Value of Gain

Most of you that read this blog know about my focus on VALUE of gain. This is from Glen Selk's latest newsletter: "Notwithstanding current production difficulties, the market is providing strong signals to add weight to feeder cattle before feedlot placement. For example, 525 pounds steers have averaged about $140/cwt. the past two weeks in Oklahoma. Adding 225 pounds at 1.5-2.0 pounds per day would produce a 750 pound steer by November. Using a November Feeder Futures price of $144.90/cwt and zero basis results in a gross margin of roughly $350/head or a value of gain of $1.56/lb. The extent to which this is a good market opportunity will depend on the cost of production but even with relatively expensive feed costs, a cost of production well under this value of gain is likely. While many producers are unable to take advantage of this situation, there are undoubtedly some producers with the ability to implement a stocker or backgrounding program to take advantage of this very high value of gain." Value of gain at $1.56!!! Now if we can get a rain or two we can take advantage of a tremendous opportunity!

The Drought Continues

It would be easy to feel sorry for ourselves given this ridiculous heat and associated drought. The grass isn't even brown anymore, it's white. But mob grazing has allowed us to stockpile grass and calculate exactly how many days of grazing we have remaining. We added 108 head of our stocker calves on July 17th(avg weight 652#)to the dry cow mob bringing our mob size to over 500 head. While everyone else is liquidating, we have at least a month of remaining forage while carrying about 25% more animals at the goat ranch than we had last year. It's certainly been a challenging summer, but mob grazing has allowed us to get ourselves well prepared. We will likely be selling all of our purchased dry cows and our stocker calves in early September...hopefully the markets will have rebounded by then. If we get some rain, and the markets haven't rebounded, we may try to hold the stockers a bit longer, but the cows will likely have to go. Our most immediate challenge is to figure out where to merchandise our purchased cows in early September. The Joplin market is beyond awful right now. The cows are fat and more than likely, many of them are pregnant. It would be a shame if we don't end up making a healthy profit on them, but given the circumstances, I would probably be happy if we break even.

High Priced Corn

I've mentioned this many times before, high priced corn is not necessarily a bad thing. Cattlemen like to complain about it because the major publications generally rail on high corn because they are mouthpieces for large scale beef. But high corn can be a tremendous opportunity for cattlemen. High priced corn increases the value of your grass, and if you are a grass farmer, increased grass value is a good thing. Stop complaining and figure out how to take advantage of the windfall.

Another Mob Grazing Benefit - Fescue Seed

I've mentioned this in a past blog post, but a not so obvious benefit to mob grazing is the ability to harvest seed from pastures yet to be grazed. Although we currently have more cows at the goat ranch than we have ever had there (over 600 head) we still had nearly half the ranch that had not been grazed by mid-June. We cut those pastures for seed and with the price of seed this year, did quite well. Cutting the seed also removes the seed heads from the pastures that can carry fungus and harm eyes. I suggest rotating where you cut seed so that you can maintain a seed bank, but cutting this seed has many advantages, not the least of which is a nice paycheck. It's been record hot this summer and very dry, yet we still have around 400 acres that we have yet to graze. A huge benefit to managed grazing is knowing how many grazing days you have left at any given time. We calculate that if we don't get another rain, we have around 65 days of grazing left, which should allow us to get to early September with the cows and calves we want to send to market. Until then, I will continue to hope that it starts raining and prices will rebound.

Heat and more heat

It's been record hot for the past week or so but it's a fairly typical SW Missouri summer. The cows are hot and taking to the ponds. This is a real problem with mob grazing and one of the biggest challenges in the summer. As I've shared in the past, a mob of cattle can do real damage to ponds and water quality. We have had a few fish kills that were not pretty (see prior posts for pictures). We have decided to try to fence the cattle out of the ponds and pump water to a stock tank. I am not a fan of spending money on equipment like this, but I really think the payback will be fairly quick, especially if performance is suffering due to water quality (this is very debatable, I've seen studies that show this both ways). We will start using the pump and tank hopefully this week...I'm anxious to see how the cattle react. I think providing good, cold water to the cattle in the mob can only be a positive.

Update on the dry cow mob

The mob of dry cows is really starting to act like a mob. It took a few weeks to get them all together and get the paddock size down to a small enough size, but the last few weeks have been great. We are back to seeing stripped weeds, oak sprouts that are just sticks sticking out of the ground, musk thistle eaten, grass tromped flat and nearly every manure pile molested in some way....all great signs of a successful mob. We fertilized with a ton per acre of litter late last fall and I didn't think we got a very good response, but we have so much grass this year that we can't keep up with it. We have about 300 pairs on one side of the ranch and 400+ dry cows that we are mob grazing on the other and we still haven't even touched 2 of the 6 large pastures that make up the ranch. AND we just cut over 60,000 lbs of fescue seed off of the place. It's funny because we keep talking that we really need more cows and we are running over 100 head more than we've ever had on the ranch. The dry, open cows we purchased were rail thin coming in and are really putting on the weight. I think we'll make some money on them. We've lost a lot of grass from the drought. There are big areas of cheat where grass used to be. I'm pretty happy with the ranch overall though. I think the litter helped and I am loving the way the mob grazed pastures look. We hope to have all the cattle off of the ranch in mid-August and plan to stockpile grass all fall. I am leaning toward buying dry, open cows Dec-March and mob grazing during the winter, spring and early summer. We'll learn a lot more about the profitability of this plan after we sell our purchased cows in August.

Observations

I have made several observations the past few weeks while walking thru the Goat Ranch. We fertilized with one ton of chicken litter over about 1200 acres late last fall. We didn't get any rain on it at all so got no grass growth last year. A few of our pasures look better than they ever have. The North Rock Barn pasture and the Rock Barn pasture have more grass this year than they've ever had. The Cabin pasture and the South Center have decent grass but have been better. The Stocker pasture (was grazed late and hard and didn't get any litter) looks worse than it has in a few years. The stocker pasture has been mob grazed more than any pasture on the ranch and it's had grass so heavy you could barely walk thru it, but this year it's just not that great. My disappointment is that it appears that a person will need to mob graze continuously to get results each year...you can't quit mob grazing for a year and still have great grass. I also haven't seen much earth worm activity or castings. I am wondering if the severe drought may have hurt their population a bit. Looking back, I forgot how dry it got at the ranch and I'm thrilled that we didn't have to feed cows last winter. I should probably be very happy with the way the pastures look, but I'm not. I'm anxious to get our mob grazing program started back up! I think these young, thin open cows could be an ideal candidate to put into a mob and graze. We are just getting going, but already we see the cows stripping the oak sprouts bare and devouring the blackberry sprouts. I went back to areas where I knew we had big thickets of blackberrys and there are only a handful of young tender sprouts that I know will get eaten when we graze those areas. I'm starting to get excited and will keep you posted as to our results. I promise I will have some pictures in the very near future to share.