Company History

The National Livestock Commission Association (NLCA) began doing business on September 15, 1931. It began as the Oklahoma Livestock Marketing Association (OLMA). At this time in our nation's history, everyone was in the midst of the Great Depression. The primary objective of the new organization was to market livestock for its members. Any producer of livestock was eligible to become a member upon payment of $1 for one share of common stock. This purchase of stock provided each member "full privileges of membership without further payment of dues or assessments".

While incorporation documents were being completed, the company leaders were very busy. On October 31, 1931, OLMA contracted to buy the National Commission Company. It was the oldest firm on the Stockyards and was owned by R. Ridley and his son. In a "zero cash" deal, Ridley agreed to sell the firm and continue as manager for five years with profits to be split between he and OLMA. OLMA would then use its percentage of company profits to generate new business and fund the expenses of National Livestock Credit Corporation.

The first annual meeting of OLMA was held in Oklahoma City, Oklahoma on April 5, 1932. The report showed that during the first 5 1/2 months of operations, the firm had sold 34,500 head of livestock. More than 5,000 head of livestock had been purchased for members. Total commissions paid for services were $16,929 and the net profit for National was $5,468, an astonishing 32% of revenues. Directors announced that National would pay a 10% dividend, rebating that portion of commissions paid by its members up to April 19, 1932. In those days, a rebate was a new experience for farmers and stockmen. Membership at the first meeting was reported to be 1,161 increasing at a rate of 100 new members per month. It was also claimed that in the first 10 weeks, the National Livestock Credit Corporation made more livestock loans than all other agencies in the state combined.

On September 15, 1931, an article titled "Livestock Co-op is Ready for Business" ran in The Oklahoma Farmer Stockman. The article touted National as a much needed source for livestock marketing and credit arrangements. The article further indicated that everyone expected a rush of new credit applications once the company opened its doors. At this time, top slaughter cattle were selling in Oklahoma City for $11.25 per hundred weight. Grass fed steers were bringing only $8 per hundred weight.

In the early 1930's, agricultural credit was all but gone. A three-fold disaster had occurred. The Great Depression combined with drought and crop surpluses caused agricultural credit to all but disappear. Many banks closed during this period. An editorial in The Oklahoma Farmer Stockman described the situation this way. "The days of easy borrowing are all behind us. In the first place, the money isn't in the banks to loan. In the second place, so many banks went broke trying to finance the production of crops that none of the banks left will try to beat the game. All of the soft-hearted bankers are now ex-bankers."

A full page ad for National appeared in the Oklahoma Livestock Market News on July 11, 1950. It offered livestock loans at 4.5%. One customer discussed the loan policies of National in an interview many years ago. The customer was quoted as saying of the President of National "He would say I'll lend you money to buy 100 cows, but when I come up there a year from now, I want you to have 100 cows or the hides nailed to the barn with the brand showing."

The long-established practice of selling livestock by "private treaty" eventually gave way to selling at public auction. Soon the Oklahoma National Stockyards became "The World's Largest Stocker and Feeder Cattle Market". Railroads had traditionally delivered livestock to the terminal markets in Oklahoma City. But this mode of transportation gave way to trucking.

Many of the original families who were pioneers of National are still actively involved as either customers or directors. Periods of long service by staff and board are very common. It has been said that once someone comes to National as a customer or staff member, that they be with National until retirement or death. This sense of service continues with the current staff, customers and board members of National.

Today, the National Livestock Commission Association continues as a leader at the Oklahoma National Stockyards. The National Livestock Credit Corporation boasts loan commitments of over $100 million. The common thread of the National companies continues to be the pursuit of total customer satisfaction. Many years ago, a director of National made the following comment. He said "I don't think there's any question that National will live and continue to serve the people, but possibly the organizations will serve them in some different respects. We already have seen some big changes and there will be more changes". That certainly was a prophetic statement that continues to be accurate as the livestock business continues to change rapidly.