00:09 Welcome to extreme AGS cutting the curve podcast where you'll learn from the experiences of America's most 00:18 Innovative and successful Farmers as they shorten your learning curve increase your yield Roi and profit this episode of cutting the curve is 00:27 brought to you by Sylvia's Financial the company that offers customized Risk Management Solutions for your farming operations. 00:33 Sylvia's Financial integrates crop insurance with government programs and Grain and cattle marketing to achieve profitability for your farm. And now here 00:42 is your house Damian Mason Wellings and welcome to a fantastic episode of Extreme as cutting the curve where we are today talking about cattle talk 00:51 about cattle marketing talk about how to not get burned when you are a cattle producer. So you're gonna listening and watching this might not even be in the cattle business, but you 01:00 know what, I want you to stick around because it's very educational because I got two experts I've 01:05 Jared Clark, he's a CEO of Sylvia's financial and he is a cattle producer himself in Texas. I also have Fidel burciaga who's a cattle risk 01:14 advisor with Soviets Financial. You know, what you eat steak you eat cheeseburgers you do this. Maybe you raise cattle and eat steaks 01:23 and cheeseburgers. But the point is there's a whole bunch of stuff that happens between you eating that 01:29 burger and that calf out there on the Range that then ends up getting raised and put in a feed yard and then put on a truck and then 01:39 made in the cheeseburgers and also there's a business there. And of course we want you to be profitable. If you are in that business again, 01:45 even if you're not in that we want you to be knowledgeable about that business. All right real quickly, but almost start with you. You're the cattle risk advisor. 01:55 Yes, sir cow calf operators. Oklahoma, wherever Arkansas they're they're out there these beef cows have calves 02:04 and then about 500 pounds or so. They ween those calves right 600 pounds. Let's say those calves go into a system and you help people 02:16 from that point on or even before that point make money on their cattle kind of help from that calf getting weighing to 02:25 six pounds goes somewhere and gets maybe raised up to 900 pounds. And then from there goes to feet yard and then gets taken up to 1350 pounds. Let's say and 02:34 then it gets turned to cheeseburgers. Roughly as that accurate. Yes, sir. All right. Yeah, you take me 02:44 every step along the way about what happens and how you can help people make money in that whole thing. What happens in that whole process? 02:54 Yes, sir. So here with Sylvia's Financial we've got we've got a system Software System grid flakes on my hat. So 03:03 wrist management. That's that's our Forte, you know, and like you mentioned we can cow calf from the from the 03:12 day that calf drops on the ground all the way to When I get stuck at the packing plant. Utilizing that system essentially what 03:22 we do is we grab the inputs that a razor catalraser producer has as far as cost and any 03:32 input that they have with that animal put it into the system. Once that once it's in put it or calculated 03:41 that system automatically it profitability trackers essentially is what it does and it it 03:49 It goes from the current market price. So it's very it's very current gathers that information on the daily as the market moves. 03:59 And then it gives you a lot of guys, you know, it changes from operation operation. 04:04 Typically most of our current customers right now, they buy these cattle and they they sell them at seven or eight weights and 04:13 that system tracks a profitability and it gives you a better idea or a forecast of price of what you're what to 04:23 expect in the future whenever you sell that whenever you sell those those contracts a lot of times, 04:29 you know it you don't know if you obviously we don't know what the Market's gonna do. That's why we're in the business but The some guys are used to just you know 04:39 selling their cattle at 700 pounds 800 pounds. And depending on what the market does sometimes it's a little better to you know, take them a 04:48 little heavier, or maybe vice versa some a little lighter. So what the system does it's a 04:55 tool that? Facilitates the decision making process of when it would be more profitable for your 05:04 operation to get rid of those cattle. We manage that risk, we lock in with Futures and options and we can 05:12 it gives us the opportunity to place in test trades for our clients to see what those Futures and 05:21 options would look like before you actually Place them in or put those Hedges on so, all right, Jared Russ simplify 05:31 that now a little bit he did what year he did what your people a lot of times. Do you talked you went right to Hedges and puts and all that stuff that a lot of people don't understand. All right. 