind the scenes. I'm not trying to mislead anyone but have learned a great deal in the last 2 years and have been careful as to what I divulge on here. Again, not trying to be sneaky but certain things are just best not shared because they are private to me and my family.

 

[Cowdirt]

[/quote] tncattle, you're my neighbor so I hope you take this constructively. I've watched your posts with interest. Seems to me, after all the talk is done, the most productive thing that you have actually done toward learning the cattle business is working cattle with a local farmer. That's productive. I may be way off base.[/quote]

Just being honest here but yes you are way off base. There are simply some things I don't share for various reasons. Working with the local cattle farmer has been great for sure but there has been plenty more going on behind the scenes. I'm not trying to mislead anyone but have learned a great deal in the last 2 years and have been careful as to what I divulge on here. Again, not trying to be sneaky but certain things are just best not shared because they are private to me and my family.[/quote]

tncattle, all I have to go on is what I read here; these incessant questions on all subjects. Now it's "puts" and "calls". In my neck of the woods we have a saying: "Why don't you s--- or get off the pot?"

 

[tncattle]

tncattle, you're my neighbor so I hope you take this constructively. I've watched your posts with interest. Seems to me, after all the talk is done, the most productive thing that you have actually done toward learning the cattle business is working cattle with a local farmer. That's productive. I may be way off base.[/quote]

Just being honest here but yes you are way off base. There are simply some things I don't share for various reasons. Working with the local cattle farmer has been great for sure but there has been plenty more going on behind the scenes. I'm not trying to mislead anyone but have learned a great deal in the last 2 years and have been careful as to what I divulge on here. Again, not trying to be sneaky but certain things are just best not shared because they are private to me and my family.[/quote]

tncattle, all I have to go on is what I read here; these incessant questions on all subjects. Now it's "puts" and "calls". In my neck of the woods we have a saying: "Why don't you s--- or get off the pot?"[/quote]

Cowdirt, those kind of statements really don't mean anything to me, just old sayings that are empty words. Wasn't trying to rile you just being straight with you.

 

[spoon]

tncattle don't take this the wrong way as I know very little about the cattle business but I don't understand how you are going to make money. The way I understand it you want to buy truck loads of calves and pay someone else to fatten them then resell them in 90 days and hopefully make money. Why don't the people fattening the cattle just do it themselves without you? No middle man more profit. I'm guessing you have the money to buy the calves and maybe a place to sell them already? Just thinking out loud here as your whole scheme seems to be just that, a scheme not a business plan. Sorry if I'm way off base but that's the way it reads to me so I'm just trying to get some clarifycation here.

 

[tncattle]

tncattle don't take this the wrong way as I know very little about the cattle business but I don't understand how you are going to make money. The way I understand it you want to buy truck loads of calves and pay someone else to fatten them then resell them in 90 days and hopefully make money. Why don't the people fattening the cattle just do it themselves without you? No middle man more profit. I'm guessing you have the money to buy the calves and maybe a place to sell them already? Just thinking out loud here as your whole scheme seems to be just that, a scheme not a business plan. Sorry if I'm way off base but that's the way it reads to me so I'm just trying to get some clarifycation here.

I'm kind of surprised but if some of you did some research you would see that what I'm talking about is done often. The people fattening the cattle are experts and have a streamlined operation that most people can't come close to duplicating. It seems as though if someone on this board goes against the norm or the majority then they don't know what they are doing etc. Oh well, can't make everyone happy. I don't always phrase my initial questions the best but I usually get the info I'm after, obviously some people are irritated by this, go figure.

 

[TheBullLady]

I have to agree with a couple of the other posters.. it seems that if this was a good way to make a profit, the buyers of the calves would do the backgrounding and reselling. In fact, we're in a very big stocker area of Texas, and that's what everyone that I know does. They buy the calves, work them, run them on winter oats or wheat and resell. There are also guys that have the pastures that buy calves from a buyer by the truckload, run them on winter grazing and then get paid by the calves gain. But again, no middle person buying the calves and paying the backgrounding. It also seems more likely the backgrounder would have a more viable outlet for the finished calves, as they are doing it for a living and no doubt do the research as to the best place to sell.

 

[EAT BEEF]

Agriculture is a big money game,most people don't just get into cattle if they weren't born into the business.It's taken me 15 years to get up tp 150 cows and I made some good money outside of cattle for a while.My wife works in town, I haul cattle,custom bale, and trade some equipment. It's a long haul kinda deal, you just have to get started if it's what you really want.Go lease a little place and feed a few calves,get a dozen old cows,or just go sit at the sale barn and meet people you will find little opertunities here and there just jump on them.You have a power stroke start hauling cattle you can buy a used trailer and sell it and get most of your money back if you don't like hauling cows.If you have the money for a pot load of calves you have the money to do somthing else just go do it.Better to try and fail than have to sit there and say wish I would have given it a shot.

After reading your last post I have one more comment your young get your hands dirty if you want an ivestment I think there are better ones than paying someone to pre-con bought calves.

 

[tncattle]

Bull-lady,

Imagine doing this yourself and making a profit and while your doing it paying someone else to do it for you and making ANOTHER profit also.

