Options to Sale Barn?

[skyline]

I'm wondering if there are folks on this board with small commercial herds that are selling their calves without using the sale barn. What are some other options? And how is it working out for you? Internet? Video sales? Advertising? If you feel like you are getting a higher return than using the sale barn, please share your methods. Thanks.

 

[Stocker Steve]

Video: Pros - can no sell or sell for future delivery, may reduce shrink, have value added programs you can use.

Cons - pot belly loads are usually expected, the buyers agent usually wants to sort your herd, need to be flexible on a load out date.

 

[angie2]

SS ~ Is this a viable option for small commercial herd. Like someone wanting to sell less than 10? More like 5?

 

[Running Arrow Bill]

We sell probably 99% of our Longhorns via Private treaty. Probably 75% of our sales are the result of our Website: So far from Tennessee to California. The rest of our sales are made from personal contacts & networking, from passersby and visitors who see our Longhorns in our Front Pasture. On occasion we sell one to a local or area rancher.

On Sale Barns: Pros = quick turn around of cash. Cons = regardless of the breed there are always buyers out there that work hard to bid low and lowball prices. If your animal is not "Soup de Jour" you can get up to 75% discounted for any other color, breed, or whatever. If they can knock it, they will with their checkbook.

You can easily realize several times the sale barn price if you have a freezer to put one in to eat.

 

[angie2]

You can easily realize several times the sale barn price if you have a freezer to put one in to eat.

This is 100% true. So far we have been able to finish and sell direct all of ours. But maybe when we get bigger, could be a problem.

 

[hillrancher]

We sell our steers and heifer local at time to a place that buy for feed lot. Haul in weight get a check. No commission, shrinkage. (Just one person bidding on them) Bulls and heavy old cows go to slaughter house get paid on the rail. Check comes in two weeks or so.

 

[Jogeephus]

You can easily realize several times the sale barn price if you have a freezer to put one in to eat.

This is 100% true. So far we have been able to finish and sell direct all of ours. But maybe when we get bigger, could be a problem.

This is probably your best route but if you get bigger you can comingle your cattle with someone elses to make a load. Only problem with this, and its a big problem, is uniformity. You will need to find someone willing to do this with you who has the same calving schedule as you do and generally the same type cattle as you do or you will need to change to what they are doing. If this is possible, you will see more money doing as SS said. I'm afraid you will find this difficult to do since many people would rather continue doing things as they have always done rather than changing their methods even if it means making more money off their cattle. Cattle folks can be curious at times.

 

[Auburn_Ag]

Hey Skyline I sent you a im

 

[Frankie]

I'm wondering if there are folks on this board with small commercial herds that are selling their calves without using the sale barn. What are some other options? And how is it working out for you? Internet? Video sales? Advertising? If you feel like you are getting a higher return than using the sale barn, please share your methods. Thanks.

Have you considered the Ranch to Rail program? It's a retained ownership program run by Texas A&M.

 

[Howdyjabo]

There are lots worse bargains than salebarns
including someone who offers you more money-- but then never pays you.
Salebarns are sure money.

 

[Hippie Rancher]

There are lots worse bargains than salebarns
including someone who offers you more money-- but then never pays you.
Salebarns are sure money.

You know, I was kind of thinking this too. We sell some by private treaty and put truckloads together with other people, but the old local sale barn is pretty dang convenient when you are doing just a few at a time. And if you develop a relationship with them and send decent animals not just junk they will help sell them for more than the lowest bids. It is in their interest after all because they are on commission.

 

[BTRANCH]

We are in the same boat. We have a very small herd we are trying to grow. As much as I would like to, we cannot keep every calf born. (I have already tried to convince my husband, no luck). We went to our local sale barn on Saturday to get an idea on prices. (we have been before, but I did not have cows to sell) I was not happy with what I saw. They were hot shotting and whacking those poor cows at every turn. My poor calves are not used to that type of treatment. We hand feed and can pet and rub on everyone of them. (Don't laugh, my husband gives me grief all the time. I can't help it.) I have decided I will sell by private treaty only.

We use the free classifieds on this web site and also http://www.craigslist.com.

I am working on a small web page with links in 2008. The sale barn for me will be the very last resort or I am desperate for money.

 

[dun]

They were hot shotting and whacking those poor cows at every turn.

Aren;t there any other salbarns around? It used to be the same way at the local barn so we hauled them an extra hour. When the new owner took over the local barn, after the first sale day he fired the whole bunch that were working the animals and hired new folks. Now they use rattlepaddles and things are a whole lot calmer.

