Farm & Ranch
[AgriLife Today] Cattle producers learn how to deal with smaller profit margins
By: Blair Fannin
Texas A&M Beef Cattle Short Course attracts record attendance
Writer: Blair Fannin, 979-845-2259, b-fannin@tamu.edu
COLLEGE STATION – After two years of historic high cattle prices, a record 1,900 producers attending the Texas A&M Beef Cattle Short Course in College Station learned more about the current decline in prices and maintaining profitability despite declining profit margins.
“We’ve had quite a run over the past two years with regards to high cattle prices,” said Dr. Jason Cleere, conference coordinator and Texas A&M AgriLife Extension Service beef cattle specialist, College Station. “Cattle prices fell considerably last fall and ranchers are concerned with where they will go in the future.”
Beef producers attending this week’s short course were all too familiar with the decline in prices.
“If prices would just stabilize, it would take some panic out of the market,” said Greg Goudeau, cattle producer and owner of Navasota Livestock Auction Co.
“We’ve seen quite a slide, 40 percent, which is quite challenging,” said Gerald Sullivan, who co-owns Santa Rosa Ranch in Navasota and Crockett with his daughter, Kelley Sullivan. “Not everything is bad, not everything is good. We’re also seeing an uptick in per capita consumption of beef. That’s directly related to the cost as far as I am concerned. I believe we are going to be looking at two or three years of this before we see a turnaround. I’m not sure where the bottom is at this point, but we’ve seen this before.”
Dr. Ted McCollum, AgriLife Extension beef cattle specialist, Amarillo, said during the general session, “It’s like a game of limbo right now. How low can you go? Price discovery in the fed cattle market has been an issue as well as volatility in the futures markets and relation to the cash markets.”
Duane Lenz, CattleFax market analyst, said it was the best of times when prices rallied to historic levels in 2015 and hundreds of dollars in profit margins were raved.
Duane Lenz, CattleFax market analyst, gives a cattle market outlook at the 62nd Texas A&M Beef Cattle Short Course. (Texas A&M AgriLife Extension Service photo by Blair Fannin)
“Looking back at historical returns, in 2015 it wasn’t good; it was really, really good,” he said.
But when prices started to break going into the fall and spiral downward, Lenz said feeder operators who paid high bids began holding on to cattle, feeding them longer, hoping for prices to come back up to a level of profitability. When those cattle went to slaughter, weights were significantly higher and lots of beef was on the market.
That also pressured prices downward, he said. As a result, that left a lot of beef that continues to be cycled through the chain, which has weighed heavily on prices. Commodities across the board, led by the energy sector, have seen sharp declines due to global economic concerns, which hasn’t helped spark strong rallies in cattle prices.
Looking forward, Lenz said consumption is forecasted upward and export demand for beef is also projected higher in the coming years. That’s good news, he said, as lower cattle prices have also trickled down to the retail meat case and major grocery chains have returned to featuring beef cuts in weekly sales flyers.
Though prices won’t reach historic levels seen in 2015, the floor price for a 550-pound steer is targeted at $155 per hundredweight, he said.
“Could we see $150 to $155 in the coming years? We probably could,” Lenz said.
But just two weeks ago, Lenz said Kansas fed-cattle prices reached as low as $115 per hundredweight.
“Now we’re getting in the mid-$120s,” he said. “There’s no reason we can’t be there as we finish out the year. But going into next spring, $105-$110 is a possibility.”
Brian Bledsoe, meteorologist, who is featured in Southern Livestock Standard, gives a weather outlook at the 62nd Texas A&M Beef Cattle Short Course. (Texas A&M AgriLife Extension Service photo by Blair Fannin)
By comparison, 2015 prices got as high as $275 per hundredweight for a 550-pound steer.
The beef short course is one of the largest beef-education workshops in the country. This year’s short course attracted participants from 24 states and eight countries, Cleere said. Many attended the two-and-a-half day event to receive comprehensive education from a variety of experts.
“Where else can you go in Texas and find 1,500 ranchers and vendors?” Goudeau said. “It’s not just the sessions, but an event to find out about what your friends and neighbors are doing with their operations. It’s a rancher’s family reunion. It’s a place to learn more about the hot topics in the industry.”
“There are a number of different sessions you can attend and really pinpoint what we are doing and you can do it all at one time in one place,” said Sullivan, who operates a seed-stock cattle operation. “You don’t get to see all the people at the same time. Plus the trade show, you pick up on tidbits of information that are valuable to your operation. For us, two things, we meet with our customers and potential customers and having all the experts in one place. It’s efficiency, getting to see everyone at the same time.”
This year’s short course was dedicated to the late Rick Hirsch, AgriLife Extension agent for Henderson County. Hirsch passed away unexpectedly in April. His family was recognized during the formal dedication by Cleere during the Aggie Prime Rib Dinner Monday evening.
