Skip to content

Heartland Auction facilitates cash flow to producers

Virden’s livestock a uction circulate s millions of dollars per week within the farm economy.
1
In the first week of March, 2020, order buyers at ringside in Virden Heartland auction bid on a pen of sorted cattle of similar body size and fat cover.

Virden’s livestock auction circulates millions of dollars per week within the farm economy. In fact, on a sale day like Wednesday, March 4, where 2,500 feeder cattle were sold to feedlots around North America, the auction would issue cheques amounting to well over $3 million. 

That seems like a lot of money, but Heartland Livestock Manager Robin Hill points out that cattle prices are just slightly up this year. Heavy weight feeders are five to 10 cents higher but butcher cattle are holding steady. 

“The producers are not getting rich at these prices, definitely not. They’re making money but they’re not making lots,” said Hill. 

He should know. Like many staff at cattle auctions, Hill is also a cattle producer, on a small scale.  

Today’s price of a weaned calf on the hoof will seem high to those who were in the industry in the 1990s. In 1996, records show the average price of good feeder steer weighing 375 kg (826 lb.) $167 per kg, grossing the farmer $626.25. 

There was a big price adjustment over the years and iOctober 2018 the same kind of steer could have fetched about $1,600.  

But today, based upon the market report for March 4, 2020, that steer would bring a little less, at $1,300 to $1,400. While the top price is down over the two years, the cost of production and cost of living keeps rising. 

On Wednesday, most of the dozen or so buyers getting auctioneer ward Cutler’s attention are order buyers, representatives of feedlots throughout North America. 

“There’s cattle going every which way, every day of the week,” says Hill. “The buyers you saw here, some of the guys are going east, west or south.” 

The impact of this Virden-based business goes beyond the cattlemen. Heartland Livestock employs 15 – 20 part-time help. They include office clerks, yard and feed staff, livestock consultants and auctioneers. 

The cafeteria is in service when the sales ring is busy. SARGs Café is operated by Samantha-Anne Goforth. 

Heartland’s busy season is Sept.1 to April 30. But five full-time staff are employed throughout the year. 

A number of truckers move the cattle. On a 2,500-head pre-sort sale day such as Wednesday was, about 33 cattle haulers move the feeder cattle out. By dinner time Thursday, the yards were cleared, ready for incoming cattle for the bred cow sale, Friday. 

The majority of the cattle sold through Heartland come from within an hour’s drive of Virden.  

“There are guys who have to drive farther,” says Hill. “There’s not a whole bunch of us [auctions] around.” 

This time of year, producers are selling cattle that were calves in the spring / summer of 2019, weaned and fed through the winter.  

 “They background their calves into the new year and sell their calves as yearlings. As producers we always hope for better things … next time. 

Hill, often consulted by farmers about market conditions and whether it’s a good time to sell their cattle. 

 It all depends on the situation of the day,” says Hill. “Last fall there were days I was telling guys to sell them. There were days that, maybe it didn’t look quite as good and you wonder, maybe you can make a little money by growing them. With a little feed, a little work. 

“You can be half-right today and half-wrong tomorrow, honestly, the way the markets can play.” 

Market update: 

Hill expressed concern over the toll taken on cattle prices and the futures market on the Chicago Mercantile Exchange, due to coronavirus effects 

From Reuter news service on Feb. 25LIVESTOCK-CME cattle extend losses as coronavirus rattles investors “(A futures drop of) $7 in four trading sessions is overdone, but if the stock market continues to liquidate, it’s going to take cattle with them,” said market analyst from Chicago, Jeff French. 

Hill acknowledged that the coronavirus is having a downward effect on prices. “The uncertainty is making our buyers and feedlot operators very cautious.  

 (Research from www.gov.mb.ca/agriculture/markets-and-statistics) 

push icon
Be the first to read breaking stories. Enable push notifications on your device. Disable anytime.
No thanks