Are People Nuts???

While it has nothing to do with the sale that started this thread, here's a little blurb from a blog post I'm working on for a month or so from now...

2006 – Limestone bought G A R 1407 New Design 982 from Express for $100,000.  The next day Express partnered to buy a two-month old heifer from Limestone for $200,000.

2007 – Limestone bought G A R Grid Maker 312 from Express for $100,000.  The next day Express bought Limestone Blackcap C519 from Limestone for the same amount.

2008 – Limestone bought a flush out of G A R 044 Traveler 2328 from Express for $205,000.  The next day Express bought S S Miss Rita R011 7R8 for $240,000 from Limestone.

Sitz JLS Ideal 533P – From Express Ranches to Deer Valley Farm for $50k on 9-7-09
Deer Valley Blackbird 8032 – From Deer Valley to Express Ranches for $50k on 11-13-09

Three lots for a combined $90k from BoBo Ranches to Express Ranches on 4-10-09
EXAR June 7341 – From express Ranches to Bobo Ranches for $91k on 9-7-09

Exar Blackcap 7784 – From Express Ranches to Pollard Farms for $80k for half interest on 9-1-08
PF 6578 Primrose 5071 – From Pollard Farms to Express Ranches for $40k on 9-3-08

Click to expand...

I would really like to see that whole blog Jeff, sounds like it is going to be a real heat getter.

What I gather from all this high dollar "trading" is that the progeny from these animals are now going to be mass promoted as being the daughter/bull or of a $200,000 cow and so on and so forth. Which in the long run seem's to me that the people really getting the short end of the stick are the commerical cattlemen buying bulls that are over promoted from a big money trade. Even if by the time it gets down the line from a big trade like with Express Ranches down to the little commercial guy with 50 the bull he's buying might only be an extra 250$  The commercial rancher wont be making the extra 20$ (eg.) that he needs to break even with the extra money spent on the bull.

I can see that if the bull really is worth the 250$ more then another bull, based on performace data and hard facts, (not just a big money trade way back up the line) then the calves that bull produces might have that extra 25 pound weaning weight that the rancher needs to break even on the little extra he spent on the bull.

I just think all the money being traded with the big guys will slowely trickle down with everyone paying more and receiving more when selling in the purebred industry that the everyday rancher at the bottom of the line is the one getting the short end of the stick.

Sorry that post kind of was a ramble and circled it's self two or three times, haha. Just my 2 cents..

I agree that it happens, "I buy yours, you buy mine", but I don't think that's what happening with these heifer sales.  I've been watching a lot of sales this year, trying to buy a decent heifer at an "affordable" price, and it happens at almost every sale.  Even the $50k+ isn't what's surprising, but the fact that most of the heifers were in the $10k to $20k ++ range.    I think a lot of people have a lot of money, and don't care what it costs to buy a ribbon.  $10k, $20k or even $50k for a proven producer is one thing, but $57k for an eight month old calf is ridiculous. 

Some of what looks like just swapping cattle could just be doing good business.  (I'm not saying that there are not some put up deals at some of these sales, but there are alot of real money deals also.  Especially this time of the year when the mentality of if I don't spend the tax man will get it is prevelant).  I haven't bought or sold a bunch of cattle in those price ranges but I do know that if someone comes and buys cattle from me on a consistent basis, I try to do some business with them.  It may not being buying cattle, but the sale barns we use, place we buy feed and things like that are because they do business with us.  It may not be the sale barn that gets the best prices or the feed may not be the cheapest but its just good business in my opinion.  Its just like leaving curteous bids on cattle at places.  You may not plan on buying a hoof but you leave a bid or two to be nice or just to help some of the cattle bring a little more.

last time I checked, no one comes/buys at your sale unless you spend at their's.

The point of these sales in most cases is to "trade cattle" buy spending 50k at their sale and they spend 50k at yours.  Then the grandad wanting to raise a few for his grandkids thinks he has to spend 10k on a bull or heifer worth 4k if he wants to get anything bought.  There are enough of those guys to make the profit even though the small operator caught in the middle will never come out ahead.  I think that's the way it's been for a long time.  Same thing happens with steer sales and eventually everyone thinks that's just were the market is at a particular sale.

I know the trade deal happens in a lot of these sales, but I really don't think you see much of that at this sale, I could be wrong, but I think most of it is real money on the exposure deal.

People are nuts.  I would say buyer beware.  I don't know anything about this particular sale, but as a general rule I would buy cattle from people that you know and can trust.  If you can buy something where there are no other bidders and you can feel good with the price, I would go that route.  I think there are a lot of people on here that do an honest business.  Like any business, there are a ton of scammers too.  Do your own evaluations.  Spend what you can afford and well within your means.  And be very careful.  That's the best advice I can give on the subject of high $$$ cattle.

At least they are spending that on heifers tho.  I couldnt ever afford that for a heifer but flat out wonldn't on a steer.  People that i know would spend that on a steer in a heart beat. 

Have any of you ever been through Grisold's cow herd?  I've seen a bunch of his Angus and they are really good solid cows.  These heifers have a real chance to work.

However, the price on these very high selling open heifers includes (I think) a lot of help on the showing side.  John and his crew arent done with them on sale day.

As others have said, their real profit comes from the prices of the median cattle not the tip top end. 

jit sold a bull for 20,000$ to(I think we decided it was 7 commercial guys and one purebred guy). Aren't there still shares available?

aj... I think you have that backwards. It was a group of 7 purebred guys and 1 commercial guy. Actually, when the bull was offered for sale, he was selling with ourselves keeping a 1/3 semen interest. When he was purchased by a syndicate, I offered to take an equal syndicate share as the others rather than retain a bigger share that any other party. As for shares being available, we have just decided that we will be taking orders for semen starting in Denver. We have had some interest in syndicate shares and we will decide whether they will be offered in the next couple weeks.