 

[BTRANCH]

They were hot shotting and whacking those poor cows at every turn.

Aren;t there any other salbarns around? It used to be the same way at the local barn so we hauled them an extra hour. When the new owner took over the local barn, after the first sale day he fired the whole bunch that were working the animals and hired new folks. Now they use rattlepaddles and things are a whole lot calmer.

Thanks for that validation, Dun. I told my husband I did not understand that at all. I know they have lots of animals to move through there in a short period of time, but that seems to go against everything I have ever been told, read or seen. Several of the cows fell going through the door to the scales. I could just see an animal breaking a hip.

Yes, there is another sale barn that is only about 30 minutes farther and then another that is 45 minutes. We will be visiting both.

 

[Stocker Steve]

SS ~ Is this a viable option for small commercial herd. Like someone wanting to sell less than 10? More like 5?

You can ask around or put an ad in the paper to find a ditch grazer who wants a couple calves in the spring - - but putting together these small groups of calves, and putting together cull cows & baloney bulls, is what the auction barn does.

I have told people what I am paying per pound but they usually want to spend a day hauling them in to the auction barn in a borrowed bumper hitch to take a chance on who is there and when they go through the ring. Kind of a tax subsidized trip to the casino...

If you get into the Bud William's sell-buy marketing approach they talk about selling barns (higher average price/cwt.) and buying barns (lower average price/cwt). I kept good records last fall when we bought out of 4 barns in the same area at the same time - - and the average price/cwt by barn ranged by $7 for heifers and $15 for steers.

I think the most profit per head for a small herd comes from by passing all the middlemen (not just the auction barn) and selling freezer beef.

 

[htrc]

I have had great succcess Selling calves from the local newspaper.I sold mostly lightweights(300 lbs and under),but had several people interested in bigger calves. Most of the time I sold 1-2 hd. per buyer. Sold over 200 hd in less than 7 months that way.

 

[CKC1586]

We have had success advertising in our "local" farm paper. "Farmers Advance" actually covers a couple of states. Check to see if you have something similar in your areal. My brother now has two guys (that found him in that paper) that will take all his calves each year. He no longer advertises.

 

[Running Arrow Bill]

There are lots worse bargains than salebarns
including someone who offers you more money-- but then never pays you.
Salebarns are sure money.

Easy Solution to That problem!

Get valid payment BEFORE you unload the animal!

To reserve an animal we always require minimum of 25% down in advance. Then, balance before or at time of delivery. If a bad check ever happens on the 25% down, we would require either (USA Cash) or a Cashier's Check before we delivered and unloaded. Fortunately we've never had a bad check!

 

[skyline]

Thanks for all of the great ideas. As you can tell by my questions, I'm trying to figure this stuff out. Lots to learn. A couple of follow-ups...

Have you considered the Ranch to Rail program? It's a retained ownership program run by Texas A&M.

Frankie - can you point me toward some information on the Ranch to Rail program? I've heard of it, but not sure how it works. If you produce 10 to 15 steers per year, is that a feasible option?

Also for the folks that have mentioned selling freezer beef, could someone discuss more about how they are successfully marketing and selling freezer beef? I'm assuming you must pass ownership of the calf to the purchaser before it goes to the processor to avoid USDA issues? If so, how would you sell half of a calf or less? I'm assuming that it's harder to sell a whole calf for freezer beef than half a calf or less. Also, how do you establish price for that option? What is the going rate in your area currently? What weight/age do you take the calf to before you sell under this scenario and how do you finish out the calf?

My scenario is that I've spent a lot of money on a good registered beefmaster bull and I'm running very good commercial beefmaster momma cows. I'm thinking my heifers have much more value as private treaty replacements (than 7 month old calves sold at the sale barn), but I need to do some more fencing to be able to keep them the extra 6 months or so. After dumping them at the sale barn this weekend, I'm much more motivated to get this done.

I'm studying all of your responses for selling my steers and appreciate your input.

 

[dun]

For selling at the salebarn if there are any of ther value added type of sales, i.e. source/age/process verified, weaned and vaccinated, etc. even smaller lots and usaully even singles will bring more then then the run of the mill weekly sales. The catch is they have to be quality calves, if they;ve been sick or for some reaosn just don;t look as good as the others they may drag down the price paid for the others in the group. Also selling at a different time of year will make a difference.