Cowchip - June 12, 2009 - Newsletters | Vermilion | Our Offices

Cattle producers in south Louisiana are most often part time. Either they have a fulltime job or they are involved in other farming enterprises. Many come to the cattle business with a romantic or nostalgic state of mind, their grandparents raised cattle or they envision themselves on horseback driving a herd of cattle. There is nothing wrong with the motives; in fact they represent some of the best things in people and the business. However, being involved in the cattle business because of these dreams but without goals for success will usually result in a loss of the dream.

“If you don’t know where you’re going, how do you know when you get there” is a common quote that has significance in the cattle business. Setting goals allows us to know when we get to our destination or are at least sign posts along the way to getting there. Too often we are operating without clear goals and objectives. Many of us want to raise cattle but have given no thought to the type and kind of cattle we want to produce. Many of us want to produce our own hay but haven’t considered the impacts of adding a hay enterprise on the overall cattle business. We need goals to guide our decision making or we will fail to achieve anything.

Goals should be specific, measurable, attainable and related. They should also be written down. Too often we only have goals in mind, but writing them down makes them real and manageable. Specific, measurable goals will allow a producer to see progress. If your weaning weights are averaging 350 lbs. don’t set a short term goal of 500 lbs. that won’t be attainable in the next couple of years. Goals should be related to each other and to the overall vision for the operation. Some examples of goals for a cow-calf operation would be:

- For weaning weights to average 500 lbs. within five years

- For weaning percentage to be over 85% every year

- To develop an individual cow performance record system by the end of the year

- To cut winter feed costs by $15/head this winter

- To have all black, red or tan (pick a color and stick to it) calves within five years.

All goals should relate to the bottom line, profit. Increasing performance, decreasing cost, improving marketing options are all attainable if we take an honest look at our operation, study market trends and develop a set of goals to guide us. Identifying the factors which affect each goal and then changing our management practices to address these factors are necessary steps. Once we’ve developed and written down our goals we should post them in a prominent place. It helps to motivate action if we see where we are going.

By writing down our goals, today, we’ll know if we are getting where we want to go, tomorrow.

TOUGH TIMES, BOLD MOVES:

Volatility in cattle, fuel, corn and fertilizer markets during the last 18 months has been unprecedented. All these fluctuations have made decision making tough and have hurt the confidence of the best farm manager. Although times are tough in the cattle business, it may be time for some bold moves. Fed cattle markets have been following the stock market for the past several months. This economy has been showing some signs of recovery. The cow herd has been shrinking for the past several years and is at 30 year lows. Even though the global economy has struggled, U.S. beef exports are improving. Poultry and pork production have been reduced. High corn prices affect them more than the beef sector. The fundamentals of the beef market are pointing to a significant turn around and it may be time for us to take some bold actions. If we are to take full advantage of the impending rally, we should be retaining extra females or buying females while they are cheaper. When this market turns, good quality replacement females could easily be 50% higher.

Growing your cow herd now may seem risky and depending on the direction you want to go, timing will vary. Weanling heifers kept this fall won’t produce a saleable calf until the fall of 2011. Even the most pessimistic economist thinks this economy will be improved by then. If you develop your own replacements then it may be time to keep a few extra this fall. On the other hand, if you buy bred heifers or pairs as replacements then you might have an extra year to prepare and study the situation. If the market rallies before you buy, though, you could increase your investment cost significantly.

Of course the corn market will continue to adversely affect our weanling calf market. November corn futures are at $4.63/bushel. As long as the government continues to subsidize ethanol production, corn will remain high, our weanlings will be discounted and stockering calves to heavier weights will be favored. If you have more land than brood cows you may want to shift to stocker production on the extra acreage instead of increasing the cow herd. Those who have tried it, recently, have met with some success.

If fed cattle rally to a $1.00/lb. in the next year or two as some economists are predicting, all phases of beef production will benefit, it may be time to make some bold decisions to position yourself to take advantage.

