|
Ridgway, IL | Mark , Gary, and others..
Could you help a beginner understand these contracting options more please? As im not 100% sure i am understanding all the terminology, and pit falls of the different contracts. I have both swift and tyson as potential buyers. Both send me contract templates. The templates have
option #1- based on carcass weight. Minimum 70% (jbs is 75%) choice by dressed weight, balance select. Yield grade 3 or better. Max 1500lb live and 58" tall.
Option #2 - same tems as option #1, Plus performance prem. Paid Based on rtmv Prem/disc menu. Then it lists blank spaces to Write in % by prime, cab, Choice, and yields 1 2 &3.
Is one or both of these contracts what you call "in the beef". Is there normally an option to just sell basis live weights w/o a choice guarentee? Are there generally more options offered than this? Are the prem/disc for option #2 pretty standard or varying constantly?
What have you found to be the most effective contract type over time?
I apologize for the interrogation! I am just giving the cattle a start, and come from a corn/ysb background.... So some of this stuff is similar to grain contracts and some isnt? I like to hear the real world experiences vs what the cattle buyers are telling me.
I certainly need to thank you all for the information i have gleaned from stock talk the past 3 or 4 years. Heck of a group of guys here.
Luke | |
|
Contract Cattle Question