The short course is coordinated by AgriLife Extension and the department of animal science at Texas A&M. The event showcases the latest research and educational programs offered by AgriLife Extension, Texas A&M AgriLife Research and the department of animal science at Texas A&M. The short course continues through Wednesday.
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Farm & Ranch
Grazing North Texas: Who’s Your Neighbor?
By Tony Dean, tonydean.tx1@gmail.com
Who qualifies as your neighbor? Webster says it is someone who lives nearby, but it isn’t always that simple. Is my neighbor the person next door, or someone in the next county? It could be both.
Our neighbors are an important part of life on the ranch and the grazing lands we share. Many of us find comfort in knowing another human being is somewhere in our neck of the woods, and that someone nearby cares what happens to us.
Being a good neighbor is part of being a productive and responsible rancher, so let’s look at some of the qualities that make a good one.
Protect your neighbor
Watch out for him.
The cattle business is dangerous. Almost everything we work with is bigger and faster than we are. A mad cow can turn an otherwise wonderful day into a disaster. Sooner or later, all of us will need some help.
The average age of today’s rancher keeps climbing. Be aware of your neighbors’ ages, limitations or disabilities, and keep an eye out for anything outside their normal routine.
More women own and operate ranches today, too. Some may suddenly find themselves responsible for parts of the operation that a spouse or family member used to handle. As neighbors, we can be a valuable backup system, helping one another learn, adjust and keep the operation moving.
And then there is wildfire. It can be on us in minutes. You may need to help move a family down the road to safety or move livestock out of harm’s way. Have a plan in mind before the emergency happens.
Be a friend
Some of us who live in the country drive to town for work or make regular trips for other reasons. Others are stay-at-home ranchers, and life can get a little lonely. A friendly smile, a phone call or an invitation to lunch can mean more than we realize.
Things aren’t always wine and roses at the ranch. Few occupations ask people to juggle such a mix of complex markets, weather, natural resource management, livestock management and countless other issues.
Spirits can get low. If we are listening, we can hear and feel the stress in someone’s life. On those days, you have a chance to be a special kind of friend.
Help your neighbor
Have you ever tried to load a trailer by yourself and needed someone to stand in the gate for a couple of minutes? All of us will need help at some point, and our neighbors should be among the people we can call.
Do your best to be there when needed, and your neighbors will likely be there when it is your turn to ask. Sometimes it will be a small job. Other times, it will be a big one. It doesn’t matter. We help our neighbors.
It’s also smart to make sure someone nearby knows your ranching program and understands the land you use. At some point, one of you may need to take care of business for the other for several days.
Be cooperative
There is no end to the situations that can involve more than one family. Fencing, road maintenance and livestock getting where they don’t belong are common ones.
If you don’t handle these things with a friendly, cooperative attitude, they can create problems between neighbors that last for years.
Good fences are something to be proud of. Nothing is gained by years of bickering. Reaching an agreement may be hard at times, but neighbors should be able to work things out. Clear your head, use common sense and come up with an answer everyone can live with.
If your cattle get mixed up with your neighbor’s, make it a priority to separate them as soon as possible. It is rude to let your cattle stay in your neighbor’s pasture eating his grass while you do nothing about it.
One good way to handle strays is for the rancher whose pasture they are in to pen his own cattle along with the strays. The other rancher can then load his cattle and take them home. Afterward, both ranchers can work together on any fence repairs.
By the way, a gate between neighbors is almost always a good policy.
Take ownership
The only way to avoid mistakes is to do nothing. But it isn’t in us as ranchers to sit around and watch the world go by. We are men and women of action, so things are going to go sideways from time to time.
When that happens, and it will, own your mistakes. Decisive action can prevent misunderstandings and make a problem go away much faster.
Be honest, and never, ever lie.
Be patient
We all have bad days. When your neighbor is a little grouchy, he or she probably has something weighing on them.
That is a chance to be a good neighbor. Be patient. Be a good listener. Help your neighbor through the turmoil if you can.
Respect property boundaries
Trespassing is wrong, illegal and rude. Never do it except in an emergency.
In the Southwest, where we live, land ownership is considered a sacred right, and it is a right available to anyone. With ownership comes an expectation of privacy and respect. When you trespass, you violate those rights.
And yes, it is trespassing when you cross a fence to fish or hunt without permission. Texas is a private-property state, which makes respecting these boundaries especially important.
That doesn’t mean you can’t have an understanding with your neighbors that lets you onto their land. Many good friends and neighbors work together on one another’s ranches, but both parties should always communicate well.
You have a cell phone. Use it any time you doubt whether you have the right to go through the gate. An invitation onto another person’s ranch is a privilege, so don’t abuse it.
Your word
Your word as a rancher, neighbor, man or woman helps define you in your community and throughout your life. Your neighbors want to trust you. They want to know that all they need from you is a handshake and that they can depend on what you say.