MASTER CATTLE PRODUCER THIS FALL – EVERY MONDAY NIGHT BEGINNING AUGUST 17:

We have waited several years, and postponed due to multiple hurricanes, but if all goes well Lafayette Parish County Agent Stan Dutile and I are will be offering the Master Cattle Producer series to interested cattle producers in the Acadiana Region once again this fall. The classes will be held at the Lafayette Parish LSU AgCenter/Extension Office every Monday night beginning August 17 (except for Labor Day) from 6:00-9:00 p.m. with a meal served during each session. We are now taking applications and an application form is enclosed. Class size will be limited to approximately 50 participants so begin making your plans now and submit your application if you are interested. The program is a series of 10 classes that will cover Animal Handling, Health, Nutrition, Pasture Management, Breeding and Selection, Reproduction, End Product and Financial Management. The fee for the program is $100, (this fee covers teaching materials, meals and refreshments during each session, as well as certificates and a farm sign once the class is completed). If you have questions please call Stan Dutile at the Lafayette Office (291-7090) or contact Andrew Granger at the Vermilion Office (898-4335).

WHAT’S SHAPING CONSUMER PERCEPTIONS?:

Almost daily, it seems, Internet surfers are likely to find another discourse on the evils of factory farming. Today’s alarm is sounded — complete with a bevy of statistics — by George Wuerthner on NewWest.net. Wuerthner, who describes himself as an ecologist, writer and photographer, devotes his Web-based column this week to criticizing animal agriculture and, specifically, the amount of land that is used to raise grain and forage to feed livestock.

Wuerthner says that 80 percent of the grain raised in the United States is fed directly to livestock. “Since the United States is the leading producer of beef cattle in the world,” Wuerthner writes, “it is also the top animal feed producer in the world, with more than double the acreage in animal feed production than its closest rival China. This means the majority of cropland in the United States is not growing food for direct human consumption, as many presume, but is used to grow forage crops for domestic livestock, including chickens, hogs and cattle. In fact, in the United States, domestic livestock consume five times as much grain as the entire American population.”

Wuerthner also notes that it takes a lot of grain to feed cattle, hogs and chickens. He cites data that suggests cattle convert grain to beef at about a 7-to-1 ratio. No quibble there, but he also quotes Cornell University professor David Pimentel, who says that if the cropland currently used to grow grain fed to livestock were directed toward growing crops for human consumption, we could feed 800 million additional people or more likely provide a decent meal for those whose diet is inadequate.

The three major crops grown for livestock feed — corn, soybeans and hay/pasture — cover a minimum area of 200 million-plus acres, Wuerthner says. “To put these figures of animal feed cropland into perspective, the amount of land used to grow the top 10 fresh vegetables in the United States (asparagus, broccoli, carrots, cauliflower, celery, head lettuce, honeydew melons, onions, sweet corn and tomatoes) occupies about a million acres.”

Wuerthner also criticizes livestock production as destructive to the environment — destroying wildlife habitat, causing soil erosion and contaminating air and water.

VALUE-ADDED CATTLE:

In response to the economic heartburn felt by many Americans, consumers have shifted away from higher-priced restaurant meals in favor of lower-priced restaurants and grocery stores. In response, the Choice-Select spread has narrowed and even briefly inverted. However, Rawls sees that as a temporary aberration.

“I don't think people's taste and preferences have changed that much,” he says. “Maybe people can't trade cars like they'd like to, but they can enjoy eating better at home. They've made some shift in what they're buying due to economics, but I think they would still enjoy, and continue to enjoy, the higher-grading product when they feel their pocketbook can stand it.”

And Feuz says that it's not that consumers are going to the retail case looking for lower-priced product as that they're switching their dollars from restaurant steaks to fast-food hamburgers. “If you've got a branded program that's built up loyalty, it appears that people are staying fairly loyal to those brands” as consumers do their grocery shopping, Feuz says.

Sincerely,

Andrew Granger
County Agent
Vermilion Parish

It is the policy of the Louisiana Cooperative Extension Service that no person shall be subjected to discrimination on the grounds of race, color, national origin, gender, religion, age, or disability

Sponsored by: LSU AgCenter, UL Lafayette, DOW Agrosciences, Chastant Bros, other feed/chemical dealers

Cowchip - June 12, 2009

Louisiana Master Cattle Producer Program

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