1 00:00:00,080 --> 00:00:04,200 you don't want to be that guy that that 2 00:00:01,839 --> 00:00:06,879 goes out and he's planted his wheat he's 3 00:00:04,200 --> 00:00:08,840 got it Formed he gets some rain and that 4 00:00:06,879 --> 00:00:10,679 wheat pops up and we see them come in 5 00:00:08,840 --> 00:00:12,040 all the time and we see them come sit 6 00:00:10,679 --> 00:00:14,879 down at the barn and try to buy their 7 00:00:12,040 --> 00:00:17,080 wheat cattle and it it just it's a whole 8 00:00:14,879 --> 00:00:19,560 lot cheaper to go out there and find the 9 00:00:17,080 --> 00:00:21,800 guy that does that on a daily basis to 10 00:00:19,560 --> 00:00:23,320 buy those cattle for you so go find 11 00:00:21,800 --> 00:00:25,800 somebody you trust somebody that you 12 00:00:23,320 --> 00:00:28,199 know that that does a really good job of 13 00:00:25,800 --> 00:00:30,199 doing that and it it does it every day 14 00:00:28,199 --> 00:00:32,960 on a daily basis sits through them sell 15 00:00:30,199 --> 00:00:35,640 barns or sets through a video sale or 16 00:00:32,960 --> 00:00:38,559 whatever he may do but he does it that's 17 00:00:35,640 --> 00:00:40,399 his job it's a whole lot cheaper to hire 18 00:00:38,559 --> 00:00:41,840 a professional than it is to try to go 19 00:00:40,399 --> 00:00:44,480 do some of that yourself if you're not 20 00:00:41,840 --> 00:00:47,120 used to doing that welcome to we live it 21 00:00:44,480 --> 00:00:49,320 the live a podcast your source for 22 00:00:47,120 --> 00:00:51,399 livestock market insights management 23 00:00:49,320 --> 00:00:53,079 strategies and real conversations with 24 00:00:51,399 --> 00:00:55,160 those who don't just work in the cattle 25 00:00:53,079 --> 00:01:00,410 industry they live it here are your 26 00:00:55,160 --> 00:01:05,680 hosts tidy Cordova and Casey mayy 27 00:01:00,410 --> 00:01:07,640 [Music] 28 00:01:05,680 --> 00:01:10,920 welcome welcome back to we live it uh 29 00:01:07,640 --> 00:01:14,560 the live live a podcast with Casey maber 30 00:01:10,920 --> 00:01:16,240 and myself Ty de cardova um once again 31 00:01:14,560 --> 00:01:17,799 we have John Sloan on again this is a 32 00:01:16,240 --> 00:01:20,079 part two of a series we decided to do 33 00:01:17,799 --> 00:01:22,680 with John uh the last series last week 34 00:01:20,079 --> 00:01:24,680 we talked about uh Market strategies the 35 00:01:22,680 --> 00:01:26,799 volatility of the market the banking 36 00:01:24,680 --> 00:01:30,040 aspect of all of it this week we're 37 00:01:26,799 --> 00:01:34,159 going to dive into what we call a strand 38 00:01:30,040 --> 00:01:35,720 a strand a strategy or planning um and 39 00:01:34,159 --> 00:01:37,759 and John we've talked through some of 40 00:01:35,720 --> 00:01:39,200 this stuff and Casey we visited about it 41 00:01:37,759 --> 00:01:40,880 you know just the strategy of the 42 00:01:39,200 --> 00:01:43,640 different types of operations whether 43 00:01:40,880 --> 00:01:45,960 it's a wheat grass guy or a feed yard 44 00:01:43,640 --> 00:01:47,479 guy that's going to finish fed cattle so 45 00:01:45,960 --> 00:01:49,360 Casey you want to kind of talk on that a 46 00:01:47,479 --> 00:01:50,680 little bit kind of lead into what John's 47 00:01:49,360 --> 00:01:52,079 going to get to yeah I think we're going 48 00:01:50,680 --> 00:01:52,920 to kind of break this into two parts and 49 00:01:52,079 --> 00:01:55,079 so we're going to do a little bit of 50 00:01:52,920 --> 00:01:56,920 role playing type stuff and so John look 51 00:01:55,079 --> 00:01:59,159 what I was telling you before is uh you 52 00:01:56,920 --> 00:02:01,119 know how do we get to a plan and so I 53 00:01:59,159 --> 00:02:02,200 think you had some great Insight on that 54 00:02:01,119 --> 00:02:04,039 and I think it's going to be very 55 00:02:02,200 --> 00:02:06,039 educational in my mind so I mean we're 56 00:02:04,039 --> 00:02:07,719 going to jump right into it so um let's 57 00:02:06,039 --> 00:02:09,520 play a little bit of scenario and let's 58 00:02:07,719 --> 00:02:11,200 say I'm a guy that's been feeding some 59 00:02:09,520 --> 00:02:13,000 cattle or running some cattle on grass 60 00:02:11,200 --> 00:02:15,120 let's talk about grass first I've been 61 00:02:13,000 --> 00:02:17,239 running some cattle on grass uh you know 62 00:02:15,120 --> 00:02:19,080 maybe I had two or 300 head of cattle 63 00:02:17,239 --> 00:02:21,519 but now I'm starting to get bigger um 64 00:02:19,080 --> 00:02:23,519 now I'm running a th000 or 1500 or 2,000 65 00:02:21,519 --> 00:02:26,599 head of cattle uh my banking's become 66 00:02:23,519 --> 00:02:29,319 more complex uh my scope has become more 67 00:02:26,599 --> 00:02:30,959 complex you know what's I made a little 68 00:02:29,319 --> 00:02:33,160 bit of money on two or 300 head of 69 00:02:30,959 --> 00:02:35,560 cattle really good margins on a dollars 70 00:02:33,160 --> 00:02:36,720 per head standpoint and I wanted to grow 71 00:02:35,560 --> 00:02:38,319 it's kind of like whenever we you know 72 00:02:36,720 --> 00:02:40,680 one scoop of ice cream is good let's go 73 00:02:38,319 --> 00:02:42,120 after about five or six of them so um I 74 00:02:40,680 --> 00:02:43,920 think it's really important to go 75 00:02:42,120 --> 00:02:45,599 through some of the things that you talk 76 00:02:43,920 --> 00:02:47,720 about uh to make sure that we don't 77 00:02:45,599 --> 00:02:49,800 stubber toe or make mistakes and so 78 00:02:47,720 --> 00:02:51,599 again let's talk about the grass guy the 79 00:02:49,800 --> 00:02:53,200 wheat pasture guy the guy that's going 80 00:02:51,599 --> 00:02:55,720 to buy lightweight cattle and sell an 81 00:02:53,200 --> 00:02:57,400 eight weight perfect so that yeah that's 82 00:02:55,720 --> 00:02:59,239 uh that's a great subject and that's 83 00:02:57,400 --> 00:03:02,280 something that we see every day and the 84 00:02:59,239 --> 00:03:03,599 way I like to think of it is uh let's 85 00:03:02,280 --> 00:03:05,159 talk not necessarily about the guy 86 00:03:03,599 --> 00:03:07,080 that's very established been doing this 87 00:03:05,159 --> 00:03:08,480 a long time he got a whole team built 88 00:03:07,080 --> 00:03:10,680 and you know maybe he's a bigger 89 00:03:08,480 --> 00:03:12,959 operator what I'd like to focus on is 90 00:03:10,680 --> 00:03:14,799 the the the person who maybe they're you 91 00:03:12,959 --> 00:03:15,879 know 35 years old they're trying to grow 92 00:03:14,799 --> 00:03:17,200 their business and they're thinking 93 00:03:15,879 --> 00:03:20,400 through all the things you just said 94 00:03:17,200 --> 00:03:23,280 Casey so the way I whether it's a cattle 95 00:03:20,400 --> 00:03:25,680 feeding business or whether uh it's an 96 00:03:23,280 --> 00:03:27,400 advertising agency you have to have a 97 00:03:25,680 --> 00:03:30,280 plan to run a business you have to have 98 00:03:27,400 --> 00:03:32,840 a strategy and the way I I think of it 99 00:03:30,280 --> 00:03:34,720 is I like to break it down into steps so 100 00:03:32,840 --> 00:03:37,560 in the cattle business the first step is 101 00:03:34,720 --> 00:03:40,319 cattle procurement 102 00:03:37,560 --> 00:03:42,519 so if a if a person came in and said I 103 00:03:40,319 --> 00:03:44,959 want to be in cattle feeding i' I'm I'm 104 00:03:42,519 --> 00:03:47,959 looking to buy some uh cattle coming off 105 00:03:44,959 --> 00:03:50,120 pasture to put in the feed yard the 106 00:03:47,959 --> 00:03:51,720 first question I'm going to ask them is 107 00:03:50,120 --> 00:03:53,200 well how are you going to buy these 108 00:03:51,720 --> 00:03:55,319 cattle where are you going to who's 109 00:03:53,200 --> 00:03:57,640 going to help you are you experienced at 110 00:03:55,319 --> 00:03:59,159 that uh how are you going to procure 111 00:03:57,640 --> 00:04:00,840 them so that you can give yourself the 112 00:03:59,159 --> 00:04:02,959 most advantage does that make sense to 113 00:04:00,840 --> 00:04:06,000 you guys yeah it makes a lot of sense 114 00:04:02,959 --> 00:04:09,159 and growing up in that in that industry 115 00:04:06,000 --> 00:04:11,040 where um my dad my grandpa and them had 116 00:04:09,159 --> 00:04:13,360 a order buying company and and we've 117 00:04:11,040 --> 00:04:14,760 bought Catal out sale barn since we were 118 00:04:13,360 --> 00:04:16,000 I don't know me and my brother started 119 00:04:14,760 --> 00:04:18,519 probably started going to sales when we 120 00:04:16,000 --> 00:04:22,120 were 17 or 18 in order buying for for my 121 00:04:18,519 --> 00:04:24,960 dad's order buying company um that's a 122 00:04:22,120 --> 00:04:26,880 real real thing to concentrate on you 123 00:04:24,960 --> 00:04:29,160 don't want to be that guy that that goes 124 00:04:26,880 --> 00:04:31,680 out and he's planted his wheat he's got 125 00:04:29,160 --> 00:04:33,680 it formed he gets some rain and that 126 00:04:31,680 --> 00:04:35,520 wheat pops up and we see them come in 127 00:04:33,680 --> 00:04:36,880 all the time and we see them come sit 128 00:04:35,520 --> 00:04:39,720 down at the barn and try to buy their 129 00:04:36,880 --> 00:04:41,919 wheat cattle and it it just it's a whole 130 00:04:39,720 --> 00:04:44,400 lot cheaper to go out there and find the 131 00:04:41,919 --> 00:04:46,639 guy that does that on a daily basis to 132 00:04:44,400 --> 00:04:48,120 buy those cattle for you so go find 133 00:04:46,639 --> 00:04:50,639 somebody you trust somebody that you 134 00:04:48,120 --> 00:04:53,160 know that that does a really good job of 135 00:04:50,639 --> 00:04:55,000 doing that and and does it every day on 136 00:04:53,160 --> 00:04:57,840 a daily bases sets through them cell 137 00:04:55,000 --> 00:05:00,520 barns or sets through a video Cale or 138 00:04:57,840 --> 00:05:03,440 whatever he may do but does it that's 139 00:05:00,520 --> 00:05:05,280 his job it's a whole lot cheaper to hire 140 00:05:03,440 --> 00:05:06,720 a professional than it is to try to go 141 00:05:05,280 --> 00:05:08,720 do some of that yourself if you're