AFBF on Eminent Domain of Ag Land

[Anonymous]

Ocm: "There is a lot of misinformation in what is being posted here."

Yes there is and you are the one perpetuating most of it ocm.

OCM: "1. Grade and Yield (the forerunner of the grid--the grid today just has more categories) existed LONG ago. Paul Engler did not invent it. It was not invented by feeders."

Until recent years, very few cattle were sold on a value based G&Y pricing system as opposed to the cash market.

Ocm: "2. Formula is different than grid. Formula refers to the formula used to determine the BASE PRICE, not the discounts and premiums on the grid."

That's YOUR definition and INTERPRETATION of formula and grid pricing. That is not the definition of formula and grid pricing according to those who are actually buying those cattle.

Formula pricing and grid pricing are the same thing according to those who purchase the cattle on formulas and grids.

Formula DOES NOT refer to the formula to determine the base price, it refers to the formula used to establish premiums and discounts on carcasses.

There is no "FORMULA" to establish the base price. The non negotiated base prices for many grids is simply the weekly weighted average week prior. How is that considered a "formula"?

This is the same type of deception you use when including formula and grid cattle in captive supply numbers when those cattle are not owned long enough to be considered captive supply.

ocm: "4. The cash market has contained MORE quality cattle than the formula market."

Define "quality"!

What was the choice/select spread at the time that the above occurred?

What was the percentage of Y3s and Y4s in the cash market vs. the value based market?

What was the overweight carcass difference between the cash cattle of that era and the formula/grid cattle?

You don't have a clue do you?

OCM: "Answer. Depends on whether you sell live, in the meat, or on the grid."

Answer the question in reference to live cattle in the cash market.

OCM: Answer. I've seen cattle that you would call "very plain" outgrade and outyield "quality" cattle. Customers expect value for value."

If they didn't grade and yield very well they were obviously not quality cattle from a carcass standpoint.

OCM: "Usually the buyer sets a price and we take it or leave it, or we sell part of the show list instead of all of it, or we talk about "in the meat" or "the grid."

How many buyers do you contact?



~SH~