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[AgriLife Today] Transitioning cropland to pastureland in Rolling Plains requires multi-year planning

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Some Rolling Plains’ producers are considering converting their cropland to a forage/pasture system. (Texas A&M AgriLife Communications photo by Kay Ledbetter)

By: Kay Ledbetter

Writer: Kay Ledbetter, 806-677-5608, [email protected]
Contacts: Stan Bevers, 940-552-9941, [email protected]

VERNON – A growing interest in shifting out of crop production and into a forage-based system in the Rolling Plains has Stan Bevers, Texas A&M AgriLife Extension Service economist in Vernon, consulting his crystal ball.

And he has some advice for those who are contemplating the move, “Have a multi-year plan and have a chunk of equity, because you can’t borrow your way through this.”

He said there are a lot of variables and a lot of factors involved in the transition. And while he has seen a number of acres go into pasture over the past two years at the peak of the cattle market, things are changing.

“I think there were people thinking there wouldn’t be another bad day in cattle,” he said. “They have quickly found out there will be.

“You have to have a multi-year plan, because no one can predict prices and production levels. This forces you to consider what might happen.”

What are the projections for calf prices in the next few years? And what about wheat prices; how long will there be below break-even-point wheat prices?

“With the cattle prices that have been projected for the next few years, transitioning doesn’t look like a good option, especially with wheat prices expected to move up over the next five years.”

Bevers said it has been a combination of the continual increase of input prices and market happenings – high beef cattle prices for several years and falling wheat prices – that have prompted the move by producers out of annual production and into a more permanent pasture situation.

“In areas such as the Rolling Plains where there is marginal crop production, specifically on wheat where costs of production have consistently been rising and the price falling, the average production of 20 bushels per acre just doesn’t work anymore,” he said. “We can even go to the $5 to $5.50-a-bushel wheat and still not make it work.

“So now we have producers saying they are willing to bear the one-time pain – the cost of putting in a permanent pasture — rather than the annual pain of the cost of putting in wheat,” Bevers said.

The problem, he said, is the cost of establishing a pasture is only the first step in the change to a forage-based system. Once the pasture is established, they have another pain to bear – determining whether to run cows or put stocker cattle on it.

“You need to be able to fund that with a chunk of equity. If you have to borrow the money to seed the grass and then borrow more to stock it with cattle, the way it is penciling out, you won’t have that paid off on a five-year note.”

Run the numbers; create a multi-year plan, he advised.

“This isn’t something you will do overnight,” Bevers said. “It will be a two- and three-year process. You usually don’t get 100 percent utilization the first year or two, so have an alternate plan.”

And while the prognosis for the future may not look good right now, he said the one given is that things will change.

“Considering the projections I’ve seen, everybody would be giving up right now,” said. “But something is going to change. It might be that there is a drought that will cause wheat prices to go higher, or things get worse and other producers get out, causing less production and forcing prices to go higher.”

In planning, he said, producers should be prepared for best-case and worst–case scenarios.

“If you are going to do this, you have to have a plan and recognize the amount of equity you have available to do this.”

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Farm & Ranch

Meanwhile, Back at the Ranch…

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By Rayford Pullen | [email protected]

When May arrives, we start thinking about weed control. With two years of drought under our belts, grass grazed short and hay stocks depleted, what we do now will influence our forage conditions for the entire year. With 75 percent of our annual warm season forages made by July 15 in North Texas, we need to get the grass growing while the sun shines.

Speaking of the sun shining, the biggest deterrent to growing lots of grass is restricted sunlight, and the biggest sun blockers we have are weeds.

Have you noticed weeds are normally just slightly taller than your grass and are probably blocking 90 percent of the sunlight from reaching the grass itself? So obviously, we need to improve conditions, so sunlight reaches the plants we want to grow.

With grass extremely short, more sunlight is hitting the soil surface now, which in turn results in more weed seed germinating. With the moisture we have received, we expect an abundance of weeds this year.

To read more, pick up a copy of the May issue of NTFR magazine. To subscribe by mail, call 940-872-5922.