not 142 00:05:06,720 --> 00:05:09,880 used to doing that cuz first thing 143 00:05:08,720 --> 00:05:12,360 you're going to do is get at that cellb 144 00:05:09,880 --> 00:05:13,720 barn and you got to create your seat 145 00:05:12,360 --> 00:05:16,000 Well them guys that come over there 146 00:05:13,720 --> 00:05:19,479 every week they ain't going to let you 147 00:05:16,000 --> 00:05:21,280 have that seat so it's it's a whole lot 148 00:05:19,479 --> 00:05:23,600 better on you if you'll if you'll if 149 00:05:21,280 --> 00:05:25,160 you'll find somebody that you trust to 150 00:05:23,600 --> 00:05:27,600 to procure those cattle for you cuz they 151 00:05:25,160 --> 00:05:29,000 can get it done not saying they can do a 152 00:05:27,600 --> 00:05:32,319 better job than you but they can do a 153 00:05:29,000 --> 00:05:33,680 better job than you um so that would be 154 00:05:32,319 --> 00:05:36,759 my advice so you think they can do a 155 00:05:33,680 --> 00:05:38,360 better job than you yeah exactly well I 156 00:05:36,759 --> 00:05:39,880 can only imagine I mean you think 157 00:05:38,360 --> 00:05:41,720 there's always those guys that we all 158 00:05:39,880 --> 00:05:43,759 think that he can save 50 cents or a 159 00:05:41,720 --> 00:05:45,759 buck a hundred um and he goes and sits 160 00:05:43,759 --> 00:05:47,600 in the sail Barn in his local area and 161 00:05:45,759 --> 00:05:49,479 and and he's thinking about his scope 162 00:05:47,600 --> 00:05:51,319 you know and that in that scope uh the 163 00:05:49,479 --> 00:05:53,560 sail barn might be high that day just 164 00:05:51,319 --> 00:05:55,280 for their uh but even though they see 165 00:05:53,560 --> 00:05:56,639 that new and that fresh Blood come in 166 00:05:55,280 --> 00:05:59,840 there and they just hammer down on him 167 00:05:56,639 --> 00:06:02,160 so yeah the the uh I think back to one 168 00:05:59,840 --> 00:06:04,440 story where I was you know and I was uh 169 00:06:02,160 --> 00:06:06,759 just started out with Cargill and I was 170 00:06:04,440 --> 00:06:08,880 the world po Poker Tour was going on and 171 00:06:06,759 --> 00:06:10,400 I slipped into Golden Colorado and went 172 00:06:08,880 --> 00:06:11,400 in one of those poker rooms and I 173 00:06:10,400 --> 00:06:13,639 thought I was going to take them old 174 00:06:11,400 --> 00:06:14,840 men's money and yeah it's about like 175 00:06:13,639 --> 00:06:17,120 going in there trying to buy calvs in 176 00:06:14,840 --> 00:06:20,000 the sail Barn I'm guessing I remember 177 00:06:17,120 --> 00:06:21,080 going to Barn for the first time and you 178 00:06:20,000 --> 00:06:22,759 know they always talked about this 179 00:06:21,080 --> 00:06:24,160 certain barn out the cattle I mean the 180 00:06:22,759 --> 00:06:26,199 guys there they were tough I mean it was 181 00:06:24,160 --> 00:06:27,599 rugged and you get there and you try to 182 00:06:26,199 --> 00:06:29,639 get in there and start buying cattle and 183 00:06:27,599 --> 00:06:31,560 my goodness my dad would chew me I'm I 184 00:06:29,639 --> 00:06:33,319 mean how are you buying how are they $10 185 00:06:31,560 --> 00:06:36,479 higher than mine well you've been doing 186 00:06:33,319 --> 00:06:38,000 it for 40 years and I haven't so now 187 00:06:36,479 --> 00:06:39,680 they're just they're just taking dead 188 00:06:38,000 --> 00:06:42,000 aim at you and that's just like anybody 189 00:06:39,680 --> 00:06:43,560 you know just fresh blood in the water 190 00:06:42,000 --> 00:06:45,080 you just kind of attack them so what's 191 00:06:43,560 --> 00:06:47,160 the easiest way to get like how do you 192 00:06:45,080 --> 00:06:48,759 get a hold of somebody I mean what's the 193 00:06:47,160 --> 00:06:50,520 I mean how do so let's say I'm going to 194 00:06:48,759 --> 00:06:51,880 relinquish procurement I'm going give a 195 00:06:50,520 --> 00:06:54,440 guy an order I'm going to work with 196 00:06:51,880 --> 00:06:56,400 somebody there's not like an Uber for 197 00:06:54,440 --> 00:06:57,639 for order buyers so what's the easiest 198 00:06:56,400 --> 00:07:00,199 thing to 199 00:06:57,639 --> 00:07:01,599 do talk to your neighbor or talk to some 200 00:07:00,199 --> 00:07:03,199 friends that are doing it talk to 201 00:07:01,599 --> 00:07:05,280 somebody that's in the business and 202 00:07:03,199 --> 00:07:08,960 that's successful in the business and 203 00:07:05,280 --> 00:07:10,800 say hey who who are you using uh who who 204 00:07:08,960 --> 00:07:12,919 PR your stuff for you who procures your 205 00:07:10,800 --> 00:07:14,840 cattle for you or I mean go to the local 206 00:07:12,919 --> 00:07:17,120 markets your local sale barns just sit 207 00:07:14,840 --> 00:07:18,800 down around and watch and and see a guy 208 00:07:17,120 --> 00:07:20,039 that you like what he's doing I mean 209 00:07:18,800 --> 00:07:22,599 like guys sitting there tending to 210 00:07:20,039 --> 00:07:24,120 business buying cattle not buying all of 211 00:07:22,599 --> 00:07:25,720 them not just making the market he's 212 00:07:24,120 --> 00:07:27,879 tending to them he's keeping cattle cost 213 00:07:25,720 --> 00:07:29,759 in this just doing a really really good 214 00:07:27,879 --> 00:07:31,360 job I mean you can go find them guys 215 00:07:29,759 --> 00:07:33,000 that you trust and get a relationship 216 00:07:31,360 --> 00:07:35,479 with them there were some people that my 217 00:07:33,000 --> 00:07:37,879 dad bought cattle for that I never seen 218 00:07:35,479 --> 00:07:39,680 and he might have met once but we bought 219 00:07:37,879 --> 00:07:41,400 cattle for them for 30 years and some of 220 00:07:39,680 --> 00:07:42,759 them my brother still does at at the 221 00:07:41,400 --> 00:07:44,560 order binding company he still buys 222 00:07:42,759 --> 00:07:46,520 cattle for them same people we might 223 00:07:44,560 --> 00:07:49,520 have made them met them one time but we 224 00:07:46,520 --> 00:07:51,560 send them cattle every year and uh so 225 00:07:49,520 --> 00:07:53,400 it's just a once again we go back to 226 00:07:51,560 --> 00:07:54,960 that relationship and and picking the 227 00:07:53,400 --> 00:07:56,599 right people to do business with 228 00:07:54,960 --> 00:07:58,319 somebody you can trust somebody that's 229 00:07:56,599 --> 00:08:01,440 that that'll do what they say and say 230 00:07:58,319 --> 00:08:04,440 what they do so so T what tell me if I'm 231 00:08:01,440 --> 00:08:05,960 wrong but I think I hear you saying is 232 00:08:04,440 --> 00:08:08,000 it's it's probably more important you're 233 00:08:05,960 --> 00:08:10,440 going to make your money possibly on the 234 00:08:08,000 --> 00:08:13,199 buy more than the sell is that 235 00:08:10,440 --> 00:08:15,240 definitely yes sir yep and uh I I would 236 00:08:13,199 --> 00:08:17,240 agree with that 100% so you've got to 237 00:08:15,240 --> 00:08:18,720 have the right strategy going in to buy 238 00:08:17,240 --> 00:08:20,400 procure the cattle because if you do 239 00:08:18,720 --> 00:08:22,400 that wrong you might have put yourself 240 00:08:20,400 --> 00:08:24,039 in a lost position for the whole trade 241 00:08:22,400 --> 00:08:26,720 yeah CU you can sit there and and and 242 00:08:24,039 --> 00:08:29,520 buy a cab that most people think man he 243 00:08:26,720 --> 00:08:30,680 give $101 more than he's worth but you 244 00:08:29,520 --> 00:08:32,120 they ain't looking at the flesh they 245 00:08:30,680 --> 00:08:34,839 ain't looking at the way up the calf 246 00:08:32,120 --> 00:08:36,760 could he could gain 200 lb in two days I 247 00:08:34,839 --> 00:08:38,719 mean just off the feel and off of just a 248 00:08:36,760 --> 00:08:40,880 little bit of 101 care but he's still 249 00:08:38,719 --> 00:08:42,279 Stout enough to work so there's 250 00:08:40,880 --> 00:08:43,880 different different things like that 251 00:08:42,279 --> 00:08:45,760 that you want to look at on your in your 252 00:08:43,880 --> 00:08:47,360 buyer that to make sure that and there's 253 00:08:45,760 --> 00:08:49,040 there's bigger order buying companies 254 00:08:47,360 --> 00:08:50,440 out there that do a really good job of 255 00:08:49,040 --> 00:08:52,640 procuring cattle for you just do a 256 00:08:50,440 --> 00:08:54,240 little research I mean you know just go 257 00:08:52,640 --> 00:08:55,640 out there and research on on what you 258 00:08:54,240 --> 00:08:58,120 like what kind of cattle you want to run 259 00:08:55,640 --> 00:08:59,519 and get somebody you trust I mean we buy 260 00:08:58,120 --> 00:09:01,360 some cattle for guys in Oklahoma and I 261 00:08:59,519 --> 00:09:03,160 sell some C guys for some cattle for 262 00:09:01,360 --> 00:09:04,440 some guys up there that they buy cattle 263 00:09:03,160 --> 00:09:06,120 out of East and and they got a 264 00:09:04,440 --> 00:09:07,519 relationship with the guy they've been 265 00:09:06,120 --> 00:09:10,279 that guy's been buying their cattle for 266 00:09:07,519 --> 00:09:12,320 25 years I mean that's what you want you 267 00:09:10,279 --> 00:09:14,640 want to get that long-term relationship 268 00:09:12,320 --> 00:09:15,959 that's like you said on the last segment 269 00:09:14,640 --> 00:09:17,880 you don't want the guy that wants to 270 00:09:15,959 --> 00:09:19,600 make home runs hit home runs you want to 271 00:09:17,880 --> 00:09:23,560 base hit every time and that's what they 272 00:09:19,600 --> 00:09:25,839 do yep yep I agree 100% um okay so now 273 00:09:23,560 --> 00:09:28,720 we bought the cattle we've bought them 274 00:09:25,839 --> 00:09:30,760 right and we've we own them now so the 275 00:09:28,720 --> 00:09:32,640 next step in the process is uh 276 00:09:30,760 --> 00:09:36,079 operations management taking care of the 277 00:09:32,640 --> 00:09:39,040 animals so we're talking about cattle 278 00:09:36,079 --> 00:09:41,240 coming off pasture and going into a feed 279 00:09:39,040 --> 00:09:42,920 yard so whether that be a feed yard that 280 00:09:41,240 --> 00:09:45,760 you own yourself or you're going to put 281 00:09:42,920 --> 00:09:47,880 them in a