Eat Beef,

I'm 40 and my hands have been dirty pretty much my whole life. Not always with cow dirt but plenty of grease and oil and whatever else you can imagine. Custom hauling is also something I have looked into but it takes you away from your family and diesel is not our friend and I don't think it's going to be for a long while. Hope I'm wrong but...I haven't driven my F350 PSD in 5 days and don't plan on it for at least another 5 days.

 

[EAT BEEF]

I'm not putting you down I just think you are unsure of what you can do.I'm reminded of a book I have on beef managment it says plan, act, evaluate.I think your planning and evaluateing but you need to act someday or all your planning and evaluating is of no use.So what if diesel is high someone is going to haul cows you'll have an advantage your old power stroke gets a lot better mpg than my new truck.

 

[Wild Cattle]

400# steer @ 1.40= $560

90 days @ .75/day=67.50/hd

Cost = $627.50

1.5 lbs/day 90 days= 135 lbs gain/hd

400# plus 135# = 535 lbs

535lb steer sells at 1.30 = $695.50

695.5 - 627.5 = $68 hd net no DL no Freight

 

[sidney411]

With no death loss figures you are paying $0.50 per lb of gain - if they gain the average. In 90 days you should expect each calf to gain on average 135 lbs. I'm sure there are more money figures you need to add into the equasion, such as trucking costs. But, if you can sell them for a higher premium being preconditioned then it very well may be worth it. I would say go ahead and try it once, if it turns out good then continue. Is there anyone that has used these peoples services in the past you can talk to about their experience? I think that would be quite helpful.

 

[Wild Cattle]

Why on this board did it take so long for just one person to do the MATH. 50 cents a pound gain is cheep. Looks like it will make money to me. I would put together a load of 100, 4 weight steers and send them. I think there might even be more profit in that deal with a good buyer and some marketing of the straight cattle.

Hey folks the cattle business is a business......try doing some math before you post, so you don't look dumb.

 

[dyates]

Why on this board did it take so long for just one person to do the MATH. 50 cents a pound gain is cheep. Looks like it will make money to me. I would put together a load of 100, 4 weight steers and send them. I think there might even be more profit in that deal with a good buyer and some marketing of the straight cattle.

Hey folks the cattle business is a business......try doing some math before you post, so you don't look dumb.

I did do the math. As stated in a previous post, a 550 pound steer at 1.20 equals $660 per head. To get that same animal to 850 pounds at $.50 per pound is $150, for a total animal cost of $810 per head. That $810 dollar animal sold last week for $.876 per pound, or $745 per head. That equals a loss of $65 per head. I'm sure there is some combination of purchasing weights/selling weights that will make you money. However, it appears to me that the system is way out of balance from start to finish. One of three things has to happen: The price of lightweights must come down, cost of gain must come down, or the price of heavies must come up.

 

[Wild Cattle]

No you did NOT do the math

This is a 90 day deal on 4 weight calves going to 535 lbs....it does make money on paper.

Look people if you can't figure this out you need to start raising goats because the cattle business is way over your head.

I

 

[dyates]

No you did NOT do the math

This is a 90 day deal on 4 weight calves going to 535 lbs....it does make money on paper.

Look people if you can't figure this out you need to start raising goats because the cattle business is way over your head.

I

Very well. I wish you the best of luck. :tiphat:

 

[Cowdirt]

Why on this board did it take so long for just one person to do the MATH. 50 cents a pound gain is cheep. Looks like it will make money to me. I would put together a load of 100, 4 weight steers and send them. I think there might even be more profit in that deal with a good buyer and some marketing of the straight cattle.

Hey folks the cattle business is a business......try doing some math before you post, so you don't look dumb.

I may be wrong but I believe tncattle stated way back that he is a school teacher. In any case I believe that he is capable of doing the math that was required for his original question.

He's got the F-350 truck, probably the hat, but still no cows. Working on a guru degree for # of posts on this forum. Go back and look at all the subjects he has inquired about. BTW, yes I know I don't have to read his posts.

 

[backhoeboogie]

No you did NOT do the math

This is a 90 day deal on 4 weight calves going to 535 lbs....it does make money on paper.

The stock market looks good on paper at times too. But if you want to sell that $100 stock today, and no one is willing to pay more than $45, tough luck.

Tomorrow someone might offer $110, but only wants 40 shares.

You are right about the business part.

 

[tncattle]

Why on this board did it take so long for just one person to do the MATH. 50 cents a pound gain is cheep. Looks like it will make money to me. I would put together a load of 100, 4 weight steers and send them. I think there might even be more profit in that deal with a good buyer and some marketing of the straight cattle.

Hey folks the cattle business is a business......try doing some math before you post, so you don't look dumb.

I may be wrong but I believe tncattle stated way back that he is a school teacher. In any case I believe that he is capable of doing the math that was required for his original question.

He's got the F-350 truck, probably the hat, but still no cows. Working on a guru degree for # of posts on this forum. Go back and look at all the subjects he has inquired about. BTW, yes I know I don't have to read his posts.

Your right about the truck, wrong about the hat (don't like em), Is there a rule against asking about a lot of different subjects or does it just bother you the way I go about it?