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cow dispersals?

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    #1

    cow dispersals?

    Now maybe I'm not reading this right, but it sure seems there are a lot of cow herd dispersals in the auction mart ads? And some of these are real old time cow/calf outfits? And some pretty big ones! Willow Butte Cattle co. is dispersing a 1000 head cowherd and they only live about twelve miles from me!
    Last week I was talking to a local guy who always has backgrounded some calves...I mean like forever! I asked him if he'd bought any and he said no. Told me if he couldn't make money on them when barley was $2 he sure wasn't going to try at $3! Said he actually had decided to not put up any silage last spring and was quite happy that he made that decision! Said it will be nice to spend a few weeks in Arizona this winter instead of feeding and treating a bunch of calves!
    He has basically decided he will never feed another calf in his life. It just seems to me there are a fair number of farmer/feeders making that same decision?
    I wonder though where all these cow herds are going? I don't see any newbies entering the game around here...but they must be going somewhere?
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    #2
    It seems most of the bred cow sales are all booked full, and there are a lot of extra cows out there. Sure has me thinking if this would be a good time to buy. You can get some pretty solid cows for $500. If they hold on for a while, their salvage value could even be higher than that. Just not sure about space right now. Anyone know of someone looking for cows on a share basis?

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      #3
      The question is Cattleman what is a good share arrangement. With the price of barley and feeders falling like they are what would be a fair arrangement. Plus with the ability to purchase good sound quality bred cows for 4-500 hundred a piece what is fair.

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        #4
        The question is Cattleman what is a good share arrangement. With the price of barley and feeders falling like they are what would be a fair arrangement. Plus with the ability to purchase good sound quality bred cows for 4-500 hundred a piece what is fair.

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          #5
          Well like any investment all comes down to risk and return. There are lots of risks in the cattle business, and letting go control of production makes it that much more risky for the cattle owner. For most good producers, ownership at these prices make more sense than leasing cows, but there are still situations where leasing may make sense.
          For these arrangements, you can go on a pure percentage basis which is simple, but riskier, or you can go on a share basis with some sort of bonus system, or put in minimum and maximum payments that a share payment will be within. Or else the straight cash deal.
          What is everyone's opinions? Is a quarter share fair? $100/cow, $75/cow?

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