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OSU Extension - Fairfield County
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and the
BEEF Cattle questions may be directed to the OSU Extension BEEF Team through Stephen Boyles or Stan Smith, Editor
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Previous issues of the BEEF Cattle letter
Issue # 600
Changing Times: Management Considerations for Cow-Calf Producers - Dr. Scott P. Greiner, Extension Animal Scientist, Beef, VA Tech
Without question, the landscape of the beef business has changed. All of us are fully aware of the impact of rising feed, fuel, and fertilizer prices, and much discussion has taken place (and will continue to take place) on how energy, economic, and many other policies and factors will affect our industry. "How will this impact us in Virginia?" is a primary topic of discussion amongst all of us with a vested interest in Virginia's beef industry. While none of us have a crystal ball, the hard facts tell us that annual production costs are up $100-150 per cow for many Virginia producers. As we work through the many external factors that will shape our industry's future here in the Commonwealth, dealing with the realities of production costs and today's market are most imperative. Following are a few factors to evaluate that relate to both production costs and gross income. While none are silver bullets, they represent fundamental approaches to controlling costs and optimizing value which are key in today's beef business climate.
Maximize Forage Utilization- Our ability to grow and utilize forage has long been the strength and foundation of our cattle industry. The price of grain and supplemental feed dictate that we make prudent use of our forage resources. Evaluate your stocking rate and carrying capacity of your pastures and forage system, and make use of grazing and forage management systems that maximize the utilization of forage resources. Stockpiling for fall-winter grazing, pasture rotation, and proper soil/forage plant management are examples which have stood the test of time and proven to be effective and economically sound. From an economic perspective, running a few less cows on the available forage system may be advantageous to a larger herd size that requires more purchased supplemental feed. Simply put- forage is our cheapest and best resource, maximize the use of it.
Make Winter Feed Plans Now- Compared to a year ago, most areas of Virginia are in much better shape regarding hay inventory. Now is the time to inventory both the quantity and quality of your hay on hand. Hay yields were high in many areas, although due to weather conditions some hay may not have been put up optimally, thereby impacting quality. Work with your local Extension agent to sample your hay to assess its quality. Quality will impact the need for more expensive supplements this winter and next spring, depending on the production stage of the cows. Proper inventory of hay quantity and quality will allow for more accurate planning of supplement purchases that will be needed to compliment the forage. Don't forget to account for stockpiled forage that may be available in the fall-winter as well potential changes in cow herd size. Once a plan is put together, begin the process of looking for opportunities to acquire necessary supplements/grain. All indications are that the grain markets will continue to be very volatile through fall harvest. Watch these markets closely and work with suppliers to acquire what is needed at an optimum time.
Add Value to the Calf Crop- Annual feeder calf sales represent the majority of the income for most cow-calf operations. There is substantial evidence to support there are several strategies that enhance returns on these calves. Programs such as the Virginia Quality Assured program which documents and verifies a management program (vaccinations, weaning, genetics) and offers cattle in load lots, provide an opportunity to enhance value of the calf crop. While these programs do require additional input costs labor, these additional costs are offset by the additional value received for the calf. In recent years, the value difference has grown between calves sold through programs such as VQA compared to freshly weaned calves with no reputation. With the increased costs of gain and tight margins being experienced by feedyard operators, many expect the value differentiation for feeder cattle to be even stronger.
Additionally, there is speculation that feedyards will be increasingly interested in placing heavier calves. For certain, there will be a premium on cattle that will stay healthy and have a reputation.
Evaluate Cow Herd- Open cows (regardless of age) will not generate revenue through calf sales in the coming year, and consume forage that could be used to support other animals in the herd. Pregnancy checking the cow herd has always been an economically sound management practice. Given the carrying costs of cows, working with a veterinarian to identify open females will provide significant return on investment. All cows should be evaluated as to their productivity and profitability. Generally, cows with the poorest returns are those which produce less pounds of saleable calf and calve late. Since calf value is primarily determined by calf weight, cows calving late in calving season (particularly those which consistently calve late) tend to be the least profitable. With a good cow record keeping system, poor-producing cows and problem cows can be identified and culled when warranted. Old cows reaching the end of their productive life would also be candidates.
Keep Good Records- The ability to manage costs is dependent on the ability to define the source of these costs and make decisions accordingly. Similarly, identifying opportunities to add value and improve management and genetics is dependent on a good record keeping system. Now is the time to get a handle on the exact operating costs of the beef production enterprise so that measures can be taken to remain profitable in the future.
