First off, I will explain how market cattle are sold. They are not sold at a flat rate, but by the pound. This year, I was payed $2.00/lb, while actual market price right now is $1.03. So I got 97 cents over what the price is in the real world. I would say that is pretty good! Prices have been up and down in the past year, but one thing stays the same- 4-H kids make off like bandits!
So let's put this into perspective...
- 4-H Price- $2.00/lb for a 1212 lb. steer = $2424.00 in the bank!
- Market Price- $1.03/lb for a 1212 lb. steer = $1248.36, about $1175.64 less than what I made
- Rail Grade Price, based on carcass weight of steer (yield)- a 1212 lb. steer yeilding at 58% = 703 lbs at 1.68/lb = $1180.00
|Me and Skoal, my last 4-H steer|
Breeding cattle, however, are sold at a flat rate, depending on the agreement made between the buyer and seller. Calves, yearlings, and mature animals are often sold at different prices, as their value may differ. However, a 9 month old heifer calf could be sold at the same price as a 2 year old mature bull! Sometimes, the price of cattle can depend on whether they are sold through a public auction (with an auctioneer and a number of bidders) or through private treaty ( a private sale at the farm by the breeder and buyer alone). At a public sale, there may be numerous people bidding on the same animal, which raises the price of it. In private treaty, the buyer and seller will come to a formal agreement on a fair price.
|KEW Rob Roy 196X, a yearling bull I sold a few months ago through private treaty|