A place to find resources, discuss and learn about beef cattle farming and all its nuances. Okay, a place to joke around about farming, I guess.

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Tuesday, January 26, 2010

What Do Farmers Pay?

T-Shirt Mens Black " I love Farming " Hobbies LargeWhen selling cattle at the livestock exchange in Australia, farmers pay a whole gamut of fees, commisions and charges.

To give you an idea of these fees. We sold 12 (twelve) cattle and it cost:

Commission to selling agency: $203.10 (that was 5.3% two years ago when we sold 12 cattle).

Government transaction Levy: $60.00

Cattle Compensation: $10.25

Saleyard Fees $100.80 (that was for 4 (four) cows to stay overnight at the yards. They were sold the next day because they were feeding mothers (eg. their bags hang down too low; dead giveaway) and could not be sold in the "Fats" sales on the Tuesday and were held over for the "Cow and Calf" Sales on the Wednesday.

NLIS tags $5.00 for each animal (eg. 12 x $5.00 = $60.00)

Cartage to saleyards $120.00 (30 kms travel including pickup from farm and delivery to Livestock Selling Complex)

TOTAL: $435.35

The cost of selling the cattle equates to one and a half beasts sacrificied for selling fees each time we sell twelve cattle.

What other industry would accept a hit like that?

That's near 11% to 12% in fees and charges, AND that's NOT counting costs to get the animals to market (usually 12 to 18 months on farm care).

Commission to selling agent can vary from 3% to 10% or more.

The costs associated with rearing and caring for the animals are a whole 'nother set of costs before we even get to a sale.

They can include:

  • Injections/Vaccinations (Vitamins/Protection against diseases)
  • Feed (In drought and in good times)
  • Drenching (ringworm, tapeworm, liver fluke, lice, ticks, etc)
  • Fence repairs (some cattle like to break-out occassionally)
  • Maintenance: (New Gates, stockyard repairs, etc)
  • Artificial Insemination or Bulls (there are costs with both methods)
  • Days away from the farm to attend sales (yes, this has a cost too).
  • Fuels: (Diesel, Unleaded petrol, oils, insurance, registration, etc).
  • Veterinary fees (Injuries, pregnancy testing and any other events)
Mug White "I love Farming " Hobbies
The list goes on...

Advice: Don't become a farmer unless you have a lot of money that you don't need and love animals.


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