Winter 2001



Three Simple Rules to Keep Your Cow-calf Operation Profitable

Source: Cattle Info Net--Tom Brink, ContiBeef LLC

Back in the early and mid-1990s, I spent a lot of time researching what it takes to be successful in the cow/calf business. Analyzing reams of production and financial data from cow operations across the U.S. was enlightening to say the least. I also benefited from spending hour upon hour with a lot of smart people (including ranchers, beef extension specialists, veterinarians, genetic experts, bankers…among others). These experiences taught me that the formula for operating a profitable cow/calf business is really quite simple. It breaks down to three basic rules shown below.

  • Rule 1: Hold your annual cow-carrying costs to $300 per cow (cash expenses).
  • Rule 2: Keep your weaned calf-crop percentage at 88% of exposed cows/heifers, or higher.
  • Rule 3: Wean calves that are average or above for weaning weight (at least 475 lbs.).

Do the math using these target numbers, and you’ll get a weaned calf breakeven of $72/cwt. ($300 / [88% x 475lbs.] = $0.718/lb.). That breakeven will put you in the black 7 or 8 years out of 10. And you’ll see large-positive margins when calf prices are high, like they are now.

Some cow-calf producers legitimately operate with breakevens well below this level. More power to them. They’ve managed to beat the thresholds identified above, in one, two, or even all three categories. These producers are highly profitable now, and even in tough times they can hold the ship together.

Others may tell you their cow costs are high (say $350 per cow, instead of $300), but they’re able to offset those higher expenses with excellent reproductive rates and heavier calves. Does this really work? Certainly. If that producer has a $350 annual cow cost, a 90% weaned calf crop percentage and 550-lb. average weaning weights, his breakeven calculates to $71/cwt. He’s managed the key variable to his advantage, offsetting a clear weakness in one area with strength in the others.

Output vs. Input

Multiple roads can lead to black ink in the cow business. Keep these target levels in mind. Then pro-actively evaluate your operation and work toward the balance of cow costs, reproductive rates, and weaning weights that work best in your herd. It’s the ratio of output to input that ultimately matters.


Care of Newly Purchased Yearling Test Bulls

Oklahoma State—Cow-calf Corner

Yearling Bulls

For a yearling bull to be used successfully, he should have reached puberty 3 to 4 months before breeding time. The age of a bull at puberty depends on several interrelated factors, but size or weight and breed are probably the controlling factors.

The production of semen by a young bull largely depends on his overall growth, as well as the development of his testicles and other reproductive organs. The size of testicles and volume of semen produced are positively correlated.

Bulls should have a similar diet from a year of age until breeding time. All bulls should be gaining weight and maintaining moderate condition during this time. Study the Body Condition Scoring System used for cows.The system uses "1" for emaciated animals and "9" for very obese animals. Therefore an optimum body condition score for young bulls is "6". Perhaps the best way to verbally describe the ideal condition is bloomy but not fat. A young bull will use body stores of energy and lose over 100 pounds during the breeding season. This should come from energy stored as fat (condition) rather than muscle tissue since the bull is still growing. Excessive rapid condition loss lowers the bull's fertility and libido and should be avoided.

Highly Fitted Bulls

Research at Kansas State University has illustrated that young "gain-tested" bulls have normal fertility and libido when allowed to return gradually to moderate fleshiness and hearty physical condition before the breeding season.To let these bulls down, it is a good practice to start them on a ration that is not too dissimilar to the one they have been accustomed to, but that is 60 to 70 percent of their previous intake. The amount of grain can be reduced at the rate of about 10 percent per week until the desired level is achieved. At the same time, substitutions should be made in the form of light, bulky feeds--such as Bermuda or peanut hay. Ideally, this letdown should be completed prior to the time bulls are turned out. Dramatic nutritional changes can have an adverse effect on semen production, so it is important that these ration modifications be done gradually. Allow the change to take place gradually instead of allowing a rapid condition and weight loss, which could be reflected in a reduced calf crop next year.

If a young bull is coming off of a high-energy diet (i.e. gain test), an example feeding schedule would be as follows:

Week Type % Body Wt. Lbs. Feed/1000 lb. bull Lbs. Feed/1500 lb. bull
1 Feed 1.5 15 23
Hay 1.0 10 15
2 Feed 1.0 10 15
Hay 1.5 15 23
3 Feed 1.0 10 15
Hay 1.5 15 23
4 Feed .75 7.5 11
Hay 1.75 17.5 27

Continue feeding the grain mix to the young bull during the breeding season if at all possible.

Bull to Cow Ratio

A time honored rule-of-thumb is to place about the same number of cows or heifers with a young bull as his age is in months. For instance, a bull that is 14 months old going into his first breeding season should be expected to breed 14 or 15 cows; whereas as a two-year old bull may be placed with 20 - 25 cows. Mature bulls that have been examined by a veterinarian and have passed a breeding soundness exam can be placed with 25 - 35 cows and normally give good results.