It is a blessing to live in North Texas, where people still respect and honor a life lived with truth and love.
A good life to live
Having good neighbors is a great way to live. It brings comfort and enjoyment to life. Sometimes it takes a little extra effort, but a friendly neighborhood, even one that covers many acres, is enjoyable and can help keep all of us safer.
It is worth the effort.
The Bible
The Bible has many references to being a good neighbor. Being a good neighbor was good judgment 2,000 years ago, and it is good judgment today. Jesus made it clear that love should guide a good neighbor.
Leviticus 19:18 tells us to love our neighbors as ourselves. That is a tall order. In Matthew 5:44, Jesus takes it further, telling us to love our enemies and pray for those who persecute us.
Our goal should always be to love one another, lift each other up, and help and protect our neighbors.
All of us face drought, floods, wildfire, tornadoes, low cattle prices, rattlesnakes and feral hogs, so let’s fight the fight together. Stand by your neighbor’s side, and he will stand by yours.
A North Texas minister was recently asked, “What do you do if you have a neighbor who is really hard to love?”
His answer was short and to the point: “Love him anyway.”
Farm & Ranch
Beyond Crude Protein
By NTFR Staff
A stack of hay may look good from the outside. The bales may be heavy, green and free of obvious weeds or mold. None of that tells a cattle producer what the hay will provide once it reaches the feed bunk.
Two bales from the same field can differ noticeably in nutrition if they were cut at different stages of maturity, weathered differently or stored under different conditions. The differences grow even larger when you compare hay bought from separate farms or produced in different growing seasons.
A forage analysis takes much of the guesswork out by showing what the hay contains and where you may need to supplement.
Crude protein is often the first number producers check, but it is only one part of the report. Energy, fiber, moisture and possible toxicity concerns can matter just as much when deciding whether a lot of hay suits dry cows, lactating cows, replacement heifers or growing calves.
Reading beyond the protein number
Most forage reports show results on both an “as received” and a dry-matter basis. The as-received column includes the water in the hay. The dry-matter column takes moisture out of the calculation so you can compare feeds with different moisture levels fairly.
For ration planning, the dry-matter values are usually the most useful. If you’re comparing dry hay with silage, cubes or another feed, make the comparison on a dry-matter basis rather than on the numbers as fed.
Moisture still deserves attention. Hay baled too wet is more likely to heat, mold or deteriorate in storage. In severe cases, heating can create a fire risk. Moisture also affects how many pounds of actual nutrients you are buying. A heavy bale isn’t necessarily a nutrient-dense bale if much of its weight is water.
Crude protein, usually listed as CP, estimates the protein in the forage based on its nitrogen content. Protein keeps the rumen microbes that help cattle digest forage working. When forage protein drops too low, intake and digestion may decline because those microbes can’t function as well.
The amount of protein a cow needs changes a great deal through the year. A mature, dry cow in mid-pregnancy needs less than a cow in late pregnancy or early lactation. Young, growing cattle and first-calf heifers may also need more protein than mature dry cows. Hay that is adequate for one group may fall short for another.
Always compare a forage report with the needs of the cattle that will eat the hay. Oklahoma State University notes that cattle requirements vary with weight, age, stage of production, desired gain and milk production. A single protein target can’t describe the needs of an entire herd.
Energy is another major piece of the feeding decision. Many forage reports express energy as total digestible nutrients, or TDN, an estimate of the digestible energy in the feed. Protein supports rumen function and tissue growth, while energy fuels maintenance, pregnancy, milk production and weight gain.
Hay can test well for protein and still come up short on energy. That matters most for cows nearing calving or producing milk. Low-energy hay may leave cattle feeling full without giving them enough nutrition to hold body condition. University of Nebraska Extension stresses evaluating both protein and energy when judging the feeding value of forage.
Fiber measurements help explain why cattle eat one hay readily and less of another. Neutral detergent fiber, or NDF, represents much of the plant’s structural material, including cellulose, hemicellulose and lignin. As NDF rises, cattle generally eat less because bulky, fibrous forage stays in the digestive tract longer.
Acid detergent fiber, or ADF, includes the least digestible parts of the plant. Higher ADF generally means lower digestibility and less available energy. Put simply, high NDF can limit how much cattle eat, and high ADF can mean they get less energy from what they do eat.
Both numbers tend to climb as forage plants mature. Mature hay usually has more stem and less leaf than hay cut earlier. It may still be acceptable feed for animals with lower needs, but it is less likely to support lactating cows or growing cattle without supplementation.
Some reports also include relative feed value, or RFV. This index uses ADF and NDF to compare forage quality, particularly for alfalfa and other legumes. It can help when you compare similar types of hay, but it doesn’t account for every nutrient cattle need. Don’t let RFV replace a closer look at crude protein, energy and the animal’s stage of production.