feed yard I'm thinking you 282 00:09:45,760 --> 00:09:50,040 guys would agree that the relationship 283 00:09:47,880 --> 00:09:52,079 with that feed yard and knowing are they 284 00:09:50,040 --> 00:09:54,279 are they good at putting gain on cattle 285 00:09:52,079 --> 00:09:56,360 can they do it cost effective is there 286 00:09:54,279 --> 00:09:58,079 going to be much death loss what's the 287 00:09:56,360 --> 00:10:00,200 historics around death loss what's their 288 00:09:58,079 --> 00:10:02,320 average cost per day of feeding the the 289 00:10:00,200 --> 00:10:05,079 animals is that what you typically will 290 00:10:02,320 --> 00:10:07,519 look at I don't know about y'all but I I 291 00:10:05,079 --> 00:10:10,680 look at the manager first who who is 292 00:10:07,519 --> 00:10:12,160 baging that yard um get a relationship 293 00:10:10,680 --> 00:10:14,760 with who's the nutritionist who who 294 00:10:12,160 --> 00:10:17,680 tends to that part who who is the who 295 00:10:14,760 --> 00:10:19,680 helps with the vet and and the that side 296 00:10:17,680 --> 00:10:22,560 of the deal but the main thing is the 297 00:10:19,680 --> 00:10:24,600 manager um there are some really really 298 00:10:22,560 --> 00:10:26,880 good feed yard managers out there and 299 00:10:24,600 --> 00:10:28,519 and a lot of them but then there's some 300 00:10:26,880 --> 00:10:30,079 that you're like oh maybe we don't need 301 00:10:28,519 --> 00:10:32,279 to go back there 302 00:10:30,079 --> 00:10:34,800 um but that was to be the first thing I 303 00:10:32,279 --> 00:10:36,560 looked at if I was if I was going to 304 00:10:34,800 --> 00:10:38,800 transition to that to the FED cattle 305 00:10:36,560 --> 00:10:42,200 deal is who is managing that yard who's 306 00:10:38,800 --> 00:10:43,560 in charge um how does he handle his crew 307 00:10:42,200 --> 00:10:45,320 how how does he what do they what do 308 00:10:43,560 --> 00:10:47,040 they do with their B on their their 309 00:10:45,320 --> 00:10:49,279 feeding and their corn and and how do 310 00:10:47,040 --> 00:10:51,040 they manage that risk and and and all 311 00:10:49,279 --> 00:10:52,560 those things but the manager is a key 312 00:10:51,040 --> 00:10:54,560 thing in in one of those deals in my 313 00:10:52,560 --> 00:10:55,680 opinion yeah I think that and this is 314 00:10:54,560 --> 00:10:56,880 something that's always been very 315 00:10:55,680 --> 00:10:58,399 interesting to me because I've been 316 00:10:56,880 --> 00:11:00,160 having the opportunity to being I mean 317 00:10:58,399 --> 00:11:02,360 the vast majority of feed yards across 318 00:11:00,160 --> 00:11:03,959 the country um and there's lots of 319 00:11:02,360 --> 00:11:06,800 differences in feed yards there's some 320 00:11:03,959 --> 00:11:08,200 that um every fence post is painted uh 321 00:11:06,800 --> 00:11:09,560 there's some that don't have any and it 322 00:11:08,200 --> 00:11:12,200 doesn't really translate into the 323 00:11:09,560 --> 00:11:13,760 performance at the feed yard for sure um 324 00:11:12,200 --> 00:11:15,360 some guys I ask them a lot of times 325 00:11:13,760 --> 00:11:16,519 how'd you figure out about this place or 326 00:11:15,360 --> 00:11:18,440 where do you go when he talking about 327 00:11:16,519 --> 00:11:20,399 custom feed yards uh from that 328 00:11:18,440 --> 00:11:22,120 standpoint um and a lot of it's word of 329 00:11:20,399 --> 00:11:24,200 mouth and I think that's in a lot of the 330 00:11:22,120 --> 00:11:26,360 different businesses and so I think one 331 00:11:24,200 --> 00:11:28,639 big key piece of that is it goes back to 332 00:11:26,360 --> 00:11:29,839 what we talked about again and again uh 333 00:11:28,639 --> 00:11:31,760 building a relation ship with somebody 334 00:11:29,839 --> 00:11:34,560 you trust because there's somebody 335 00:11:31,760 --> 00:11:35,959 that's gr grayer hair than you uh and 336 00:11:34,560 --> 00:11:37,720 somebody that's a little bit longer in 337 00:11:35,959 --> 00:11:39,720 the tooth to you that's been through 338 00:11:37,720 --> 00:11:41,279 these different things and all of it is 339 00:11:39,720 --> 00:11:42,959 is trying to avoid some train wrecks 340 00:11:41,279 --> 00:11:44,480 right and so uh there's there's good 341 00:11:42,959 --> 00:11:47,040 ones I'll tell you that most of the good 342 00:11:44,480 --> 00:11:48,959 one most of the good feed yards are full 343 00:11:47,040 --> 00:11:50,560 uh because everybody sees that too you 344 00:11:48,959 --> 00:11:52,399 know and so that's hard to get into some 345 00:11:50,560 --> 00:11:54,279 of them uh but you got to try to find 346 00:11:52,399 --> 00:11:56,399 your way to line up into there so 347 00:11:54,279 --> 00:11:58,480 whatever geographic location you're in 348 00:11:56,399 --> 00:12:00,839 and so I think one big piece that I talk 349 00:11:58,480 --> 00:12:03,360 to my guys and I've got some feed yard 350 00:12:00,839 --> 00:12:04,800 or some guys that are in South Texas to 351 00:12:03,360 --> 00:12:06,120 where they don't want to feed cattle in 352 00:12:04,800 --> 00:12:08,320 the Panhandle they think it's better to 353 00:12:06,120 --> 00:12:11,320 go to Kansas and vice versa and it just 354 00:12:08,320 --> 00:12:12,760 goes back to bias um and and and and 355 00:12:11,320 --> 00:12:14,760 there's some guys that won't feed cattle 356 00:12:12,760 --> 00:12:16,160 outside of the State of Texas uh there's 357 00:12:14,760 --> 00:12:17,720 some guys in the north that'll never 358 00:12:16,160 --> 00:12:20,320 feed cattle in the South and a lot of 359 00:12:17,720 --> 00:12:21,920 that comes from history but um I think 360 00:12:20,320 --> 00:12:23,360 really just honing in and knowing your 361 00:12:21,920 --> 00:12:26,120 business and digging deep and trying to 362 00:12:23,360 --> 00:12:28,600 learn it um again I think it goes back 363 00:12:26,120 --> 00:12:32,000 to we can't kill the same set of cattle 364 00:12:28,600 --> 00:12:35,199 twice or the same set of cattle twice uh 365 00:12:32,000 --> 00:12:36,880 but I I have a tendency to lean on uh 366 00:12:35,199 --> 00:12:38,519 the network of people that you have in 367 00:12:36,880 --> 00:12:41,160 there whether that's with your 368 00:12:38,519 --> 00:12:43,920 nutritionist that you know uh knowing 369 00:12:41,160 --> 00:12:47,760 you you're as a banker you get to see uh 370 00:12:43,920 --> 00:12:50,760 definitely um under everybody's uh 371 00:12:47,760 --> 00:12:53,399 sheets I guess you'd say say skirt but 372 00:12:50,760 --> 00:12:55,600 she you pick one you know so you get to 373 00:12:53,399 --> 00:12:57,680 see you get to see a lot of things uh 374 00:12:55,600 --> 00:12:59,320 that a lot of people don't get to see um 375 00:12:57,680 --> 00:13:02,000 and so you get to see the good the bad 376 00:12:59,320 --> 00:13:03,399 ugly I guess you'd say yeah I'd agree 377 00:13:02,000 --> 00:13:05,560 with all that the only thing I guess I 378 00:13:03,399 --> 00:13:07,360 would add is when we're talking about 379 00:13:05,560 --> 00:13:10,040 feed yards everything you guys said is 380 00:13:07,360 --> 00:13:12,279 exactly 100% right the the other piece 381 00:13:10,040 --> 00:13:14,240 of that is making sure that that feed 382 00:13:12,279 --> 00:13:15,720 yard which the better ones always do is 383 00:13:14,240 --> 00:13:18,600 have the right record keeping that they 384 00:13:15,720 --> 00:13:20,959 can tell you what what is my cost of 385 00:13:18,600 --> 00:13:23,760 gain what you know on a monthly basis 386 00:13:20,959 --> 00:13:25,959 exactly you know what do my cattle weigh 387 00:13:23,760 --> 00:13:27,440 in these Lots what are they gaining what 388 00:13:25,959 --> 00:13:29,639 are they eating yeah what's the break 389 00:13:27,440 --> 00:13:31,040 even projection going to be you should 390 00:13:29,639 --> 00:13:33,160 be able to get all those reports and if 391 00:13:31,040 --> 00:13:35,720 you can't most likely that's going to 392 00:13:33,160 --> 00:13:37,720 cause you a problem down the road I 393 00:13:35,720 --> 00:13:39,880 would always laugh at my dad that Colin 394 00:13:37,720 --> 00:13:43,120 telling me got a set of cattle finish 395 00:13:39,880 --> 00:13:44,560 and what does he want to do he say what 396 00:13:43,120 --> 00:13:46,360 do you mean what do we want to do you 397 00:13:44,560 --> 00:13:48,399 got we got to sell them they're finished 398 00:13:46,360 --> 00:13:49,720 sell them let's go and I would always 399 00:13:48,399 --> 00:13:51,360 get tickled because his answer would be 400 00:13:49,720 --> 00:13:53,800 the same every time what do you mean 401 00:13:51,360 --> 00:13:55,120 what I want to do sell to some yeah 402 00:13:53,800 --> 00:13:56,680 they're scared to pull the trigger and 403 00:13:55,120 --> 00:13:58,519 sell the cattle cuz they're scared cuz 404 00:13:56,680 --> 00:14:00,399 the last guy chew chewed them out 405 00:13:58,519 --> 00:14:01,800 because they sold the cattle and your 406 00:14:00,399 --> 00:14:03,199 your your dad and those guys are 407 00:14:01,800 --> 00:14:05,000 thinking about man I need to get these 408 00:14:03,199 --> 00:14:06,880 cattle gone and the feed yard manager 409 00:14:05,000 --> 00:14:08,160 might be thinking a buck 100 which is 14 410 00:14:06,880 --> 00:14:09,519 bucks ahead or something you know and 411 00:14:08,160 --> 00:14:11,079 yeah we're want to send more so get them 412 00:14:09,519 --> 00:14:12,519 out of the way let's let's let's keep 413 00:14:11,079 --> 00:14:14,079 going let's keep rolling so well that 414 00:14:12,519 --> 00:14:16,759 was a that was a perfect segue into the 415 00:14:14,079 --> 00:14:21,320 next topic which is marketing cattle and 416 00:14:16,759 --> 00:14:23,880 uh so uh it's just as important as I 417 00:14:21,320 --> 00:14:26,079 believe as as buying the cattle so now 418 00:14:23,880 --> 00:14:27,839 you got to determine the day that you're 419 00:14:26,079 --> 00:14:29,240 going to sell them and you guys know all 420 00:14:27,839 --> 00:14:31,000 that better than I do so let's talk 421 00:14:29,240 --> 00:14:32,920 about that a little bit but as as part 422 00:14:31,000 --> 00:14:35,600 of a marketing strategy I wrap hedging 423 00:14:32,920 --> 00:14:37,600 strategy in there as well because that 424 00:14:35,600 --> 00:14:40,079 is part of your marketing strategy it's 425 00:14:37,600 --> 00:14:41,160 not just risk management you're deciding 426 00:14:40,079 --> 00:14:43,040 when you pull the trigger on those 427 00:14:41,160 --> 00:14:44,480 Hedges basically you're making a sale 428 00:14:43,040 --> 00:14:47,360 whether those cattle are still in the 429 00:14:44,480 --> 00:14:49,680 feed yard pin or not so let's talk about 430 00:14:47,360 --> 00:14:51,600 that a little bit because I think that's 431 00:14:49,680 --> 00:14:54,639 every every bit of this is equally as 432 00:14:51,600 --> 00:14:57,360 important so let let's expand a little 433 00:14:54,639 --> 00:14:59,959 bit on the marketing strategy and and 434 00:14:57,360 --> 00:15:01,279 well Ty what you see Falls that'd be a 435 00:14:59,959 --> 00:15:03,680 little bit of different marketing 436 00:15:01,279 --> 00:15:05,880 strategy on on grazing cattle and wheat 437 00:15:03,680 --> 00:15:08,120 cattle and stuff and then I would let 438 00:15:05,880 --> 00:15:09,680 Casey touch on the marketing strategy of 439 00:15:08,120 --> 00:15:11,399 of the fat cattle and the FED cattle I 440 00:15:09,680 --> 00:15:13,320 mean because that's a kind of a it's two 441 00:15:11,399 --> 00:15:15,720 different two different sets of the 442 00:15:13,320 --> 00:15:17,800 industry so as far as the the grass 443 00:15:15,720 --> 00:15:19,680 cattle and the wheat cattle a lot of 444 00:15:17,800 --> 00:15:21,920 that's predictability of when you want 445 00:15:19,680 --> 00:15:24,040 to ship ship them is is predicted by 446 00:15:21,920 --> 00:15:25,959 weather and especially if you're doing 447 00:15:24,040 --> 00:15:27,480 weed or grass I mean if you got a grow 448 00:15:25,959 --> 00:15:28,519 yard setting it's a little different 449 00:15:27,480 --> 00:15:31,720 however long you want to keep them how 450 00:15:28,519 --> 00:15:33,319 big you want get them get with a program 451 00:15:31,720 --> 00:15:34,360 get it if you're doing a grow yard deal 452 00:15:33,319 --> 00:15:37,360 stick with a 453 00:15:34,360 --> 00:15:39,399 program get get a reputation going okay 454 00:15:37,360 --> 00:15:42,480 this guy keeps his cattle 7580 days he 455 00:15:39,399 --> 00:15:45,120 makes them way 750 to 775 he's going to 456 00:15:42,480 --> 00:15:46,839 have a good set of cattle every 75 to 8 457 00:15:45,120 --> 00:15:48,920 days or five loads or 10 loads whatever 458 00:15:46,839 --> 00:15:50,880 your whatever your deal is but get with 459 00:15:48,920 --> 00:15:52,240 a program and it don't matter whether 460 00:15:50,880 --> 00:15:53,880 you're you're selling them to an 461 00:15:52,240 --> 00:15:57,319 individual or you're selling them on a 462 00:15:53,880 --> 00:15:59,319 video sale or how you're Market them but 463 00:15:57,319 --> 00:16:00,839 you you got to build your reputation 464 00:15:59,319 --> 00:16:02,800 when you build that reputation up the 465 00:16:00,839 --> 00:16:04,120 marketing of the cattle gets easier 466 00:16:02,800 --> 00:16:05,720 because everybody wants them because 467 00:16:04,120 --> 00:16:07,920 they know how they're going to perform 468 00:16:05,720 --> 00:16:09,120 well let take that back everybody either 469 00:16:07,920 --> 00:16:10,480 wants them because they know what 470 00:16:09,120 --> 00:16:12,720 they're going to do or they don't want 471 00:16:10,480 --> 00:16:14,079 them so if they don't want them then you 472 00:16:12,720 --> 00:16:16,040 need to change something you're going to 473 00:16:14,079 --> 00:16:17,480 have to adapt so if you if you see 474 00:16:16,040 --> 00:16:19,240 yourself struggling of getting your 475 00:16:17,480 --> 00:16:21,000 cattle sold maybe you need to reflect 476 00:16:19,240 --> 00:16:23,240 and say okay what do I need to do 477 00:16:21,000 --> 00:16:24,480 different maybe ask them guys why didn't 478 00:16:23,240 --> 00:16:26,720 they like them why aren't they not 479 00:16:24,480 --> 00:16:28,319 coming back did they feed bad so do I 480 00:16:26,720 --> 00:16:29,839 need to do I need to lighten up my 481 00:16:28,319 --> 00:16:31,199 ration where I'm not getting them so fat 482 00:16:29,839 --> 00:16:32,040 do I need to keep a little bit more 483 00:16:31,199 --> 00:16:34,160 condition on them where they're 484 00:16:32,040 --> 00:16:35,639 performing at the next level those are 485 00:16:34,160 --> 00:16:37,759 things that you need to ask yourself if 486 00:16:35,639 --> 00:16:39,519 you're having trouble marketing them um 487 00:16:37,759 --> 00:16:42,240 the grass cattle and the wheat cattle it 488 00:16:39,519 --> 00:16:44,880 all depends on like I said the weather 489 00:16:42,240 --> 00:16:46,680 um but you can you know a lot of the 490 00:16:44,880 --> 00:16:48,000 grass cattle come off the wheat deal if 491 00:16:46,680 --> 00:16:49,639 you got to come off your early grze I 492 00:16:48,000 --> 00:16:51,160 mean your your harvest wheat you got to 493 00:16:49,639 --> 00:16:54,360 come off in March April and then your 494 00:16:51,160 --> 00:16:55,160 grze out April May so just just form you 495 00:16:54,360 --> 00:16:57,360 a 496 00:16:55,160 --> 00:17:00,720 strategy we like to stay ahead of the 497 00:16:57,360 --> 00:17:02,519 market cuz it's here lately it's been 498 00:17:00,720 --> 00:17:04,839 the closer you get to your delivery date 499 00:17:02,519 --> 00:17:07,160 the tighter it is the tighter pin space 500 00:17:04,839 --> 00:17:10,919 is so you know I'm kind of telling my 501 00:17:07,160 --> 00:17:12,959 guys to say try to stay 45 60 days out 502 00:17:10,919 --> 00:17:15,079 uh on some of their on some of their out 503 00:17:12,959 --> 00:17:17,319 deliveries there's some guys that they 504 00:17:15,079 --> 00:17:18,439 can't do that uh they got to get them up 505 00:17:17,319 --> 00:17:20,000 they got to get them in they got to sort 506 00:17:18,439 --> 00:17:22,480 them they got to know what they got so 507 00:17:20,000 --> 00:17:24,120 that's a two week sale but the rest of 508 00:17:22,480 --> 00:17:25,720 them guys where they've run the same 509 00:17:24,120 --> 00:17:27,400 kind of set of cattle for the last 510 00:17:25,720 --> 00:17:28,480 several years they know they kind of can 511 00:17:27,400 --> 00:17:30,320 predict what they're going to do they 512 00:17:28,480 --> 00:17:33,480 can predict their outdate if they get 513 00:17:30,320 --> 00:17:34,799 the weather right so you you got to stay 514 00:17:33,480 --> 00:17:36,960 if you'll stay out a little bit this 515 00:17:34,799 --> 00:17:38,799 Market will it's a little bit easier to 516 00:17:36,960 --> 00:17:40,679 sell them and Market them and if you 517 00:17:38,799 --> 00:17:43,200 feel like you got more outs because 518 00:17:40,679 --> 00:17:44,280 people aren't space isn't so tight so 519 00:17:43,200 --> 00:17:46,600 that's what we've been feeling here 520 00:17:44,280 --> 00:17:47,400 lately anyways on selling those cattle 521 00:17:46,600 --> 00:17:49,200 yeah so I'm going to say on a 522 00:17:47,400 --> 00:17:51,160 flexibility standpoint let's stay on 523 00:17:49,200 --> 00:17:52,679 wheat pasture cattle and grass cattle un 524 00:17:51,160 --> 00:17:55,600 let's really specifically talk about 525 00:17:52,679 --> 00:17:56,799 wheat Pastor cattle so we generally buy 526 00:17:55,600 --> 00:17:58,280 those things when the wheat starts 527 00:17:56,799 --> 00:17:59,240 popping up right cuz we don't know if 528 00:17:58,280 --> 00:18:01,000 we're going to get some some rains 529 00:17:59,240 --> 00:18:03,080 unless you're irrigated obviously but in 530 00:18:01,000 --> 00:18:04,799 Dryland wheat country uh you get the 531 00:18:03,080 --> 00:18:06,559 cattle bought uh you get those cattle 532 00:18:04,799 --> 00:18:07,919 bought in the fall uh we start getting 533 00:18:06,559 --> 00:18:10,480 the wheat popped up we kicked those 534 00:18:07,919 --> 00:18:12,240 things out uh you know Lord willing the 535 00:18:10,480 --> 00:18:13,640 the rains come and the wheat comes and 536 00:18:12,240 --> 00:18:15,600 everything's great like we got a year 537 00:18:13,640 --> 00:18:18,039 like this where you got tons of wheat uh 538 00:18:15,600 --> 00:18:20,960 you got lots of flexibility uh what I 539 00:18:18,039 --> 00:18:22,840 try to do with most guys um and let's 540 00:18:20,960 --> 00:18:24,000 talk about you know you have two periods 541 00:18:22,840 --> 00:18:25,400 where you're going to Market them cattle 542 00:18:24,000 --> 00:18:28,039 March and may right whether you're going 543 00:18:25,400 --> 00:18:29,520 to you know pull them cattle off early 544 00:18:28,039 --> 00:18:31,919 and harvest the we or you going to graze 545 00:18:29,520 --> 00:18:34,200 the kettle out and graze the wheat out 546 00:18:31,919 --> 00:18:35,400 um you got some flexibility there let's 547 00:18:34,200 --> 00:18:36,559 say we're talking about a graze out 548 00:18:35,400 --> 00:18:37,840 wheat pasture deal where you're going to 549 00:18:36,559 --> 00:18:40,559 have some cattle that are coming off in 550 00:18:37,840 --> 00:18:42,240 May where I start to combine and this 551 00:18:40,559 --> 00:18:44,320 just goes back to whatever size you're 552 00:18:42,240 --> 00:18:46,600 at let's say I'm straight wheat pasture 553 00:18:44,320 --> 00:18:49,360 guy this lrp has been tremendous for 554 00:18:46,600 --> 00:18:52,440 that uh what it's been tremendous for is 555 00:18:49,360 --> 00:18:54,240 the vast majority of the years uh the 556 00:18:52,440 --> 00:18:56,200 longer you wait to sell the cattle the 557 00:18:54,240 --> 00:18:57,280 worse the market is now this year likely 558 00:18:56,200 --> 00:18:59,120 is going to shape up a little bit 559 00:18:57,280 --> 00:19:00,799 different than that it feels it feels 560 00:18:59,120 --> 00:19:02,720 like as we turn the calendar the market 561 00:19:00,799 --> 00:19:04,280 just