None of us know exactly how the landscape of our Virginia beef industry may change. However, it is clear that controlling costs and deriving the most value for our product need to be the focus, as they always have. Each producer's beef enterprise is unique, and consequently strategies such as those outlined above need to be evaluated within the context of their application to an individual operation.
Recognize your calves? - Steve Suther, Director, Industry Information, Certified Angus Beef (reprinted with permission from the CAB "Black Ink" publication, August, 2008)
Most of the calves now nursing cows will be weaned in the next few weeks. Some will shrug it off with little stress and therefore little negative effect on later performance. Others will enter a downward spiral of health from which they may not recover.
Which calves are yours?
Some calves - both crossbred and purebred - were the product of planned genetics and a managed calving season. They are uniform and predictable.
Others are simply cattle of unknown genetics, and the best they can hope for is to be somebody's "opportunity calves."
Which calves are yours?
In this time of elevated costs and risk, an estimated $1 billion may be lost as calves transition from their farm or ranch of origin to feedlots.
Some calves have received two rounds of vaccinations in carefully considered health management programs by the time they are weaned. Their immune systems are up to most challenges, and they are fully eligible for "natural" beef premiums. Their documented identification system sets them up for export and other program premiums.
Other calves are starting to feel sick about the lack of thought to their health or any kind of premiums beyond the trailer gate.
Which calves are yours?
Some calves were introduced to creep feed a few weeks ago, or at least shared in some grain meals alongside the cows at the pasture fence last week. They sampled hay and grain in a bunk, and tank water, maybe even water from an automatic fixture.
Others know only milk and pond water on weaning day.
Which calves are yours?
Some calves were introduced to the weaning corral casually. With their mommas, they were led there for pre-weaning shots not long ago. In a few herds, they were fitted with self-weaning nose rings last week. In more than a few herds, they have been grazing along a fence that will soon separate them from their mommas.
Other calves are what we might call "naïve." The awful truth of separation will hit them hard.
Which ones are yours?
On weaning day, some calves will have less concern about which gate they entered as they return to graze next to, but apart from what was once their bigger half. Some will be gently loaded for a short ride to preconditioning pens, where they will find familiar creep feeders, hay, water and grain, which they will soon fully appreciate.
Other calves will panic after being driven into a "trap" and tricked or prodded into a trailer ride to town. Their only hope is purchase by a more professional cattleman.
You may say this litany is unfair to large producers. It's easier for the guy with 50 or 60 cows to implement these strategies. On extensive open ranges, that's certainly true. In every size category, there are boons and boondoggles. Large operations can look for ways to make the most out of branding roundup opportunities, with booster shots at weaning or at least coordination of plans with a preconditioner or feedlot.
You may say this litany is unfair to small producers, but it does not take a large investment in facilities to prepare for weaning. If you keep any cattle, you must have secure facilities for occasional penning, and your veterinarian can help from there.
Alternatively, those with small herds can build a sense of community by working together on administering vaccinations with shared ownership of some portable equipment. That can lead to one neighbor deciding to act as preconditioner for all.
At the auction markets, the risk is higher than ever before on light, unweaned, unknown calves. They're selling at significant discounts to the kind with health and breed program tags and the extra pounds that say they are graduates of a preconditioning program. Some weighing 700 pounds are selling for more per pound than others weighing 450 pounds.
Which calves are yours?
Forage Focus: Matching Pasture Quality to Animal Needs - Dr. Roy Burris, Beef Extension Specialist, University of Kentucky
Now more than ever, it is important to make the most efficient use of our forage resources. Supplemental feed is very costly and must be used judiciously. We need to keep grazing cattle on pasture for as long a period as possible and feed only as necessary. As we do that, we must be sure that we are meeting the nutritional needs of the cows and calves. Most of our pasture systems are based fescue pastures. The typical production pattern for a cool season perennial like fescue is shown by figure 1. There is very little growth from February 15 to early April and fescue may almost go dormant from late July through August. Thus, these two periods are critical in the management of beef cattle. If adequate grass isn't available, stored or purchased feed must be utilized.
So, what is the most critical time in the production year for a beef cow? Nutritionally speaking, it is the time from calving to rebreeding. Usually a period of 70 to 90 days. Not only do we have to meet the nutritional needs of the cow at that time, but they should approach calving time in good body condition and stay in good condition until they are rebred.
