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Cut Costs Efficiently
Chipping away at input costs begins with ranch analysis
McCollum says feeding a typical 32-39% crude protein (CP) cake once a week instead of spreading out the feeding over two or three days will likely produce similar performance, according to several studies conducted at different locations. You'll still achieve the recommended weekly intake of supplement per cow, but altering the feeding frequency could reduce fuel expenditures, equipment use and time, he says.
Managing inputs can be enhanced by developing and using an operational plan that outlines how to achieve specific and short-run goals and objectives for a week, month, or even a year. “Operational plans are ‘tactical,’ meaning they describe how specific goals will be achieved through day-to-day operations,” McCollum says.
Longer-term strategy
Changing your breeding program based on SPA or another analysis can help improve overall efficiency. “But the decision to make significant changes should only be considered after ranch-specific range, production and financial data demonstrates change is necessary,” says Manny Encinias, New Mexico State University Extension livestock specialist in Clayton.
Moving winter calving dates to spring and even summer is a long-term management decision that warrants evaluation in the era of high fuel and supplemental feed costs. “Transitioning from winter to a spring-calving season is advantageous across most production environments,” Encinias says. “Weaning weights may be reduced, but this change could provide opportunities to continue marketing on traditional dates without sacrificing significant tonnage.”
Calving during late spring and summer most closely matches a cow's requirements for lactation with forage quality and may provide the largest supplementation savings and reduction in annual cow costs in Southwestern production environments. “However, summer calving requires important marketing decisions,” Encinias says, “as calves will likely be considerably younger and lighter than spring-born calves if marketed in the fall.”
In comparing supplementation strategies and associated costs, it's critical to have good, ranch-specific data that describes forage quality, mature cow size, and lactation potential, as well as a set of guidelines outlining the nutrient requirements for your cows during different stages of production.
In making a comparison, Encinias looks at forage-quality data for warm-season grasses found in south-central New Mexico and assumes the cowherd has an average mature cow body weight of 1,200 lbs. with a moderate lactation potential (20 lbs./day).
He says cows calving in December will require about 948 lbs. of a 32% CP supplement annually for a cost of about $123 (based on a $260/ton delivered price to the ranch) to meet CP deficiencies throughout the year. Supplement requirements are reduced to about 843 lbs. and $109 for March calving; 715 lbs. and $92 for May calving; 701 lbs. and $91 for June calving; and 824 lbs. and $107 for August calving.
“With this dataset, the May and June calving systems are the best options to reduce supplementation costs,” Encinias says. But he and his colleagues warn that drought, which can strike any year, can elevate supplemental needs and costs.
Strategies that target supplementation during the last trimester of pregnancy through breeding result in similar trends across calving dates, but even greater savings. “A lot of producers in the Southwest would be surprised at how well a late-summer or early-fall calving season pencils out,” Encinias says, “when you only supplement the cows during the periods of highest demand, sell calves during spring highs, and let the cows regain body condition on green grass.”
He advises those considering a calving-season change to first develop a marketing plan for their calves. For example, with summer calving, a retained-ownership program may work for producers with access to winter-wheat pasture or other forage that will enable them to market calves the following spring.
Encinias also advises ranchers to analyze the impacts of environmental extremes (i.e., cold and heat stress) on calf survivability and reproductive performance, before moving their calving season.
“You shouldn't change what you haven't already measured,” he says. “You should rely on your ranch-specific data relative to your production environment and look at the pros and cons of moving a calving season forward because it will be extremely more difficult to move a calving season backward.”
Look outside the box
Consider different profit centers that can be generated from the land, Gill says, but exercise the same analytical eye used when looking at input costs. Hunting leases can add substantial income to some ranches, but they can also pose excessive costs. An alternative accounting system may also be needed to take full advantage of depreciation and other available deductions.
“Set realistic goals and timelines,” Gill advises, “then monitor the progress and production response.”
Larry Stalcup is a freelance writer based in Amarillo, TX.
Feed purchasing & management
Ted McCollum, Texas AgriLife Extension beef cattle specialist, says that — with higher grain, oilseed and other feed costs likely here for a long time — producers should consider numerous measures to enhance their feed purchasing and management while still maintaining optimum nutrition programs. His suggestions include:
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Re-evaluate stocking rates and adjust to forage conditions. Lightening up can potentially reduce feed requirements.
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Study grazing-management plans that group cows into larger numbers during the supplementation season. This may reduce time, fuel and equipment required to check and feed cattle.
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Study grazing plans that reserve units nearer to headquarters or camps for winter use to help reduce distance required to haul feed and check cattle, as well as possibly reduce supplements required.
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Investigate seasonal supplement prices to determine if feed can be priced and carried during periods of lower prices.
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Work to possibly reduce frequency of supplementation.
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Look at supplement alternatives that can reduce tonnage needed.
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Group cows based on feed requirements for the winter to increase the feeding program's effectiveness.
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Determine why significant amounts of hay and other purchased roughages are being fed and look at ways to adjust purchases to save money.
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