It's tomorrow, February 23, 10:15 (MST) and will be carried by Superior Livestock on RFD TV. Big sale, over 600 bulls. And the dinner the night before features CAB steaks. These guys must be doing well. ;-)
Profit Maker Bull Sale
- Thread starter Frankie
- Start date
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mwj
Well-known member
There seems to be several $650 -900 bulls selling. :shock: Actually it seems that most of the bulls are going for lease instead of being sold. Is the bull mkt. that soft or is it an ''off'' day?
VanC
Well-known member
mwj":3euc5f9a said:
Maybe the steaks were lousy.
mwj
Well-known member
VanC":1o6wm1ee said:mwj":1o6wm1ee said:
Maybe the steaks were lousy.
As little as they are bringing I would buy one to butcher if they were local :cboy: If they are 1300lbs at $650 they are cheap enough to eat. They look like they have had plenty of feed!!!!!!
Van I just checked and those bulls were worth $63.00 at Shellbyville on Tuesday over the scales!!!!!!! Somebody could kill several of these bulls and make some money.
Frankie
Well-known member
mwj":1bbt5as4 said:
The "Sell" price is three times th 90 day "Lease" price. So a $900 lease price is equal to a $2700 sell price. I've never understood how they make money, leasing those bulls and taking them back. Somebody has to feed them while they're not leased out. But they've been doing this for several years, so I guess it's profitable for them.
mwj
Well-known member
So are you saying that if the bid on the bull is $900 it would cost $2700 to buy the bull? If they are leasing most of them do they later go back thru onne of there sales? Just can not imagine thatmuch of a mkt. for used bulls.
Frankie
Well-known member
mwj":177ojnq2 said:
Right. If you watched the sale, they had two prices listed as the auctioneer worked. One was the "L" price, say $1,000. The other was the "S" price, in this case, $3,000. If you don't return the bull at the end of 90 days, you owe the folks $2,000. They recommend insurance on the leased bulls. That's why the idea of buying them cheap and slaughtering them won't work.
I agree. I just don't see how they're making any money. The bulls have to be somewhere when they're not leased out and maintained in working condition. But this group has been doing this for quite a few years so I guess they're making money.
On the other hand, it looks like a good deal for the producer. He can get a well bred bull for a breeding season at a reasonable price, not have to feed him, fix fences behind him, keep him seperated from the cows, for the rest of the year. Plus if you wanted to keep heifers, inbreeding would be less a problem.
mwj
Well-known member
I thought that there was a very wide gap between the top and bottom bulls. If a lot of the bulls were posted on the ''breeds'' board there would be a lot of flack to the poster :shock: Even if they are cheap to use I think a lot of the bulls in that sale should have been steers! They must have a secondary mkt. on those lease bulls or they would be loosing money by the time they handled these bulls twice in 90 days. Will they work a deal to the buyers to do a long term lease at a reduced rate after the first season?
lakading
Well-known member
I was under the assumption that you were entering a 3 year lease agreement.
Frankie
Well-known member
Profit Maker Bulls' websites:
http://www.profitmakerbulls.com/bull-le ... ogram.html
http://www.profitmakerbulls.com/
One of them probably has the details.
http://www.profitmakerbulls.com/bull-le ... ogram.html
http://www.profitmakerbulls.com/
One of them probably has the details.
mwj
Well-known member
They do lease bulls that have seen service. It says they are revacinated and trich. tested. I read both links and could not tell what the length of the lease was.
bulldealer
Well-known member
From what one of the producers involved told me...
For example, start with a yearling bull at the Nebraska Sale in February. He is leased for $1000 for 90 days. The buyer takes delivery in April 15, and keeps bull until July 15. They are then brought back to a feed lot in Texas and maintained until the September sale in TX, where they are sold as 18 month old bulls. Alot of the 18 month old bulls will be bought, recent averages have been around $3750. If they are leased the same rules apply, 90 day lease, but generally they pay more for the older bulls. They then have a large ranch in the Southeast that is contracted to by the 2 yr old bulls for $2000.
$1000 $1000
$1500 $3750
$2000 -------
------- $4750
$4500
What does it cost to keep a bull until he is 2 years old?? My guess is they must be making money or they wouldn't be doing the same program that they have done for several years, now.
For example, start with a yearling bull at the Nebraska Sale in February. He is leased for $1000 for 90 days. The buyer takes delivery in April 15, and keeps bull until July 15. They are then brought back to a feed lot in Texas and maintained until the September sale in TX, where they are sold as 18 month old bulls. Alot of the 18 month old bulls will be bought, recent averages have been around $3750. If they are leased the same rules apply, 90 day lease, but generally they pay more for the older bulls. They then have a large ranch in the Southeast that is contracted to by the 2 yr old bulls for $2000.
$1000 $1000
$1500 $3750
$2000 -------
------- $4750
$4500
What does it cost to keep a bull until he is 2 years old?? My guess is they must be making money or they wouldn't be doing the same program that they have done for several years, now.
lakading
Well-known member
Well, they're getting paid $1,000 2 times (yearling and 18 mo.) and then $2,000 when the bull is 2 years old. That's a profitable deal.
lakading
Well-known member
I seem to remember something about it being required that you carry insurance on a leased bull.
