Cargill cowboy?

[cowman]

The owner of the Rocky Mountain House auction mart was telling my uncle Cargill is actively seeking out large amounts of land in his area to run cows on. They come to the rancher and offer to rent his land, buy his cows and pay him a fee to manage the cows! Mostly to the outfits with 200 or more cows. Apparently a lot of guys are taking them up on the offer as they are close to be broke.
Now what is Cargill doing? Are they now trying to capture enough calves that they can control the calf market too? And you can bet your boots if Cargill is doing this IBP won't be far behind?
So cheer up, we might all become Cargill cowboys!
Now I'm not against some old boy benifitting from cheap government lease land but I'm not so keen on it when Cargill is getting the benifit! Most of these cow outfits in west central Alberta operate on government lease. I don't think Cargill should be running cows on leases that are owned by the people of Alberta. What do you think?

[Horse]

Cowman I have been trying to get the word out for yrs now on the lease fiasco it costs each one of us far more that the scandal in ottawa costs now.
their are 330,000 cows on the govmt tit owned by 7271 welfare recipitants that pay app 3.5 mill if they paid the same as comunity pastures it would be 41 mill then they recieve over40 mil in anual resource revenue plus god only knows how much in one time payments such as pipelines sismic and entry fees thats about 80 mil advantage devided by 330,000 cows = 240 $ per cow on welfare.
Then figure who holds the leases and you see all the old and so called historic ranch familys right up to thier noses in tax payers money
They are 10 yr renewable leases so the govmt could rectify the imbalance in a heart beat if they chose and the rates could be adgusted to the present reality . I see N B I claim over 100,000 acres of range land any bets most are crown and paying resource revenue but who do the politicans go to too ask ???? guess those in thick with govmt

[cowman]

I suppose the fair thing to do might be to cancel the leases, pay off the leaseholders a proper sum and turn the leases into community pastures? I don't really mind the Alberta rancher/farmer getting a deal on a grazing lease because it keeps the money at home but I sure do object if they are Cargill cows running on free grass!
Maybe it's time everyone got a kick at the can?

[Bruce14]

Does anyone know if this is actual fact or fiction. If it's true it would seem like a pretty good story for some reporter to follow up on. If not it may be just more coffee row "news".

Just trying to figure this out.

[pandiana]

Yes, Bruce. Let's try to figure this out. If this is true...
So much for my theory that we would never see cowboys, Cargill or otherwise, put as much time and devotion into raising cattle if it wasn't because they loved the cows and the lifestyle.
Working shifts for a salary wouldn't have the same appeal would it.

What about the economics. If large packers are making 'just squeeking by' as they claim, and the cow/calf man is 'not squeeking by' how do they plan to pay shareholders. By raising the price to consumers, maybe?

[Bruce14]

Pandiana, I wouldn't toss that theory away quite yet.

If "a lot of guys are taking them up on the offer" as cowman says, then a lot of people should know about it. If there is truth to this I am sure some reporter would be keen to pick up on it.

[cowman]

Give Clayton Cole, in Rocky Mountain House, a call I'm sure he'll be happy to oblige you.

[magpie]

Hmmmm! Perhaps try pondering this for a moment. Could it be cargill smells competion in the wind, so for protection they start extending their tentacles into the very grassroots of the cattle industry (cow/calf}. Perfect timing, business Savoy as their might not be much punch left in some of our fellow producers. As well some might take this opportunity to leave industry with some dignity. Had a bad radio connection today but I thought I heard Neil Jhanke saying something along the lines of building packing plants. Stay tuned

[Horse]

If you doubt what I say you are not alone people say that cant be true how would the govmt do such a thing.
Go to the offical govmt page and go to public lands and the figures are all there for the number of A U M the acres and number of lease holders I dont know about the actual numbers of oil wells but it was on the site a couple yr ago when bill 31 was on the books .
# of ag dispositions with oil and gas activities receving
first yr payments 3601
first yr with anual comp 2596
total# 28446
average # of activities on agri dispositions 3.85
paying first yr and annual 5.62
distribution paying first tr 3719(50.9)%
1 to 2 oil &gas activities 2211(30.2%)
3to4 oil& gas aci 647(8.8%)
5to9 502(6.9%)
10 or more232 (3,2%)
total 7311
distribution with first yr and annual compensation
no activities 4715 (64.5%)
1-2 1604(21.9%)
3-4 432(5.8%)
5-9 322(4.4%)
10 or more 247(3.4%)
Any way that is a small insight as to the amount of money we are talking about and that report is from 1999 so how many more wells and millions of $ the govmt could tell but you may have to wring it out of them.

[Horse]

If you doubt what I say you are not alone people say that cant be true how would the govmt do such a thing.
Go to the offical govmt page and go to public lands and the figures are all there for the number of A U M the acres and number of lease holders I dont know about the actual numbers of oil wells but it was on the site a couple yr ago when bill 31 was on the books .
# of ag dispositions with oil and gas activities receving
first yr payments 3601
first yr with anual comp 2596
total# 28446
average # of activities on agri dispositions 3.85
paying first yr and annual 5.62
distribution paying first tr 3719(50.9)%
1 to 2 oil &gas activities 2211(30.2%)
3to4 oil& gas aci 647(8.8%)
5to9 502(6.9%)
10 or more232 (3,2%)
total 7311
distribution with first yr and annual compensation
no activities 4715 (64.5%)
1-2 1604(21.9%)
3-4 432(5.8%)
5-9 322(4.4%)
10 or more 247(3.4%)
Any way that is a small insight as to the amount of money we are talking about and that report is from 1999 so how many more wells and millions of $ the govmt could tell but you may have to wring it out of them.

[Horse]

dont know how that happened but sorry

[ebby7]

And who is Clayton Cole?

[cowman]

Claton Cole owns the Rocky Mountain Auction Mart.
Further to this: My local grader operator told me yesterday his father in law, near Rocky, had sold his cows and rented out his land to Cargill. Cargill did not buy his cows. Someone from Saskatchewan bought the cows.