05:40 Jared has calves on his Ranch in, Texas. Give me the layman's terms. What what Fidel just told me is that? 05:49 He's telling you based on what Sylvia is able to provide him way of data analytics. You should sell these calves right now, but you don't sell them to 05:58 win him. Anyhow, so I'm trying to figure out on a cow calf side what the data analytics that 06:04 he's providing. Due to help me because I thought you just sold them when you had them ready to go. Yeah. Yeah. 06:12 So being in the count calf. I've got all the options in front of me. I can sell a wing calf. I can take this calf up to 06:22 800 pounds as a stalker or I can go through a stalker and I didn't even put them in a background. So I have the opportunity to do the whole thing. Basically what 06:32 the what we're looking at is as I look at these Dockers at 450. It's my profitability best to get them to 06:41 450 500 pounds. We know and sell them. What does my profitability look like? It does my profitability tell me hey Jared, 06:50 you should actually take these things to 800 pounds find the grass find the wheat. Hold on to them you're profitability is better 07:00 to take them all the way to 800 pounds. And once again we can then look at it and help me help and also help producers make 07:10 decisions. Should I take it all the way through the feed yard just based off a profitability right? Now. 07:16 Here's the thing to do all that Fidel. I gotta know my cost of of feed because the last 07:25 time I looked it takes about what seven or eight pounds of input to make a pound of beef to make a pound of cow. Right? So and right 07:34 now green is really expensive grass is less expensive wheat is somewhere between the two in terms of your cost 07:40 of input. How do you punch that out the you do that for the producer or to the producers say here's what I think it is because it seems to me and a 07:49 lot of Agriculture. This is one of the big problems. I know a lot of farm people that don't really know their cost of 07:55 inputs or their cost of production. Is that seemed like an accurate assessment to you Mr. Fidel? Absolutely. No, sir. Those numbers are provided to 08:04 us by our clients. As you know, every operation's different. They're gonna have different inputs. Every region in 08:11 the United States is different. I mean, we've got clients in the midwest here in the Texas Panhandle is 08:17 where as well as the as well as a West. So they provide all the input numbers the cost of cost of gain is what we call it costs of 08:26 game per pound and how much they bought those cattle for and or if it's a cow calf how 08:32 much money they've got invested today Cal cash unit. So yeah, all those numbers are provided by our clients. All right. 08:41 So if I'm gonna jump in and say even though all of those are provided by our clients because of the range, I mean Fidel has a lot of customers he since 08:50 he sees so many sets of numbers he can tell when something's fish. Here. Yeah, they're not trying to sweep everybody. 08:59 They might just be wrong, right? Yeah, that's right and through a set of numbers. We can look at something and go 09:05 man on average. We're running 90 Cent gains and fidelities of 60 Cent number he's going hey, you gotta have something to back up to 60 09:14 Cent number and if you're right get me in on your game. I mean, what are you doing differently than the rest of the group? I mean, so we we can't even though they are 09:24 provided. We do have a data set a number from the amount of customers. We have to gauge a range of what is probably probable with 09:33 the cost of corn and so on and so forth Jared, you're a cow calf guy tell me real quick about your operation. 09:40 Yeah, for most part. Yeah, I have I just finished calving I have about a 60-day calving window. So we have in the 09:51 march to end of end of May and then everything I have will be run on graphs. 09:58 So generally I will take calves up somewhere between 450 to 550 600 pounds. 10:07 So generally, I'll start selling calves Wenham on the grass and so calves in the fall sold as early 10:16 as August and as late as January just depending on the market. Okay, so you got about a hundred and ten cow calf pairs, 10:23 right? Yes, sir. And You're Gonna Keep back 20 heifers for replacement between heifer calves every year for Replacements or do you not do that? 10:32 Um, depending on the market last year. I only kept him. I'm just kind of depending on what the Market's giving me and what I need to get rid of. I'll keep 10:44 anywhere from I've kept anywhere from five all the way up to 20. So so you're keeping them and then everything else 10:52 gets sold to be feeders, right? Yes, sir. Everything will be sold more likely to stalkers. They'll go to a to a grow yard 11:01 and then take an 800 pounds before they go to the feedlot. Okay, so 11:08 Do you know what it cost you? To get that calf to 500 pounds when it's wheat. Do you know what it costs? You know, what's that calf has in it 11:18 right now because I think that a lot of folks. I think I read Jared the average cow calf operation United States is like 36 cows or something and 11:27 I'm getting the idea that a lot of those guys. No offense aren't gonna be that sophisticated on the marketing and business side of it because it's more like yeah, 11:36 we got three dozen cows out there on 80 acres of rough ground. Am I right or am I wrong? 