The calf run

[madcow]

cowman ,I think your only talking about feed costs of about $120 per tonne max if the steer is a good converter,
marketing ,labour, cost of money and other overhead is not considered. I think the word 'profit' is wrongly used,return over feed costs is more accurate .Barley here runs between $115 and $155 /tn depending on time of year.If you really think about it,the word 'profit' doesn't fit in paragraphs containing any reference to agriculture anymore ! sad ........all the news,Teachers on strike,Packing plant workers ,,on strike CAW settles ccontract dispute,,,all want and expect better wages and benefits,better working conditions. Does anyone ever consider the farmer anymore.

[cowman]

Actually madcow very few people do! They really don't care if you are sinking or treading water, they just want cheap food!
Consider this: You raise the raw product and everyone else makes more money on it than you do? Why? Because you are not "connected" and because you will continue to do it no matter what!
In most businesses if they have a years losses they walk away period! They put their resources somewhere else that is more profitable!
Now farmers don't do that for a variety of reasons? A good portion of that reason is taxes. Sell it all and you get to pay the taxman a good portion of that? What would happen if the government had a tax holiday on the sale of farmland? Or even brought the capital gains exemption in line with inflation for that matter?

[madcow]

true cowman,true

[sagewood]

Well after reading all your words of wisdom this morning, makes me want to drown myself in the shower...but I agree any other business person would just pack it in and leave the business to go to something more lucrative. I hear so much about the 'quality of life' issue--oh please. I know people working at Walmart who have better benefits, easier working conditions and certainly a better quality of life. The myth of the loving family riding the range, but being just salt of the earth people seems to prevail in the urbanites mind. At Strathmore on Thurs. the prices for calves were certainly better than in the past couple of years--my good steers (600 - 700#) brought from $129 to $133 range and the heifers brought from $117 to $128, so I was pleased. These were good white and buckskin calves with lots of hair and good structure, so the buyers went after them. I had also birth date verified them with the CCIA folks. I don't know if that made any difference, as I saw some of the better calves later in the sale bring close to these good prices also.

While there talked to a neighbor who is subdividing some land near Calgary and no doubt when it goes through the the cash does roll in, he will pocket over a million in Cdn cash. Good for him I say--given the opportunity I do not know anyone else in the same situation who would not jump at the chance. The old lament about the loss of good farm land rings pretty hollow when you cannot pay your bills from the lack of income from it and some urbanite wants to purchase a bit of grass to live and play on. A lot of young and not so young ag. people in the Calgary area are selling with smiles on their face and moving further afield to continue their ag. lifestyle. The difference after selling out for them is that they have serious cash in their jeans even after buying up a bigger chunk of land on which to run cattle. So the beat goes on--some person who can't make it out there anymore, gets bought out and retires and the moneyed folks carry on with their life choice.

I know we can't all be as lucky as to get bought out for 3 or 4 million per quarter, but we can dream. When this bubble bursts in Alberta, all of our asset sheets will look poorer if the value of our land goes down...

[sagewood]

until then our land base is worth more today than it was pre BSE. The booming economy and the opportunity to earn an excellent living is certainly luring many young people away from the farm and who can blame them.
Farming is a state of mind I think, some people love to farm and will continue as long as they can remain viable but it certainly is not without many sacrifices. But on the other hand, working in any of the other AB. industries is not without sacrifice either.

[cowman]

Around Red Deer the fastest way to become successful in agriculture is to subdivide and get rich! However the county is doing everything in its power to put a halt to that!
It is amazing how many people are trying to subdivide and cash in on the gravy train. And who can blame them? Their children are gone to the city and someday they aren't going to be able to cut it anymore? Might as well make some money and live the good life for awhile?
It makes the hog farmers nervous knowing that their days are numbered though!

[cowman]

Any large confined feeding operation is going to have difficulty locating in many parts of Alberta. Not only because of subdivision, but the fact is that many municipalities are putting buffer zones around everything that has the potential to grow eg: country residential areas, hamlets and recreational spots. These buffer zones are mapped out and become part of the municipal development plan and are considered to be 'no go zones' for confined feeding operations.
This is happening even in the Peace region.

[sagewood]

With regard to land and its allocation, I guess I cannot disagree with those who do not want to see more and larger confined feeding operations. One only has to look at the mess near LEthbridge to see what happens when the CFO's move in and what happens to the water and land quality in the area. From the European experience one can see what continued abuse of the land from CFO's has done to their land.

As far as the council doing everything to keep land in ag. that seems to be universal with the councils across Alberta. Now I am all for keeping land in ag., but as you say, who can blame someone for cashing in and making life a little easier--none of us are getting any younger and in this area the young people who are staying on the farm and/or ranch are very few. They too have off farm jobs to exist and keep shoes on the children etc.

I did hear some encouraging news that perhaps China and Japan could open to Canadian cattle very soon and the prices at Strathmore on Thurs. remained strong right to the end of the sale. The 'on-line' sales have been very strong as well.

[cowman]

Well good to hear you did well on your calves and especially that your heifers sold well! I believe a char type heifer should bring a premium to normal heifers as they feed out very well?
Most hog farmers have really cleaned up their act and now inject their manure, which pretty well eliminates the smell? Some feedlots can be pretty rank however?
Personally I'd be quite happy if they fed all the cattle somewhere else where they don't stink up the country! Basically there are no new CFOs being built in my immediate area. The municipality likes to pretend they want to protect agricultural land...but reality says this land is going to be developed in the future. Kind of sad because this land is very productive agricultural land, perhaps some of the best in the province.