Cost to sell cattle

LAA · Jan 21, 2013

Wondering about sale fees in different areas, our local barns commission plus yardage plus feed/hay plus state fees plus cattlemans association = 7.75 % -- or put another way, sell 13 head and get paid for 12.

IaGary · Jan 21, 2013

I thought years ago that sells commissions were too high.

I always wondered why I had them calves for a year, from birth to sell as 7 weights, and for every 20 I sold the sale barn got one. They only took care of the calf for 5 or 6 hours. It was about 5% comission then.

Seems like a lot to me as well, but the sale barns are all the same around here.

So what's a guy to do other than sell private. Which I did a few times.

Gary

Hogleg · Jan 21, 2013

I just sold 2 1200lb older Angus beef cows that came in just shy of $1600 here in So. Illinois. Got back just shy of $1500. $40 of that was my membership fee for the co-op for 2013. Did not have any extra work done, just drop off one afternoon and sold the next.

John

IaGary · Jan 21, 2013

Even with the $40 off you still paid close to 4% comission. $60 on $1600.

For every 25 you sell they get one.

Gary

Traditional Farmer · Jan 21, 2013

Last load I took averaged about 3.5% in fees including the $1 Beef Ripoff.Figure thats pretty cheap really as no way I could get a couple dozen
serious buyers together to bid on my stock any other way.Most machinery consignment sales charge between
10% to 20% to sell a piece of machinery.

Hogleg · Jan 21, 2013

I understand, Gary. Just sharing my info. I tried to sell them on craigslist for $750 ea. No takers. Got $100 more at the sale barn, which covered the commission. Lucky I guess. Sure was easy. Drop off one day, walk away with a check in hand the next.

In the whole scheme of things, is there anywhere that you can sell an asset for 4% commission? Not many. In fact, not sure how they stay in business for 4%. Lots of folks working there and lots of cost for the facilities.

Just sayin...

John

Traditional Farmer · Jan 21, 2013

Most cattle buyers won't pay nearly as much off the farm as they will at a market,they come to a guys farm to buy under the market most of the time.Markets provide a service and they have to make $$$ or can't stay in business.Can't imagine what the liability insurance is for a sale barn.

Tom in TN · Jan 21, 2013

LAA,

I sold three black Angus calves last week (two bulls and one heifer) at the Tennessee Livestock Producers sale barn in Columbia, TN. They were just shy of 7 months old. They averaged just over 600 lbs. each.

The commission, yard fee, insurance charge, national beef checkoff fee, and Tennessee beef check off fee came to a total of $80.56 which represented 3.4% of the sale amount of the calves.

Personally, I think that's a good deal considering the costs that they incur for the facilities, personnel, operating costs, etc.

Tom in TN

LAA · Jan 21, 2013

As a general statement regarding cattle buyers that is hogwash. Contract and company order buyers make their living buying cattle, they have to have credibility, they are not looking for a one time big score. My Dad was a contract buyer for Swift and company from 1947 until 1982, I have seen a lot of cattle and hogs sold through the farm gate in my lifetime and both sides were happy when they left. You must be referring to someone trying to turn a quick buck on a load or two of calves because order buyers representing cattle feeders or grazers will most times pay a premium at the farm if they know what they are getting, they are not out to bust the market, they want weaned, nnalert and trackable calves that will gain and go on feed and stay out of the sick pen.

LAA · Jan 21, 2013

Tom in TN -- Thats cheap, I am surprised that it is less than 5% anywhere.

DoubleR · Jan 21, 2013

I only buy about 10 feeders a year. I go out of my way to buy off the farm. I always check on Craig's List. Although I did get hooked up with a guy about 120 miles away off Craig's list a few years ago. He has about 50 feeders a year to sell. He calls me and gives me first pick. I have also sent others to him to buy. I check the market when I buy and he will actually price them for a little less. I get nice calves and we both come out ahead of the game.
You might want to try selling outright and save on the fees. When a buyer can see where they actually come from can make a difference too. Myself, I would pay a premium to buy off the farm although I normally get them for at least market price or less.

JD Seller · Jan 21, 2013

Well I guess we are lucky around here. The sale barn at Cascade gets about $26 dollars to sell a 1350 LBS fat steer. It is a flat rate per head. It is broken down in to a dollar here and there but that is what the total usually is.

I sold 13 fat steers two weeks ago and the charge was just a little over $325.

Drop the steers off Sunday night and they sell the next morning. Take your check home with you if you come to watch the sale.

rrlund · Jan 21, 2013

Here's the breakdown on the 4 that I sold last week. Commission $68.80 Insurance 12.30 Member discount +6.88 Beef Promotion $4 Co-op retain $3. Total=$81.22 from a gross of $6835.58. The $3 retain is a 5 year revolving,and gets refunded after 5 years.
That's through United Producers Inc. We're a co-op.

Traditional Farmer · Jan 21, 2013

Yep they want everything done for them and then pick out the best in the herd which all costs money for the farmer.Like I said I have never been offered as much at the farm as I have gotten in the market.The buyer can talk all the trash they want when its just you and him but when the bidding starts against other buyers he has to fish or cut bait

Cost to sell cattle

LAA

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IaGary

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Hogleg

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IaGary

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Traditional Farmer

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Hogleg

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Traditional Farmer

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Tom in TN

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LAA

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LAA

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DoubleR

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JD Seller

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rrlund

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Traditional Farmer

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