Calf prices

[Big Swede]

I was very happy with the price of feeder cattle last year. I am very happy with the price of feeder cattle now too. The weather in the corn belt in the next 6 months will dictate if corn goes to $8 or $5 or even lower. I believe the breakeven price for most farmers is around the $5 mark the way the price of inputs have gone up recently. I don't remember a time when the price of corn doubled in price and the price of feeder cattle followed them higher like it has in the last couple of years. We are truly living in very volatile times. That wasn't much of a prediction was it? :? :wink:

Don't mean to brag but that was actually a damn good prediction. I sold corn for $7.66 / bushel six months after that post due to the drought of 2012 and the price of feeders kept climbing all through that time. I expect corn to be in that $4 to $5 range this fall which can only help the price of feeders. It's a great time to be in the cattle business.

 

[4Diamond]

A family friend in Oklahoma pulled calves off cows and sold em yesterday. Steers weighed 305 and brought $3.00 I hope the buyer can turn a profit on those.

 

[bearvalley]

This morning on TEAM 98 northeastern BC steers @ 625# brought 228.50
100 Saskatchewan steers weighing 600# sold for 242.75.
Times have changed. Hope it lasts.

 

[S.S.A.P.]

3 weeks ago we were comfortable with the prices we received for close to 100 head of open replacements .... now you guys and your posts are making me depressed :???: :shock: Just kidding ~ kinda! This is great news for the industry but needs to hang around to make up for the past, what, 20 years!

 

[Big Muddy rancher]

I bought my "Insurance" a couple weeks ago on my yearlings. Today they could be insured/hedged 6 cents high and the rate I insured at is almost 50% cheaper. I guess it's crying over spilled milk while getting more cream.

 

[Silver]

I'm kinda nervous as I haven't bought my insurance yet. I've told myself that I will next week, hopefully the rates are still favorable.

 

[GM88]

I'm the same as you on the yrlgs bmr Going in next week for the calves!! Did the yrlgs last week.

 

[4Diamond]

What insurance are you guys buying?

 

[Big Muddy rancher]

What insurance are you guys buying?

The Western Livestock Price Insurance Plan.
http://www.wlpip.ca/

It is basically "Hedging for Dummies", Ironic EH?

It is a program funded by our premiums to hedge cattle on the market. Instead of everybody needing to be an expert a program has been developed that we can enroll in and hedge a bottom to our market. It doesn't depend on what your cattle sell for or even if you sell your cattle you just hedge as many 100lbs of cattle that your will have to sell at a set term.
We have been told if we have a disaster to expect NO government payments that we need to have our cattle insured. Also it is only funded by our premiums not government monies to prevent it from being tariffed at the border.

 

[greybeard]

The difference between a rising market and a falling market is often what can be loosely described as wider "basis" or the difference between cash and futures.
The day they announce BSE in Canada the basis was about about 95% discount.
Does this program provide any basis protection?

 

[Big Muddy rancher]

The difference between a rising market and a falling market is often what can be loosely described as wider "basis" or the difference between cash and futures.
The day they announce BSE in Canada the basis was about about 95% discount.
Does this program provide any basis protection?

On Fed cattle you can insure the Basis.

 

[HAY MAKER]

What insurance are you guys buying?

The Western Livestock Price Insurance Plan.
http://www.wlpip.ca/

It is basically "Hedging for Dummies", Ironic EH?

It is a program funded by our premiums to hedge cattle on the market. Instead of everybody needing to be an expert a program has been developed that we can enroll in and hedge a bottom to our market. It doesn't depend on what your cattle sell for or even if you sell your cattle you just hedge as many 100lbs of cattle that your will have to sell at a set term.
We have been told if we have a disaster to expect NO government payments that we need to have our cattle insured. Also it is only funded by our premiums not government monies to prevent it from being tariffed at the border.

malarkey, I don't like it.
Good uck

 

[Big Muddy rancher]

What insurance are you guys buying?

The Western Livestock Price Insurance Plan.
http://www.wlpip.ca/

It is basically "Hedging for Dummies", Ironic EH?

