As I write this this morning, I am just amazed at people. I have been busy haying, (I got my hands on acres and acres of CRP) and preparing for the speech I was asked to give, which was on Tuesday. I have still been watching Facebook and Twitter. The thing that amazes me is how people are so wound up over this drought, and this morning I guess there is some meaningless report that is going to make the markets go crazy. Let me share this quote from Bud Williams “The best way to alleviate the pressures of drought is sound marketing skill.”
EVERYBODY KNOWS how to market cattle (huge emphasis on sarcasm). Yeah right. That is why we are hearing the guy next to us brag about how rough he has is and he can’t pay his bills. Or we see it all over social media that farmers need drought assistance, and livestock producers need even more of it. What the hell happened to all the record profits that everyone SHOULD have made last year? They spent it. I see all kinds of new pickups at the sale barn this year. These guys sold $1000 calves right off the cow last year and this year they are selling $500 and $600 calves, weaned! Funny to me how everyone is broke. I read yesterday that last year farmers invested more money back into their businesses than ever before. Almost 25% of that investment was in livestock. I was just stunned how people were paying such high premiums for breeding stock. $2200 bred heifers is not sound marketing skill unless you are the seller. But cattlefax and all the cattlemen associations were predicting higher prices and we needed to “Get cowed up” Today those heifers are worth $900 bucks, and people can’t afford to feed them. Here’s a tip. Never listen to any cattlemen’s association, or cattlefax on marketing predictions. Here is another one. After such a great year, like 2011, expenses will always rise to meet available income. So resist the temptation to avoid the tax man by buying this and that, that you’d like to have.
As far as wanting some assistance from the government. Why do farmers hate the free market system so bad? People always say they don’t want the government in their business, but when the shit hits the fan, they cry like a little bitch for uncle sam to help. PU LEEZE! I also notice that most of my farmer friends post stuff on Facebook like “If you can afford tattoos, cigarettes and beer, then you do not need foodstamps” or “welfare recipients should be mandatorily drug tested”. Get in line. If you can afford a new pickup, and $2200 heifers then you don’t need drought assistance. If you get your government bailout then maybe you should be drug tested to. I mean the way people spent money the last year due to record prices only tells me they had to be high on something.
So how screwed up are things right now? I don’t notice very many people taking advantage of the wonderful buys in the sale barns right now. We see various operations all over the country get cork screwed into the ground by people with animal science degrees. They have the ag-econ 101 mindset of buy low sell high. Hello! Why aren’t you buying? Oh yeah. That meaningless report. Here’s another tip. Like produces like.