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Farm & Ranch

Land Market Report: March Land Sales

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By Jared Groce

Rural land sales are continuing on a steady pace for early spring, with prices holding very strong with the sell-to-list price ratios remaining very high, even on properties that have been on the market for a longer than usual time period. The total number of transactions are picking up once again as the spring selling season kicks off, and the average acreage continues to decrease.

Larger acreage properties seem to be in higher demand than smaller properties currently, with many buyers simply parking cash in real estate to hedge against inflation. Interest rates seem to have settled down and most experts agree that rates will be reduced by the fed this year. Some lenders have programs in place that allow the buyer to reduce their rates without having to go through a full refinance ordeal.

To read more, pick up a copy of the May issue of NTFR magazine. To subscribe by mail, call 940-872-5922.

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Farm & Ranch

Texas FFA State Vice President Weston Parr

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Future Farmers of America was founded by a group of farmers in 1928 with the mission of preparing the next generation of agriculture. It has done just that during its 95-year history, as the organization works to give back to others by following its motto, “learning to do, doing to learn, earning to live, living to serve.”

FFA is an organization made up of state associations, and at the helm of the Texas FFA is a team of 12 officers representing their respective areas within the Lone Star State. These individuals dedicate a year of their lives as they serve members, provide leadership, and work together with the state staff and board of directors to develop policy and lead the organization of over 177,000 members.

North Texas is represented by Area IV and Area IV, stretching from Wilbarger County to Bell County and from Runnels County to Grayson County. This year, those chosen to lead this great area are State President Isaac Hawkins Jr., Area IV, and State Vice President Weston Parr, Area V.

Parr is from the Sam Rayburn FFA chapter and the Area V Association, but the leader who now serves more than 19,100 members of Area V entered the FFA organization as a shy teenager who sat in the back of the room.

“I didn’t talk to a whole lot of people. I didn’t know what I wanted to do with my life or where I could see myself, so I wasn’t involved on my high school campus,” Parr recalled.

“Then I started FFA and slowly but surely, my ag teachers worked me into attending more contests, meeting new people, and speaking. I remember the first time I gave an officer speech to my chapter. I can still remember how embarrassing it was. To see the progression from that moment to speaking on stage at the state convention in front of thousands of people. Now I feel like I can enter the industry I want and be successful all because of what FFA afforded me for five years.”

There is not much Parr did not do during his time in high school. His contest participation included chapter conducting, wool judging, cotton judging, wildlife, and job interview, but his favorite was extemporaneous speaking, which he did not start until his senior year of high school.

“I wish I could go back to my freshman, sophomore, and junior years and start that sooner. I think if I had more time, I would have been more successful than I already was, but that was something I didn’t realize I liked at the time. I’m not naturally somebody who likes to speak in public, but it was actually my favorite,” Parr said.

Parr won several awards during his time competing. In 2023 alone, Parr earned the Texas FFA Service-Learning Proficiency title, was a National FFA Service-Learning Proficiency finalist, and a Texas FFA Extemporaneous Speaking finalist. In addition to his CDE and LDE events during high school, he showed commercial steers at Houston, and boilers at most major shows, participated in the county show with projects in ag mechanics, showed goats from time to time, and showed heifers until graduation.

“FFA provides invaluable resources and knowledge to be successful once you leave high school and you are out of the blue jacket for the first time. I have been a part of a lot of great organizations over the years, and they are all great in their own way, but in my opinion, FFA is the most successful at producing members of society who want to go and do something with themselves,” Parr said.

He was halfway through his time as Area V Association President and attending the national convention when he began to ponder the idea of running for state office.

“This is around the time when you usually figure out if you want to go through and be a state officer or you decide that area officer is your last run. I was unsure of where I wanted to go, but I knew I didn’t want to be done with FFA. I decided maybe it would be a good opportunity not only for me to make more friendships and connections, but also to give back to the program that allowed me to be able to do what I can do today,” Parr explained.

To read more, pick up a copy of the May issue of NTFR magazine. To subscribe by mail, call 940-872-5922.

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