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Previous issues of the BEEF Cattle letter
Issue # 654
Ranching - a Great Way of Life - Kit Pharo, Pharo Cattle Co., Cheyenne Wells, CO
Ranching is a great way of life, but is it sustainable? Can it produce enough income to support a growing family? Can it be passed on from one generation to the next? Will the next generation want to come back to the ranch?
In recent years there has been much talk about a concept called "sustainable agriculture" but most of the so-called experts fail to mention the two most important ingredients - profit and enjoyment. Agriculture that is not profitable and enjoyable will never be sustainable.
I'm very troubled by the large number of ranches that are struggling to make a profit. I'm troubled by the number of ranchers who are tired and burned out. I'm troubled by the fact that the average age of ranchers continues to increase because the next generation is not coming back to the family ranch - but can you blame them? They spent their entire lives watching their parents work relentlessly, often with off-farm jobs, just to breakeven. If ranching isn't going to be profitable and enjoyable, why ranch?
This is a subject I am very passionate about, but since space is limited I'm just going to hit some of the high points.
1. Profit and enjoyment are attainable. I know many ranchers who have both. While some have inherited a family ranch, others have done it on their own. Age and sex don't seem to be major factors.
2. Success is more a matter of attitude than of anything else. Those who are open to change and not afraid to think outside-the-box are most likely to succeed. On the other hand, those who resist change while trying to blame their problems on someone else will seldom (if ever) be successful.
3. Successful ranchers work smarter, not harder. Although they enjoy riding a horse and driving a tractor, they always set aside time to drive the desk.
4. Profitable ranchers make efficient use of the ranch's available resources. Instead of investing in the latest gadget, they invest in education courses that teach them how to get the most from what they already have.
5. Successful ranchers observe and imitate nature. Going against nature requires extra labor and extra money.
6. Production and profit are not the same thing. In fact, they are often antagonistic toward one another. Successful ranchers realize that some increases in production will actually reduce profit.
7. Successful ranchers know who to listen to. You have been taught, by the so-called experts, how to maximize production, but few are teaching you how to maximize profits and enjoyment. Most ranches, unfortunately, have developed a "herd mentality" way of thinking. They may be doing everything right, but they're doing the wrong things.
8. Profitable ranchers have a very low cost of production. Their breakeven price is so low they have a huge competitive advantage over their neighbors who are still trying to increase profits by weaning bigger and bigger calves.
9. The most profitable ranchers are selling a product instead of a commodity. They control their marketing and pricing. Time spent on marketing can pay dividends ten times greater than time spent on production.
10. The easiest way to adapt to change is to create it. Successful ranchers chart their own course. You may be the only one who is capable of making your ranch more profitable, enjoyable and sustainable.
Editor's Note: Ohio cattlemen are invited to visit with the author of this article in person at a free Workshop and Farm Tour on Saturday, October 3rd in Cadiz, Ohio. Contact James Coffelt (ph: 330-328-4470 or JamesCoffelt@hotmail.com) for details.
Between a Rock and a Hard Place - Dr. Roy Burris, Beef Extension Specialist, University of Kentucky
I spent one summer during my college years working as a student trainee for a lending institution. One day I went with my supervisor to collect on a delinquent loan. On that day I gained some insight into what makes farmers, cattlemen and landowners "tick".
We were sitting on the front porch of this elderly gentlemen's quaint home surrounded by hills and trees. The seriousness of the loan status was discussed and it was suggested that maybe he could sell some timber to meet his financial obligations. I will never forget his response. He said "I have lived on bean soup many a day to keep from cutting those trees!"
I didn't understand why he would risk the entire farm to protect a part of it. An economist or banker probably wouldn't agree with that logic either, but I have come to understand it. There's something about the land that sometimes keeps us from making purely logical business decisions.
I remember when we had some timber cut on the home farm in the 1960's. It was a fairly simple process with mules used to pull the logs - easy on the environment. I had the same land cut over in the 1990's with skidders and loaders and the aftermath looked like a war zone. I knew then what the landowner had feared. Although, there might have been a compromise that would have allowed him to have done what was environmentally acceptable and still meet his economic needs.
Farmers and cattlemen frequently find themselves in situations which can be a struggle between what's best for the environment and what's best for their family. Most care deeply about both. That is why some decisions about farm management can be so tough. It's what some folks call being between the proverbial "rock and a hard place".
Critics of American agriculture don't have a clue about how people who live off the land struggle to hold on to a way of life that is usually intertwined over generations and not always economically rewarding. Our problem is that we normally have to consider the bottom line because all bills must eventually be paid. Urbanites who cruise down the parkway in their luxury SUVs should be careful about judging us or making regulations about things they don't understand.
Cattle producers are constantly making difficult decisions. Which cows do you keep? Which cows do you cull? Culling old barren cows seems like a "no-brainer" but we struggle with even that decision. Why? Because we are the people that really care about animals. Sometimes we care too much, but I don't believe that we should be lectured to, or regulated by, people who can't possibly understand our way of life.
