Sale Barn???

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What is the future with the sale barn? would it be better to get a contract with a feedlot or chance it at the sale barn? im young and i want to make my own herd and i want to be able to stay in this business for the rest of my life

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> What is the future with the sale
> barn? would it be better to get a
> contract with a feedlot or chance
> it at the sale barn? im young and
> i want to make my own herd and i
> want to be able to stay in this
> business for the rest of my life or would it be better to raise cattle on grass and see if a packing plant will buy the cattle straight from the pasture



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In my opinion, the "sale barn" has very little to do with "setting the market price." The true market price is set by the buyers ( packers and feedlot owners) The sale barn only provides the service of bringing seller and buyer together. I can blame the sale barn for lower than expected prices, however I should blame myself for not being current on market prices. I think alot of price variation is about supply, demand or replacement needs.

> The sale barn is all about true
> price discovery. They still do
> that better than anyone as they
> set the market price for
> livestock.



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I agree completely! Think of the Sale Barn as being a "Garage Sale" for livestock: Easy to unload, easy to sell, quick turn-around of some cash (usually within a day or two). No muss, no fuss. On the other hand, packers and others as well as general supply and demand set the average "market price" for cattle that day or that week. An animal is worth what the "average" buyer is willing to pay at any point in time. There are always those buyers who will pay top dollar for something they really want; there are also those out there who will low-ball anyone in order to take advantage of someone else's misfortune and/or need for quick cash.
 
> What is the future with the sale
> barn? would it be better to get a
> contract with a feedlot or chance
> it at the sale barn? im young and
> i want to make my own herd and i
> want to be able to stay in this
> business for the rest of my life

my opinion of the sale barn is like this. i enjoy going and have bcome very familiar with what goes on.you need to know your way around, especially if you are going to buy. in my area most everyone sels calves and if you watch them unload and watch what you are doing it is not that bad. i would rather buy off the farm from an individual. they are a fair market for calves. if you are selling. again know your way around go and watch go to several.



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If you can get the price you need or want for your cattle at the sale barn, then go that direction. The money is quick and the hassles are few. However if you have the volume of quality cattle to sent to a reputable feedlot (not all feedlots are reputable just like sale barns), you are better off going that direction. Know how to do both and have relationships established in each direction and you wil be far better off than the person who has not a clue how to get a feedlot pen and then line up his cows for slaughter.

Do the research, send some cows both directions, and then the choice is always yours and you don't have to settle for what someone will pay at the sale barn when prices don't go your way.

Brian.



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