It is a program funded by our premiums to hedge cattle on the market. Instead of everybody needing to be an expert a program has been developed that we can enroll in and hedge a bottom to our market. It doesn't depend on what your cattle sell for or even if you sell your cattle you just hedge as many 100lbs of cattle that your will have to sell at a set term.
We have been told if we have a disaster to expect NO government payments that we need to have our cattle insured. Also it is only funded by our premiums not government monies to prevent it from being tariffed at the border.

malarkey, I don't like it.
Good uck

You never had your markets decimated by a border closure.Most of us vividly remember BSE and some of the oldtimers like my Dad remember Foot and Mouth. I've never participated in government programs but not many of us can stand another hit to our equity like 2003. With cattle prices this high most of us can't afford to take a chance of something beyond our control putting us in a wreck.
How many big feedlots don't hedge their cattle and grain purchases?

This is a way for Average Joe to hedge without the trouble of watching markets ect. Most of us can't affords a dedicated expert for a small herd.

Besides most of us don't collect a pension like you do Haymaker.

 

[4Diamond]

Haymaker are you eligible for payment through the new farm bill for drought years? Offered through the FSA? If so are you going to take them?

 

[Aaron]

Don't expect the insurance programs to be able to fully cover you in the case of a market collapse like in BSE. There isn't enough money in the pot to cover it all. We quit the insurance program in Ontario because the ones responsible admitted that if the market ever took a turn downwards, the program could not fully cover all of the cow/calf, backgrounders and feedlots. The entire pot would be gone before even 1/2 the guys were paid out.

As it is, right now, the last two years, they paid out payments in two installments, because if they paid out the cow/calf guys in full, there wouldn't be enough to pay the feedlot guys anything - that is a direct quote from the Ontario cattlemen's association. And the program in Ontario IS government backed to the tune of 100 million - which doesn't buy many cattle nowadays - maybe 70,000 yearlings?

 

[HAY MAKER]

Haymaker are you eligible for payment through the new farm bill for drought years? Offered through the FSA? If so are you going to take them?

No, I don't like guvment progrms, have no use for them come with too many strangs attached.
good luck

 

[Big Muddy rancher]

Haymaker are you eligible for payment through the new farm bill for drought years? Offered through the FSA? If so are you going to take them?

No, I don't like guvment progrms, have no use for them come with too many strangs attached.
good luck

What about Social Security?

 

[HAY MAKER]

Haymaker are you eligible for payment through the new farm bill for drought years? Offered through the FSA? If so are you going to take them?

No, I don't like guvment progrms, have no use for them come with too many strangs attached.
good luck

What about Social Security?

I don't like social security, waste of time, sitting on the front porch waiting for some guvment check, I never had a social security card till the damn law made me get one.
Just another guvment shell game.
good luckl

 

[Big Muddy rancher]

Don't expect the insurance programs to be able to fully cover you in the case of a market collapse like in BSE. There isn't enough money in the pot to cover it all. We quit the insurance program in Ontario because the ones responsible admitted that if the market ever took a turn downwards, the program could not fully cover all of the cow/calf, backgrounders and feedlots. The entire pot would be gone before even 1/2 the guys were paid out.

As it is, right now, the last two years, they paid out payments in two installments, because if they paid out the cow/calf guys in full, there wouldn't be enough to pay the feedlot guys anything - that is a direct quote from the Ontario cattlemen's association. And the program in Ontario IS government backed to the tune of 100 million - which doesn't buy many cattle nowadays - maybe 70,000 yearlings?

The way I understand this program it's hedged on the Chicago Board of Trade, I don't understand hedging that's why they have "experts" do it.

:?

 

[Big Muddy rancher]

No, I don't like guvment progrms, have no use for them come with too many strangs attached.
good luck

What about Social Security?

I don't like social security, waste of time, sitting on the front porch waiting for some guvment check, I never had a social security card till the damn law made me get one.
Just another guvment shell game.
good luckl

Do you carry insurance on any of your equipment or buildings?
Any life insurance?

This more more of a insurance that you have but hope you don't need.

Would you spend $2,000 to protect $200,000 is assets?