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Premiums from Preconditioning and Seasonal Price Swings . . .

By
Leland McDaniel
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0

I wrote about the OQBN program and the associated premiums a few weeks ago but Scott Clawson, OSU Extension Area Ag Economist, more eloquently discusses these potential premiums, and premiums associated with seasonal price changes, in the following comments.

The time of year is upon us to begin planning how we will market our spring born calves. As we fix our eyes on the market’s movements and our checkbook balance, we start to figure out a strategy. As with every plan, we need to make sure we are accurate, conservative, and as thorough as possible. The easiest option is to sell directly off the cow, an option that you can see in every livestock auction in the fall. The discount that follows from this strategy is usually significant. The other option is to wean, “straighten out”, and market those cattle at least 45 days later. Backgrounding premiums and seasonal price changes are the two main positive price movements take place in that 45 plus days after weaning.

Backgrounding premiums exist and are being displayed in many areas as most local livestock auctions facilitate their own programs. In the graphic, we see the annual premiums from the Oklahoma Quality Beef Net-work (OQBN) sales. We see variation from year to year, but it’s obvious that the practice has value. Adding to this, there is variation amongst weights. Within a single year a 400# calf may yield a higher dollar per hundredweight premium for preconditioning than does a 600# calf. This stands to reason as the 400# bawling calf is more high risk than the heavier calf. The importance of this number is that it is a comparison to calves selling the same day. This is valuable to demonstrate the premium for that management practice, but it does not illustrate the seasonal price gains that take place over the typical preconditioning period.

Beefbasis.com is a great way to price forecast for the fall. Using this tool, we estimate that a 500# medium/large muscle score #1 weaned calf in mid-October would be $163.53/cwt. We make a modest gain calculation of 1.5#/day over a 60-day backgrounding program. This leaves us in mid-December with a 590# calf with an estimated value of $157.67/cwt. The second part of this equation is the additional value that we anticipate for the VAC-45 management practices we took on. Looking at the data from 2017 and previous years, we could use a conservative $9/cwt addition to our mid-December calf price ($157.67 + $9 = $166.67/cwt) for participating in OQBN. It is worth noting that the value of this 500# calf at this point (Mid-December) is $169.67. This compared with the estimated value of the same calf quality and weight in October displays the seasonal price improvement that we see on average.

Collectively, we could sell a bawling calf in mid-October that weighs 500# for $817.65. The other option is to hold off marketing for 60 days and participate in a VAC-45 program. This gives us the opportunity to capture a seasonal price improvement as well as a VAC-45 premium. The 590# calf in mid-December has an estimated value of $983.35. The difference is $165.70/hd, but this is not profit as no costs have been deducted. But it does provide a starting point to begin our budget. Individual costs per producer will be variable based on set up and resources. Also, each producer will assign a different value for labor, management, and death loss.

At the end of the day, there is risk involved in any ranch decision. Death loss, poor gains, price, and marketing risk are all lurking in the background. We can mitigate price risk by using price protection tools. However, leaning on the history of seasonal price moves and VAC-45 premiums, we have a chance to manufacture some extra profit.

Find out what’s happening on the Oklahoma Cooperative Extension Calendar at https://calendar.okstate.edu/oces/#/?i=2

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Oklahoma State University, in compliance with Title VI and VII of the Civil Rights Act of 1964, Executive Order 11246 as amended, and Title IX of the Education Amendments of 1972 (Higher Education Act), the Americans with Disabilities Act of 1990, and other federal and state laws and regulations, does not discriminate on the basis of race, color, national origin, genetic information, sex, age, sexual orientation, gender identity, religion, disability, or status as a veteran, in any of its policies, practices or procedures. This provision includes, but is not limited to admissions, employment, financial aid, and educational services. The Director of Equal Opportunity, 408 Whitehurst, OSU, Stillwater, OK 74078-1035; Phone 405-744-5371; email: eeo@okstate.eduhas been designated to handle inquiries regarding non-discrimination policies.  Any person who believes that discriminatory practices have been engaged in based on gender may discuss his or her concerns and file informal or formal complaints of possible violations of Title IX with OSU’s Title IX Coordinator 405-744-9154.

Nutritional Challenges of Post-Partum Beef Cows . . .