11:43 Yeah, you know it's funny as you get into the different parts of the world. Yeah, the the average size is really small. Um, 11:52 but then there are Pockets it it it's really it's cute if you will because there are a lot of ranchers across the US there's no 12:01 point in finding somebody that has well over 200 cows. Okay, you know so it is the data is accurate but 12:10 it is it is skewed and leads to an opinion but there's some very good size ranches across the US that have 12:19 well over 36 cows that do know their costs, but it is like all of Agriculture. We're all off. We're all off on our costs. Meaning that you 12:31 think you're not putting enough on it. Like you don't expense you don't put your car you could fixing the fence using 12:37 your time. You're not you're not punching in enough stuff. Is that where you're wrong? Yeah, I think a lot of people are wrong on that. They're wrong on their feet. Same problems 12:46 us as Farmers. Have we run through cost a lot faster than we think we have. Well, I see here the day 12:55 LaRosa Farms when I bought my golf cart as a farm expense. I make sure that I was really good about putting that cost in because I drove around and looked at my cattle. 13:04 So I called that, you know, when you're drinking a beer driving your golf cart and looking at cattle that is a part of the cost structure. 13:10 Am I right exactly for tax purposes? Absolutely as well as the icy MC cooler. So that's the way this access went. Anyhow. Well, do you 13:21 know what's your cost? What's your cost of production for a calf? And then you're 2022 there Jared Clark Enterprise. Yeah, I'm 13:27 gonna put I'll have to get a calf to 450 pounds and lean them. I'll probably be about six fifty to six seventy five this year. Okay? 13:36 650 675 let's go the high side 600 75 dollars for that 450. We call the 450 pound calf. Yep. You're gonna be 13:45 way up on it more than me, but I glanced it the the markets a week or so ago and it was on the CME which 13:51 isn't really as accurate as what you're getting there in North Central, Texas. Can I 13:57 sell that 400 pound calf for a dollar 75 a pound? Um, so the steers I'm hoping I end up selling a 450 weight calf or around a 14:08 dollar. Ninety to two bucks is what I'm hoping for in this was a little low. Okay, so call it two bucks. That's a $900 cash. So 14:17 you just you just made 225 on that calf. Yep, roughly. So that's a pretty good number is and that's not historically how 14:26 it's always been right? No, that's it's not historically how it's been. I mean we've been Selling, you know, 458 calves down 14:35 for dollar 45 to a dollar sixty over the last couple of years. All right Fidel. Do you advise him? He just gave you his expenses? And he says, I'm at 14:47 675 for a 450 pound weaned calf. Do you say? First off do you think his numbers are accurate? Do you think that your boss it has accurate cost information or 14:58 you gonna call them on a rug and say hey boss. You're wrong. Tell me Fidel. 15:04 That's typical. Yes, sir. That's typical average numbers for about for here on the area in the 15:10 Panhandle. And I know his his cost of gain is gonna be a little higher than last year, of course with the drought higher cost of feed. 15:20 Gas prices everything's a little higher. So for for this year the numbers that his that his inputs. It's it's average. All right, unfortunately, I'm 15:30 higher so put on your you told me you're the cattle risk advisor. Do me some advising Jared sell these things immediately Jared 15:39 keep these things back turns out you've got grass and nobody else does throw some more pounds on them. You're gonna get some of that 15:49 Jared keep these things all the way until they become made into roasts and steaks and burgers because beef is gonna stay high for the next year and 15:58 he's cast need only about what another year until they're fat. What are you gonna do? So we get all the numbers that Jared provided with 16:07 as we put them in the system the grid flicks. Of course with all the projections that we have and it'll automatically give us 16:18 projections months to month up until desired and wait. It's not until then that those projections are run that week 16:28 it start implementing test trades what we call them in the system. So we'd play a little bit with you know, Futures and 16:36 options and Every operation is going to be different depending on how much risk. 16:43 a customer can take it's gonna vary a little bit. and they will ultimate decision will come down to them if