goes higher so uh but most years 562 00:19:02,720 --> 00:19:06,559 aren't like that so seasonally the 563 00:19:04,280 --> 00:19:08,320 market uh puts a peak in kind of in the 564 00:19:06,559 --> 00:19:09,919 January time period and then it 565 00:19:08,320 --> 00:19:11,640 seasonally breaks going into the May 566 00:19:09,919 --> 00:19:13,559 time period so a lot of times what I 567 00:19:11,640 --> 00:19:15,520 recommend to guys TI is like try to 568 00:19:13,559 --> 00:19:17,280 forward sell them weat pasture cattle 569 00:19:15,520 --> 00:19:19,440 you know for the grze out time period if 570 00:19:17,280 --> 00:19:22,520 it looks like the Wheats there um and 571 00:19:19,440 --> 00:19:24,840 then buy an lrp policy that uh that exp 572 00:19:22,520 --> 00:19:26,559 we buy the lrp policy first that expires 573 00:19:24,840 --> 00:19:28,760 in that March April May time period 574 00:19:26,559 --> 00:19:30,640 whichever whatever fits you uh whatever 575 00:19:28,760 --> 00:19:32,520 price period you like there and then we 576 00:19:30,640 --> 00:19:34,120 start to look for an opportunity to sell 577 00:19:32,520 --> 00:19:37,159 those cattle as the market kind of Peaks 578 00:19:34,120 --> 00:19:39,280 out if the market stays low we drag our 579 00:19:37,159 --> 00:19:41,159 feet because the security that lrp 580 00:19:39,280 --> 00:19:43,200 policy allows us that confidence to 581 00:19:41,159 --> 00:19:45,280 continue to do that if the markets at a 582 00:19:43,200 --> 00:19:46,520 raging high like we are right now maybe 583 00:19:45,280 --> 00:19:48,400 you go ahead and sell the cattle and 584 00:19:46,520 --> 00:19:51,080 take the profit where you're at uh and 585 00:19:48,400 --> 00:19:53,240 then you still have that lrp policy in 586 00:19:51,080 --> 00:19:55,880 place and so I think from a from a wheat 587 00:19:53,240 --> 00:19:58,200 pasture grass deal that's the that gives 588 00:19:55,880 --> 00:19:59,520 us uh the lrp allows us to have that 589 00:19:58,200 --> 00:20:01,320 security 590 00:19:59,520 --> 00:20:03,559 um and then have the flexibility to sell 591 00:20:01,320 --> 00:20:05,960 the cattle whenever it works 592 00:20:03,559 --> 00:20:08,919 yeah perfect perfect another one of them 593 00:20:05,960 --> 00:20:11,600 awkward silences again so let's talk 594 00:20:08,919 --> 00:20:12,919 about marketing fat cattle okay so we're 595 00:20:11,600 --> 00:20:14,320 going to talk about marketing fat cattle 596 00:20:12,919 --> 00:20:16,320 for a second because we kind of combined 597 00:20:14,320 --> 00:20:19,000 both these things together so marketing 598 00:20:16,320 --> 00:20:20,960 fat cattle I think that goes back to uh 599 00:20:19,000 --> 00:20:23,120 the feed yard and the relationship that 600 00:20:20,960 --> 00:20:24,480 that feedy yard has so you might have 601 00:20:23,120 --> 00:20:27,559 some feed yards that are just going to 602 00:20:24,480 --> 00:20:29,440 be a Straight Cash seller um and there's 603 00:20:27,559 --> 00:20:31,159 fewer and fewer of those as we've all 604 00:20:29,440 --> 00:20:33,799 been aware of over time but there's a 605 00:20:31,159 --> 00:20:35,600 handful of those guys in all areas that 606 00:20:33,799 --> 00:20:37,320 straight up sell cash cattle so if 607 00:20:35,600 --> 00:20:39,200 you're a producer that loves that side 608 00:20:37,320 --> 00:20:41,120 of it and you want the cash Market you 609 00:20:39,200 --> 00:20:43,919 find a feed yard that does there you 610 00:20:41,120 --> 00:20:45,880 tendency you have a tendency to have uh 611 00:20:43,919 --> 00:20:49,919 more say and what you want for your 612 00:20:45,880 --> 00:20:51,400 cattle um from that standpoint uh but 613 00:20:49,919 --> 00:20:52,799 obviously sometimes that could run to 614 00:20:51,400 --> 00:20:54,640 your detriment as well like you talked 615 00:20:52,799 --> 00:20:56,640 about with your dad wanting to you know 616 00:20:54,640 --> 00:20:58,080 just go ahead and sell the cattle uh 617 00:20:56,640 --> 00:21:00,120 they got other feed yards that what I 618 00:20:58,080 --> 00:21:01,799 would refer to to his own formula uh and 619 00:21:00,120 --> 00:21:03,520 those formulas are different at 620 00:21:01,799 --> 00:21:05,480 different feed yards they're all vastly 621 00:21:03,520 --> 00:21:07,360 different uh but by and large they all 622 00:21:05,480 --> 00:21:09,320 do the same thing and they reward cattle 623 00:21:07,360 --> 00:21:11,400 that are better from a cutability 624 00:21:09,320 --> 00:21:12,840 standpoint and a yield standpoint and 625 00:21:11,400 --> 00:21:15,000 the ones that grade more they they 626 00:21:12,840 --> 00:21:16,360 reward those and then uh so if you got 627 00:21:15,000 --> 00:21:17,880 cattle that are really really good and 628 00:21:16,360 --> 00:21:19,840 you've gone back and bought really 629 00:21:17,880 --> 00:21:21,240 high-end frontend cattle uh from a 630 00:21:19,840 --> 00:21:23,440 conventional standpoint you might want 631 00:21:21,240 --> 00:21:25,720 to grid those uh so that you get the 632 00:21:23,440 --> 00:21:27,039 reward for that so different feed yards 633 00:21:25,720 --> 00:21:29,120 there and again you can ask all the 634 00:21:27,039 --> 00:21:31,080 questions and figure out where to go and 635 00:21:29,120 --> 00:21:32,480 uh where to what what who has what grids 636 00:21:31,080 --> 00:21:35,600 and different Packers have different 637 00:21:32,480 --> 00:21:37,760 scenarios based on Geographic locations 638 00:21:35,600 --> 00:21:39,200 uh from a hedging stpoint and so this is 639 00:21:37,760 --> 00:21:41,320 where I probably we'll probably dig a 640 00:21:39,200 --> 00:21:43,039 Little Deeper on this uh we start to get 641 00:21:41,320 --> 00:21:45,360 a bit a little bit more complex and 642 00:21:43,039 --> 00:21:48,960 really what I try to do is is is 643 00:21:45,360 --> 00:21:51,320 depending on the size of the producer um 644 00:21:48,960 --> 00:21:53,240 the exposure that the producer has we 645 00:21:51,320 --> 00:21:55,200 got varying different risk management 646 00:21:53,240 --> 00:21:56,720 strategies that are in place what I 647 00:21:55,200 --> 00:21:58,120 always recommend is if a guy's got a 648 00:21:56,720 --> 00:21:59,559 couple of pin of cattle or like let's 649 00:21:58,120 --> 00:22:01,440 say it's less than a thousand head of 650 00:21:59,559 --> 00:22:04,240 cattle I'm probably going to push those 651 00:22:01,440 --> 00:22:06,039 guys predominantly to use a forward 652 00:22:04,240 --> 00:22:08,440 contract um to where they don't have a 653 00:22:06,039 --> 00:22:10,440 margin call uh they they can go to the 654 00:22:08,440 --> 00:22:12,240 you know Packer through their feed yard 655 00:22:10,440 --> 00:22:14,400 and just forward sell those cattle on a 656 00:22:12,240 --> 00:22:16,600 basis trade uh and go ahead and price 657 00:22:14,400 --> 00:22:19,400 them and they're just locked in as we 658 00:22:16,600 --> 00:22:21,960 start to get bigger uh you know 500,000 659 00:22:19,400 --> 00:22:24,120 2500 head of cattle we start to get into 660 00:22:21,960 --> 00:22:26,000 more in-depth risk management plans 661 00:22:24,120 --> 00:22:28,960 where we we're using a comprehensive 662 00:22:26,000 --> 00:22:30,720 approach using lrp Liv stock risk 663 00:22:28,960 --> 00:22:33,080 protection 664 00:22:30,720 --> 00:22:34,760 insurance the thing that's synonymous 665 00:22:33,080 --> 00:22:35,799 with that are the same or very similar 666 00:22:34,760 --> 00:22:38,360 as a put 667 00:22:35,799 --> 00:22:40,760 option um we start to get into where we 668 00:22:38,360 --> 00:22:42,640 have brokerage accounts uh managing 669 00:22:40,760 --> 00:22:45,159 margin calls and things like that with 670 00:22:42,640 --> 00:22:48,200 options and Futures uh we start to take 671 00:22:45,159 --> 00:22:49,440 a very hybrid approach between lrp which 672 00:22:48,200 --> 00:22:52,960 is the livestock risk protection 673 00:22:49,440 --> 00:22:55,120 insurance and options short calls 674 00:22:52,960 --> 00:22:56,880 Futures and different things like that 675 00:22:55,120 --> 00:22:58,279 so I'm not going to bore people with 676 00:22:56,880 --> 00:23:00,480 what all those things are cuz we could 677 00:22:58,279 --> 00:23:02,039 get down a big time Rabbit Hole uh but 678 00:23:00,480 --> 00:23:04,400 taking a very very you know a 679 00:23:02,039 --> 00:23:07,880 level-headed approach based on 680 00:23:04,400 --> 00:23:09,559 seasonality timing market prices and 681 00:23:07,880 --> 00:23:11,559 trying to achieve the goals that you 682 00:23:09,559 --> 00:23:13,600 have there so what I would say is find 683 00:23:11,559 --> 00:23:15,559 whoever you have comfort in it doesn't 684 00:23:13,600 --> 00:23:17,080 have to be me or uh it could be whoever 685 00:23:15,559 --> 00:23:18,720 you're comfortable with uh who you can 686 00:23:17,080 --> 00:23:21,679 sit down and have a really deep in depth 687 00:23:18,720 --> 00:23:24,520 conversation with who you like uh 688 00:23:21,679 --> 00:23:25,960 generally speaking um and who's willing 689 00:23:24,520 --> 00:23:28,600 to sit down and have that conversation 690 00:23:25,960 --> 00:23:32,880 with you on what fits your specific 691 00:23:28,600 --> 00:23:36,559 needs um but you mentioned uh as far as 692 00:23:32,880 --> 00:23:38,600 the banking side of things go um how you 693 00:23:36,559 --> 00:23:40,159 know managing margin calls and different 694 00:23:38,600 --> 00:23:41,880 things like that from a from a sector we 695 00:23:40,159 --> 00:23:43,440 might get into that here in a minute but 696 00:23:41,880 --> 00:23:44,919 uh just making sure you have all of 697 00:23:43,440 --> 00:23:47,279 those things in place and somebody can 698 00:23:44,919 --> 00:23:49,480 help you understand that yeah exactly I 699 00:23:47,279 --> 00:23:53,039 I think what you said is there Casey is 700 00:23:49,480 --> 00:23:55,840 the key is the more complicated the the 701 00:23:53,039 --> 00:23:57,559 uh the hedging strategy is the more you 702 00:23:55,840 --> 00:24:01,200 need to rely