By
Leland McDaniel
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0

 Late winter and early spring is the most challenging time of the year for the nutrition of the spring-calving beef cows. Unless cool season grasses are available, this is a season where maintaining or gaining body condition on spring calving cows is really quite difficult. Warm season grasses have not yet begun to grow. Dormant grass (what little is left) is a low quality feed. Cows cannot, or will not, consume a large amount of standing dormant grass at this time year. If the only supplement being fed is a self-fed, self-limited protein source, the cows may become very deficient in energy. Remember, the instructions that accompany these self-fed supplements. They are to be fed along with free choice access to adequate quality forages. 

There is another factor that compounds the problem. A small amount of winter annual grasses may begin to grow in native pastures. These are the first tastes of green grass many cows have seen since last summer. The cows may try to forage these high moisture, low energy density grasses, in lieu of more energy dense hays or cubes. The sad result is the loss of body condition in early lactation beef cows just before the breeding season is about to begin. 

Body condition at the time of calving is the most important factor affecting rebreeding performance of normally managed beef cows. Nonetheless, condition changes after calving will have more subtle effects on rebreeding especially in cows that are in marginal body condition.  Body condition changes from the time the cow calves until she begins the breeding season can play a significant role in the rebreeding success story. This appears to be most important to those cows that calve in the marginal body condition score range of “4” or “5”. 

An Oklahoma trial (Wettemann, et al., 1987 Journal of Animal Sci., Suppl. 1:63). illustrates the vulnerability of cows that calve in the body condition score of 5. Two groups of cows began the winter feeding period in similar body condition and calved in very similar body condition (average body condition score = 5.3 to 5.4). However, after calving and before the breeding season began, one group was allowed to lose almost one full condition score. The other group of cows was fed adequately to maintain the body condition that they had prior to calving. The difference in rebreeding rate was dramatic (73% vs 94%). Again this illustrates that cows that calve in the body condition score of 5 are very vulnerable to weather and suckling intensity stresses and ranchers must use good nutritional strategies after calving to avoid disastrous rebreeding performance.

Cows should calve in moderate to good condition (scores of 5 or 6) to ensure good rebreeding efficiency. Ideally, cows should be maintaining condition during mid to late pregnancy and gaining during breeding. The goal of the management program should be to achieve these body conditions by making maximum use of the available forage resource. 

Continue feeding a source of energy, such as moderate to good quality grass hay free choice and/or high energy cubes until the warm season grasses grow enough to provide both the energy and protein that the lactating cows need. Yes, the feed is high-priced. But the cost of losing 21% of next year’s calf crop is even greater! Source:  Glen Selk, Oklahoma State University Emeritus Extension Animal Scientist; March 5 Cow/Calf Corner Newsletter.

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Find out what is happening in OSU Extension at https://calendar.okstate.edu/oces/

Oklahoma State University, in compliance with Title VI and VII of the Civil Rights Act of 1964, Executive Order 11246 as amended, and Title IX of the Education Amendments of 1972 (Higher Education Act), the Americans with Disabilities Act of 1990, and other federal and state laws and regulations, does not discriminate on the basis of race, color, national origin, genetic information, sex, age, sexual orientation, gender identity, religion, disability, or status as a veteran, in any of its policies, practices or procedures.  This provision includes, but is not limited to admissions, employment, financial aid, and educational services. The Director of Equal Opportunity, 408 Whitehurst, OSU, Stillwater, OK 74078-1035; Phone 405-744-5371; email: eeo@okstate.edu has been designated to handle inquiries regarding non-discrimination policies.  Any person who believes that discriminatory practices have been engaged in based on gender may discuss his or her concerns and file informal or formal complaints of possible violations of Title IX with OSU’s Title IX Coordinator 405-744-9154.

When is the Best Time (Age) to Castrate Bull Calves? . . .

By
Leland McDaniel
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0

You are, no doubt, aware of the tragic wildfires in western Oklahoma. These have been particularly devastating events and Oklahomans, especially the farming and ranching community, is always quick to step up to assist those affected. While I am sure that they have many needs, we are told that items of particular need are hay, feed, milk replacer, fencing materials, and cash.