they want to go futures or options and 16:54 That's where you explain that once you explain that to me. What's that mean? I'm just hey, I'm just I'm just a Rancher 17:01 man. I just I just know how to really get nice pretty calves pull. I get them out of the cow and they're out there. I don't know any that 17:07 stuff means future is an option. Do you throw in that word at me seven times? Hey, I don't have an MBA like you and 17:13 in cattle production. Talk to me Fidel. What's those two things me? So they're both Hedges features an options are both Hedges and Jared's 17:22 case. He's got the he's got the cattle now that's looking to sell them in November December. So he can either probably even sure right 17:34 you got some of those more depending on gonna be at 450 pounds by about September, aren't they? Oh, some of them are yeah. Yes, sir. Like like Jared explain. 17:44 I mean it'll depending on the what the market does the drought obviously if we continue to be on the drought, it'll 17:52 You know, he'll probably sell them a little a lot sooner. Yes, sir. 18:00 Yeah, so go ahead. So what what we're saying there is Fidel. What would you you go look at 18:07 all the stuff and first off you're explaining? Okay Futures and options. 18:11 Yes, sir. So pretty much. Feeder cattle or off of her contract basis, which is 50,000 pounds 50,000 pounds of feeder 18:21 cattle. Make one contract. First we get the number of cattle that he has times it by the weight that he's gonna get rid of them at 18:29 and then we'll divide by 50,000 pounds. We'll have a we'll have an idea of how many contracts we need to hedge for them. 18:37 after that, then we start implementing the trades like I mentioned before whether you want to sell your some Futures 18:47 Futures what you do? Pretty much simplistically, you sell them like Jared and his case. He would sell them lock in that price. 18:57 Whatever the market does essentially if it goes up or down he's he's hedged he's locked in. So that's Futures options on the other hand, which 19:07 would be put options. You have the right but not the obligation to sell. You put a base under it it has. 19:18 You cover your you cover your downside? To an extent not like a futures. But you also leave more upside potential. 19:28 So it's a little different they vote. They both vary depending on like I mentioned before dependometrist you can take 19:34 or how much you want to take. You consider doing futures or options and some people do a little bit of both. Did I 19:42 have to pay to have to pay to get that downside protection? Yes, sir. It'd be premium like premium on a 19:50 car insurance. So much if I'm pulling the calculator up how much should I pay? So it varies, you know, it varies up those 20:01 prices are very off of what the Market's doing with higher volatility. Those put options are going to cost a little more. Okay, as 20:09 well as if you want more protection price protection. It's going to cost you a little more. Okay, so so that premium is gonna be a little higher the 20:18 more protection you want on on that price Jared you gave me the numbers that you you said 675 cost of production. We just used around number of 20:27 450 pounds and two dollars, it could end up being less than that, but could be more pounds but let's just use those numbers 900 bucks. You're making a little over 200 20:36 dollars 225. Did you use grid Flex yourself to Market those calves. Did you use grid Flex to make that? Yeah you 20:46 I did, you know for me it was an easy decision my personal stance as I am. Bullish the market. 20:54 And so I ended up but I have good profitability. We got 225 bucks there. So I ended up spending about nine cents, or 21:03 I could look at that and say it's been about 40 bucks ahead at 450 pounds to buy a put option. I protect my 21:12 downside now. I have all of the upside potential. Um you did you guys make I'm just a you did spend $40 on a put to protect yourself from downside risk. 21:25 Yep, that's right. Okay. So what price is I could be wrong? Okay. What what's what does that mean? When you bought you give yourself downside protection? 21:35 What is your you give yourself a price floor? Yeah, I just put in a price floor. Yes, sir. Yes. So if price what's your forever? 21:46 About 170, okay. So if it goes and so about 170 still makes you a little bit of money and then you could also go up to these but these these cattle these 21:59 calves could be $2.10 come September, right? Yeah, I think there's possibilities in there. We're the market is current. We're getting rid 22:10 of cattle. Just depending on where corn goes man. We've had big droughts across the whole us over the last 12 months, you know, there's 22:21 a lot of cattle in the yards that will not once they get through. My belief, my guess 22:30 is a producer is we're gonna be short cattle in the coming year, too. I think we're really short cattle. So I get to that before I 22:36 do pay Fidel just you and me talking here. Jared can't hear us. Did he screw up or do you do the right thing? 