Omaha daily bee., 1916-11-02
FARMERS FACING
FEEDER PROBLEM
Asking Themselves if They
Ought to Feed Corn, Consid-
ering High Prices Now.
MANY WOULD SELL CORN

that the farmers OF the corn belt have
been asking themselves and their
friends at the big market centers all
the fall. A good many decided to buy
and feed cattle, and some, acting
promptly on their decision, have the
cattle already in the feed lots.
Others had made up their minds to
feed, but were waiting with the hope
that feeder cattle would be lower in
November. Some of this number had
given their commission firms orders
to buy feeder cattle for them as soon
as the price should come down a lit
tie. Others were still on the fence
debating the question-"to feed or
not to feed"
That was the situation when the
corn market began soaring upward
week or ten days ago. As corn began
jumping feeders began falling off the
fence, and the higher it jumped the
faster they fell off. Seemingly they
all fell off on the same side-that is
with their minds made up not to feed
cattle, but to sell their corn for cash.
Orders Countermanded.
The result of this decision was felt
Immediately at the big market CEN
ters. Feeders who had filed buying
orders with their commission firms
countermanded them. The number of
country buyers who had been in at
tendance daily at the big markets
dropped down to onlyta fraction of
what it had been. /.
The country suddenly became panic
stricken to sell corn and keep as far
away as possible from all feeding
operations, The extent to which the
high corn scare has spread is evil
denced by the fact that quite good
many half-fat or warmed-up cattle
are coming back to market this week.
As such cattle do not make as good
beef as grass cattle that are still COM
ing forward in large numbers from
the range, it will be readily under
stood that .they are bound to sell to
poor advantage. Large shipments of
such cattle could hardly fail to break
the market wide open if persisted in.
1t is also a noticeable fact that
there is big increase in the receipts
at market centers of light under
weight and unfinished hogs, all going
to show that the high price of corn
has given the country terrible
fright and that in its efforts to save
more corn to sell, it is losing sight
entirely of the live stock market and
its possibilities.
May Go Too Far.
While commission men and others
at the big market centers are very
backward about giving advice, espe-
oially when not requested, there is a
general feeling that the idea of SELL
ing high priced corn instead Of feed
ing it may be carried entirely too far
They realize that corn which is used
principally as feed for stock cannot
remain high if everyone gives up feed
ing stock and takes the corn selling
side Of the deal.
On the other hand, men with a
large amount of corn on hand may
take the stand that they will sell corn
while the selling is good, and if the
price drops down they will buy cat
NE and feed it out. That sounds logi-
cal, but everyone familiar with the
cattle market knows that the big sup
plies of stocker and feeder cattle are
disposed of before the end of Novem-
Der. As the reduction in country buy
ing has already caused sharp break
in feeder prices, it is to be expected
that a good many ranchmen with
such cattle on hand will decide to
hold them over another year rather
than ship them at time when prices
are breaking.
For these reasons a good many
stockmen are wondering what the
outcome will be, and some are even
going so far. as to predict that the
country will find lit impractical for
everyone to sell corn and that about
the time feeders arrive at that con-
clusion and want feeder cattle, there ]
will be few on sale. There will come
a scramble to buy feeder stock just at
the time when the supply is short,
with the possibility of prices climb
ing way up to the top notch again.
Cattle May Go Higher.
Some stockmen who have given the
matter great deal of thought are
pointing out that there is possibil-
ity of more money being made in
feeding cattle this year than was
made when both feeder cattle and
corn was very much lower than at
the present time. They argue that
prices on fat cattle due to the for
eign war, to the Argentina drouth
and to the big home consuming de-
mand, will be higher next spring than
ever before.
While granting that the feed will
cost whole lot more, they are calling
to the fact that with beef
cattle even at prevailing prices there
is a good margin for profit For ex-
ample, feeder who pays $500 per
for a 9OO-pound steer and
sells him when finished at $40 to $l1
has $3 or $4 per hundred margin over
and above the original cost on the 900
pounds. He also receives $40 to $l1
for every hundred pounds OF gain that
the animal makes while in the feed
lot, which will pay for lot of high
priced feed and still leave a good
profit. Hogs are also bringing ex-
tremely high prices, and the profit to
be made on the hogs run after the
cattle must not be forgotten.
A good many stockmen are predict
ing that good corn-feds will reach Sl2
before spring. If that were to prove
true the profit would be still larger.
Stockmen at the'yards are advising
their friends in the country to think
the matter over carefully. All the
markets of the country have been re-