Cash donations may be sent to the following relief funds:

• Oklahoma Cattlemen’s Foundation – Make checks payable to Oklahoma Cattlemen’s Foundation with “Fire Relief” in the memo line and mail to P.O. Box 82395, Oklahoma City, OK 73148 or donate online at www.okcattlemen.org

• Oklahoma Farmers and Ranchers Foundation – Make checks payable to the Oklahoma Farmers and Ranchers Foundation with “Wildfire Relief” in the memo line and mail to 2501 N. Stiles, Oklahoma City, OK 73105 or donate online at www.okfarmingandranching.org

• Oklahoma Farmers Union Foundation – Make checks payable to Farmers Union Foundation, Inc., with “Wildfire Relief” in the memo line and mail to the attention of Wildfire Relief at P.O. Box 24000, Oklahoma City, OK 73124.

Cash donations may also be sent to volunteer fire departments, local churches, and voluntary organizations responding to the fires, including the American Red Cross and Oklahoma Baptist Disaster Relief.

The Oklahoma Cooperative Extension Service is organizing donations of fencing supplies, hay, supplemental livestock feed, and milk replacer for calves that lost their mothers. Anyone impacted by the fires and in need of these items may call Oklahoma State University Cooperative Extension at (405) 590-0106, (405) 496-9329 or (405) 397-7912. Anyone who would like to donate the items listed above may also the numbers above to offer donations. They will match up people who have items or services to donate with producers needing help to rebuild fences, transport hay and similar farm and ranch activities.

Other donated items are not needed or requested at this time. Do not send unsolicited donations of used clothing, miscellaneous items or perishable foods, which must be sorted, warehoused, transported and distributed. This requires more efforts and staffing to manage those resources and takes away from recovery efforts.

Because Carter and Jefferson counties are within the Red Imported Fireant quarantine area, any and all hay must be inspected by me or an official with the Oklahoma Department of Agriculture, Food, and Forestry (ODAFF). If you want to donate hay, please contact me via one of the Extension Office numbers; 223-6570 (Carter), 228-2332 (Jefferson) and we can make arrangements for me to inspect the hay. 

Below are some web links to other pertinent information:

http://www.dasnr.okstate.edu/…/fire-ant-quarantine-zone-add…

http://entoplp.okstate.edu/firean…/BaledHayIndustryAlert.pdf

Follow me on Facebook @ https://www.facebook.com/leland.mcdaniel

Find out what is happening in OSU Extension at https://calendar.okstate.edu/oces/

Oklahoma State University, in compliance with Title VI and VII of the Civil Rights Act of 1964, Executive Order 11246 as amended, and Title IX of the Education Amendments of 1972 (Higher Education Act), the Americans with Disabilities Act of 1990, and other federal and state laws and regulations, does not discriminate on the basis of race, color, national origin, genetic information, sex, age, sexual orientation, gender identity, religion, disability, or status as a veteran, in any of its policies, practices or procedures.  This provision includes, but is not limited to admissions, employment, financial aid, and educational services. The Director of Equal Opportunity, 408 Whitehurst, OSU, Stillwater, OK 74078-1035; Phone 405-744-5371; email: eeo@okstate.edu has been designated to handle inquiries regarding non-discrimination policies.  Any person who believes that discriminatory practices have been engaged in based on gender may discuss his or her concerns and file informal or formal complaints of possible violations of Title IX with OSU’s Title IX Coordinator 405-744-9154.

Comparing Weaning Dates for Fall-Born Calves . . .

By
Leland McDaniel
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0

Producers with fall-calving herds have traditionally weaned the calves at 9 to 10 months of age. When forage growth is limited due to drought, questions arise about the feasibility of weaning the calves at an earlier date. The effect on the cow as well as weaning weight of the calf must be considered when the impact of the weaning date is considered.

Oklahoma State University animal scientists evaluated weaning dates of 158 Angus fall-calving cows over a 4 year period. Cows were allowed to nurse their calves for about 210 days (April Weaning) or 300 days (July Weaning). All cows calved in September or October and were weaned in mid-April (April Wean) or mid-July (July Wean). April-weaned young cows had greater re-breeding percentages (98.4% versus 89.3%) than July weaned young cows. However, there was no advantage in the re-breeding performance of April-weaned mature cows compared to July-weaned mature cows (90.2% versus 96.7%). April-weaned cows were heavier and fleshier at calving than July weaned cows.

Calves weaned in July were 90 days older and 204 pounds heavier (642 lb versus 438 lb) when weaned than were the April-weaned calves. The April-weaned calves were allowed to graze native pasture after wean-ing and weighed 607 pounds in mid-July. For most years, it appears more advantageous to delay weaning of calves born to cows 4 years or older to July while maintaining April weaning for cows 3 years of age or younger.