22:43 No, he did the right thing. I advise them so you're here is advisor. Okay here answer me this he spent 40 bucks if I'm a 22:52 grid Flex if I use you if I am a cattle producer. And I use you. Do I pay do I pay 23:02 money for the grid flex and Beyond just the 40 bucks or how's that work? Or is that all part of the deal? No, sir, so we offer we offer two. 23:15 two different Ways to look at it we take we we do Trading. Futures and options on that stuff. Yeah that tip that 23:24 runs 35 dollars aside. the grid flicks and the Consulting That's we we can that's that's 23:33 separate. So that would be typically runs about a dollar per head. Per year. So if I I'm two thousand 23:42 Capital customer if I become a Sylvia's Financial cattle customer, I'm spending a bunk ahead. Plus what? 23:49 So the it but the minute the minimum of two thousand a year one time annual fee here. That's for the Consulting and the software. 24:00 Now you might not want the Consulting in software and you just want to do strictly trading then that be 35 dollars per contract per 24:09 side $35 for contract and a contract is 50,000 pounds of live weight cattle feeder cattle Peter cattle. Yes, sir, feeder cattle 50,000 pounds 24:18 live cattle or fat cattle would be 40,000 pounds. Yeah, one contract the difference on the contract. So for 30,000 pounds is a contract on fats 24:30 computer cattle. Yeah and 40,000 pounds that's is a his own fats. it makes it very 24:41 okay real quick Jared one of the things I like about service Financial you came you start sponsoring extreme Ag and 24:47 and working with us and explaining your awesome products and what your company can do 24:53 for all of our grain Farmers, you know, you said we integrate commodity marketing with crop insurance because 25:02 you can provide all that and government programs you integrate those three so that it comes to on-farm profitability I'm saying. All 25:11 right. I got thousand acres of corn out here. What the hell should I do and then you do the same thing. You put it into your software and say all right. 25:17 Looks like we have seven sixty. Let's go through all the price scenario seven dollar corn seven twenty corn seven forty corn seven sixty corn we go through all that. Let me 25:26 say, okay, what are the government programs? Can I get a government program that makes it so I don't have to spend as much on crop insurance and then there's lots of times we don't think about that. Oh turns out 25:35 you didn't need as much crop insurance. Oh wait, there is no government program. You need shitloads of croppingers. You've 25:41 done that. So that's the cool thing is that you integrate all those three things. I'm talking about corn. I'm 25:47 soybean. I'm talking about wheat, wait a minute. There's no crop insurance for me. 25:53 And there might be a government program. But the ones that I have seen like say, oh, it's dry in your area. Here's 41 dollars per brewed cow 26:03 you have because you probably had to buy some. Hay am I right that there's no programs. And so the integration of the three things like you do so well with the 26:12 grain crops, you can't do with cattle right wrong. I'm trying not to swing here. You're setting me up and I'm ready to take a lack at 26:21 it. Yeah, it looks different on the cattle side, but we do have programs. Um, you know, we've got a couple of programs that RMA provides 26:31 it through the crop insurance industry one. We have lrp livestock risk protection and that I can do 26:41 the United States Department of Agriculture. Yes, sir. That's through USDA and RMA just like all crop insurance 26:47 that farmers have same delivery system so I can come in with lrp and help protect my prize. 26:55 I've also got if I look at the Cow calf industry in the soccer industry what my biggest inputs is grass or 27:05 annuals. So whether that be wheat, or hay whatever it is, and I have two programs that are based off of rainfall. 27:13 So I've got grass that I run cows on year-round. What's my big biggest risk outside of price? 27:21 Do I get rain to grow grass for these cows to eat? We have a program an insurance program that will protect against 27:30 lacquer rainfall. And so we can bring these things in with the Matrix and what changes as I don't 27:39 get grass my cost goes up why I'm feeding them everything they have to eat now. And so we do have integration 27:48 that we can bring in to build you a package of risk management outside of what do they weigh? And what am I going to 27:57 sell on that? Okay, so there is a government program that's resembles crop insurance crop insurance means I 28:03 can essentially I can guarantee Revenue to be positive. That's the great thing about the crop of church is it it's you know, we like to say it's for disaster. The 28:12 reality is the crop insurance program is not just disaster. It really does get to where