The beginning of May still has a few hints of spring in the South especially when moisture is adequate, but there are also hints of summer as it relates to temperatures. There is no way to know what May will bring in terms of moisture and temperature this year, but one guarantee is that cattle producers will be making several decisions and management moves that have making money raising cattle implications on their operations.

May is a busy month with many producers in the middle of breeding season and even more producers gearing up for the start of hay harvest. These two management and production aspects of the cattle business can have tremendous implications on profitability. The key aspect of these two management decisions is that they are not one dimensional. For instance, the decision to castrate male calves and provide a growth implant is as close to one dimensional as it gets in the cattle business. However, some decisions have implications on cost and revenue.

The first major decision with a breeding season is when it should occur. This can depend on nature or when a producer prefers calves to be born and when a producer wants to market calves. However, making a change to the calving season may not always be feasible. Beyond the actual breeding season, producers must select a sire that will produce calves with desirable characteristics for the market. Most cow-calf producers will be selling into the commercial feeder calf market, which means most buyers are looking for medium and large frame number one muscled calves that will grow quickly and efficiently. Furthermore, those same buyers will be looking to purchase cattle that will grade Choice or Making money raising cattle from a quality standpoint and a 1, making money raising cattle, 2, or 3 from a yield grade standpoint.

The cow-calf producer needs calves that will meet the previously stated preferences, but also needs calves that will grow efficiently while the calves are making money raising cattle and in a backgrounding situation. Furthermore, the cow-calf producer needs a sire that produces females that can enter the cow herd and be efficient from a maintenance standpoint and a reproductive standpoint. There are some well balanced sires that can put a cow-calf producer on the right path to achieving all of these goals, but this takes attention to detail, making money raising cattle. Some producers can achieve this goal while other producers may be best suited for providing cattle for the terminal market while others are best suited for the maternal market.

It is clear how breeding season decisions can lead to implications on cost and revenue. Revenue is the clearest in that producing calves that the market desires will increase revenue. Less clear is the cost of maintaining a cow for a year. Lower energy requirement cows and efficient growing calves can same money on input costs. If some of this information is not understood then it may be prudent to spend additional time studying EPDs. In other words, sometimes it is worth paying a little more for a bull to achieve the desired results.

In May, many producers become more concerned about hay than anything else on the cattle operation. This is understood, considering many producers in the South feed hay from late fall through early spring ( days). There is a considerable quantity of research that supports grazing as a lower cost alternative to feeding cattle than feeding hay. This is not difficult to understand in that hay requires equipment, fuel, and labor or purchasing hay while grazing requires fencing and a water source. In essence the cows do the majority of the work to feed themselves as opposed to the cattle producer harvesting hay and then taking the hay back to the cattle. However, there are times when the investment in hay may be less than the additional revenue garnered by being able to run more cattle or grow calves until a specific marketing time period. This statement does not provide a free pass to producers who are overstocked, because being overstocked probably has a negative impact on profitability.

There is no earth-shattering information in this article, but it is meant to remind producers to take some time to evaluate decisions. May is a busy month from many aspects, but doing a little planning and putting pencil to paper may result in greater returns.

R. Curt Lacy, Extension Economist-Livestock
Carole Hicks Knight, UGA Cooperative Extension
John C. Mckissick, Professor Emeritus-Livestock Economics & Marketing

Most cattle produced in Georgia come from cow-calf farms and ranches. With cow-calf operations, as with other farm enterprises, making a profit is the only thing that will keep you in business. How much profit you make depends largely on your ability to market your calves.

Selling Versus Marketing

Profitable cattle marketing involves more than just getting the highest price. It involves producing the type of calf the market desires, advantages of investing in money markets that calf through the best outlet and at the best time. Unfortunately, most cow-calf producers simply sell their calves. They produce calves that are the easiest to raise, sell at the most convenient market outlet and sell at the most convenient time. As a result, they are price-takers.

Marketing means making choices about how or what product to produce, where to market it and when to price. As a result, marketers have some control over the price they receive.

The first step in becoming an effective cattle marketer is to recognize all your alternatives and evaluate each in light of potential cost and returns, selecting the most profitable rather than the most convenient alternative.

This publication addresses several issues associated with marketing calves -- most notably, whats an easy way to make money considerations, market structure, the type of calf to produce, market outlets and seasonal price considerations.

Know Your Cost

The first step in any successful marketing plan is to know the unit cost of production (UCOP). In fact, for many small or medium-size cow herds, the cost of production is a larger profit determinant than the marketing method. Regardless of the size of the herd, for cow-calf producers this means knowing the cost per pound of calf sold. The best way to make this determination is to begin with a budget similar to the one shown in Table 1.

Note that while the cost per cow is shown, the emphasis is placed on $/Cwt. The cost per hundredweight sold is used because it captures not only total herd costs but also calf crop percentage and weaning weights.

