Show THE LIVESTOCK SITUATION by J A LOS ANGELES march 10 some of the difficulties encountered in arranging livestock financing are brought about by rumors of excessively low prices received by stockmen stoc kmen most of these rumors apparently are spread by those who are fighting central markets in favor of direct selling nevertheless as investors including even government agencies hear of extreme low prices it makes the task of obtaining adequate financing just that much more difficult A few days ago a man who is intimately associated with cattlemen wrote me that he had heard that an iowa farmer fanner had netted only three dollars a head for cattle shipped to a missouri river market it is difficult to imagine just what type of cattle would net I 1 three dollars a head little as a as 3 for example on los angeles market shelly old cows that are arc suitable only for can canning ing purposes are selling at about two cents a pound will which ch would mean 16 for an goo pound cow all transportation and marketing expense on a fairly long gaul haul could hardly exceed five or six dollars a head but it must be remembered that such animals make up less than one per cent of the animals sold on the market why not take the average steer weighing around 1000 pounds which is worth five cents or more a pound as an example or average cows of about the same weight that are selling at 31 3 to 4 cents a pound this means that average steers are worth about 50 a head on the market and average cows about 35 to 40 a head even when such animals are shipped half way across the continent all marketing and transportation por tation expenses could cou id not exceed 10 a head bead while a cost of 5 a head would probably come closer to striking an average the fact of the matter is ahat that a good many capable cattle and sheep men are and have made some money during the past year the livestock industry is not in solvent as some rumors would indicate this writer does not in any ally sense desire these statements t to be construed as a plea for increased production admittedly many stockmen stoc kmen are not able to make even small profits under present market conditions and not through any fault of their own but there is a very definite need for adequate livestock financing for men who know the business and who could operate on a fairly satisfactory oasis basis if financing were possible for normal operations the thing that is ia needed I 1 is m more ore actual information about market conditions and prices and less spreading of hurtful gossip and rumor |