Carrol Daily Times Herald from Carroll, Iowa on July 2, 1974 · Page 5
Get access to this page with a Free Trial
Click to view larger version
July 2, 1974

Carrol Daily Times Herald from Carroll, Iowa · Page 5

Publication:
Location:
Carroll, Iowa
Issue Date:
Tuesday, July 2, 1974
Page:
Page 5
Cancel
Start Free Trial

Page 5 article text (OCR)

Cattle Feeders Say They'll Go Broke if They Don't Get His her Prices Rv I rtl race 1 rwrtir r~_ i: »__i. i ,. . • . *^ *' C_^ . By LOUISE COOK Associated Press Writer The men who raise the steers that put beef on the American dinner table want a bigger share of your dollar. They say they'll go broke if they don't get it. Bill Frank has 130 head of cattle on his 320-acre farm near Hudson, Colo., a town of 450 persons northeast of Denver. When his cattle get big enough, he'll sell them to someone like Lawrence Kentfield of Wilsonville, Neb., who fattens them on grain. Then Kentfield will sell them to someone like John Morrell Co., a packing house that is part of United Brands. Morrell will slaughter the cattle, cut them up and sell them to someone like Pantry Pride-Food Fair, one of the nation's largest supermarket chains. Pantry Pride-Food Fair will sell the meat to you. The American National Cattlemen's Association, which represents people like Frank and Kentfield, estimates its members have lost more than $1 billion since September because of declining livestock prices. Legislation is pending in Congress for an open-ended emergency program of government-guaranteed loans for livestock and poultry producers. Part of the problem is that there is more meat than any of the experts predicted. More cattle were fed out on the range — out of sight of government analysts who check feedlots to try to figure out how much beef is on its way to market. In addition, cattlemen feeding their livestock on grain decided to hold on to them longer, waiting for prices to rise after government controls were lifted. The cattle got bigger than normal, producing more meat — and fat. And the prices paid to farmers didn't rise. Meanwhile, there was a backlog of cattle. Truckers' strikes meant the cattle couldn't be shipped to market. The backlog got bigger and consumers still weren't buying beef. Ranchers in Florida, the nation's 18th largest cattle producing state, are in the same boat as those in Colorado. Florida ranchers produce 2.2 million head a year, virtually all of them for sale to out-of-state feedlots. Last year, they were getting 57 cents a pound from feedlot operators. Last week, they were getting 25 cents a pound. The price the rancher got for his calves declined because men like Nebraskan Kentfield, who fattens the calves, refused to pay more. Kentfield put 160 head of cattle into his feedlot pen on Feb. 26. The animals weighed an average 660 pounds and he paid farmers 42 cents a pound or about $280 each. By June 1, the cattle weighed an average of 1,025 pounds each and Kentfield estimated he had spent $120 feeding each one. Kentfield fed the cattle on grass and grain. He said that at current prices, cattle have to eat more than 45 cents worth of grain to gain one pound. Farmers with pastureland to spare are charging Kentfield 35 cents for each pound his cattle gain while grazing on the land. The price for grain and pastureland has doubled in the past year, Kentfield said. Corn that used to be $1 a bushel is $2.50; the pastureland price used to be 17 cents a pound gained. Kentfield watched the price paid for cattle going down. He Times Herald, Carroll, la. Tuesday, July 2, 1974 wanted to cut his losses and sell on June 1. He was willing to take 33 cents a pound, but he couldn't find a buyer. So Kentfield decided to hold on to the animals and is still feeding them. Choice feeder cattle were selling for about 40 cents a pound last week, still below Kentfield's break-even point. He has $119,021 in loans coming due and doesn't know how he'll pay them. Kentfield made money in past years — his 1973 tax return showed a net income of $6,568 and he says his annual income through the 1960s and early 70s was about $10,000. And he plans to stay in the business. "If things get on an even keel and I could get the money, I could pull out in two or three years," he says. Montfort of Colorado operates both a feedlot and packing operation, marketing more than half a million head of cattle a year. In 1972, the company had sales of $288.8 million and a profit of $5.8 million — about 2 per cent. In 1973, Montfort sales were $301.2 million and profit was $1 million, about one-third of one per cent. This year, for the first time, company officials provided a breakdown of the feeding and packing operation. The cattle feeding division showed a loss of $10.8 million for the first six months of 1974; the packing operation showed a profit of $3.2 million. Montfort got a tax refund of $3.9 million for a net, after tax loss of $3.7 million tor the first six months of the year. Sam Adams, Montfort