In the example budgets shown, there are two numbers highlighted -- the first one being variable cost in $/Cwt. Variable costs (VC) are also called Direct, "Out of Pocket" or Operating Costs and include items such as feed, seed fertilizer, fuel and labor. These are the costs that must be covered each year because they are the measure of profitability. It is also critical to cover variable costs because any returns above variable costs (ROVC) go toward paying overhead or fixed costs.

Returns above total costs (ROTC) is the measure of the long-term economic sustainability of an enterprise. Total costs (TC) include not only VC but also fixed costs (FC) such as depreciation, cost of capital, management, taxes, etc, making money raising cattle. FC are those costs that occur regardless of the number of head produced. Some people also refer to FC as overhead or indirect costs. Regardless of the terms used, the total cost (TC) per hundredweight is the price a cow-calf producer must average in the long run if they want to remain in business.

Knowing the VC and TC per hundredweight allows producers to set target prices and evaluate their costs in relation to the market, making money raising cattle. While weather and input costs can be volatile in the short term, which will impact cost per hundredweight year-to-year, producers who consistently have break-even prices above market prices will need to find ways to lower their costs in order to stay in the business.

Plan for the Market

The old saying goes that if you don't know where you're going, any road will take you making money raising cattle. But if marketing your cattle at a profit is where you want to go, then planning for the market will help get you there. Planning requires information. A good way to start becoming a better cattle marketer is being sure you understand the cattle marketing system and how your cattle making money raising cattle are determined. Then you need to recognize all the market alternatives available to you. Finally, you need to know where to get the information to help you decide on a marketing plan.

The Georgia Feeder Cattle Market

Figure 1.Seasonal prices of feeder steers and bulls in Georgia auction markets. Data source: USDA-AMS, Weekly Auction Report, TV_LS (various weeks).

In Georgia, as in the Southeast, feeder calves are produced and sold as feeder calves after weaning. About 70 percent of all Southeastern calves are weaned and sold during the fall. This is the major reason behind the normal seasonal price swings shown in Figure 1: prices are normally lower during the fall and higher during the late winter and early spring.

There are around 17, cattle producers in Georgia with an average herd size of fewer than 50 head. With so many small producers, it is natural that most Georgia feeder calves are sold through local auction markets.

Calves weighing between and pounds will usually move into some type of forage-based stockering programs, where another to pounds will be added. As heavyweight feeders, between and pounds, they then will typically move directly into feedlots.

Figure 2.Cattle on feed making money raising cattle yards with more than 1, head (January 1, ). Source: Data provided by USDA-NASS, "Cattle" Report. Chart developed by the Livestock Marketing Information Center (LMIC).

Normally, 70 to 75 percent of all U.S. beef comes from cattle fed in feedlots. Feedlots have become fewer but larger in size. The top three feedlot states (Texas, Nebraska and Kansas) now market almost 60 percent of the cattle fed in the United States. Figure 2 illustrates the concentration of the cattle feeding industry in the United States as of January 1,

While there are definite segments to the beef production system, the important point to remember is that the consumer eventually makes the final pricing decision. The retailer wants a certain type of product because the consumer wants it. This is relayed back to the packer, who relays it to the feedlot, who relays it to the feeder cattle earn a lot of money jobs. The "relay" for all these messages is the price. Unfortunately, because of all the messengers in the market, the signals sometimes get mixed or muted. However, if we pay close enough attention, we can recognize them. By understanding how the beef cattle markets work, feeder cattle producers will be better able to recognize changes that may make a higher profit.

Feeder cattle prices are derived from their next market. The calves' value is based on what they are expected to be sold for, either out of the feedlot or out of a backgrounding operation, less the cost of gain. As the expected price of finished animals goes up or the cost of gain goes down, feeder calf prices will increase. The weight to be added is factored in with the expected price of finished cattle. A 1,pound finished steer weighs times as much as a pound feeder calf and times as much as a pound yearling. Therefore, making money raising cattle, a $1-per-hundredweight increase in the expected selling price of a finished steer would cause a buyer to bid $ per hundredweight more for a pound feeder calf or $ more for a pound steer.

The cost of finishing the calf will also affect the price of the feeder. The cost of putting a pound of gain on a calf depends on feed cost, non-feed costs such as interest, and the efficiency of the calf itself.

A feeder buying a pound calf and finishing it to 1, pounds is putting on pounds of gain, or times the original weight. Finishers buying pound yearlings and finishing to 1, pounds are putting on times the original weight. Each $1 change in the cost of gain will raise or lower the price finishers can pay by $ for a pound calf and $ for a pound feeder. Table 2 shows the break-even purchase prices that could be paid for a pound steer given alternative fed-cattle prices and cost of gain. Of course, feeder calves produced in Georgia are likely to be transported to the feedlot states. Thus, a feedlot will also have to discount the feeder price in Georgia by the cost of transporting the calves to the feedlot.

