Stocker start up

[Travlr]

Because that sure as heck won't pencil.

Explain to me how selling weaned calves (500/600#) and paying a commission to have them sold... and then buying calves that weigh the same or similar weights to winter them for weight gains, also paying a commission to buy... is better on the pencil than just keeping the original calves and selling them at a higher weight and avoiding commissions, transportation costs, and the chances of disease or injury?

 

[MurraysMutts]

Explain to me how selling weaned calves (500/600#) and paying a commission to have them sold... and then buying calves that weigh the same or similar weights to winter them for weight gains, also paying a commission to buy... is better on the pencil than just keeping the original calves and selling them at a higher weight and avoiding commissions, transportation costs, and the chances of disease or injury?

I thought he was selling 6 weights
And buying 4 weights to feed

 

[50/50Farms]

I thought he was selling 6 weights
And buying 4 weights to feed

He is

@Travlr
Because first off, you're playing a futures game. At a stocker sale that's only two-ish months away you don't have to be a Wall Street analyst to have a pretty good
prediction of what they'll bring based off of trends. Secondly, buying animals isn't expensive, keeping them is. Their individual needs go up in proportion to their size, and there's absolutely nothing that says he'll have a good enough market for 10 month old animals to justify their added incurred expenses. On a level playing field, it might be so that he'd break even or maybe a little better. On a downhill, he might lose money. They sell at the ages and weights they do because that's the market. Last, but not least, the longer you hold a perishable investment you won't get a generational return from, the more likely it is to... well, perish.

 

[Travlr]

I thought he was selling 6 weights
And buying 4 weights to feed

Was that said? I must have missed it.

 

[MurraysMutts]

Personally.
If the price is right, which from what I've seen. 350lb calves should do ok too!
Especially if they are weaned already. They will have already lost the baby fat.

 

[50/50Farms]

Was that said? I must have missed it.

Yessir. That's roundabout what most stockers do.

 

[Travlr]

He is

@Travlr
Because first off, you're playing a futures game. At a stocker sale that's only two-ish months away you don't have to be a Wall Street analyst to have a pretty good
prediction of what they'll bring based off of trends. Secondly, buying animals isn't expensive, keeping them is. Their individual needs go up in proportion to their size, and there's absolutely nothing that says he'll have a good enough market for 10 month old animals to justify their added incurred expenses. On a level playing field, it might be so that he'd break even or maybe a little better. On a downhill, he might lose money. They sell at the ages and weights they do because that's the market. Last, but not least, the longer you hold a perishable investment you won't get a generational return from, the more likely it is to... well, perish.

Yeah... I've played the game for a while and never seen the value in backgrounding myself. But it sounded like a zero sum game the way he was doing it. Just my take on what was written.

And I beg to differ on, "buying animals isn't expensive, keeping them is...". Many a poor buy has returned a profit because someone waited out the market and the gains in weight. And many people have gone to the poorhouse trading cattle.

 

[kenny thomas]

Check on livestock risk protection.

 

[50/50Farms]

Yeah... I've played the game for a while and never seen the value in backgrounding myself. But it sounded like a zero sum game the way he was doing it. Just my take on what was written.

And I beg to differ on, "buying animals isn't expensive, keeping them is...". Many a poor buy has returned a profit because someone waited out the market and the gains in weight. And many people have gone to the poorhouse trading cattle.

It goes both ways, many a man has found is way into the poorhouse trying to winter more cattle than they can feasibly do. I'm not out to change your mind, though, just explaining the logic. It works for more people than it doesn't.

 

[Travlr]

It goes both ways, many a man has found is way into the poorhouse trying to winter more cattle than they can feasibly do. I'm not out to change your mind, though, just explaining the logic. It works for more people than it doesn't.

Personally, I see wisdom in your words and just think we are making the same point from differing perspectives. It all comes down to flexibility, the ability to adapt, and good decision making both immediate and by being able to anticipate.

 

[libertygarden]

So I've considered buying 5 weaned steers (450#) in March right before the grass comes to run with the herd of momma cows until September. I think I can put 200# on them in 6 months without spending much on feed aside from the weekend bag of cake I give them. Is this a silly expectation on my part.

