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President’s Address

published: October 2nd 2020
source: ICA Of Texas

Howdy friends, I hope each of you is doing well. The weather has definitely made a big change and for most of us it has been for the better. Cooler days and some rain have blessed our area as we enter into fall. By the time you read this we will be getting pretty close to the CTICA Commercial Bull and Female sale. We will have some quality animals and a pretty good selection for buyers to select. By purchasing animals at this sale you will not only take home some quality cattle, but the commissions will go to ICA who in turn represent the cattle ranchers in the state of Texas.
    Speaking of representation, there is a bill introduced by Senators Grass-ley and Tester known as the 50/14 or spot cash bill. Most ranchers prefer the government stay out of their business, which is understandable. However, the way things are currently operating offers little hope of long term sustainability for the cattle rancher. Cattle ranchers and feeders are ultimately at the mercy of the packers. There are a limited number of large packing houses in the United States. Currently, the majority of fed cattle going to the packers are price negotiated in advance and delivered as the packer has a need. This practice offers little competition for cattle that are not previously contracted and requires feeders to accept the price offered. The 50/14 bill would require a minimum of 50% of the cattle the packers purchase to be done on a spot market and take delivery within 14 days. To operate at a profit, packing houses must keep their numbers high consistently and can’t afford for numbers to fall. This bill should help bring competitive pricing to the feeders which will in turn carry down to calves sold at the market. The goal is to eliminate packers from making record prices while feeders and producers work to try and break even. For the cattle business to be sustainable, all those involved must make a profit. It is important that each and every one of us with a stake in the industry support this bill. The cattle business is a great way of life and we must all work together to keep it sustainable. Until next month stay safe and God bless.

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