you can guarantee Revenue that's 28:18 even positive Revenue. All right. That is correct. Yeah, and then you can help me. It's obvious do those things but you're saying we got a similar one lrp that 28:27 we can do we do we have a product from you which is like a crop insurance. We can buy cattle and insurance for Revenue 28:36 protection from Sylvia's right? Yep. I wouldn't say Revenue protection I'd say price they won't guarantee weight on the cattle yet, but they'll 28:45 say Hey will at least we will ensure the price component of that Revenue. Okay up to me 28:51 to make the pounds. Okay. Well, yeah. Well if you if you're in a beef production business you sure as hell should be able to make the pound so I got absolutely so 28:59 what about the government that was a crop insurance type of program and that's you can buy that where's the government program? Is there 29:05 a government program that or is it part of the same thing? Yeah FSA also comes in with a 29:11 program livestock forage. So as we have been in a D3 D4 drought over the past six to eight months, they've actually come in 29:23 and one I had the rainfall products through RMA insurance. So as we have been lack of rainfall, I haven't grown 29:32 as much grass. I've been feeding more supplement. Um, my rainfall program is actually been giving me Indemnities to help pay for that 29:43 feed the flip side through FSA through lfp. As we have qualified for these droughts they have been sending money as well. 29:54 You know that helps pay for feed and whatnot as we've been in severe drops. So there is the integration of carbon Insurance 30:03 government programs and come out of the marketing same thing on the cattle side as there is on the green side. Yep. 30:12 Okay. Fidel what do what mistake do you see what mistake do you see out there with producers? 30:24 Well mistake that that you see that costs them money. Not hedging and leaving it on the table to you know, well, let's see 30:37 for the for the I hope it rains. You know, I hope the market doesn't go crazy that that's a big mistake that I see so might 30:47 not not protecting that myself at all not protecting. Yes, sir. Not not managing not protecting that their risk. Okay, we've talked 30:56 about cow cap stuff Fidel. You've got a bunch of your customers that are just feed yard people, right? 31:01 Just we've got we've got some that take their cattle to to fats. Yes, sir. So, I mean it would talk about some of these feed yards. There's 31:10 like 40,000 head of catalog there. Are they still be as Financial customer or do they somehow keep their stuff in-house? Who who's who's the 31:19 ideal customer for you to protect themselves and make themselves more money. We could we could work with an operation 31:27 that big however typically around the area those are done in-house. I believe the clients that we have now are more the you know 31:37 anywhere from 50 head of cattle to 2000. So around that range. All right, but we we could do we can manage it all so yeah, so you 31:48 still do have feed your people you have cow-cashed people Etc. Grid Flex Jared. 31:55 Devil's Advocate I've got a couple hundred cows I also retain ownership of some of them because I think I want to make money on them. 32:06 I maybe feed it myself, whatever what's interesting grid flex and somebody else is banging on my office door that wants my business to do this. 32:15 Because there was between Sylvia's financial and a gridflex product versus anybody else that tries to tell me they can help me market my cattle. 32:21 Yeah, I think our biggest difference just the same on the road crop side. We want to illustrate we want to be able to visually see 32:30 take the emotion out of the game. We want you to be able to look at it. And when I say, hey Damian, I think you need to sell five weight calves. 32:39 Why do I think you need to sell five weight caps? Because there's a profitability that goes with 32:45 that that is different than taking them to an eight week cast. 32:48 I think that is one reason the next reason I think is being able to put some of these pieces of the puzzle together. 32:56 As I look at my operation this year. I am bullish the markets personally, but I was also able to put my knowledge together to 33:05 give my chance a give myself a chance at a bullish Market. Yeah, I think you and I agree with about 33:14 the bullish thing. I'm a little concerned about the consumer the consumers held up pretty well, but they're getting whacked all over to place and 33:20 that's where I honestly think that I would want somebody that's protecting me on the downside just like you did 33:26 as much as I'm bullish. I also see a lot of pain among Middle America, you know between gas prices electricity prices your 33:35 home insurance is probably double. I mean, there's a lot of things that then don't build well for steak, they might bode well for hot dogs instead of 33:44 steak and then I think that's gonna whack us, so I'd probably be in that room of persons that wants to get the protection. So 33:50 you told me on a protection on the downside you spend about 40 bucks Cal You probably have somebody says well, I could lose a lot of money, you 33:59 know, just play in the market why spend $40 a calf and then pay you for the two thousand dollars a year to help me. 34:07 That's the person that's gonna give you that. What's your answer to that person? 