Sara Snider
The Source
How to enroll in Gateway
With all of the late snow we got this year, it is hard to believe that spring is right around the corner. Along with the warmer weather comes a flurry of activity for AngusSource.® March is the beginning of our busy season, as producers begin to think ahead toward marketing their spring calves. Last year more than 17% of the cattle enrolled in AngusSource were enrolled during the month of March.
We know producers are working hard to add value to their calves while cutting out unnecessary expenses. AngusSource and Gateway are two of the lowest-cost verification options in the industry.
As you contemplate enrolling your calves into a source- and age-verification program, it is important to have all the information available to consider. We hope the information in this month's "The Source" will serve as a handy reference to answer most of the questions you have been asking yourself. If you have questions that aren't answered, please feel free to give us a call. Information about the program is also online at www.angussource.com.
What is Gateway?
For many producers this will be the first calf crop on the ground since Gateway was introduced in fall 2009 to expand our verification services to a larger number of commercial cattlemen. It is a second-tier verification option of the AngusSource U.S. Department of Agriculture (USDA) process-verified program (PVP) that verifies source and age. Producers enrolled in Gateway receive the same outstanding customer service and marketing support for which the AngusSource program is known.
Will I get paid more for my calves if they are enrolled in AngusSource or Gateway?
I wish the answer to this question were an easy "yes," but the answer is much more complicated than that. The truth is, "it depends." That's not exactly what you want to hear when you are getting ready to make an investment in your calves, but the bottom line is that the answer is different for every producer. The good news is some packers have guaranteed age-verified premiums through May 2010. In order for feedyards to capture the additional dollars, the calves they harvest must be enrolled in an approved program, so the demand for age-verified calves should continue to be strong.
According to data from Superior Livestock Auction, AngusSource calves sold June through September 2009 earned an average $2.65 more per hundredweight (cwt.) than non-verified calves, and an additional $1.08 more per cwt. than other age- and source-verified calves sold through Superior Livestock Auction video sales.
Data producers have submitted to us on customer feedback forms show that premiums (calculated as the value received above the Cattle-Fax weighted average for their region) vary between producers and regions, but, on average, most producers feel enrolling in AngusSource has added value to their calves.
When asked about premiums, we usually have several questions of our own:
• Is the auction market you are selling at familiar with age-verified calves?
• Do they offer a special sale?
• Are your calves weaned? Preconditioned?
• What kind of genetics do you have?
• Are you selling at least a load lot?
All of these things affect the value of your calves. Age verification alone is not enough to overcome the discounts that calves can receive for being sick or sold one or two at a time, just to name a few.
We encourage producers to visit with their video auction representative or the local auction market where they will be selling. If selling private treaty, talk with other local producers. From our experience, the more you can do to add value to your calves, the more chance you have of capturing premiums. The investment to enroll your calves in AngusSource or Gateway is fairly small compared to the potential returns.
How much does it cost to enroll?
There is a $50 enrollment fee for each group. If you would like to divide your spring calves into two enrollment groups there is a $50 fee for each. In addition, you must pay for the tags. We currently have three different tag options available in traditional and 840 numbering.
• AngusSource: visual program tag, $1 per head; e. Tag (electronic tag), $2.25 per head; and ChoiceSet (visual tag and an e. Tag), for $3.25 per head.
• Gateway: visual program tag, $2 per head; e. Tag, $3 per head; and ChoiceSet, $5 per head.
UPS ground shipping of your tags is free.
How long does it take to enroll?
The amount of time it takes to enroll is largely dependent upon you. If you have read through the manual, are familiar with the requirements and have good records, the time it takes to enroll is greatly reduced.
To enroll in AngusSource or Gateway, you must complete the training, which is done via phone with an administrator. The program and participation requirements will be discussed with you to make sure you understand your responsibilities as a producer in AngusSource or Gateway.
The actual calf enrollment is also completed via phone. Your management practices, along with specific production numbers related to the calf crop you are enrolling, will be discussed. Copies of required records must be submitted prior to the enrollment being approved. On average, an enrollment can be completed in less than an hour. Once finished and approved, tags are manufactured within three business days and delivered to you by UPS ground.
Will you help me market my calves once they are enrolled?
Yes! We provide marketing support via our online listing site. Once enrolled you can customize your Verification Certificate by adding additional management, health and marketing information. Once completed, we will activate your listing online and e-mail it to more than 600 interested buyers. Whether you are selling direct from the ranch, through your local auction market or on a video, you can promote your calves through our listing site free of charge!
How do I get started?
Download the Producer Participant Manual and enrollment forms from www.angussource.com or request a copy by calling AngusSource at 816-383-5100.
Read the manual, complete the enrollment forms and mail or fax them to our office. Once we receive the forms we will call you and begin working on the calf enrollment. Our staff will work through your training and enrollment and answer any questions you may have.
We look forward to working with you in the coming year!
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