Drought conditions (or burned pastures) in some areas of the Southern Plains very well may suggest the earlier weaning date could be considered for all ages of cows. In those areas of Oklahoma that have received adequate rainfall this winter and spring, the answer may be different. In those regions, the prospects of good forage growth would suggest that the later weaning date would result in heavier sale weights of calves and still excellent re-breeding of adult cows. Source: Hudson and co-workers. Journal of Anim. Sci. 2010 vol. 88:1577.

Armyworm Control Measures . . .

By
Leland McDaniel
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0

Well, we are deep into a Fall armyworm infestation that may be 3-4 times, or more, worse than I have ever seen. Established control thresholds are 2-3 caterpillars per foot of row in newly emergent small grains and 3-4 caterpillars in established pastures, such as Bermuda or small grains fields. I am seeing 15-20 caterpillars per square foot in many places! Many of you have already sprayed, but do not rest easy thinking this is the last you will have to worry about them.

Depending on when we get our first frost, there could be one or two more generations of these pests before Mother Nature provides some relief. Our average first frost is November 10, and given how the law of averages works it could be two weeks earlier or two weeks later in a given year. One complete life cycle of the Fall armyworm takes 2-3 weeks, about 10-14 days as feeding caterpillar, 8-9 days in the pupal stage, and 1-3 days as egg-laying adult moths. Once new eggs are lain, new caterpillars hatch about 3 days later to begin the feeding cycle again. So, if our first frost occurs near the November 10th average date, we could see at least one and possibly two more cycles. If we have a late frost, we could see three more generations.

 The decision to spray should be based on the cost of control versus the value of the forage in question. If the loss of the forage means a substantially increased reliance on feed and hay this winter or replanting small grains fields, then control is likely an economically feasible option. Beyond that, the choice of a control product labeled for Fall armyworm control is largely driven by the cost of application and availability. 

There are a multitude of products commercially available for the control of Fall armyworms and, unfortunately, most of them will only have a 2 or 3-day window of residual activity. Many of the products have no grazing or haying restrictions, but some will have a 3 to 14-day grazing or haying restriction.

The salient point is that I would advise scouting fields at least every other day until we get a frost, and maybe invest in a HUGE flock of chickens (weak attempt at humor). 

If you have questions regarding control strategies for Fall armyworms, feel free to contact me via phone (Carter County OSU Extension 580/223-6570; Jefferson County OSU Extension 580/228-2332) or email: Leland.mcdaniel@okstate.edu.

Lactating Cows Need More Protein and Energy . . .

By
Leland McDaniel
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0

Lactating Cows Need More Protein and Energy . . .

Private Applicator licenses that farmers and ranchers use to purchase and apply pesticides are renewed on 5-year rotations, and this is the last year of the current rotation. So, what does that mean for you?

For those producers who are currently licensed Private Applicators, their license expires at the end of this year (12/31/2018). There will be new materials and a new test available sometime after July 1 that we should be able to get for Private Applicators in order to renew their license. If a person is currently a licensed Private Applicator, they must wait until after July 1, when the new test and study materials are available, to renew their Private Applicator license.

According to ODAFF, if a person is currently not a licensed Private Applicator, they can take the test in the Private Applicator packets that we currently have at the OSU Extension Office and, if they pass the test, they will receive a Private Applicator license that is valid from now until the end of 2023.

The Role of Copper in Beef Cattle Reproduction

According to Dr. Keith Bailey, the director of the Oklahoma Animal Disease and Diagnostic Laboratory (OADDL), copper (Cu) deficiency has been a common finding in late term cattle abortions and stillbirths over the past 2 years. In a liver sample study from aborted fetuses in western Canada, magnesium, copper, and vitamin E were frequently identified as deficient in aborted fetuses. In addition to reproductive inefficiencies, low copper levels are also associated with poor performance and poor immune response. Copper is involved in many body functions such as hemoglobin formation, bone cell function, pigment production, hair, hoof and horn function, and animal growth. Since a review of all the health problems associated with copper in beef cattle would be too long for this writing, a review of copper deficiency related to reproductive performance will be addressed in this article.

