sale commission rates

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Lazy M

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Sold a group of calves at the local yard a couple of weeks back and noticed that the commission was just under $48/hd.. seems like a lot of $ just to run them through the ring. I was pleased with their prices, but the commission amount seems awful high. I've heard but haven't verified that another independent yard about 60 miles away charges a flat $18/head.
How much extra shrink would you expect if I haul to the other yard (about 50 mi further)?
 
As long as the sale barn works to get a good price, I don't mind the commission too much. Our barn never puts calves from different sellers together, which I like... That said, $48 is pretty steep!

An extra hour of driving time shouldn't hurt much, and I'd do it if the prices are the same at the next place. It takes me 5 hours to get to the nearest barn.. I don't have the luxury of being fussy
 
The charges have been creeping up at the local yard for the last several years. I do really like the staff; they work hard to get good prices. I may test out the other yard with my fall calves this spring
 
The sale I use charges $16 for calves less than 500 lbs. $17 for calves over that. They are supposed to charge $5 per head for hay if you want them in a pen with a feeder. They have not charged me a hay charge in years.
Some around here have gone up to $30 per head no matter the weight.
 
I just sold yesterday and did the math. By the time all is said and done I paid out right at 5% of the gross sales of the calves. We get charged for Insurance, Beef Pro, GACCB, and a commission. The Beef Pro and GACCB really chaps my lips. There's no way the government should be able to take my money and give it to a private business. But they can and do, it's a bunch of BS. IMO
 
We pay that same amount every time, too. No, it is not right for the government to have ways to take out for certain things, but they do. Nothing we can do about it.
 
Mrs. Williamsv, I went to the meeting in Macon about the Beef check off and the GACCB. Allen was on the board of directors, I was the only cattlemen that spoke against being forced to pay a private business. And it's not about the money, just the principal. I felt about 1" tall but oh well.
At least we're all friends, so all is good.
 
Most of the barns in my area of East Texas charge 3% of gross for commission plus $2 per head Beef Checkoff, plus so much a head for insurance (insurance rates vary from barn to barn) plus $0.85 per head brand inspection.
 
we sold some calves monday.but i have yet to lok and see what the deducts was.id guess around $60 a calf or maybe more.
 
Here it's 14$ a head on feeders and 3% on all cows weighed or by the head. Total to sell a calf ends up about 16$ a head.
 
Highgrit, I appreciate you speaking up
against us being forced to pay a private business. Allen is big on anything to promote beef. I am sorry that you were the only one to speak out. Like I said earlier, we don't have much of a chance to go against what we do not like or think is right. Do not feel embarrassed for speaking your mind. Not enough of us stand up for what we know is right anymore and we are really paying for it in more ways than one.
I feel pretty discouraged today after seeing everything standing in water again and more coming. I am getting too old to keep pushing on trying to keep things going and the weather will not cooperate a bit.
 
We're flooded here again. You'll get it all done, just a matter of time. Never give up and you can't quit, so you might as well have fun.
Yes Allen is a good guy and a asset to the cattle business.
 
I took a young Corriente cross heifer to Dickson on Monday... (long story on the Corriente by the way). She weighed in at 840 lbs and brought $1110.00.

Commission: $33.30
Check-Off: $1.00
Yardage: $3.00
Insurance: $1.11
Beef Pr: $0.50
Preg Check: $5.00

Total deductions: $43.91 (just under 4%)

Net Check: $1066.09
 
Lazy M":24mf58r9 said:
Sold a group of calves at the local yard a couple of weeks back and noticed that the commission was just under $48/hd.. seems like a lot of $ just to run them through the ring. I was pleased with their prices, but the commission amount seems awful high. I've heard but haven't verified that another independent yard about 60 miles away charges a flat $18/head.
How much extra shrink would you expect if I haul to the other yard (about 50 mi further)?
Gripe Gripe Gripe... ;-) ..bet your gripping cause you just might have to pay income taxes on it too.....yea i had a $454 commission expense on the last 8 head I sold...just a few years ago it would have taken 30 calves to bring what those 8 brought. That 4 1/2% is buying the same today as it did then so I'm feeling quite fortunate about it.
 
Some people will drive 20 miles to save 2cent on a gallon of gas. When they burn more than that going to get it. Figure the cost of delivering to other barn and see how much you save. Its a bargin when you consider all you have to is drop them off. The barn gets the buyers there to buy them. Sure you could sell private but the work it takes to market them cost money too.
 
I buy a lot of heifers off the farm from people. Always just commercial heifers. Ofcourse, I'll only give, what I'm willing to give. People never seem to remember they are saving commission.
 

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