November 2011, Cull Cow Prices

November 25, 2011

We had a vet pregnancy check our cows.  We do this every year so we can sell the cows that aren’t bred, (open).  Winter hay costs are the most expensive part of keeping cattle, so it makes sense to sell before winter.

We sorted out five old cows to sell at the local sale barn.  In addition to selling open cows, we also sell old cows when it looks like they’ll have a difficult winter.  We want them to live a quality life, free from undue hardship.

These cows were going to be eleven next spring.  It was bittersweet selling them, because they were some of the first offspring after we started using Red Angus bulls in the year 2000.  They have been fine cows, raising a calf every year for the past nine years.  Before I become too pensive, here is their market information:

Weight Price per pound Total dollars
1385 .67 928
1365 .62 846
1355 .63 854
1325 .62 822
1215 .665 808

These are historically high prices for cull cows.  I can remember years when we received $400 for a cull cow.

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Commodities, Food, Inflation

November 20, 2011

The office of Lynch Livestock, Iowa.  We sold cull sows last week.  Leroy always treats us well, but I was shocked with our price.  He paid $.61 per pound for the heaviest sows weighing over 600 pounds.  It was about $370 per sow.  I can remember when I was pleased with $200 per sow.

Hog, cattle, corn, and other commodity prices are at or near historic highs.  I’ve been trying to understand why this is happening and if it’s going to continue.  Our direct-market meat used to be priced at a premium, paying us for the extra costs involved with hoop-house pork and grass-finished beef.  But the commodity markets have narrowed that premium, and I’m rethinking it.  Maybe grass-finished beef should be cheaper, since the cattle aren’t being fed high-priced corn?

A buddy turned me on to Chris Martenson.  Chris says there is unprecedented levels of money and debt.  Inflation is just more money chasing after the same amount of resources.  The USA and world carry so much debt, there are only two ways out; default, or print more money.  If more money continues to enter circulation, inflation will ensue.  Inflation erodes wealth, because a dollar today buys less in the future.

Is this what’s happening in agriculture?  We are certainly handling more money.  But the costs of our inputs: fertilizer, corn, soybean meal, metal, wood, machinery, have all risen.  Should we save for a rainy day or buy now?

Toasted Tofu sent me a link about how Goldman Sachs created the food crisis.  It said that these huge hedge funds have been buying commodities, and only buying, and this has driven up the price of commodities.  An error in the article says that corn prices just kept going up.  Actually, in the last few years, corn went up to $7 per bushel, dropped back under $4, and then went back up over $7.  There is definitely more volatility.  My grandfather remembers when corn was $1 per bushel, only moving a few cents up or down for years and years.

As you can probably tell by this disjointed post, I don’t really understand what’s happening, or what’s going to happen.  I guess I’ll continue to use this blog to post what is actually happening to me, and the prices I incur and receive.  History always becomes a clear, concise, obvious story, but the future is always uncertain, with only fools and experts making obvious predictions.

5 Comments | Curious business, Curious hogs, Curious meat | Permalink
Posted by Curiousfarmer

Square-Foot Saturday 26, November 19, 2011

November 19, 2011

I put gates at the end of the lane and an electric fence around the house and barnyard, and turned the cows into the fields for the fall grazing.  The cows ate the new hay seeding, (Square-Foot Saturday), as low as they could, pictured below.

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Looking Out For Me

November 9, 2011

The hind end of our old Massey 750 combine, kicking out cobs.

You ever notice people driving down the road with a dent in their car, and then the driver does the maneuver, (tailgating, veering into the other lane, etc.), which probably caused the previous dent?

The dents on this combine tell a similar story, except we have an excuse, it’s impossible to see directly behind.  If you ever find yourself behind a combine, look out.

—

I have several people looking out for me, and it’s nice.  When they find an article they think may be of interest to me, they tweet or email.  Thank you.  I appreciate it.

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Grass-Finished Steers vs. Corn-Finished Steers

November 4, 2011

Grass-finished steer, ready for butcher.  The four steers we butchered this week averaged 1160 pounds live weight, and 615 pounds carcass weight.  This means they gained an average of roughly a pound and three quarters per day since weaning, October 2010.

I’m very happy with this performance.  Our customers are as well.  We’ve been butchering these yearling steers every few weeks since July, and we haven’t had a complaint, with much repeat business.

In July, the steers have been gaining rapidly as they transitioned from winter/late spring hay to the lush May/June pasture.  The biggest weigh around a thousand pounds.  As the pasture slumps in the heat of summer, the steers are rotated into orchardgrass/alfalfa hay fields to keep their consumption and daily gain up.

Below you can see the level of finish, or fat, in the brisket of this steer.  By industry standards this steer is not fat, nor ready to butcher.  Most would recommend a few months of corn feeding.  But the marbling in the meat is near the select grade.  And the meat is tender.  And like I said before, we have tons of repeat business.

Below is a steer we sold to a farmer who corn-fattens.  This photo was taken in September.  The steer weighs about 300 pounds more than the steer pictured above.  Look at the amount of fat in this steer’s brisket.  This is the amount of finish the industry demands.  The farmer sold this steer shortly after the photo was taken, and topped his local market.  Each of us produced the animal, and meat, our market demanded.

8 Comments | Curious cattle, Curious direct-market, Curious marketing | Permalink
Posted by Curiousfarmer