Copper deficiency can be a primary deficiency or a secondary deficiency. An example of primary deficiency is when forages are low in copper. In Oklahoma most legumes such as alfalfa and clovers have adequate amounts of copper. However, most grasses in Oklahoma are deficient in the mineral. Secondary copper deficiency is more common. This is the result of another mineral(s) interfering with the uptake of copper. The most common minerals involved in this are iron, sulphur, and molybdenum. These elements will bind with copper which makes it unavailable to the body. Secondary copper deficiency may occur even if the diet has adequate amounts of copper.

Reproductive problems associated with copper deficiency in cattle are reduced fertility. This may present in many ways. Cattle may fail to conceive on their first breeding. In embryo transfer, embryonic survival was found to be lower. In some studies, overall pregnancy rates were reduced. Another problem with a low copper level is an alteration in reproductive behavior. In this case cows may show normal estrus behavior but do not ovulate. Also, future estrus cycles may be reduced. The effects of low copper levels on reproduction in cows are not consistent. They may be small or substantial. In bulls, evidence suggest that copper deficiency may cause problems in semen quality and decreased libido.

According to Dr. Dave Lalman, Professor and Extension Beef Cattle Specialist Oklahoma State University, producers can evaluate a mineral deficiency problem by reviewing their records. If the producer’s records indicate good pregnancy rates, weaning weights, and no major health problems, then their mineral supplementation program is probably fine. Even if their performance records are good, they may want to follow up with a mineral balance review with the assistance of their nutritionist, veterinarian, or extension educator. The review will evaluate the animal’s requirements and the minerals supplied by the forage, feed, and mineral supplement. Any deficiency should be addressed.

If copper deficiency is suspected in cattle, a producer needs to evaluate the animal’s copper level. This can be accomplished by a blood test or a liver biopsy. Blood levels of copper become low only after using all the copper in the liver. For this reason, blood samples are only useful in diagnosing advanced cases. Since copper is stored in the liver, a liver biopsy will give the best indications of copper status of the herd. A liver biopsy may be obtained from a slaughter animal or a veterinarian may obtain a biopsy specimen from a live animal.

Producers may provide copper to their cattle by variety of methods. Copper may be added to the feed or supplied in a salt/mineral mix. An injectable product is also availa-ble. Recently, a sustained release bolus has been approve for mineral supplementation. Producers that also run sheep need to keep in mind that mineral mixes produced for cattle will be toxic to sheep. For any questions on what methods or products will be best for meeting the copper needs in cattle, producers should consult with their nutritionist, veterinarian, or local county extension educator.

In review, copper deficiency may be a problem in cattle herds grazing native and improved grasses in Oklahoma. Producers should review their cattle records for any indications of health or reproductive problems. Any problems may indicate a need to evaluate the copper status of their cattle. For any additional information about copper deficiency in cattle, producers should contact their nutritionist, veterinarian, or local county educator.

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Oklahoma State University, U.S. Department of Agriculture, State and Local Governments Cooperating. The Oklahoma Cooperative Extension Service offers its programs to all eligible persons regardless of age, race, color, religion, sex, sexual orientation, genetic information, gender identity, national origin, disability or status as a veteran, and is an equal opportunity employer.

Be Aware of Injection Sites When Working Calves

By
Leland McDaniel
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0

The spring calving season is winding down and the cows are chasing the flush of green grass. Calves will soon, if they are not already, be sticking their muzzles to the ground to supplement mother’s milk with the nutritious new forage growth. The months of April and May are traditionally the time when “spring round-ups” take place. This is the time that large and small cow/calf operations schedule the “working” of the calves. As the majority of the calves reach their second month of life, it is time to castrate the male calves (if this has not already been done) and immunize all of the calves to protect them against blackleg. In some situations, calves may be vaccinated for the respiratory diseases, i.e. IBR and BVD. Check with your large animal veterinarian about these immunizations. Animal husbandry and beef production comes with a couple inherent obligations. As beef producers we are not only obligated to provide for the health and well-being of our animals, but we are also obligated to ensure that what we produce, edible red protein, is a safe and wholesome product for our consumers.

Correct administration of any injection is a critical control point in beef production and animal health. There is a negative relationship between meat tenderness and injection sites, including injection sites that have no visible lesion. In fact, intramuscular (IM) injections, regardless of the product injected, may create permanent damage regardless of the age of the animal at the time of injection. Tenderness is reduced in a three-inch area surrounding the injection site. Moving the injection-site area to the neck stops damage to expensive steak cuts. Therefore, cow/calf producers should make certain that their family members, and other hired labor are sufficiently trained as to the proper location of the injections before the spring calf-working begins. 

