What Premium!!!

[cswilson]

So how you dealing with it farmers_son lol.

[farmers_son]

Well I wish I knew how to deal with it. Hope the future is not quite that bleak but we are certainly facing some challenges. Getting more efficient may not be enough to keep the wolf from the door. A good herd of baldie cows will help too but only so much. For the most part we are going to need industry solutions. The real curse of BSE may be that we want to think that if the border would just open to our live cattle and beef exports than all will be well. We have been so focused on BSE that we have forgot to look farther down the road.

You said you made that post to get people thinking and that is where it led my thinking. I do think optimism is important but in the context that we got our work cut out for us if we wish to remain in the cattle business.

[cowman]

I think for a lot of people the day is coming when they will need to look at the economics of raising cattle? Or for that matter the economics of agriculture in this country? I actually really like Farmers sons idea of raising trees and collecting the government carbon credits? Let all you eager beavers chase those darned old cows through the toolies while I wander through the trees!
During the last three years a lot of producers have left the industry? Usually small herds packing it in because they were working for nothing, as well as some spectacular big outfits that went broke!
The cow business is changing...with the big getting bigger with borrowed money and the little quitting...usually with some dollars in their pocket. Now who are the smart ones? Time will tell.
I really hate to project ahead ten years what things might be like? I don't see agriculture doing all that well unless something changes? I hope we don't all become wards of the state?

[rkaiser]

Sorry if you don't like my manners cswilson, I have always gotten along well by speaking or writing the words that are in my thick head!

[smcgrath76]

I think for most guys the premium is next to nil, unless they can reduce cow depreciation. For guys selling later into the production chain, I suspect they are worth what upper end heifers are trading for (I have seen some bred sales average $1300 and up). I think the real challenge is to get a big enough group together. I am not sure that a quality group of 3/4 sisters or better, timed bred AI aren't worth as much or more.
Figure:
$1000 average heifer
$1500 Good Heifer

1000 / 5 years = $200 cow depreciation/year
1500 has to last at least 2.5 years more to produce the same depreciation
Assume average has no premium, then $150 grid premium takes 3 1/3 calves to cover the premium paid for the heifer.

There is an upside potential to the investment though, assuming they add value (outperform expectation in CS' own words). I have continually had it drilled into my head that it is better to own a few good cows than a whole bunch of average ones.

[cswilson]

Most guys who called me Wilson to my face don't do it twice-just something to consider Kaiser. For a man in the promotional business you certainly approach it from a differenyt angle I must admit.

[rkaiser]

The way that I figure it Mr. Wilson, there is enough Bull Shit in the purebred industry already. If you have a question fire away. I will not "try" to answer it for you, I will answer it for you. If you don't like my answer, I guess you won't be a customer. I learned a long time ago that everyone will not be a customer.

[cowman]

I think we all have cows in our herds that can "ring the bell"? If all our cows produced like the top ten percent I suspect we would be happy?
I guess the trick is trying to move those 90% lesser cows up into a higher bracket? Set the bar higher sort of thing?
Now I am a firm believer in crossbreeding and also a firm believer in using AI to improve the genetics I have available. I think you can do more in ten years with a good AI program than you can in a lifetime, otherwise!
Yep, it is a pain, but the results can be pretty impressive? We started AIing heavily in the late seventies. One year, around 1990, in our replacement pen 23 out of 25 heifers were AI sired and the other two were out of AI cows.
With AI you can get proven genetics at a cheap price instead of buying a pretty costly package that may or may not be any good at all! I have always preferred the ABS sires as they have good data...unlike a lot of the Canadian bulls.

[cswilson]

A truly unique approach Mr. Kaiser I wish you all the best with it.

[cswilson]

A truly unique approach Mr. Kaiser I wish you all the best with it. I can understand how you'd recognize B'S-like i said what a rude little fellow you are-I could care less if you agree or disagree with me.