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Sale Barn Commission Rates

WyomingRancher

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I've been trying to evaluate options for selling a part-load of heifer calves. I called Centennial Livestock, Fort Collins, CO to ask about commission, and they charge 2.5% for the first $10,000, then 2% thereafter, not including yard, feed, and brand inspection charges. Throw trucking on top of that, and it seems quite costly to me when you add it all up.

What are other sale barns charging? I realize they have a ton of overhead, and their costs aren't going down either.

I think taking a slight ding selling private treaty on a part load is looking pretty good about now :? .
 

George

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We have only small salebarns around here - - - they sell a lot of junk out front before the livestock and charge 25% on anything under $25.00 and it goes down to 7% over $1,000.00

When you consider the over head I do not feel it is to bad
 

Shortgrass

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I would check with Madden Bros in Torrington. I have no idea, but they have a good sale with lots of quality calves. I am going to pm you.
 

efb

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I just sold some heifers last friday at a local sale barn.
Commission - $16.
Ins. 1.30
Beef promotion 1.00
brand insp. .60
Total per hd. 18.90

The avg. wt. was 457
avg. price was $1.15.

I think the market was down about 10 cents. I was a little disappointed, but out of grass and had to go with them.
 

littlejoe

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efb said:
I just sold some heifers last friday at a local sale barn.
Commission - $16.
Ins. 1.30
Beef promotion 1.00
brand insp. .60
Total per hd. 18.90

The avg. wt. was 457
avg. price was $1.15.

I think the market was down about 10 cents. I was a little disappointed, but out of grass and had to go with them.

Your commission looks like 3%--I think most I'm familiar with are close to that. I've been told that farther east where there's more competition, rates are cheaper.
 
A

Anonymous

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WyomingRancher said:
I've been trying to evaluate options for selling a part-load of heifer calves. I called Centennial Livestock, Fort Collins, CO to ask about commission, and they charge 2.5% for the first $10,000, then 2% thereafter, not including yard, feed, and brand inspection charges. Throw trucking on top of that, and it seems quite costly to me when you add it all up.

What are other sale barns charging? I realize they have a ton of overhead, and their costs aren't going down either.

I think taking a slight ding selling private treaty on a part load is looking pretty good about now :? .

There in lies your biggest problem- as most buyers don't want to buy part loads... Unless you can tie them in with some neighbors cattle to make a full pot- or pay part/all of the trucking to the feedlot destination many buyers will shy away...And thats when the Salesyards come in handy...I don't think 2% is out of line for a Salesyard fee..
 

WyomingRancher

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Oldtimer said:
WyomingRancher said:
I've been trying to evaluate options for selling a part-load of heifer calves. I called Centennial Livestock, Fort Collins, CO to ask about commission, and they charge 2.5% for the first $10,000, then 2% thereafter, not including yard, feed, and brand inspection charges. Throw trucking on top of that, and it seems quite costly to me when you add it all up.

What are other sale barns charging? I realize they have a ton of overhead, and their costs aren't going down either.

I think taking a slight ding selling private treaty on a part load is looking pretty good about now :? .

There in lies your biggest problem- as most buyers don't want to buy part loads... Unless you can tie them in with some neighbors cattle to make a full pot- or pay part/all of the trucking to the feedlot destination many buyers will shy away...And thats when the Salesyards come in handy...I don't think 2% is out of line for a Salesyard fee..

Yep, that was the problem, but we came to an equitable agreement and got the steers and a part load of heifers SOLD today to the same buyer who has bought them nine years now :tiphat: :tiphat: :tiphat: :tiphat: :tiphat:. Hopefully I can keep them healthy and growing :D .
 

BlackCattleRancher

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George said:
We have only small salebarns around here - - - they sell a lot of junk out front before the livestock and charge 25% on anything under $25.00 and it goes down to 7% over $1,000.00

When you consider the over head I do not feel it is to bad

George,

7% sounds like highway robbery to me. If you sold an $800 feeder calf your commission would be $56? That sounds very high. Seems most barns range in the $12-$18 range of calves and maybe up to $20 on cows.
 

George

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On $800.00 the commission is 10% ( $80.00 ) it goes to 7% at $1,000.00


But they are full to capacity every Saturday morning!
 

Trinity man

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efb said:
I just sold some heifers last friday at a local sale barn.
Commission - $16.
Ins. 1.30
Beef promotion 1.00
brand insp. .60
Total per hd. 18.90

The avg. wt. was 457
avg. price was $1.15.

I think the market was down about 10 cents. I was a little disappointed, but out of grass and had to go with them.

It was down about the same at East Texas Livestock in Crockett yesterday to. The bad thing only about 3% of the calves was over 600 lbs. Most of them wt 200-400 lb people are really dumping them out early with the drought in the area. At the rate its going the fall runs will be very light. They also had 601 tested cows with only 141 going back home the rest going to slaughter. It may not be hardly any cattle left at the rate they have to going, they have been having 600+ hd of cows for the past several weeks.
 

JG123

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4% at the sale barn. 2% on load lots off video. 1% on load lots on country deals.
 

Hay Feeder

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Commission runs right at $20 to $30 per head at a local barn just 40 miles from me. That seems high however the cattle are sold pretty quick when they arrive. A regional barn charges 30 to 40 per cent less but they may shrink that out in the six or more hours it takes them to sell after the sale barn owner sells his cattle first.

Many of the cattle coming out of the south fescue country get a bad rep mainly becuse they WERE Flordia sale barn cattle just a few days before they have had their address changed and co mingeled with local cattle before having their address changed again. So their is alot of comission in the cattles lifetime unless the sale barn owner has been doing the buying and selling himself.
 

wdcook

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Larger producers in this area can usually negotiate selling for 2% in N MO.

Normal rate is 3% on first 10,000, then 2% on the over.
 

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