Selling land or farms is even more difficult than selling cows. Whether you decide to keep your land, preserve it as a legacy or trust, or sell it outright is your business. Everyone should respect that. It can be a heart-wrenching decision but logic and the bottom line may factor into the decision.
What happens when land that has an agricultural value of $2,500 per acre suddenly has a value of $25,000 per acre for development? An unbiased economist will tell you that is an easy decision. Sell it. Yet we agonize over the decision. What would great-grandfather think? What will our neighbors think? What is the right thing to do? We're between a "rock and a hard place" again.
The logical decision is to take the money and re-invest in less expensive farmland and/or secure your family's financial future. If it is a matter of choosing between family and land, make the logical choice and move on. If you can afford to "tie up" the land for subsequent generations or preserve some "green space" from urban encroachment, that is a great and noble action.
In the end, only you and your family can decide what is best for your long-term well-being, and what reflects your own values. We are always concerned about being good stewards of the land and living our values. Just be true to those values but don't let others influence you unduly. Remember "those that matter don't mind and those that mind don't matter".
Ballot Issue 2 on Livestock Care Board - James Skeeles, OSU Extension Educator, Agriculture and Natural Resources
This upcoming election you will see ballot Issue 2 that if passed will establish a livestock care standards board to determine standards for livestock care, with the Ohio Department of Agriculture to be the enforcer of such standards.
In Issue 2 a constitutional amendment is proposed to create a board to establish standards of care and well-being for livestock and poultry. On the ballot it states that the standards should endeavor to favor food safety, locally grown and raised food and Ohio farms and families. In establishing standards the board shall consider the following but not just the following: best management for animal care and well-being, disease prevention, animal sickness and death, food safety and the protection of local, affordable food supplies for consumers.
The Livestock Care Standards Board will contain thirteen Ohio residents. The Board will contain representatives from Ohio family farms, farming organizations, food safety experts, veterinarians, consumers, the Dean of the agriculture department at an Ohio college or university and a county humane society representative.
Despite the fact that no farmer wants additional government oversight, the agricultural community and organizations are uncharacteristically united in this effort. In fact, the following Ohio farm organizations all support a "yes" vote on Issue 2: Farm Bureau Federation, Pork Producers Council, Poultry Association, Dairy Producers Association, Cattlemen's Association, Soybean Association and Corn Growers Association.
Issue 2 passage is also endorsed by Ohio non-farm organizations, such as Association of Second Harvest Foodbanks, Restaurant Association and Veterinary Medical Association. The agricultural community sees this effort at self regulation as a better alternative than the animal confinement legislation passed in California at the last election.
To better understand the issues to be addressed in Issue 2 the OSU Department of Animal Sciences and the College of Veterinary Medicine are holding an Animal Welfare Symposium, "Building Partnerships to Address Animal Agriculture," on Friday, October 16 at the university's Nationwide and Ohio Farm Bureau 4-H Center, 2201 Fred Taylor Drive, Columbus, Ohio 43210. Animal welfare experts and social scientists from around the world will discuss the scientific, ethical, legal and social contexts embedded in the animal welfare debate.
The event is designed for food animal producers, consumers, veterinarians, and anyone with an interest in food animal production and products or sustainable animal agriculture. The symposium is an opportunity for those interested to participate in a discussion, obtain better understanding and hear about the present scientific knowledge about animal welfare in differing housing systems.
More detail and registration information is available at http://vet.osu.edu/AnimalWelfareSymposium or for more information, contact Melissa Weber at weber.254@osu.edu or 614-292-3752.
Issue 2 Information Meetings are Set
The Ohio Cattleman's Association has announced that The Ohioans for Livestock Care Campaign will host 12 regional meetings around the State to provide Ohio farmers an update on the Issue 2 campaign to create a Livestock Care Board. Meetings scheduled to date and their locations include:
Bowling Green University Football Stadium Parking Lot, Toledo Area, September 26, 4:00 pm
Versailles High School, Sidney Area, October 1, 7:00 pm
The Cross, Findlay Area, October 4, 7:00 pm
Lake Farm Park - Guest Speaker: Sen. Tim Grendell, Cleveland Area, October 4, 3:00 pm
Ashland County Fairgrounds, Ashland/Mansfield Area, October 11, 1:00 pm,
Park Farms or Zellar's Farm, Canton Area, October 11, 3:00 pm
George Darr's Farm - Guest Speaker: Rep. Allan Sayre, New Philadelphia Area, October 11, 3:00 pm
Watch for announcements regarding additional meetings being hosted near Cincinnati or Dayton, Springfield, Columbus, Jackson and one additional location to be added.
Forage Focus: Not All Land Is Created Equal - Kris Ringwall, Beef Specialist, NDSU Extension Service
Land mapping of "ecosites" in pastures is helping producers determine stocking rates. This mapping process identifies potential forage production for all the individual ecosites to determine the number of acres needed to provide the nutritional requirement for a cow for a month.