34:12 Get after it. Um, I mean seriously get after it. We all have different we all have different philosophies as we look at the market. And when 34:21 I look at this Market, I I am running a business. I am running a I'm running a business account business and my 34:30 goal is to give it to my son one day. And so my goal is to be profitable and to be smart so that I have a business that 34:39 if he so chooses it can be his one day. And so that is where I go, man. Yeah. I've got some money to lose in these calves but 34:48 is that my purpose in this business? And to me? No, it's not it is to run a profitable Business Without right now. I'm looking at near record corn 34:58 prices near record soybean prices. We know that soybean meal gets blended into cattle feed. I don't know about. Hey, I don't buy it. 35:07 I don't keep up with the markets there a little bit of egg. It's using care. Okay, it's through the roof also, and then we're also talking about 35:13 at the store at the grocery store beef prices up 12 to 24% depending on the cut. And that's just you're over here not to mention what happened before anyway, the point is stuff's 35:22 High cattle prices appear High, you know, he's talking about selling feeders for There are two isama selling stockers for two bucks a pound. 35:32 Do I need your services more now when stuff's high or do I need your services more when things are low. When do I need you the most Fidel? 35:42 Well, you know and that's a things are flush right now. He's gonna make money even at eight dollar corn. He's going to make money on those calves. He probably make money if you fed 35:51 him out. Do I do I need you when things are good. Do I need your things are bad. I believe the volatility in the uncertainty is 36:00 always going to be there. So that's I mean you need me I'd say oh, you know when when things are good or when things 36:09 are are down. So as we've seen here just in the last couple of years markets have been crazy cattle producers 36:19 have been hammered with just about everything in the book from fires and packing plants to pandemics to, 36:28 you know, input prices diesel inflation and everything. Right now it seems like like you would need more, you know, the the risk advice 36:42 and all that stuff, but I think you I think you need risk you need. I think you need to manage that risk. 36:50 Always sure though you you see where customers I love you play The Devil's Advocate there a little bit but I would see where folks when 37:00 things are. Good. Say well, I don't need your services. Hell I'm making all kinds of money. What are you gonna do for me? And then 37:09 I can see when they're bad say I can't afford your services. I'm not making any money. So that's the way I'm guessing the two ends of the spectrum are when 37:18 it comes to why do business with Sylvia's or not. Am I right? Absolutely and that's within all of Agriculture within all of Agriculture when it's good. We don't need help and 37:27 when it's bad, I can't afford help. Um, but in reality, we're where do we where do we grow? It's always in that top five to ten percent 37:36 of what we can make that's where I grow. That's where I build Capital that is where I provide back to my family. And so, you know, you really got 37:45 to manage that and the bad times and you've got to capitalize on it and the High Times 37:50 And sometimes that is a running average. I need to make that top five ten percent over a five year after. 37:59 And so do you really have money to lose when you hadn't been making that 5% last year? No, you don't you really don't 38:08 have money to lose even when it's flush times. Yeah, so I I probably say that there's a need for a an all things 38:18 but I've seen this I've seen this my whole life. You said I don't need help now things are flush. Oh, I can't afford help things are bad 38:24 closing. You know, I'm gonna argue just a second even though we're talking two dollars feeders. We're not as plush as we think 38:33 two dollar feeders should offer. I mean middle America is is hurting right now just as you mentioned with gas prices and we 38:41 alluded to this but very quickly between the drought that a lot of the West has experienced this year. I mean, hay prices double I 38:50 mean cake 20% Cube proteins extremely high there's some benefit in room for profit in here, but it's not as plush as America makes it 39:02 out to be looking at the beef prices that are in the store. I just wanted to be clear on that We've joked around that a 39:09 little bit. Yeah. Yeah, two bucks is great. And I love seeing a two dollar price that if your cost I'm happy. 