Give injections according to label instructions. Subcutaneous (SQ) means under the skin, intramuscular (IM) means in the muscle. Some vaccines (according to the label instructions) allow the choice between intramuscular (IM) and subcutaneous (SQ). Always use subcutaneous (SQ) as the method of administration when permitted by the product’s label. Remember to “tent” the skin for SQ injections unless instructed otherwise by the manufacturer. Proper injection technique is just one of many components of the Beef Quality Assurance effort that has had a positive impact on the entire United States beef industry.

Another important aspect of the Beef Quality Assurance effort is keeping of accurate treatment records. Treatment records should include:

• Individual animal/group identification

• Date treated

• Product administered and manufacturer’s lot/serial number

• Dosage used

• Route and location of administration

• Earliest date animal(s) will have cleared withdrawal period

• Name of person administering the product

 Treatment records for cattle should be stored and kept for a minimum of three years after the animal(s) have been sold from your operation. 

Beef producers are encouraged to learn and practice Beef Quality Assurance Guidelines.  You can learn more about the Beef Quality Assurance program by going to the website: https://www.bqa.org/  The Beef Quality Assurance Manual can be downloaded from that site. Examples of treatment records to be kept and stored are available from the Beef Quality Assurance Manual in Section VIII.

Find out what’s happening on the Oklahoma Cooperative Extension Calendar at https://calendar.okstate.edu/oces/#/?i=2 

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Oklahoma State University, in compliance with Title VI and VII of the Civil Rights Act of 1964, Executive Order 11246 as amended, and Title IX of the Education Amendments of 1972 (Higher Education Act), the Americans with Disabilities Act of 1990, and other federal and state laws and regulations, does not discriminate on the basis of race, color, national origin, genetic information, sex, age, sexual orientation, gender identity, religion, disability, or status as a veteran, in any of its policies, practices or procedures. This provision includes, but is not limited to admissions, employment, financial aid, and educational services. The Director of Equal Opportunity, 408 Whitehurst, OSU, Stillwater, OK 74078-1035; Phone 405-744-5371; email: eeo@okstate.edu has been designated to handle inquiries regarding non-discrimination policies.  Any person who believes that discriminatory practices have been engaged in based on gender may discuss his or her concerns and file informal or formal complaints of possible violations of Title IX with OSU’s Title IX Coordinator 405-744-9154.

Do Bigger Cows = More Weaning Weight and More Profit?

By
Leland McDaniel
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0

 There is increasing concern about the long-term trend toward heavier beef cows. A recent study by Maples, Lusk and Peel (2016) shows that heavier carcasses have cost the U.S. beef industry $8.6 billion due to reduced consumer demand. Studies consistently find that consumers want thick-cut steaks. However, large ribeye and loin cross-sectional areas prevent retailers from serving thick steaks while maintaining desired portion size.

We recently evaluated how heavier cows impact the profitability of cow-calf producers. Data from the American Angus Association demonstrates that EPDs for mature weight have increased steadily since the late 1970s while frame size is unchanged. The data shows the genetic trend for Mature Height (MH) is relatively flat while Mature Weight (MW) has increased by nearly 40 pounds. Since frame size is un-changed, that means that the cow herd has added more muscle, bone, and visceral organ mass. Concurrent with the increase in weight, comes increased nutritional requirements and reduced stocking rates. The question then is: Are higher cow-weights economically justified given heavier weaning weights?

Using data on 3,000+ cows from three research stations in Oklahoma and Arkansas, we recently estimated calf weaning weights as a function of mature cow weight. The resulting function shows a less than linear increase in weaning weight as cow weight increases. This means that each additional pound of mature cow weight adds less to calf weaning weight. Weaning weights increase, but at a decreasing rate. So, increasing mature cow size from a 950# cow to a 1000# cow increases weaning weight by 6.8 pounds. However, increasing mature cow size from a 1750# cow to an 1800# cow increased weaning weight by only 4.7 pounds. Both increase mature weight by 50 pounds, but with different results.