Did you know this process commonly is called acres per animal unit month (AUM) per pasture?
The process seems complicated, but times are changing. The concept of individual ecosites within a pasture and relative productivity is very real, so it is time to listen up and get with the program.
Life is a learning process. If one is not careful, one can spend much of life ducking these processes.
Regardless of how much each of us knows, there always is something else to learn. If our personal library is full, people who are more knowledgeable can be found because no one has a corner on all knowledge.
Those of us involved in beef cattle have more than likely fed beef cattle. We want to make sure we feed our cattle correctly. For those in charge of rations, the National Research Council (NRC) is referred to often.
The NRC publication contains the nutrient requirements of beef cattle through the many stages of development. The publication also is a guide to how those requirements might be met. Most nutritional sources go to great lengths to provide the best estimate of the expected value of the cattle feed.
For example, the NRC estimates the crude protein value of wheat straw at 3.6 percent and oat straw at 4.4 percent. Neither would meet the 7.7 percent daily protein requirement of a 1,300-pound mature cow during the last third of pregnancy. Astute cattle producers know a complete straw diet never will meet the nutritional needs of cows.
On the other hand, crested wheatgrass hay that is cut during full bloom has an estimated 9.8 percent crude protein value and would meet the nutritional requirements of the same 1,300-pound cow. In fact, crested wheat hay generally would meet the protein nutritional requirement for mature cows, except for the high-milking cows. In that case, more protein is needed.
One could go on regarding the nutritional needs of cattle. I prefer to return to the initial point that we can all keep learning.
Learn we shall. Just like the world of nutrition, modern technology has documented the many acres of land we ranch. Through the U.S. Department of Agriculture's Natural Resources Conservation Service (NRSC), considerable information is available on many parcels of land across the country.
A quick click on the Web at http://websoilsurvey.nrcs.usda.gov/app/ shows that "Web Soil Survey" provides soil data and information produced by the National Cooperative Soil Survey. It is operated by the USDA's NRCS and provides access to the largest natural resource information system in the world.
The Web site says, "NRCS has soil maps and data available online for more than 95 percent of the nation's counties and anticipates having 100 percent in the near future. The site is updated and maintained online as the single authoritative source of soil survey information."
What a great asset for those who make their living off the land. However, what is more important, by learning new techniques and processes, the land we farm and ranch becomes more like the straw and crested wheatgrass hay we talked about previously.
There are great differences on the productivity of the various ecosites within a farm or ranch. As the Dickinson Research Extension Center jumped on the learning curve, we discovered that native range pasture varies from 4.62 acres per AUM to 2.42 acres.
Keep in mind that one AUM assumes 30 pounds of dry-matter intake being consumed daily by a 1,000-pound cow for 30.5 days. However, just as cows cannot survive on an all-straw diet, they will not survive, nor will the land, on overstocked pasture.
Weekly Roberts Agricultural Commodity Market Report - Mike Roberts, Commodity Marketing Agent, Virginia Tech
LIVE CATTLE futures on the Chicago Mercantile Exchange (CME) were down amid technical weakness on Monday. The OCT'09LC contract closed off $0.300/cwt finishing at $85.250/cwt; $1.800/cwt lower than this time last week. DEC'09LC futures closed at $84.550/cwt; down $0.350/cwt and $2.125/cwt lower than last report. Last week's lower prices continued to pressure live cattle and contributed to short covering in sideways, choppy trading. Friday's USDA Cattle on Feed report was considered mostly neutral failing to show further lows in inventory amid larger placements, record low marketings, and increasing processing weights. USDA put cattle feedlot supply at 9.882 mi head (99.0% of a year ago). August placements were put at 2.11 mi head (102% over a year ago). Beef retail prices were also weaker than expected with USDA early Monday putting choice beef cutout at $141.57/cwt; off $0.40/cwt and $1.168/cwt lower than last report. Cash cattle traded $1-$1.5/cwt lower in light trade. USDA put the 5-area average at $83.75/cwt. According to HedgersEdge.com, average packer margins were raised $1.75 to a positive $11.00/head based on the average buy of $84.09/cwt vs. the average breakeven of $84.93/cwt. Sell cattle when ready as it won't pay to take them to heavier weights.
FEEDER CATTLE at the CME were off again on Monday. The SEPT '09FC contract closed down $0.100/cwt at $97.150/cwt; $1.70/cwt lower than last report. The OCT'09FC contract closed at $96.725/cwt; down $0.300/cwt and $1.525/cwt lower than a week ago. NOV'09FC futures closed at $96.700/cwt; off $0.725/cwt and $2.70/cwt lower than last Monday. Feeders followed fat cattle lower while lower grain markets lent some support. Cash feeders in Oklahoma City were steady to $2/cwt higher. The latest CME feeder cattle index for September 17 was placed at $98.16/cwt; off $0.22/cwt and $0.47/cwt lower than a week ago.
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
Fairfield County Agriculture and Natural Resources
