National Farmers Organization Develops Cull Cow Forward Contract
AMES, lowa National
Farmers recently blazed a new
marketing trail for cull cows with
a first in the beef industry a cull
cow forward contract.
“In October, National Farmers
put together the first fed-cow for
ward contract ever,” said Pat Lew
is, program manager for Cash
Cow Plus, National Farmers’ cull
N.Y. Farm Show Win-Win
LIVERPOOL. N.Y.—Fanners
can drive around the countryside
to check out what’s new in equip
ment and inputs. Or time
conscious, smart fanners can one
stop look at the 9th annual New
York Farm Show.
Held last Feb. 24-26 at the New
York State Fairgrounds in Syra
cuse, the large indoor farm show
brings the nation’s and region’s
major agricultural dealers to one
location for a three-day informa
tion extravaganza. Show hours are
8:30 a.m. to 4 p.m. daily.
“New York Farm Show is a
great opportunity to see different
manufacturers and compare what
they have to offer,” said Scott Gri
gor, farm show manager. “Far
mers can find out what’s coming
up for the next season what’s
the latest technology, what’s hap
pening in chemicals, equipment
and services. It’s one-stop shop
ping at its best.”
What are some hot items on
agribusinesses’ shelves this year?
Farmers will see some interesting
changes in chemical and seed
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cow program. “The contract is for
several thousand colored (non
dairy) cull cows from Nebraska
herds.
‘The program has two objec
tives. First, producers can make
more money from their cull cows
by putting the cows into a fcedlot,
rather than selling them directly
after they wean their fall calves,”
Event For Farmers
packaging and innovations in dis
ease and pest resistance in com
hybrids, Grigor said.
Equipment manufacturers are
eager to explain their new tillage
and planting equipment to help
farmers meet their conservation
compliance plans. Along with
them, the Soil Conservation Ser
vice (SCS) will provide a special
display on residue management
Farmers can measure residue and
learn what practices leave the
required amount on their highly
erodible land.
Farms are more than produc
tion, and the New York Farm
Show is more than equipment. To
address the diversity of farm life,
special programs will occur
throughout the three-day show.
Learn ways to make farm and
family life safer and more healthy
by taking in demonstrations
offered by the New York State
Rural Health and Safety Council
and the New York Center for
Agriculture Health and Medicine.
New York Farm Show isn’t all
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Lewis said. “Second, the forward
contract will level out the flood of
beef cows that hit the market when
calves are weaned in the fall.
“That oversupply of cows in the
fall drives the market down. By
feeding the cows for 100-plus
days, producers can take advant
age of a historically stronger mar-
work. For the second year, a spe
cial display of antique tractors will
draw the attention of show goers,
as will the Sth annual Toy Show
Auction. Held Friday, Feb. 25, at 6
p.m. in the Arts and Home Center
building, this year’s auction will
feature some 400 pieces for sale.
Proceeds benefit the FFA Alumni
Scholarship Fund and the Hamil
ton FFA chapter.
New York Farm Show tickets
are available free from your New
York state farm equipment dealer.
To order fiee tickets by mail, write
the New York Farm Show, P.O.
Box 3470, Syracuse, NY 13220.
Include a self-addressed, stamped
legal envelope.
ket, and meter the cows into the
market on a less disruptive basis,”
Lewis said.
Andy Neutzling, director of
operations for National Farmers’
livestock department said that al
though the cows will go to market
in the spring, they are not a part of
the spring market.
“The cows are coming off feed
in the spring, but producers won’t
have marketing worries,” he said.
“The cows were marketed five
months before with the forward
contract. The double result is that
the cows will be pulled out of the
spring market as well as the fall
market.”
A fed cow is a cull cow who is
put in a feedlot for 100 or more
days. During this time, the cow
transforms yellow fat into white
fat by eating a high energy com
ration.
Contracted delivery dates on all
cows involved in this pilot effort is
between mid-February to late
April. The contract specifies the
carcasses must weigh between
550 and 850 pounds, and 85 per
cent of the cows must have white
tallow.
“The cows were sold at
$1.02-'/i in the meat,” said Lewis.
“This price is $3/cwt. above the
average fed cow price one year
ago, and $5 to $6/cwt. in the meat
above what hamburger cows are
currently bringing.
“National Farmers recognizes
that it is very strong in the dairy
cull cow market,” he said. “It also
recognizes a need to gain a larger
share of the colored cull cow mar
ket.”
Neutzling said this new forward
contract could support the total
cattle market if National Farmers
had enough cows under contract.
Still, regardless of the number of
cows contracted, it lends to sup
port the cull cow market since the
price is already determined.
“These cows are actually* in
competition with fed cattle,”
Neutzling said. “Packers will lake
primal cuts off these cows and
market the cuts themselves not
just boneless cuts like they nor
mally do with cull cows.” That
added meat puts added pressure
on young beef cattle.
“As long as there is a market for
that type of beef product, National
Farmers will continue forward
contracting cull cows,” said
Neutzling.