Setting Pay Price Protocol for Cattle
PAY PRICE is reviewed monthly by the Board of Directors (BOD). In times of extreme price volatility, more frequent review may be warranted at the discretion of the BOD.
TIMING – The BOD will review and make changes, as necessary, to the pay price during the monthly BOD meeting, typically the second Monday of each month. Price changes are normally effective the 1st of the following month.
MARKETING INDEX – The BOD will use as a basis for their review, the USDA Weekly National Carlot Meat Report, Weekly Average Carcass Price Equivalent Index Value (Page 3) for Choice 600-900 lb. carcasses. http://www.ams.usda.gov/mnreports/nw_ls410.txt
VARIANCE – Price changes are often recommended when there is a significant difference in the posted USDA Average Carcass price from the month before. These reported prices are running average prices from Midwestern U.S. livestock markets.
PREMIUM – Our goal is to maintain a 20% premium over the index price for our final payout price to Members.
WGBC BEEF CATTLE Tier System Effective April 1, 2021 (applied to carcass hanging weights)
The WGBC BOD has approved a simpler price tier structure that will greatly benefit Members. Base tier has been raised and is now Tier 1. Bonuses have expanded, as described below. Any questions, please contact us. To see current prices, please click here to download our current Payment and Reference Sheet.
|TIER||USDA GRADE||MARBLING SCORE|
|Tier 1 (Base Tier)||Select||40 – 90|
|Tier 2||Select||0 – 30|
|Tier 3||Standard||70 – 90|
|Tier 4||Standard||< 70||AND Culls & Bulls when requested to be shipped|
|CG Bonus||Choice||> 0||$0.10/lb. Quality Bonus for Choice carcass grades|
|Veal calves $3.00/lb. (limited offers)|
|Volume Commitment Bonus I (after > 10 head beef fat animals are shipped / farm in calendar year 2021 – $0.05/lb. HWT will be added to producer pay price for Tiers 1 – 3 and Choice Grade animals.|
|Volume Commitment Bonus II (after > 30 head beef fat animals are shipped / farm in calendar year 2021 – $0.10/lb. HWT will be added to producer pay price for Tiers 1 – 3 and Choice Grade animals.|
WGBC Cattle Transport Support Program
WGBC will support the cost for Members’ cattle to be shipped, with reimbursement included in your payment for cattle. The amount of support will be determined by the mileage from your farm to the processor. The distance will be determined using a Rand McNally mileage calculator website, using your membership address on file and the processor’s location. Number of head will be counted when hanging weights are received from the processor and the reimbursement rate will be as follows:
|0 – 49 miles||$0/head|
|50 – 99 miles||$10/head|
|100 – 149 miles||$20/head|
|150 – 199 miles||$30/head|
|200 – 249 miles||$40/head|
Members are responsible for payment to livestock haulers hired to transport cattle – as requested by that livestock hauler. The transaction for transporting livestock is between the Member and the livestock hauler.
COMPENSATION FROM WGBC WILL BE PAID LATER. It is included in our payment for your animals – and assigned per animal.
CONTACT Wisconsin Grass-fed Beef Cooperative:
Any questions or if you are interested in shipping cattle through Wisconsin Grass-fed Beef Cooperative, please contact us at 800-745-9093.