39:17 But it's it to get two dollar feeders this year. It's gonna come in a cost. Yeah, it's not a freebie. Your cost structure 39:23 is out from like you said cost to feed. I'm sure everything calf medicine every everything that you use is. 39:30 Expenses being passed on and I I agree with all that absolutely. Vanilla what thing? Did we not cover on the last minute 39:39 or so out the door here. What thing did we not cover? What what thing? Do you want to leave people with? 39:45 No, just kind of that. I know we covered it. But just want to you know, bring up the topic again about third made 39:54 a point earlier about emotion where you try to get that emotion out of the decision making process and look at numbers essentially. That's 40:04 what the program was made for and that's that's where you that's where you manage your risk Adele burstiaga is 40:14 a cattle risk advisor, but what we didn't tell you dear listener and viewer, he also has a tremendous amount of accolades and 40:20 experience as a meat analysis guy. He's a meat we'll call it meat a meat judger a meat you were on the meat team for your University, 40:29 right? I wasn't on the meats team but I did work with the meat scientists there for four years. All right. 40:37 So one thing I was trying to explain to my people like that my Suburban friends and they say Black Angus Black Angus, 40:43 but I said you realize that there can also it all comes down to carcass quality right? Huh? See so, 40:49 you know if that animal is a Black Angus or it's a Hereford is hanging there. Is it matter what color it's it's fur 40:58 was when it's hanging there as a car because in terms of quality In the end. No, you do 41:05 get your premiums for black some programs offer premiums for black hides, but on the rail, I mean a choice 41:14 is gonna be a choice Prime's gonna be a prime. So a lot of those primes are holsteins, right? There are some I've seen some problems that are holsteins the 41:24 best and I ever saw in four years of working with for WT was a pin of they were they were F1 crosses 41:34 50 50 wag you Holstein crosses and I think that's funny you ever saw. 41:42 Yes, sir. Well on average that pin that pin. I think they averaged 90% 93% Prime. 41:50 Yeah. So it was yeah, even even the guys that had seen you know that there's some guy that worked there for 20 30 years. 41:58 They were taking pictures of them and talking about it. So I was there that night that they died. So oh that's that's 42:04 a sad but yet good story. All right, Jared what last tip or thought do you have something you want to leave our list with about everything we've 42:13 covered today when it comes to marketing cattle. Yeah, I think it's the same tip I have on the grain side. Our philosophy is the same be aware of what's around you 42:22 beer be aware of the available options be aware of what tools you have available and then pull out the right one because there's one there for you 42:32 might not realize it but you have everything at your disposal to make smart risk management decisions. You just gotta look for 42:41 a place that knows how they work. One of the things I actually like that you said when I was playing The Devil's Advocate there about 10 minutes ago. 42:47 I said man things are good. What do I need you? And then you said hey have at it. And I think that's kind of 42:53 cool like when you get to where you're like, I know I can make your money. It is fine. It's fine. Good. Do you think it's it's 43:01 fine. His name's Jared Clark. He's CEO of Sonos Financial has joined by Fidel berciaga calories advisor also facilities fan. So these guys are Texas guys. They're 43:10 cattle guys. They know what they're talking about and just like on the crop side the goal of solar financials to integrate the 43:16 role of advisor for commodity marketing along with infusing it with come out of the programs from the 43:25 US Department of Agriculture as well as your crop insurance and you can get insurance package for your beef 43:31 also, so call these guys if you want to make more money on your cattle operation, whether you're cow calf 43:37 person or feet yard person or everything in between stock or feeder guy that you know rides around a horse looks at a pin 43:43 whatever they can help you. Where do they find you? They can find us on all social media. Or just go to Sylvia's financial.com. 43:53 Got it. Thanks for being here guys until next time. My name is Damian Mason and you have been listening to extreme acts 43:59 cutting the Curve. That's a wrap for this edition of extreme. AG's cutting the curve podcast brought to you by Sylvia's 44:07 Financial Sylvia's advisor show business minded Farmers how to integrate government programs with crop insurance as well as crop and cattle marketing to 44:16 achieve positive Financial outcomes. Learn more at Sylvia's financial.com.