Depending on the lab package you choose, the report may include minerals. Labs commonly report calcium and phosphorus, but a forage analysis can’t replace a well-designed mineral program. Water quality, other feeds and interactions among minerals all affect mineral needs and availability. Work with an Extension specialist, veterinarian or livestock nutritionist before making major mineral changes.
Nitrate and prussic acid
A standard forage analysis may not include nitrates, and you often have to request that test separately. Nitrate testing is especially important for drought-stressed forage, heavily fertilized fields and crops such as sorghum, sudangrass, sorghum-sudan hybrids, millet, oats and some weeds.
Nitrate can remain in cured hay and doesn’t reliably disappear in storage. Test any hay you suspect of high nitrate before feeding it. Oklahoma State University recommends a laboratory analysis because field screening tests can show that nitrate is present but can’t measure how much.
Prussic acid is a different concern. Unlike nitrate, prussic acid usually dissipates as properly cured hay sits in storage, though suspect forage still needs careful management and professional guidance. Be sure which test you need, and don’t treat the terms nitrate and prussic acid as interchangeable.
Putting the numbers to work
A hay test pays off when it leads to a feeding plan. Once you have the results, you can match the hay to the right class of cattle. Save better hay for replacement heifers, thin cows, late-gestation cows or cows with calves at side. Feed lower-quality hay to mature dry cows with modest requirements.
Testing can also prevent unnecessary supplementation. Without an analysis, you may buy protein tubs, cubes or other supplements your cattle don’t need. The opposite mistake costs just as much. Assuming hay is better than it is can lead to lost body condition, lower milk production, poor breed-back rates and lighter calves.
Visual inspection still matters. Don’t ignore mold, foreign material, weeds, dust or heat damage because a lab report shows acceptable numbers. At the same time, color and appearance can’t reliably predict nutrient content. University of Nebraska notes that forage nutrient values vary widely, which makes average book values a poor substitute for testing the feed you have on hand.
A forage analysis won’t make poor hay better, but it can show you how to use that hay well. For the cost of a test, you get information that can guide hay purchases, cut supplement waste and put each lot of hay where it will do the most good.
The protein number may get the most attention, but it doesn’t tell the whole story. Understanding moisture, TDN, NDF, ADF and potential toxicity gives you a much clearer picture of what is inside the bale.
Farm & Ranch
Don’t Be Caught Off Guard
By Savannah Magoteaux
A September rain can be exactly what a North Texas pasture needs, but that flush of green can bring an unwelcome guest.
Fall armyworms are a familiar late-summer and early-fall pest across Texas, and they can do serious damage to pastures and hay fields when conditions are right. Bermudagrass is a common target, but armyworms also feed on small grains, ryegrass and other forage crops. The key is catching them early, before a manageable infestation turns into a field that seems to disappear overnight.
Despite the name, fall armyworms are caterpillars. The adult moths migrate into Texas and lay masses of eggs on grasses, fence posts, buildings and other surfaces. Once the larvae hatch, they start feeding on plants.
Young armyworms are small and hard to spot unless you are actively scouting. As they grow, their appetite climbs. Larger larvae can strip leaves fast, leaving stems behind and cutting into available forage or hay yield.
Look for an inverted, light-colored “Y” on the caterpillar’s head. Mature larvae can reach about 1½ inches long and often have several dark and light stripes running the length of the body.
Armyworms feed most actively during the cooler parts of the day, so early morning and late afternoon are good times to scout. Walk through several areas of the pasture rather than checking only along the edge. Look closely near the soil surface and beneath grass leaves, especially where you see fresh feeding damage.
Scouting matters most after rain or irrigation. New grass growth draws newly hatched larvae, and populations can build quickly when conditions favor them.
Texas A&M AgriLife Extension generally recommends considering treatment in improved pastures when you find about three or more armyworms per square foot. The decision should also weigh the size of the larvae, how much forage is present, the expected hay value and how severe the damage is.
Timing matters. Small armyworms are easier to control than large ones, and an insecticide does less good once the caterpillars are nearly mature and have already eaten much of the forage. If you treat, follow the product label carefully, including grazing and hay-harvest restrictions.
Don’t assume one treatment or one scouting trip will carry a pasture through the season. Fall armyworm moths can keep moving into an area, laying more eggs and starting another generation of larvae. Keep checking fields even after you have controlled an infestation.
For hay producers, an approaching harvest date can also shape the decision. When the crop is close to harvest, cutting the field may be a better option than spraying. The best choice depends on the number and size of the armyworms, how much forage remains and whether the weather allows you to cut hay.
September rain is usually welcome across North Texas, especially after a long, hot summer. Just remember that fresh green grass deserves a closer look. A few minutes of scouting can make the difference between catching fall armyworms early and finding the damage after they have eaten their fill.
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