vice president, estimated that feedlot operators have lost $1.75 billion in the past nine months "compared with total equity of something over $3 billion. That equity was built over many years..." Kenneth Montfort, president of the Greeley-based firm said: 'We're going through a general belt-tightening. But there's no doubt that we will survive." Astrology For Wednesday July 3,1974 Bernice Bede OSD ARIES (March 21-April 19) The competition is going to be stiffer than you counted on when it comes to satisfying your personal ambitions over the next few days. TAURUS (April 20-May 20) Don't try to impose your philosophy or ideas on subordinates. There's no market for what you're selling. GEMINI (May 21-June 20) Do the best you can to keep current on obligations that are now due. At least acknowledge them with token payments, if possible. CANCER (June 21-July 22) Someone is going to be very angry with you if you break your word to her regarding something you promised to do. LEO (July 23-Aug. 22) Don't put responsibilities off, thinking you'll get around to them later. You won't — they'll just pile up. VIRGO (Aug. 23-Sept. 22) For the next few days avoid any type of risky or speculative venture. Someone else could profit, but not your. LIBRA (Sept. 23-Oct. 23) You're subject at this time to be overly responsive to pressures from others. Think for yourself. Run you own show. SCORPIO (Oct. 24-Nov. 22) Don't lock youself into a corner by sticking to outmoded plans and ideas that aren't feasible for your present needs. SAGITTARIUS (Nov. 23-Dec. 21) The next few days will require prudent management in all your material dealings. If buying, selling or trading, be as sharp as possible. CAPRICORN (Dec. 22-Jan. 19) You will not be free to move about as independently as you'd like 'til after Friday, when others lessen their demands on your time. AQUARIUS (Jan. 20-Feb. 19) Situations over which you'll have little control will have the upper hand for a few days. Be patient, Wait things out. PISCES (Feb. 20-March 20) You'll be better off in the long run if you lay aside for the present your pursuit of more pleasurable interests and get down to business. YOUR BIRTHDAY JULY 3,1974 Stick to your present course this year even though it may appear a bit rocky. Your rewards will come later through exercise of persistence and perseverance. Couple From California Stay in Carnarvon CARNARVON — Mr. and Mrs. LeRoy Huisenga of Gardena, Calif., arrived in the home of Mrs. Bilda Tiefenthaler on Monday to spend a couple weeks. They are visiting with Huisenga's mother Mrs. Freda Garrels and aunt Mrs. Reiner Janssen and with other relatives and friends. George Straight returned home Thursday after being in the hospital in Council Bluffs for nearly three and one-half weeks after his truck accident. Mr. Douglas Thorpe of Ankeny called in the Roland Thorpe home here Wednesday. Mr. and Mrs. Luke Druinenga and sons of Storm Lake were visitors in the Henry Onden home here Wednesday night. CHURCH PICNIC About 200 persons attended the annual picnic of St. Lawrence Church at Graham Park shelter house at 12:30 p.m. Sunday. The Rt. Rev. Msgr. Henry B. Karhoff and the Rev. James Smith were' guests. St. Lawrence Ladies Guild and Men's Club were in charge of arrangements. The cooperative movement began in the rural areas of Canada as a means of marketing grain. The Biblical "Lion of Judah," which formerly ranged from Greece to central India, today is found only in the Gir Forest of India's Kathiawar Peninsula. Only about 200 of these Asiatic lions, which closely resemble their African counterparts, survive in the wild. EAT & MIL Values for Carrolland Families to Grow On! We sell Flynn Dairy Products door to door everyday. Ask us to deliver to your doorj today. I^KUH rn^j^mL'..-^ BERNHOLTZ BROS. Phone 792-4242 Closed Saturday Afternoon Carroll Carroll's Only Home-owned Dairy Distributor Also, we sell Eggs, Meats and Butter JCPenney 20% off all bras, girdles. Sale 1 60 to '10 Reg. $2 to 12.50. Come in and save now on our entire stock of bras and girdles. Training bras, too. The subtle shaping you want for today's styles. Easy care fabrics with Lycra® spandex for stretch. Some in colors. All sizes. \ \ 20% off all boys' shirts. Sale I 59 to S 98 Reg. 1.99 to 4.98. What an assortment of sport shirts for boys. Choose long sleeve or short in solid colors or fancy patterns. All in easy-care fabrics like polyester/cotton. For sizes 8-18. 20% off all ready-made draperies. Sale 80 5 22 to 32 Reg. 6.53 to $41. look at ready-made prices. You can choose from many sizes, patterns and colors. From antique satins to jacquards to prints and sheers in acetate, cotton or polyester. Sale prices effective thru Sunday. Catalog Phone 792-3524 STORE HOURS: 9:00-5:00 Mon., Tues., Thurv, Sat. 9:00-9:00 Wed. & Fri. 1:00-5:00 Sunday OPEN WEDNESDAY & FRIDAY NITES TILL 9 - SUNDAYS 1 to 5

Get full access with a Free Trial

Start Free Trial

What members have found on this page