Given that stocking rates decline as cow weight increases and weaning weights are concave in cow weight, heavier cows are unlikely to be the most profitable on a per acre basis—and our analysis confirmed this suspicion. Over all of the scenarios we considered (spring and fall calving, Angus cows and Brangus cows, native pasture and Bermuda pastures), lighter cows outperformed heavier cows over a ten-year time period when profits are computed per acre. Our model also considered the higher cull value of heavier cows, differences in stocking rates and supplemental feed costs, and price variations over time. In figure 3, per acre net present value of beef cows by mature weight is presented. Values fall from $39.75 per acre per head for 950# cows to $22.63 per acre per head for 1800# cows.

While results will differ for individual producers, the economics are pointing to reducing cow weights to improve economic returns. Even if our analyses are off by 20%, the economically-optimal mature cow weight is under 1200#.

So, how does a producer with heavy cows adjust cow weight? Just as it has taken the industry several years to reach the current situation, producers will need to adjust over time. Reestablish a maternal line in the herd. Breed cows with desirable phenotypic and genotypic traits to moderate

MW EPD bulls and retain heifer calves that are both phenotypically and genotypically attractive but have a lower projected mature weight. It could take up to ten years to replace heavy cows, but the economics point to improved profitability. (Source: OSU Extension Master Cattleman Quarterly newsletter; Volume 39, June 2018)

     The take home message is that heavier cows are not the path to heavier weaning weights. There is a point of diminishing returns and it is a very inefficient process. Put simply, in my best Economist language, more/bigger/heavier is not always better or more profitable. Just as “variety is the spice of life”, moderation is the key to longevity and sustainability.

Find out what’s happening on the Oklahoma Cooperative Extension Calendar at https://calendar.okstate.edu/oces/#/?i=2

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Oklahoma State University, in compliance with Title VI and VII of the Civil Rights Act of 1964, Executive Order 11246 as amended, and Title IX of the Education Amendments of 1972 (Higher Education Act), the Americans with Disabilities Act of 1990, and other federal and state laws and regulations, does not discriminate on the basis of race, color, national origin, genetic information, sex, age, sexual orientation, gender identity, religion, disability, or status as a veteran, in any of its policies, practices or procedures. This provision includes, but is not limited to admissions, employment, financial aid, and educational services. The Director of Equal Opportunity, 408 Whitehurst, OSU, Stillwater, OK 74078-1035; Phone 405-744-5371; email: eeo@okstate.edu has been designated to handle inquiries regarding non-discrimination policies.  Any person who believes that discriminatory practices have been engaged in based on gender may discuss his or her concerns and file informal or formal complaints of possible violations of Title IX with OSU’s Title IX Coordinator 405-744-9154.

Corona Virus Food Assistance Program (CFAP)

By
Leland McDaniel
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0

As you have probably heard, the USDA Farm Service Agency is administering a payment program for COVID-19 related losses associated with certain crops and livestock.

The Coronavirus Food Assistance Program (CFAP) opened up on May 26 for applications and will close on August 28, 2020. Applications can be submitted by phone or email at Farm Service Agency county offices across the country. Producers can find their local FSA office, and much more CFAP information, at www.farmers.gov/cfap. In addition to the CFAP application, a producer may need to submit forms and documentation to determine their eligibility for the program and agree to basic conservation requirements, which are required for all USDA programs. There is also a form for direct deposit. Anyone who used the drought program (Livestock Forage Program, or LFP) in 2014 or other years will be familiar with the process.

Once a producer’s total CFAP payment is calculated, they will receive a direct deposit for 80% of that payment relatively quickly. However, the remaining 20% will only be paid if enough funds are available. This assures that CFAP funds are spread across as many eligible livestock and crop producers as possible. Let’s be frank, $16 billion sounds like a lot of funds until you consider how much production of livestock, crops and specialty crops it is being spread across.

Let’s break down the payments for cattle producers further. First, producers will need to know their sales and their inventory. USDA is allowing both to be self-certified but have your documentation on hand and be prepared to produce it if asked. Cattle producers that sold cattle between January 15 and April 15 are eligible for a payment out of the CARES Act funds, provided those cattle were unpriced. USDA defined ‘unpriced cattle’ as those cattle that were ‘not subject to an agreed-upon price in the future through a forward contract, agreement, or similar binding document’. However, if you had another risk management instrument such as a Livestock Risk Protection (LRP) or put option in place the cattle are still eligible sales under CFAP.

If you did not have any sales in that window, then you may still be eligible for receiving a payment on the highest daily inventory between April 16 and May 14 out of CCC funds. Again, this is a self-certified inventory. Cattle producers will receive $33/head for that inventory.

