I would say that some people are nuts, but there are others who can pay large amounts for the heifers they want , simply because they can! Yes, to some people $50,000 seems like a lot to spend on a female, and yes sometimes it is not real, but I would suggest that it is probably real more times than it is fake. There are lots of people out there who have been very successful, and $50,000 isn't a big amount of money. I think if I had lots of money, I would probably want to own some of the very best rather than just some ordinary cattle.
Is spending $50,000 on a heifer make less sense than spending $50,000 on a new truck? If you manage and promote a heifer properly, a person can make this amount of money back in fairly short order. Personally, I have several cows that have passed $50,000 in sales of offspring and embryos in my herd, and I am far from being rich. One of my donors has generated over $35,000 in embryo sales alone in 2009. So, what would you value her at? I paid $6200 for her when I purchased her, and the calf she was carrying sold a year later for $5000. I am only saying this, to point out that to some of us, this business is just that... a business.
A friend of mine just mentioned to me a couple days ago that he has to pay for his crop inputs by December 31st, and his bill is just over $1 million. I know that there are many farmers in this area that would have that much... or more... tied up in their grain inputs, and they are also making payments on a few million dollars of machinery as well. My friend told me that his fuel bill during harvest averaged $3200 per day. Now, if I had to chose.... I think I would gamble on buying the $50,000 female rather than gamble big time like this. But that is just me.
When you look back over history, there have always been " people of means" involved in the purebred cattle business. When I was growing up, I think there was far more than there are now. I think we should be pleased they are involved. You may never sell an animal to one of these people, but the money they spend does seem to trickle down through the industry in some manner.
after bull, but before the ending quote mark. lol