Forage Notes

Ann Blount-Forage Breeder, Bob Myer-Animal Nutritionist and Tim Hewitt-Ag Economist NFREC Marianna Beef Unit

Fescue Trial Results

We have been looking at promising new cool season forages for the Florida Panhandle. One such forage is a new tall fescue variety. Tall fescue is a perennial cool season bunch grass, very similar to ryegrass in quality and tonnage. The concern with fescue has been that it causes some toxicity problems in livestock, such as delayed breeding, poor weight gains, rough hair coats, as well as other symptoms. The cause is actually an endophyte, or fungus, that lives in the plant. The endophyte helps make the plant competitive with other grasses, improves its persistence and gives it better drought tolerance. When forage breeders removed the fungus from the fescue (endophyte-free tall fescue), it lost its ability to persistence. Recently, Dr. Joe Bouton (University of Georgia) and Dr. Gary Latch (AgResearch, New Zealand) killed the fungus infecting the varieties Georgia 5 and Jesup, and reinfected the plants with a new novel endophyte. The novel endophyte helps the fescue maintain good stand persistence and improved animal performance without causing animal toxicity.

At the Marianna Beef Unit and the NFREC, Quincy, we have completed a two-year study with the novel endophyte infected fescue. The verdict is in and is not necessarily favorable for Pennington’s new Max Q fescue. Let us emphasize that THESE TRIALS WERE DONE ON NON-IRRIGATED SOIL. Our reason for such a high interest in fescue is that it has potential for our area because it is a PERENNIAL cool season grass and does not need to be established each year, like all of our annual cool season forages. Unfortunately we don’t yet have reliable plant varieties and efficient endophyte strains. The studies at the NFREC were done on prepared land and our initial stands were excellent, but we suffered two severe summer drought years and these contributed heavily to the rapid stand losses. We compared fescue varieties Jesup and Georgia 5 that were either infected with the novel endophyte, the wild-type endophyte or were endophyte-free. Observations on the two-year old planting showed a 40-50% stand loss with the novel endophyte infected varieties, compared to a 20-30% stand loss in varieties infected with the wild-type endophyte and a 40-70% stand loss on endophyte-free varieties. The percentage loss varied depending on plant variety and endophyte strain combinations that we used.

Fescue Type 2 Year Stand Loss
Wild endophyte 20-30%
Novel endophyte (Max Q) 40-50%
Endophyte free 40-70%

So, where are we with developing a fescue to fit into our forage systems? We have just planted a large acreage study at Marianna to look at Max Q under irrigation. In order to improve our fall period forage production, which is often limited by seasonal drought and cooler weather, perennial forage would be ideal. We lack reliable forages since we rely on annual cool season forages. The new trial at the Marianna Beef Unit will look at Max Q’s establishment under irrigation, persistence under grazing, animal performance and carrying capacity. An economic analysis of the study will also look at the cost per pound of gain.

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Mad Cow Disease: More Fear Than Fact

Source: FDA Veterinarian, International Round-Up- DR. Don Olson AFBF public policy division

BSE or bovine spongiform encephalopathy has certainly been in the news lately.BSE, commonly referred to as "Mad Cow Disease", has made headlines on the local, national and international level. The reason for all the concern is the similarity between BSE (Mad Cow Disease) and 80 cases of a rare human nervous system disorder called Creutzfeld-Jakob disease in Europe. However, there is no direct evidence, at this time, which proves there really is a link between this human disease and BSE.

BSE is a gradual degenerative disease that affects the central nervous system of cattle. Affected animals may display changes in temperament and coordination. Some of the symptoms of BSE are nervousness and aggression, severe muscular twitching, abnormal posture, and difficulty in standing up. Other symptoms include decreased milk production and weight loss despite having a good appetite. Affected cattle always die because there is no known cure. The incubation period for the disease is from two to eight years and there is currently no test for the disease in the live animal.

The cause of the disease is not completely understood but it seems that the disease is spread through the feeding of meat and bone meal. This feed product was made partially from sheep carcasses infected with the disease "Scrapie" or from cattle carcasses infected with Mad Cow Disease. Scrapie is a form of spongiform encephalopathy that affects sheep.

There have been no cases of BSE reported in the U.S. USDA placed a ban on importation of cattle and other ruminant animals from Britain in 1989. Since that time USDA also implemented a surveillance program on cattle imported from Britain prior to 1989. Thousands of specimens from cattle in the U.S. exhibiting possible neurological problems have been examined since 1986 and none have been positive for BSE. In 1991, U.S. Feed companies implemented a voluntary ban on the use of animal tissue (not blood) products for cattle and sheep feeds. FDA later mandated this ban in October of 1997.

Recently in the news, Purina had a mix up, and some feed with meat and bone meal in it was fed to cattle in a feedyard. Purina purchased the cattle so that they will not be used for human consumption. These animals did not receive any rendered products from animals in Europe, however. Meat and bone meal can and are being used for dog, swine and poultry feeds.

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