Cattle producers always try to maximize the value of the calves they market. Group marketing efforts provide opportunities for farmers to improve market prices by allowing smaller farms to sell in truckload lots of feeder calves. One question that always remains is, “How much is it worth?”
Several Clemson Extension Livestock & Forage Agents in South Carolina help farmers coordinate off-farm feeder cattle sales for cattlemen. A recent analysis from three group cattle marketing efforts from across the state in 2021 helps answer the question. Thirty-three farmers sold 1,691 head of feeder calves in 26 off-farm load lots. Off-farm feeder calf sales resulted in a $0.27 per pound higher price when compared to traditional auction markets. The price increase resulted in $178 per head of additional revenue to farmers. The total economic impact from the sales is approximately $301,000. The loads in this analysis were all preconditioned, vaccinated, and natural calves. Nineteen loads were GAP (Good Animal Practice) Verified, two loads were BeefTrax Verified Natural, and the remaining five loads were Producer Verified Natural by a signed affidavit. This brief evaluation shows off-farm load lots can offer significant price advantages over traditional marketing avenues.
Why aren’t more South Carolina farmers using off-farm load lots to sell feeder calves? There are several obstacles to participating in off-farm sales. Adequate facilities, labor requirements of feeding calves daily, and lack of cooperation from neighboring farmers are all potential issues that make participating in this marketing method difficult. Marketing off-farm loads of cattle will require more management. Vaccinations, preconditioning for 45-60 days, additional paperwork for natural, source & age, and other verifications all take time and have a cost.
Most organized group cattle marketing efforts have rules, and requirements participants must follow. Requirements, such as breed of bulls allowed, acceptable birth date range, minimum weight, etc., are all used to promote uniformity within the load. Uniformity is essential when building load-lots with cattle from multiple farmers. Sometimes these requirements can disqualify a farm from participating. The decision to work with a marketing group may require you to alter practices as much as a year in advance so your calves will qualify for participation in the sale. Make contact and do your research in advance.
Any management steps that help prepare feeder calves for entry into the feedlot environment will increase their value. The farms in this article improved their revenue significantly by implementing production practices that cattle buyers view as important. Buyers are willing to pay more for cattle that fit their needs and perform. Contact your local Clemson Extension Livestock & Forages Agent for information about cattle marketing options in your area.
Submitted by Brian Beer, Lee Van Vlake and Travis Mitchell, Area Livestock and Forages Agents, CUCES
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