Then there's health status

Of course, cattle with fewer health problems normally perform better. And smaller yards may face fewer health problems than larger yards.

“The closeout data I've seen indicates smaller feedlots tend to have less death loss,” says Dan Loy, Iowa State University (ISU) animal science professor. “That may indicate fewer health problems. The data suggests cattle that get sick are less likely to grade than healthy cattle.”

ISU studies show cattle treated twice or more for bovine respiratory disease had a 33% reduction in grading premium Choice. Animal scientists say an increase in health problems at larger yards could be caused by the lower labor-to-cattle ratio, feeding younger cattle and added stress.

McCollum notes health is often related to demographics. “Again, a lot of smaller feedlots buy more calves locally,” he says. “With the larger feedlots, a lot of those cattle are being transported for longer distances. They're subjected to a different level of stress.”

Mark Sebranek, general manager of the 34,000-head Irsik & Doll Feedyard, Garden City, KS, says his yard takes steps to prevent health problems from hurting QG and efficiencies.

“We work with our customers and document the vaccination programs being performed at home,” Sebranek says. “We try to complement the customer's vaccines with those used at our feedyard.”

The feedyard also works to improve animal health with quiet handling.

“If you can keep the adrenalin out of the cattle, by keeping them relaxed the whole time, those cattle are going to go to the bunk and eat more feed,” Sebranek says. “They'll also stay healthier.”

In a typical slaughter report, 40-45% of cattle grade USDA Choice in the Southern Plains. The Midwest and Northern Plains are often 15% higher.

“That may reflect differences in time on feed and feeding strategies,” McCollum says. “You can also look at the YGs on those cattle. You'll see a much higher percentage of YG3 and 4s in the North. The cattle are fed to a fatter endpoint than what we normally do in the South.”

A good YG-sorting program can increase performance in all regions. Irsik & Doll grid markets 80-85% of its cattle. From January 2006 to October 2006, it posted a 26% CAB acceptance rate, more than 10% above the average of all CAB-licensed yards.

“Sorting the tops off the cattle — not sending the entire pen at one time — really helps, especially with the small customers,” says Sebranek. He notes a variation of 300-500 lbs. isn't uncommon on calves coming into the same pen at the feedyard.

The degree of sorting for a set of cattle likely depends on their overall quality. Loy says sorting isn't often linked to high-volume feeding.

“That's not something the large feedlots have the labor to do, but its fairly common in the Cornbelt,” he says. “By sorting and marketing in more than one group, you're more likely to market the animal closer to it's optimal time, from both a QG and a YG standpoint.”

Irsik & Doll recruits cattle that will grade higher. “In part, the high CAB acceptance rate is because of the cattle received,” says Sebranek, who returns carcass data to customers enrolled in CAB and other programs. “They use the data to find their replacements and buy bulls,” he says.

Genetics along with geographic herd trends are both significant in a feeding program, McCollum stresses. “The genetics are quite different in Texas than what would be accessed in Iowa or Nebraska,” he says.

Whether it's a farmer-feeder in Iowa or a large yard operated by Cactus, good processing crews are essential. Some would argue a large yard has an advantage because it likely has a dedicated processing crew, while a small yard's doctoring crew might also deliver feed.

Sebranek says much credit goes to his processing crews and others who take pride in their work. “They respond as if they owned the cattle themselves,” he says.

“If you get your crew in tune with that pride, there should be no differences between a large yard and a small one.”

Larry Stalcup is a freelance writer based in Amarillo, TX.