on the relationship you 703 00:23:57,559 --> 00:24:03,520 have with your broker and really really 704 00:24:01,200 --> 00:24:05,240 having that person explain it manage it 705 00:24:03,520 --> 00:24:07,559 some of these hedging strategies are 706 00:24:05,240 --> 00:24:10,480 fairly simple I I would say some of them 707 00:24:07,559 --> 00:24:13,080 are very very complex and if you're 708 00:24:10,480 --> 00:24:16,320 trying to do it yourself because you 709 00:24:13,080 --> 00:24:18,240 know you watching CNBC that day and 710 00:24:16,320 --> 00:24:19,640 heard some crazy strategy next thing you 711 00:24:18,240 --> 00:24:23,480 know you might not be hedged and you 712 00:24:19,640 --> 00:24:24,960 thought you were so I think certainly as 713 00:24:23,480 --> 00:24:26,279 it gets more complicated those 714 00:24:24,960 --> 00:24:27,799 strategies you got to rely on a 715 00:24:26,279 --> 00:24:28,799 professional that's what I would say on 716 00:24:27,799 --> 00:24:30,200 that yeah and there's been a lot of 717 00:24:28,799 --> 00:24:31,559 times where I'll get on I tell my guys 718 00:24:30,200 --> 00:24:33,399 all the time like hey get your Banker on 719 00:24:31,559 --> 00:24:34,919 the phone let's talk about this because 720 00:24:33,399 --> 00:24:36,960 the last thing that I ever want to get 721 00:24:34,919 --> 00:24:38,919 is to a position to where we have to we 722 00:24:36,960 --> 00:24:41,200 have a plan everything's great we have a 723 00:24:38,919 --> 00:24:43,039 strategy it's all great Market goes one 724 00:24:41,200 --> 00:24:44,080 way or the other and then we have to do 725 00:24:43,039 --> 00:24:46,960 something different because of 726 00:24:44,080 --> 00:24:49,000 constraints and so uh I mean I'm going 727 00:24:46,960 --> 00:24:51,320 to tell you this like get get your 728 00:24:49,000 --> 00:24:52,919 Banker on the phone with your broker uh 729 00:24:51,320 --> 00:24:55,600 get your Banker on your phone with your 730 00:24:52,919 --> 00:24:56,880 feed yard making sure that all of those 731 00:24:55,600 --> 00:24:58,880 things are good because you could have a 732 00:24:56,880 --> 00:25:02,279 plan in place and then things go right 733 00:24:58,880 --> 00:25:03,679 exactly so the first three steps are 734 00:25:02,279 --> 00:25:04,559 really the exciting part of the cattle 735 00:25:03,679 --> 00:25:06,240 business right that's what every 736 00:25:04,559 --> 00:25:07,880 producer likes loves to buy cattle loves 737 00:25:06,240 --> 00:25:09,640 to raise cattle loves to sell cattle 738 00:25:07,880 --> 00:25:10,880 that's what we've talked about so far 739 00:25:09,640 --> 00:25:12,840 well these last two steps are what 740 00:25:10,880 --> 00:25:15,720 everybody hates the worst and I don't 741 00:25:12,840 --> 00:25:18,640 even like it I'm a banker that's 742 00:25:15,720 --> 00:25:20,000 recordkeeping and uh financial reporting 743 00:25:18,640 --> 00:25:21,919 which kind of go hand inand but it 744 00:25:20,000 --> 00:25:23,760 really is two separate steps the reason 745 00:25:21,919 --> 00:25:26,120 I break them up is because the 746 00:25:23,760 --> 00:25:28,559 recordkeeping part is really internal 747 00:25:26,120 --> 00:25:31,120 you're as a as a business owner owner 748 00:25:28,559 --> 00:25:33,080 and an operator or trying to determine 749 00:25:31,120 --> 00:25:35,919 what records do I need to manage my 750 00:25:33,080 --> 00:25:38,840 business and what records do I need to 751 00:25:35,919 --> 00:25:41,039 show my accountant show my banker Etc so 752 00:25:38,840 --> 00:25:42,919 they can do the financial reporting and 753 00:25:41,039 --> 00:25:44,279 when we're talking about cattle feeding 754 00:25:42,919 --> 00:25:45,720 there's lots of different ways you could 755 00:25:44,279 --> 00:25:48,240 do it you could do it on a notebook 756 00:25:45,720 --> 00:25:50,159 paper you can buy software you could 757 00:25:48,240 --> 00:25:52,320 hire a bookkeeper to do it for you so 758 00:25:50,159 --> 00:25:54,399 there's many many ways to do it I think 759 00:25:52,320 --> 00:25:56,200 the only point I want to make there is 760 00:25:54,399 --> 00:25:57,240 you need you really need to think about 761 00:25:56,200 --> 00:25:59,000 where are you trying to take your 762 00:25:57,240 --> 00:26:02,360 business long term and if you're going 763 00:25:59,000 --> 00:26:04,640 to scale it up then put yourself in a 764 00:26:02,360 --> 00:26:06,919 position as you're making these 765 00:26:04,640 --> 00:26:09,399 decisions that whatever recordkeeping 766 00:26:06,919 --> 00:26:11,039 that you have it's going to work on your 767 00:26:09,399 --> 00:26:12,760 business for let's say the next five 768 00:26:11,039 --> 00:26:15,679 years so if you don't really intend to 769 00:26:12,760 --> 00:26:17,880 grow maybe you don't need a uh you know 770 00:26:15,679 --> 00:26:21,240 sophisticated recordkeeping strategy but 771 00:26:17,880 --> 00:26:23,880 if you plan to grow from say 200 head to 772 00:26:21,240 --> 00:26:26,360 you know 2,000 head or 5,000 head or 773 00:26:23,880 --> 00:26:28,919 10,000 head or whatever you probably 774 00:26:26,360 --> 00:26:31,880 want to make sure you've got the the 775 00:26:28,919 --> 00:26:33,159 right systems in place early on so that 776 00:26:31,880 --> 00:26:34,919 you could scale your business and you 777 00:26:33,159 --> 00:26:36,600 don't have to worry about that you know 778 00:26:34,919 --> 00:26:38,600 a year or two down the road because it's 779 00:26:36,600 --> 00:26:39,840 it's it's costly to put those in place 780 00:26:38,600 --> 00:26:42,880 and there's also a lot of training 781 00:26:39,840 --> 00:26:44,159 involved so I I just think that that's 782 00:26:42,880 --> 00:26:46,360 very important because everybody's going 783 00:26:44,159 --> 00:26:48,760 to be asking you for these records and 784 00:26:46,360 --> 00:26:51,039 they need to be accurate they need to be 785 00:26:48,760 --> 00:26:53,080 timely especially when we're talking 786 00:26:51,039 --> 00:26:55,120 about a banking relationship so we 787 00:26:53,080 --> 00:26:57,840 talked about borrowing based reports 788 00:26:55,120 --> 00:26:59,120 when we met last time and those reports 789 00:26:57,840 --> 00:27:01,440 really are not not that hard to do but 790 00:26:59,120 --> 00:27:03,120 they need to be accurate and it's 791 00:27:01,440 --> 00:27:06,120 important for you to know what is my 792 00:27:03,120 --> 00:27:08,559 cost of gain what what am I spending to 793 00:27:06,120 --> 00:27:10,039 uh to feed these pasture cattle or or 794 00:27:08,559 --> 00:27:12,080 whatever on their cost of gain that's a 795 00:27:10,039 --> 00:27:16,159 little different than cattle in the feed 796 00:27:12,080 --> 00:27:17,919 yard so I I make that point to say make 797 00:27:16,159 --> 00:27:20,760 sure whatever you're doing is accurate 798 00:27:17,919 --> 00:27:23,000 and you can do it timely and you said I 799 00:27:20,760 --> 00:27:25,880 think there's several of those good 800 00:27:23,000 --> 00:27:28,679 record keeping marketing tools out there 801 00:27:25,880 --> 00:27:30,720 um that they they've developed them and 802 00:27:28,679 --> 00:27:32,360 and they're really good at what they do 803 00:27:30,720 --> 00:27:34,039 um and if those guys ever want to 804 00:27:32,360 --> 00:27:35,720 advertise or something with us would 805 00:27:34,039 --> 00:27:38,200 would we would love for you to advertise 806 00:27:35,720 --> 00:27:40,320 on the podcast so just look up Katie but 807 00:27:38,200 --> 00:27:42,120 those recordkeeping deals are fabulous 808 00:27:40,320 --> 00:27:44,200 to use I mean just to be able to put 809 00:27:42,120 --> 00:27:46,120 your inputs in and and they have it all 810 00:27:44,200 --> 00:27:47,440 lined out for you they got good training 811 00:27:46,120 --> 00:27:49,080 they can train you on what to do they 812 00:27:47,440 --> 00:27:50,960 can train you how to put your inputs in 813 00:27:49,080 --> 00:27:52,880 there and then it tells you how to do it 814 00:27:50,960 --> 00:27:54,760 all I mean and then it figures it all 815 00:27:52,880 --> 00:27:56,399 for you then and that's something that 816 00:27:54,760 --> 00:27:58,360 your banker and your accountant would 817 00:27:56,399 --> 00:28:00,519 love for you especially if you're SC in 818 00:27:58,360 --> 00:28:03,240 your program up going from 500 to 1,000 819 00:28:00,519 --> 00:28:05,120 or th000 to 2,000 or whatever you have 820 00:28:03,240 --> 00:28:08,519 to have some kind of recordkeeping 821 00:28:05,120 --> 00:28:10,880 system and and you're right that if you 822 00:28:08,519 --> 00:28:13,120 want to research those and go find you a 823 00:28:10,880 --> 00:28:14,840 good one they're out there yep yep yeah 824 00:28:13,120 --> 00:28:16,360 I've got some customers that I mean one 825 00:28:14,840 --> 00:28:18,559 in particular that that guy spends two 826 00:28:16,360 --> 00:28:19,880 or three hours a night going through his 827 00:28:18,559 --> 00:28:21,240 records and making sure it's there and 828 00:28:19,880 --> 00:28:23,760 he does everything pen and paper and 829 00:28:21,240 --> 00:28:25,399 it's a fairly young guy not many people 830 00:28:23,760 --> 00:28:26,880 have the opportunity or the time to do 831 00:28:25,399 --> 00:28:28,960 that especially if you're want to grow 832 00:28:26,880 --> 00:28:30,360 and push and things like that so I mean 833 00:28:28,960 --> 00:28:31,960 a lot of the stuff's automated and then 834 00:28:30,360 --> 00:28:34,120 the days of AI there's probably even 835 00:28:31,960 --> 00:28:35,519 it's easier than what it is and so if 836 00:28:34,120 --> 00:28:37,840 you got any kind of personality type 837 00:28:35,519 --> 00:28:39,960 like I do you need a system I mean for 838 00:28:37,840 --> 00:28:41,320 sure uh that way you could just easily 839 00:28:39,960 --> 00:28:42,880 see it and kind of snow where you're 840 00:28:41,320 --> 00:28:45,880 sitting right there you know so like a 841 00:28:42,880 --> 00:28:47,240 reporting system yeah and then so the 842 00:28:45,880 --> 