That critical period of time is usually from late February until late May in spring calving cows. Which means that cows need to be fed extra feed from calving time until they are turned out onto good pasture (usually from late Feb. to April 10th). The challenge is by the time calves become less dependent on milk and can use more forage (about 3 months of age) fescue pastures diminish in quantity and quality - the summer slump. We need to consider a portion of pasture which grows during that period of time to keep spring-calves growing in July/August.
Fall calving cows are "dry" during the summer forage slump and can be rebred during December and early January when accumulated fescue pasture is available. However, calves willneed extra feed (creep feed or grazing) after the accumulated fescue is used up.
We have completed a three-year study of 5 different forage systems using fescue-based pastures at Princeton. Table 1 shows 3 of those systems for us to consider here - 2 of which are spring-calving systems and 1 is fall-calving. Each system consisted of 15 cow-calf pairs on 24 acres of pasture for 3 years. The goal was to graze about 10 months - feeding from about February 15 to April 15.
In each group, cows were in a body condition score of 5+ at the start of the breeding season - when cows were AI'ed using timed insemination. Pregnancy rates were similar for both spring calving groups - 89% for high endophyte and 91% for low endophyte. The fall group had a pregnancy rate of 96% with 71% pregnancy rate for the one round of a timed AI.
Calves that were born in the spring tended to be about 10 pounds heavier at birth (90 and 87 lb for HE and LE, respectively) than those born in the fall (79.6 lb). The same bulls were used AI throughout the trial and clean-up bulls were rotated across treatments. Spring calves were weaned on an average of October 17 when pasture became limiting and fall calves were weaned on June 1. The actual weaning weights were 581, 587 and 652 lb for spring/low, spring/high and fall/high, respectively. It is important to note that fall calves were older and received soyhulls as creep feed.
The most important thing to glean from this trial is that we can have forage management systems which are built around high-endophyte fescue that will perform similarly to low-endophyte systems if we meet the animals' nutritional needs at critical times. Spring calving cows must come out of the winter-feeding period in good body condition (a BCS of 5 means that there is enough flesh to cover all of the ribs and spinous processes) and re-breed early for acceptable pregnancy rates.
Calf gains were also similar for both spring groups. Remember that pastures were rotationally grazed (6-4 acre blocks) and bermudagrass (1/6 acreage) was available to graze during the summer slump period. Very little was gained by overseeding bermudagrass with cereal rye for winter grazing.
There are many forages and combinations of forages that will work for cow-calf production in Kentucky, but most will (1) be based on fescue, (2) insure that cows stay in good body condition especially at breeding, (3) meet the nutritional needs of cows and calves at critical times, and (4) rotational grazing is a vital method of stretching (or allotting) the forage supply. Using these management systems with a stocking rate of 1.6 acres per cow gave us enough grazing for about 10 months but did not allow for hay production - although it certainly minimized the need for stored feed.
Table 1. Three Management Systems for Cow-calf Production, UK-Princeton (3 years)
Item |
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| Cow-calf pairs/yr | 15 | 15 | 15 |
Cow Data
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Calf data (Avg. Of 45/trtmt)
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Targeted Grazing Workshop is Set
The American Sheep Industry Association (ASI) received an NRCS grant to conduct three regional workshops to educate both land managers and livestock producers about the use of targeted grazing as a landscape enhancement tool. Ohio land managers, producers and interested parties regardless their specie of interest are invited to the last workshop being held on September 25th and 26th, at the Pennsylvania Livestock Evaluation Center in Pennsylvania Furnace near State College.
Targeted grazing is viewed as a non-chemical, economical and environmentally friendly alternative to traditional methods of landscape enhancement. It should be used as an important land management tool to reach many defined vegetation and landscape enhancement goals, such as, reducing invasive plants and wild land fire fuel, improving wildlife habitat and forage quality, as well as for orchard and farmland management.
Under this link you will find an informational flyer describing the time and place of the workshop and registration information. Anyone who would benefit from learning about this eco-friendly and cost efficient land management tool, particularly those charged with land and weed management and livestock producers,will gain from this workshop.
For further information please visit www.sheepusa.org or www.cnr.uidaho.edu/rx-grazing/ . Also feel free to contact Rochelle Oxarango at targetgraze@pmt.org with any questions.
