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Exclusive BEEF Drought Survey Results

Jan. 12, 2012

States Surveyed

Surveyed were readers identifying themselves as cow-calf producers operating in the states of Arizona, New Mexico, Oklahoma and Texas in the South; and Montana, North Dakota, South Dakota and Nebraska in the North. The survey’s intent was to obtain a representative sample of responses from producers in the drought-devastated South to contrast with responses from producers in the ample-moisture area of the North.
Did You Experience Drought Conditions?

Of total respondents, 70.1% reported experiencing drought conditions in 2011, while 29.9% escaped the scourge of short moisture. Of southern respondents, 98.9% dealt with dry weather in 2011, while a lucky 1.1% escaped the effects of drought.
Typical Heifer Retainment

The results tell a tale of two extremes. The majority of respondents said they typically retain between 6% and 20% of their heifers, with 24% indicating they keep 26% or more.
Retaining More Heifers

21% of respondents in the North indicated they kept more heifers than normal, and 66.7% said they toed the line on replacements. Only 12.3% indicated they cut back on heifer retention.
Retaining Fewer Heifers

Of those retaining fewer heifers, 94.7% of southern respondents cited the shortage of feed as the main reason. Only 15.8% did so because of historically high prices for calves, and 10.5% had other motivations.
Normal Cow Liquidation

Typically, ranchers liquidate 1-10% of their cows. 2011 was not a typical year.
2011 Cow Liquidation

When ranchers in the drought states were asked if they liquidated cows due to drought, 66.9% answered yes, while 33.1% said no.
Culling Rates

When asked how many they sold, ranchers indicated they culled deeply. The biggest percentage (27.2%) came in the 11-20% range. And, nearly 20% said they culled 50% or more of their cows this year due to drought.
Herd Expansion

Nearly 34% of respondents reported expanding their cowherd, while 66.2% said they didn’t. Of those expanding, 32% grew their herd by 6-10%; while another 28% expanded by 5% or less.
Relocating Cattle

Interestingly, only 4% indicated their herd expansion included cows from the drought-stricken areas of the country and only 1.4% indicated they are managing cows for others forced by drought to relocate cattle.
Why Did You Sell Calves Early?

When asked why, 97.5% of drought-stricken producers who sold calves early cited a lack of feed as the main reason. “Severe drought, ran out of water and grass,” said one respondent.
Value-Added Premiums

Despite the drought, however, ranchers are still striving to produce calves that earn market premiums. Nearly half (47.1%) of all respondents said they marketed calves with value-added attributes in 2011.
Value-Added Premiums

The most popular of those value-added attributes was preconditioning (79.3%), followed by source verified (63.3%) and age verified at 61.2%. As a general rule, ranchers in the North are slightly more inclined to seek market premiums through value-added attributes than ranchers in the South.
Resiliency Wins

Testament to the resilience and fortitude of cattlemen, a full 52.2% say they will restock with cows when conditions improve. However, 36.5% indicated they aren’t sure just yet what the future holds. Another 7% said they intend to restock but change production models, such as buying stockers rather than cows. Another 5.2% play to reinvest the cash in another non-livestock ag enterprise.

Discuss this Gallery 1

Maggie Lesure (not verified)

on Jan 20, 2012

good post, added you to my RSS reader.
Welcome to my blog registered advisor.

reply

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