00:28:49,679 the last piece of that is is the 843 00:28:47,240 --> 00:28:50,720 financial reporting piece it's really 844 00:28:49,679 --> 00:28:53,559 that's likely going to be your 845 00:28:50,720 --> 00:28:55,440 accountant because most you know and I 846 00:28:53,559 --> 00:28:56,720 will say you know we talked about this 847 00:28:55,440 --> 00:28:57,720 is a younger operator we're talking 848 00:28:56,720 --> 00:28:58,760 about probably that's trying to grow 849 00:28:57,720 --> 00:29:01,720 their business business is where we 850 00:28:58,760 --> 00:29:02,919 started this and we haven't said one 851 00:29:01,720 --> 00:29:05,480 word about having to go out and hire 852 00:29:02,919 --> 00:29:07,159 somebody yet so I'm not saying you need 853 00:29:05,480 --> 00:29:08,919 to go hire five people to do these 854 00:29:07,159 --> 00:29:10,240 things you may be able to do them all 855 00:29:08,919 --> 00:29:12,480 yourself if you have the right 856 00:29:10,240 --> 00:29:15,600 relationships with a commodity broker 857 00:29:12,480 --> 00:29:17,440 with a with a cattle buyer with a banker 858 00:29:15,600 --> 00:29:19,039 so and and you have the right software 859 00:29:17,440 --> 00:29:20,960 so we haven't talked at all about having 860 00:29:19,039 --> 00:29:22,919 to hire somebody till now which would 861 00:29:20,960 --> 00:29:25,120 probably be an accountant MH and the 862 00:29:22,919 --> 00:29:27,320 reason that you you think well that's 863 00:29:25,120 --> 00:29:29,360 pretty simple but it's not really and 864 00:29:27,320 --> 00:29:30,880 the reason is is because you probably 865 00:29:29,360 --> 00:29:32,399 need especially if you're going to grow 866 00:29:30,880 --> 00:29:35,360 your cattle business somebody that's 867 00:29:32,399 --> 00:29:37,919 very familiar with not only the cattle 868 00:29:35,360 --> 00:29:39,640 industry but cattle feeding in general 869 00:29:37,919 --> 00:29:41,120 because that's a a cattle feeder 870 00:29:39,640 --> 00:29:42,320 somebody that's turning cattle a lot 871 00:29:41,120 --> 00:29:44,080 that's a lot different than somebody 872 00:29:42,320 --> 00:29:46,240 that's just has a cal calf operation and 873 00:29:44,080 --> 00:29:47,799 maybe they sell Cavs once a year that's 874 00:29:46,240 --> 00:29:50,240 yeah and and you have to have the right 875 00:29:47,799 --> 00:29:52,480 account that's experienced in uh in that 876 00:29:50,240 --> 00:29:54,519 type of work so what I'd recommend there 877 00:29:52,480 --> 00:29:56,919 is you know talk to your your friends 878 00:29:54,519 --> 00:30:00,600 and neighbors find out who who's good at 879 00:29:56,919 --> 00:30:03,600 at what they do and try to find somebody 880 00:30:00,600 --> 00:30:05,840 that can meet deadlines and and I can 881 00:30:03,600 --> 00:30:07,919 tell you that that's getting harder and 882 00:30:05,840 --> 00:30:10,279 harder every day these accountants seem 883 00:30:07,919 --> 00:30:12,559 extremely busy I think there's only so 884 00:30:10,279 --> 00:30:15,120 many really highly qualified ones that 885 00:30:12,559 --> 00:30:17,200 are specialized and it gets more and 886 00:30:15,120 --> 00:30:19,679 more difficult to to get the reporting 887 00:30:17,200 --> 00:30:21,279 on time and that's not usually the uh 888 00:30:19,679 --> 00:30:22,679 producer's fault and I'm not saying it's 889 00:30:21,279 --> 00:30:24,679 really the accountant fa it's just a 890 00:30:22,679 --> 00:30:25,960 reality so do a little bit of research 891 00:30:24,679 --> 00:30:27,480 make sure you find the right one and 892 00:30:25,960 --> 00:30:28,919 it'll pay you dividends in the end I 893 00:30:27,480 --> 00:30:30,240 mean do you have some guys that you that 894 00:30:28,919 --> 00:30:31,960 you work with I mean you're not the same 895 00:30:30,240 --> 00:30:34,200 on here but I mean that you if somebody 896 00:30:31,960 --> 00:30:36,399 came to you uh John and said hey look 897 00:30:34,200 --> 00:30:39,360 I'm I'm I'm frustrated I'm pulling my 898 00:30:36,399 --> 00:30:40,480 hair out um I don't I don't I want to 899 00:30:39,360 --> 00:30:41,679 you know I've got an accountant that 900 00:30:40,480 --> 00:30:43,760 doesn't know anything about cattle I 901 00:30:41,679 --> 00:30:44,960 mean I hear that quite a bit you know um 902 00:30:43,760 --> 00:30:46,519 or is there a list of them out there 903 00:30:44,960 --> 00:30:48,440 that we can find is there somebody that 904 00:30:46,519 --> 00:30:50,399 you could I mean if if I came to you in 905 00:30:48,440 --> 00:30:52,039 confidence uh you can recommend them 906 00:30:50,399 --> 00:30:53,559 yeah I don't know of a list so to speak 907 00:30:52,039 --> 00:30:55,080 but absolutely we'd be willing to give 908 00:30:53,559 --> 00:30:56,799 some names and what I say is you know 909 00:30:55,080 --> 00:30:58,279 those those are about as good as what 910 00:30:56,799 --> 00:31:01,120 you pay for them and I'm not charging 911 00:30:58,279 --> 00:31:02,600 you anything so uh do your own research 912 00:31:01,120 --> 00:31:04,639 because a lot of that's also about 913 00:31:02,600 --> 00:31:06,639 relationship and you you need to know if 914 00:31:04,639 --> 00:31:07,960 they're qualified but you also need to 915 00:31:06,639 --> 00:31:09,159 say can I get along with this person 916 00:31:07,960 --> 00:31:11,480 because you're going to have some very 917 00:31:09,159 --> 00:31:13,240 intimate conversations and uh you need 918 00:31:11,480 --> 00:31:14,519 to make sure that you're comfortable 919 00:31:13,240 --> 00:31:15,880 with the person and you like talking to 920 00:31:14,519 --> 00:31:18,120 them because they're going to know 921 00:31:15,880 --> 00:31:20,919 everything about you 922 00:31:18,120 --> 00:31:22,559 yeah well I think we kind of dove into 923 00:31:20,919 --> 00:31:23,799 most of it is there anything else y'all 924 00:31:22,559 --> 00:31:25,679 kind of want to cover is there anything 925 00:31:23,799 --> 00:31:27,480 else you want to talk about John the 926 00:31:25,679 --> 00:31:30,080 only thing I would say is in each of 927 00:31:27,480 --> 00:31:32,440 these steps deps you can create yourself 928 00:31:30,080 --> 00:31:33,799 advantages over your competition so your 929 00:31:32,440 --> 00:31:37,039 competition really is the next guy 930 00:31:33,799 --> 00:31:37,960 feeding the cattle right and you can 931 00:31:37,039 --> 00:31:40,720 give 932 00:31:37,960 --> 00:31:43,240 yourself Pennies on every head in each 933 00:31:40,720 --> 00:31:44,639 one of these steps so if you do a good 934 00:31:43,240 --> 00:31:46,679 job and all of them you can give 935 00:31:44,639 --> 00:31:48,039 yourself a significant Advantage as 936 00:31:46,679 --> 00:31:50,639 you're feeding these animals through the 937 00:31:48,039 --> 00:31:53,039 cycle so that's what I would say is look 938 00:31:50,639 --> 00:31:55,360 at them all and see see how you can make 939 00:31:53,039 --> 00:31:56,480 yourself more gain without any risk yeah 940 00:31:55,360 --> 00:31:58,200 you're you're talking about like just 941 00:31:56,480 --> 00:31:59,679 kind of creating a plan and and then 942 00:31:58,200 --> 00:32:01,760 having the ability to kind of Step 943 00:31:59,679 --> 00:32:03,240 through that thing versus just rolling 944 00:32:01,760 --> 00:32:05,000 in there and gambling in the cattle 945 00:32:03,240 --> 00:32:07,039 market or buying a set of cattle and 946 00:32:05,000 --> 00:32:08,399 hoping this thing works and I mean one 947 00:32:07,039 --> 00:32:10,519 thing I tell people all the time is like 948 00:32:08,399 --> 00:32:11,799 Hope's not a strategy I mean when when 949 00:32:10,519 --> 00:32:13,679 you hear that all the time I hope the 950 00:32:11,799 --> 00:32:15,440 cattle market goes up I hope it's good I 951 00:32:13,679 --> 00:32:17,600 hope you know I hope it rains you know 952 00:32:15,440 --> 00:32:19,919 there's there's really no strategy in 953 00:32:17,600 --> 00:32:23,159 terms of that but those are not 954 00:32:19,919 --> 00:32:24,639 controllable but controllable is knowing 955 00:32:23,159 --> 00:32:25,880 who's buying your cattle for you and 956 00:32:24,639 --> 00:32:29,200 making sure they're not 957 00:32:25,880 --> 00:32:31,399 cheating uh you know having the the 958 00:32:29,200 --> 00:32:33,639 right you know partner whenever you go 959 00:32:31,399 --> 00:32:35,200 to grass or go to wheat pasture and make 960 00:32:33,639 --> 00:32:37,360 it sure your cattle are there whenever 961 00:32:35,200 --> 00:32:39,000 they go to ship uh going to the feed 962 00:32:37,360 --> 00:32:40,960 yard and making sure that those guys are 963 00:32:39,000 --> 00:32:42,679 going to care for them in the right way 964 00:32:40,960 --> 00:32:45,600 and there's lots of good feed yards I 965 00:32:42,679 --> 00:32:48,399 mean I mean I've got a list a mile long 966 00:32:45,600 --> 00:32:50,480 um and then uh the the bad ones usually 967 00:32:48,399 --> 00:32:52,799 don't don't don't last around very long 968 00:32:50,480 --> 00:32:55,440 they end up getting sold or shut down or 969 00:32:52,799 --> 00:32:58,480 whatever but um and then the the part 970 00:32:55,440 --> 00:33:00,799 that I personally have need to that or 971 00:32:58,480 --> 00:33:02,519 like that I think is vastly as important 972 00:33:00,799 --> 00:33:03,840 as that financial reporting part of it 973 00:33:02,519 --> 00:33:06,240 so you know where you're at and then 974 00:33:03,840 --> 00:33:08,080 again whenever you get to a point where 975 00:33:06,240 --> 00:33:09,480 you've got you know need to buy cattle 976 00:33:08,080 --> 00:33:11,279 or you need to buy more you know I mean 977 00:33:09,480 --> 00:33:13,159 the Market's always going to go up over 978 00:33:11,279 --> 00:33:14,799 time right from from the time that we 979 00:33:13,159 --> 00:33:17,360 were little kids until now you're going 980 00:33:14,799 --> 00:33:19,279 to have some chop in between there my 981 00:33:17,360 --> 00:33:20,799 assumption is if some guy's walking in 982 00:33:19,279 --> 00:33:23,080 with a watered up piece of