Weekly Roberts Agricultural Commodity Market Report - Mike Roberts, Commodity Marketing Agent, Virginia Tech
Headlines: Last week's USDA World Agriculture Supply Demand Estimate (WASDE) report was bearish for corn, neutral for soybeans, and bullish for wheat. However, corn futures were oversold so index funds took prices up . . . way up. Soybeans tagged along while wheat rode its own fundamentals. While the ups and downs of the volatility are dizzying, I'm sticking to my measuring objective of $4.81/bu for corn before it's all said and done.
CORN futures on the Chicago Board of Trade (CBOT) finished up on Monday. The SEPT'08 contract finished at $5.530/bu, up 23.2 cents/bu from Friday and 55.8 cents/bu cents higher than a week ago. The DEC'08 contract closed at $5.726/bu, also up 23.2 cents/bu from Friday and 55.6 cents/bu higher than this time last week. Corn futures were supported by heavy speculative fund buying and strength in the soybean and wheat markets. This time last week corn futures were on the ropes but large speculators jumped in and traded the oversold technicals adding much to this synthetic price. Some support was seen in a weaker U.S. dollar amid ideas that the sell-off on Friday was a bit much. Several floor sources today said the general feeling in the corn market is that USDA has missed the crop-estimate mark and the 2008 Pro Farmer Midwest Crop Tour will reveal corn crop yield numbers closer to the 150 bu/acre mark. USDA placed the yield estimate near 155bu/ac in its last report. We'll see. One thing for sure, this tremendous uncertainty adds fuel to an already very volatile corn market. Strong end user demand for corn at or near the $5.00/bu mark was supportive. USDA put corn-inspected-for-export at 36.7 mi bu vs. expectations for between 32-36 mi bu. Funds were net buyers of over 6,000 contracts on Monday after slashing net bull positions by 15,300 lots to 61,981 contracts as of August 12. Cash corn in the U.S. Midwest was steady to weak while cash bids for corn in the U.S. Mid-Atlantic States ranged 18.0 cents/bu - 25.0 cents/bu higher. Those who have up to 70% of the '08 crop priced today are in good shape. Speculate with the rest.
LIVE CATTLE futures on the Chicago Mercantile Exchange (CME) were up on Monday. The AUG'08LC contract closed at $101.925/cwt, up $0.250/cwt from Friday but $0.375/cwt lower than this time last week. The August contract will expire on August 28. OCT'08LC futures were up $0.100/cwt at $105.950/cwt but $0.875/cwt lower than last Monday. High feed prices and long liquidation pressured prices. Large speculators got back on the "buy" wagon near the end of Monday's session providing some support. The USDA 5-area price for Monday ranged between $99.70/cwt-$99.76/cwt vs. expectations o $102.00/cwt. USDA placed the boxed beef cutout at $163.90/cwt, off $0.43/cwt. Volume was light ahead of the USDA Cattle on Feed report due out on Friday. According to HedgersEdge.com, the estimated average packer margin was off $16.40/head placed at a positive $22.50/head based on the average buy of $99.89/cwt vs. a breakeven of $101.63/cwt. Corn and soybeans remain very volatile in technical selling and buying as the market doesn't believe the most recent USDA report. It is a good idea to price short term feed needs on down ticks in the market.
FEEDER CATTLE at the CME closed down on Monday. AUG'08FC futures were off $0.250/cwt at $113.650/cwt; $1.325/cwt lower than last Monday. The SEPT'08 contract finished the day at $113.575/cwt, off $0.825/cwt from Friday's close and $1.150/cwt lower than last Monday. Higher corn futures pressured feeder cattle after an initial short-covering run up in prices. Cash feeders in Oklahoma City were up $1.50-$2.00/cwt. The latest CME Feeder Cattle Index for August 14 was placed at $112.97/cwt, off $0.04/cwt. The feed markets are volatile and will remain so for the coming weeks.
Visit the OSU Beef Team calendar of meetings and upcoming events
BEEF Cattle is a weekly publication of Ohio State University Extension in Fairfield County and the OSU Beef Team. Contributors include members of the Beef Team and other beef cattle specialists and economists from across the U.S.
All educational programs conducted by Ohio State University Extension are available to clientele on a nondiscriminatory basis without regard to race, color, creed, religion, sexual orientation, national origin, gender, age, disability or Vietnam-era veteran status. Keith L. Smith, Associate Vice President for Ag. Admin. and Director, OSU Extension. TDD No. 800-589-8292 (Ohio only) or 614-292-1868
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