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ah great-I dont qualify for payments on cattle-basis and sold
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270
Posted 5/23/2020 12:48 (#8275324 - in reply to #8275257)
Subject: RE: ah great-I dont qualify for payments on cattle-basis and sold


NE Nebraska
garvo - 5/23/2020 11:59

270 - 5/23/2020 11:54

garvo - 5/23/2020 09:04

LOL-I do not qualify-my basis contracts with priced cattle before the Jan 15th time frame and my new crop calves that are already sold between (april16th and may14th) means zero money so I guess there's another $200,000 in the pool for other cattlemen
Wow-should have used the board to hedge I guess
I do get paid on those 36hd-1602# heifers that were not contracted-and they sold $10 higher cash then my contracted ones and ring another $214 a head

Corn silage qualifier's if you have not presold it-grey aera

If you premarket they do not help-if your strictly cash you do-wonder what this does to formula cattle?


The worse part is the packer made huuugggge money off of your basis contract on top of everything else they are making. Cash cattle seem to have been $10+ up to $20+ basis and I bet your contract wasn't anywhere close to that and probably a negative. As bad as the markets have sucked hedgers and packers with contracts have been making a killing off of the positive basis for the last 5 years.
Any I say this to everybody I cannot stress this enough that risk protection needs a to be done on the board and not through a packer via contracts!!
yup but im old and grey and been only thing that kept me in business last 20 years


Your a smart guy Gary, I'm sure you can manage a hedge. No doubt it these basis today are way different than in the past. Hedges do take more emotion and that is were a third party comes in handy. Be it a broker, producers livestock manages hedges, I believe even Farm credit will even set up a account to help take emotion out of it. One thing is for sure though if guys want to be in the business the next coming 20 years things need to change. We cannot have hedgers, packers making 100-150 hd more than the guy just doing contracts.
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