Also, pay attention to the definitions of each category of cattle to sort them into the correct boxes. All of the breeding herd falls into ‘all other cattle’. Cull cows and bulls fall into ‘slaughter cattle – mature’. Calves, including unweaned calves, fall into ‘feeder cattle under 600 pounds’. Stockers you may have sold will fall into one of the two feeder cattle categories, depending on their weight. Fed cattle with average weights until 1400 pounds fall into ‘feeder cattle 600 pounds or greater’ for now, although that definition is under review.

This program allows producers to offset market losses for those cattle that still had risk exposure during the 2020 market decline. Don’t let the process scare you off, many producers have reported that, once they had their numbers in hand, it didn’t take long to apply. Get your application in as soon as possible.

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Oklahoma State University, in compliance with Title VI and VII of the Civil Rights Act of 1964, Executive Order 11246 as amended, and Title IX of the Education Amendments of 1972 (Higher Education Act), the Americans with Disabilities Act of 1990, and other federal and state laws and regulations, does not discriminate on the basis of race, color, national origin, genetic information, sex, age, sexual orientation, gender identity, religion, disability, or status as a veteran, in any of its policies, practices or procedures. This provision includes, but is not limited to admissions, employment, financial aid, and educational services. The Director of Equal Opportunity, 408 Whitehurst, OSU, Stillwater, OK 74078-1035; Phone 405-744-5371; email: eeo@okstate.edu has been designated to handle inquiries regarding non-discrimination policies.  Any person who believes that discriminatory practices have been engaged in based on gender may discuss his or her concerns and file informal or formal complaints of possible violations of Title IX with OSU’s Title IX Coordinator 405-744-9154.

OQBN Saw Strong Premiums in 2017 . . .

By
Leland McDaniel
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0

 Oklahoma Quality Beef Network’s (OQBN) participating producers during the fall 2017 sale season benefitted from strong premiums for their efforts. Just over 10,000 calves were enrolled in OQBN’s Vac45 program, with approximately 6700 of those calves marketed through OQBN’s special sales at participating livestock markets. The remaining calves were direct marketed by producers. Data was collected on 12,582 calves (including OQBN calves) at 8 sales across Oklahoma. OQBN premiums were strong, at an average of $14.24/cwt above non preconditioned calves at the same sales. Steer premiums averaged $13.51 across all weights while heifer premiums averaged slightly higher at $15.31/cwt. Premiums reported here are calculated as a weighted average and do not reflect differences attributable to lot size, breed, hide, color, fleshiness, and muscling.

On average, OQBN producers realized a premium of $85.44/head, assuming a 600 pound calf. When the value of added weight gain over the preconditioning period is considered along with preconditioning costs, the net gain in returns to a producer for the average calf is estimated at $114.44/head, bringing the estimated monetary impact of the program to $1.15 million for 2017.

For more information on OQBN, including program information, sale dates, weaning and management protocols, go to the OQBN Website (http://oqbn.okstate.edu/). The website includes additional educational information related to beef calf production in general that you may find useful. You can also like OQBN’s Facebook page and visit Oklahoma State University’s Beef Extension website (http://www.BeefExtension.com) for more information on management recommendations and more.

Find out what’s happening on the Oklahoma Cooperative Extension Calendar at https://calendar.okstate.edu/oces/#/?i=2

Follow me on Facebook @ https://www.facebook.com/leland.mcdaniel

Oklahoma State University, in compliance with Title VI and VII of the Civil Rights Act of 1964, Executive Order 11246 as amended, and Title IX of the Education Amendments of 1972 (Higher Education Act), the Americans with Disabilities Act of 1990, and other federal and state laws and regulations, does not discriminate on the basis of race, color, national origin, genetic information, sex, age, sexual orientation, gender identity, religion, disability, or status as a veteran, in any of its policies, practices or procedures. This provision includes, but is not limited to admissions, employment, financial aid, and educational services. The Director of Equal Opportunity, 408 Whitehurst, OSU, Stillwater, OK 74078-1035; Phone 405-744-5371; email: eeo@okstate.edu has been designated to handle inquiries regarding non-discrimination policies.  Any person who believes that discriminatory practices have been engaged in based on gender may discuss his or her concerns and file informal or formal complaints of possible violations of Title IX with OSU’s Title IX Coordinator 405-744-9154.

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