 

[shaz]

So I've considered buying 5 weaned steers (450#) in March right before the grass comes to run with the herd of momma cows until September. I think I can put 200# on them in 6 months without spending much on feed aside from the weekend bag of cake I give them. Is this a silly expectation on my part.

Not sure about your area but we're seeing a really small price spread between 450-700 historically so I would say go for it. Obviously you'll want to reevaluate the situation in March.

 

[midTN_Brangusman]

1) Marketing - - Buy low sell higher. A classic move is buying small lot of bulls in the SE and selling upgraded pots of steers to a Midwest feedlot.
2) Timing - - Surf the rising tide. A classic move is to buy pee wees in the winter.
3) Production VOG - - Buy cheap TDN (not grain) and put pounds on. A classic move is to run 5 wts. on MIG grass for 100 to 120 days, while supplementing daily with a DDG mix.

Stocker Steve,

I normally sell in a video sale but would love to sell direct to the feed lots. Would cut out commission. How would one go about doing so?

Thanks

 

[bird dog]

Liberty- Not silly. If the calves are decent and already weaned, you should got about 50 lbs per month for gains on decent pasture. Or at least that is about what mine do. Keep some mineral out. If you don't know the weaning status, you might want t buy a month earlier to get them settled, healthy and eating good.

 

[midTN_Brangusman]

This is what has worked for me, may not work for others but I will share. I typically start buying heavy 5 to light 6 weight bulls in mid February. They will be a little higher in February, but I figure I am just as well off or maybe even ahead due to feed and hay cost and minimum health issues. Feed them a little grain every other day and free choice good quality hay and they will be ready to turn out mid March. When we start buying, i try not to buy over 30 to 40 a week. Too many and you could get a train wreck on your hands. I seldom have health issues due to the calves already being through normally the toughest of winter in my area. I sell with Superior Livestock in a video sale in August for end of September delivery. I am currently running 5 loads a year and they will average 800 to 850 lbs on grass (the key is cheap gain!). Grass is getting better each year due to pasture rotation and adding more cross fences for longer rest periods between rotations. I may try 6 loads this year. This has worked well for me. It gives the ranch and me a break for a few months, and I will have some stockpile in March for early turnout. I also us a LRP (Livestock Risk Protection) for each load to protect me from downfalls that may occur in the market. Good luck!

 

[b.duke]

Stocker Steve,

I normally sell in a video sale but would love to sell direct to the feed lots. Would cut out commission. How would one go about doing so?

Thanks

you need a pot load of calves. and then call up a feedlot and talk to them about either selling to them or feeding them out for you.

 

[Jeanne - Simme Valley]

Or - you can find a smaller feedlot near your area and call them direct. I have sold direct to a small feeder for at least 30 years. 1st feedlot I used to sell to, I called in spring to let him know I would have twice as many steers as normal because I had mostly bulls born that year. He always purchased steers from different sources, so I wanted him to know I would have more. In the fall, when I called to make arrangements for timing of delivery - wife answered and buyer was dieing of cancer - no steers would be purchased. I sent out feelers for other buyers. Got the name of one, called - he purchased sight unseen at top dollar for NY and has ever since (he had heard of my farm). When I deliver each year, he has a big grin and says he sure makes money on my steers - they really grow & finish.

 

[Travlr]

Or - you can find a smaller feedlot near your area and call them direct. I have sold direct to a small feeder for at least 30 years. 1st feedlot I used to sell to, I called in spring to let him know I would have twice as many steers as normal because I had mostly bulls born that year. He always purchased steers from different sources, so I wanted him to know I would have more. In the fall, when I called to make arrangements for timing of delivery - wife answered and buyer was dieing of cancer - no steers would be purchased. I sent out feelers for other buyers. Got the name of one, called - he purchased sight unseen at top dollar for NY and has ever since (he had heard of my farm). When I deliver each year, he has a big grin and says he sure makes money on my steers - they really grow & finish.

That's the kind of relationship to have. Both benefit and grins all around.

 

[Jeanne - Simme Valley]

I would be a little (lot) leary of buying weaned calves to turn out on grass with cows nursing calves. New calves might get pushed aside by bigger steers for the milk wagon.