talltimber
Well-known member
I notice that there are some backgrounders or traders on the board that may be buying a number of calves yearly? If so, I'm wondering how many of you have cow/calf people that you buy calves off the farm? And if you do, how are you coming to an agreement? Do you just make an offer? Do you go off of a local (or not so local, depending) auction report?
The other auction thread got me to thinking about it. I have reason to believe there are some calves being sold according to what the weighted average was in the appropriate wt class, using the weight closest to what the calves weighed. Example:
Report: Weighted average report
Feeder Steers Medium and Large 1
Head Wt Range Avg Wt Price Range Avg Price
38 550-585 564 262.00-276.00 270.69
If your calves weighed 555, they would pay the same per pound if they weighed 564 (the flip side is realized as well, 580's selling for the cost of 564's?). Calves would be weighed either by truckload, or individually on the buyers place if possible, and the average taken for heifer and steers, respectively, and the associated weighted average for each would be used.
What's you thoughts on this arrangement? The barn this sale will be based off of is a little jag away, couple hours, not what I consider local, but a bigger sale. I have talked to some of the past sellers and they believe they have gotten a 0.14 cent premium by doing this. I am wondering how the quality of calves get taken into account with this set up. Maybe a guy wouldn't have the top sellers there, but might be higher than average? I haven't seen this setup discussed before, so have at it.
Also, if possible, tell me what kind of process you use personally when selling off the farm.
The other auction thread got me to thinking about it. I have reason to believe there are some calves being sold according to what the weighted average was in the appropriate wt class, using the weight closest to what the calves weighed. Example:
Report: Weighted average report
Feeder Steers Medium and Large 1
Head Wt Range Avg Wt Price Range Avg Price
38 550-585 564 262.00-276.00 270.69
If your calves weighed 555, they would pay the same per pound if they weighed 564 (the flip side is realized as well, 580's selling for the cost of 564's?). Calves would be weighed either by truckload, or individually on the buyers place if possible, and the average taken for heifer and steers, respectively, and the associated weighted average for each would be used.
What's you thoughts on this arrangement? The barn this sale will be based off of is a little jag away, couple hours, not what I consider local, but a bigger sale. I have talked to some of the past sellers and they believe they have gotten a 0.14 cent premium by doing this. I am wondering how the quality of calves get taken into account with this set up. Maybe a guy wouldn't have the top sellers there, but might be higher than average? I haven't seen this setup discussed before, so have at it.
Also, if possible, tell me what kind of process you use personally when selling off the farm.