paper and he 983 00:33:20,799 --> 00:33:25,240 says that's his barring base you're 984 00:33:23,080 --> 00:33:26,840 probably going to not necessarily get 985 00:33:25,240 --> 00:33:29,120 all excited about that but if somebody 986 00:33:26,840 --> 00:33:31,039 walks in there with a lap top and has 987 00:33:29,120 --> 00:33:33,039 these R you know really good financial 988 00:33:31,039 --> 00:33:34,600 reporting tools that you guys are going 989 00:33:33,039 --> 00:33:36,399 to listen and you're going to probably 990 00:33:34,600 --> 00:33:38,760 be more excited about lending money to 991 00:33:36,399 --> 00:33:40,360 those guys compressing their margins 992 00:33:38,760 --> 00:33:42,120 higher or I mean their their line their 993 00:33:40,360 --> 00:33:44,080 note higher and working with them and 994 00:33:42,120 --> 00:33:45,519 driving higher absolutely I could have I 995 00:33:44,080 --> 00:33:47,639 could have said that better myself so if 996 00:33:45,519 --> 00:33:49,480 I walked in on my big big chief tablet 997 00:33:47,639 --> 00:33:52,240 with writing on it you're probably not 998 00:33:49,480 --> 00:33:53,279 going to must been ju Jason redid it all 999 00:33:52,240 --> 00:33:54,519 the other day we had to deal with some 1000 00:33:53,279 --> 00:33:57,840 banks the other day and I had it on Big 1001 00:33:54,519 --> 00:33:58,840 Chief tab he said give me that I imagine 1002 00:33:57,840 --> 00:34:00,600 people's financial statements are 1003 00:33:58,840 --> 00:34:02,000 written on the back of a cop I'm I'm a 1004 00:34:00,600 --> 00:34:03,360 little bit old I'm a little bit old 1005 00:34:02,000 --> 00:34:04,720 school too so I don't really mind Big 1006 00:34:03,360 --> 00:34:07,039 Chief tablets necessary but they got to 1007 00:34:04,720 --> 00:34:10,320 have the right stuff on them yeah yeah 1008 00:34:07,039 --> 00:34:13,240 yeah well once again John thank you uh 1009 00:34:10,320 --> 00:34:15,320 John Sloan with a Texas if you got any 1010 00:34:13,240 --> 00:34:17,240 questions for John feel free to call him 1011 00:34:15,320 --> 00:34:19,040 it's 1012 00:34:17,240 --> 00:34:22,119 8673 1013 00:34:19,040 --> 00:34:24,000 3884 give him a call he'd love to answer 1014 00:34:22,119 --> 00:34:27,240 any questions like you said this 1015 00:34:24,000 --> 00:34:29,599 is this is informative we want to be we 1016 00:34:27,240 --> 00:34:32,079 want to be more educational that's the 1017 00:34:29,599 --> 00:34:33,040 whole purpose of these podcasts well 1018 00:34:32,079 --> 00:34:35,000 sometimes we'll get on here and have a 1019 00:34:33,040 --> 00:34:37,440 little fun we might do that on the next 1020 00:34:35,000 --> 00:34:40,119 one or two but we want to be informative 1021 00:34:37,440 --> 00:34:41,440 and we want to we want to educate the 1022 00:34:40,119 --> 00:34:44,200 people that are wanting to grow and 1023 00:34:41,440 --> 00:34:46,079 wanting to get bigger um something that 1024 00:34:44,200 --> 00:34:48,240 we you know we could probably have went 1025 00:34:46,079 --> 00:34:51,520 and found it when we was trying to get 1026 00:34:48,240 --> 00:34:55,000 bigger but just wasn't readily out there 1027 00:34:51,520 --> 00:34:56,240 really available for us um but so just 1028 00:34:55,000 --> 00:34:58,560 yeah and if you guys have any questions 1029 00:34:56,240 --> 00:35:01,000 whatsoever I mean you feel free to to 1030 00:34:58,560 --> 00:35:02,599 message Ty or get a hold of Ty or myself 1031 00:35:01,000 --> 00:35:04,520 or I mean we got a whole team of people 1032 00:35:02,599 --> 00:35:05,960 that can help you I mean I he wasn't 1033 00:35:04,520 --> 00:35:07,240 going to say this a second ago but if 1034 00:35:05,960 --> 00:35:08,760 you guys are looking for somebody to buy 1035 00:35:07,240 --> 00:35:10,160 cattle he can probably find somebody to 1036 00:35:08,760 --> 00:35:11,680 help you oh yeah or at least kind of get 1037 00:35:10,160 --> 00:35:14,200 you through those pitfalls I mean we' 1038 00:35:11,680 --> 00:35:16,800 this this industry is a family this 1039 00:35:14,200 --> 00:35:19,560 industry is a network um and and 1040 00:35:16,800 --> 00:35:21,880 obviously there's there's uh easier ways 1041 00:35:19,560 --> 00:35:23,880 or easier routes to do this the vast 1042 00:35:21,880 --> 00:35:25,320 majority guys in the cattle business are 1043 00:35:23,880 --> 00:35:27,000 they're they're a little bit uh I'd say 1044 00:35:25,320 --> 00:35:29,240 reclusive sometimes and don't want to 1045 00:35:27,000 --> 00:35:30,160 step out there and somebody there's all 1046 00:35:29,240 --> 00:35:31,520 kinds of different forms of 1047 00:35:30,160 --> 00:35:34,320 communication that you can reach out to 1048 00:35:31,520 --> 00:35:36,720 us on he he was saying something earlier 1049 00:35:34,320 --> 00:35:38,560 about advice and I think you said 1050 00:35:36,720 --> 00:35:40,079 something about being able to call 1051 00:35:38,560 --> 00:35:41,520 somebody and ask them a question that's 1052 00:35:40,079 --> 00:35:43,240 been there done that they they they're 1053 00:35:41,520 --> 00:35:45,200 long in the tooth gray haired they've 1054 00:35:43,240 --> 00:35:46,760 been they've been through it all you 1055 00:35:45,200 --> 00:35:48,280 know I've been fortunate in my life that 1056 00:35:46,760 --> 00:35:50,319 my dad had put me in a lot of positions 1057 00:35:48,280 --> 00:35:52,200 to meet a lot of different people and a 1058 00:35:50,319 --> 00:35:53,560 lot of very intelligent people and 1059 00:35:52,200 --> 00:35:55,680 there's a couple of them guys I can 1060 00:35:53,560 --> 00:35:57,200 still pick up the phone and call and say 1061 00:35:55,680 --> 00:36:00,599 look I'm beating my head against the 1062 00:35:57,200 --> 00:36:01,920 wall on this this deal what do I do and 1063 00:36:00,599 --> 00:36:03,680 and they'll they'll walk through it with 1064 00:36:01,920 --> 00:36:04,920 us and you need to have those you need 1065 00:36:03,680 --> 00:36:06,000 to find those relation they won't give 1066 00:36:04,920 --> 00:36:07,480 you the answer they're not going to give 1067 00:36:06,000 --> 00:36:09,480 you the answer they're just going to say 1068 00:36:07,480 --> 00:36:11,480 no the answer they don't but but they 1069 00:36:09,480 --> 00:36:13,079 will say well you know have you tried 1070 00:36:11,480 --> 00:36:14,880 this you going to do this might look at 1071 00:36:13,079 --> 00:36:16,079 this might do this but they'll walk 1072 00:36:14,880 --> 00:36:17,400 through it with you but you got to have 1073 00:36:16,079 --> 00:36:18,839 those relationship for them guys to do 1074 00:36:17,400 --> 00:36:20,960 it they're not just going to talk to no 1075 00:36:18,839 --> 00:36:22,839 stranger but that's what we're talking 1076 00:36:20,960 --> 00:36:25,240 about if you're young in this game and 1077 00:36:22,839 --> 00:36:28,200 you're wanting to get better and bigger 1078 00:36:25,240 --> 00:36:29,480 in this industry build those Rel ships 1079 00:36:28,200 --> 00:36:31,319 reach out and talk to those guys don't 1080 00:36:29,480 --> 00:36:32,960 be afraid to sit down and just visit one 1081 00:36:31,319 --> 00:36:35,040 of them guys go through the sale bar and 1082 00:36:32,960 --> 00:36:37,839 sit down and chat with them um go to 1083 00:36:35,040 --> 00:36:39,480 these video sales pick your brains or 1084 00:36:37,839 --> 00:36:41,400 pick up the phone call somebody well 1085 00:36:39,480 --> 00:36:42,680 I'll be at the I'll be at the live sale 1086 00:36:41,400 --> 00:36:44,480 tomorrow so if anybody's got any 1087 00:36:42,680 --> 00:36:45,839 questions this is all about education 1088 00:36:44,480 --> 00:36:47,440 for me we're not trying to sell you 1089 00:36:45,839 --> 00:36:50,079 anything yeah we just want to be here 1090 00:36:47,440 --> 00:36:51,560 for you if you got any questions so the 1091 00:36:50,079 --> 00:36:53,920 best part about it is just like the 1092 00:36:51,560 --> 00:36:55,760 title says we live it we all we all in 1093 00:36:53,920 --> 00:36:59,079 the business we're all in the industry 1094 00:36:55,760 --> 00:37:01,160 we do it on a daily basis so we love 1095 00:36:59,079 --> 00:37:05,240 what we do um some days we love it more 1096 00:37:01,160 --> 00:37:06,880 than others true true true so but it's 1097 00:37:05,240 --> 00:37:09,640 it's a great industry to be in and 1098 00:37:06,880 --> 00:37:11,920 thanks again um thank you for joining us 1099 00:37:09,640 --> 00:37:13,480 thank you for the Insight on what you do 1100 00:37:11,920 --> 00:37:15,000 what you guys do is me and case have 1101 00:37:13,480 --> 00:37:17,720 been talking about this for a couple 1102 00:37:15,000 --> 00:37:19,800 month month or so now about how all this 1103 00:37:17,720 --> 00:37:21,200 ties together in the banking world and 1104 00:37:19,800 --> 00:37:24,760 trying to find somebody that would come 1105 00:37:21,200 --> 00:37:26,079 on here and be open and and and we might 1106 00:37:24,760 --> 00:37:28,160 have shot some pretty tough questions 1107 00:37:26,079 --> 00:37:30,520 your way but not be afraid to to answer 1108 00:37:28,160 --> 00:37:31,760 them so we appreciate that um not try to 1109 00:37:30,520 --> 00:37:34,240 sell something we're just trying to 1110 00:37:31,760 --> 00:37:36,880 educate so uh once again thank you guys 1111 00:37:34,240 --> 00:37:40,440 for watching the weiv it podcast uh for 1112 00:37:36,880 --> 00:37:44,599 live a uh if you got any questions visit 1113 00:37:40,440 --> 00:37:46,000 live- a.com um or look up Katie give her 1114 00:37:44,599 --> 00:37:49,480 a shoot shoot her an email if you want 1115 00:37:46,000 --> 00:37:52,359 to advertise with us um don't forget 1116 00:37:49,480 --> 00:37:54,640 once again hit subscribe when you watch 1117 00:37:52,359 --> 00:37:56,800 it so so now I'm getting brownie points 1118 00:37:54,640 --> 00:38:00,230 with Katie so thank you guys and 1119 00:37:56,800 --> 00:38:02,410 remember we live it and we love you 1120 00:38:00,230 --> 00:38:21,610 [Applause] 1121 00:38:02,410 --> 00:38:21,610 [Music]