Figure 3. Factors that affect feeder making money raising cattle prices.

While it is the cost and return from finished cattle that give feeders their value, it is the overall supply and demand for beef that determines fed-cattle prices. Figure 3 illustrates the factors that affect fed-cattle prices. It is important to note that there are many things that affect the price of cattle and beef that cow-calf producers cannot control. However, by being aware of these factors, cattlemen can have some idea of expected prices and plan accordingly.

The variables are shown by final fantasy 7 money making guide size squares depicting the relative importance of each. For example, fed steer and heifer slaughter contributes the most to beef supplies, followed by commercial cow slaughter, non-fed steer and heifer slaughter, making money raising cattle, beef imports and exports, and bull and stag slaughter.

On the demand side, per capita disposable income, total population and competing meats (poultry and pork) are all important factors. Other factors, such as the value of by-products and the cost of slaughter, processing and marketing (farm-to-retail margin), will also affect farm prices.

Feeder Calf Marketing Alternatives

Webster?s Dictionary defines "marketing" as the process or technique of promoting, selling and distributing a product or service. It is important to keep in mind what your product is. Ultimately, a feeder calf producer's product is beef. Georgia feeder calf producers have three major marketing decisions: what to produce, where to market their product and when to price their calves. While some or possibly all of these decisions are set for the producer, alternatives most likely exist. The selection of these alternatives will have a dramatic impact on the profitability of the cattle operation.

Which Cattle to Produce

The cow-calf producer influences the marketability of his cattle the day he selects his breeding stock. While it is true that almost any type of cattle can be sold at a price, the Georgia cattle producer should be raising the most profitable cattle. There are many factors that determine the value of a feeder calf. Some of these factors can be influenced through an operation?s breeding and genetics program making money raising cattle others through good management practices. These factors include:

• Breed
• Color
• Frame
• Muscling
• Condition/Flesh
• Weight
• Sex
• Background
• Horns
• Fill
• Personal Preference
• Vaccinations

Breed

The breed of the calf can influence prices independent of grade. Certain breeds or breed-types bring a higher price because of perceptions by the order buyer as to how these breeds will perform in the feedlot. While these perceptions may or may not be correct, they do exist. One way to get around breed perceptions is to take advantage of breed association-sponsored marketing programs. Crossbred calves have traditionally been in higher demand than purebred calves because of the advantage of hybrid vigor. However, in recent years, that trend has been challenged. Calves with a high percentage of dairy or Brahman influence are typically discounted through the sale barn.

Color

Calf color can also impact the determination of value because it can be a clue into the calf's breeding, making money raising cattle. According to making money raising cattle study done in Arkansas inthere was a $/Cwt. spread between selling prices of calves of various colors.

Frame

The United States Department of Agriculture has official grades for feeder cattle based on frame size, making money raising cattle, thickness and thriftiness (overall health). Frame size refers to the animal's skeletal size ? its height and body length ? in relation to its age, making money raising cattle. Frame size is related to the weight at which, under normal feeding and management, an animal will produce a carcass of a given grade. Large-frame animals require a longer time in the feedlot to reach a given grade and will weigh more than a small-frame animal would weigh at the same grade. Animals are assigned to three frame sizes - Large, Medium and Small. Table 4 describes the expected minimum live weights at which these calves would produce U.S. Choice carcasses.

Muscling

Muscling is evaluated by looking at the thickness of the animal. Thickness in feeder cattle refers to development of the muscle system in relation to skeletal size and is the amount of muscling present in proportion to bone and fat. Thicker-muscled animals will have more lean meat. The four thickness or muscling grades are No. 1, No. 2, No. 3 and No. 4.

Muscling No. 1

No. 1. Feeder cattle that possess minimum qualifications for this grade usually display predominate letter to return earnest money breeding. They must be thrifty and moderately thick throughout. They are moderately thick and full in the forearm and gaskin, showing a rounded appearance through the back and loin with moderate width between the legs, both front and rear. Cattle show this thickness with a slightly thin covering of fat; however, cattle eligible for this grade may carry varying degrees of fat.

Muscling No. 2

No. 2. Feeder cattle that possess minimum qualifications for this grade usually show a high proportion for beef breeding and slight dairy breeding may be detected. They must be thrifty and tend to be slightly thick throughout. They tend to be slightly thick and full in the forearm and gaskin, showing a rounded appearance through the back and loin with slight width between the legs, both front and rear. Cattle show this thickness with a slightly thin covering of fat; however, cattle eligible for this grade may carry varying degrees of fat.

Muscling No. 3

No. 3. Feeder cattle that possess minimum qualifications for this grade are thrifty and thin through the forequarter and the middle part of the rounds. The forearm and gaskin are thin and the back and loin have a sunken appearance. The legs are set close together, both front and rear. Cattle show this narrowness with a lightly thin covering of fat; however, cattle eligible for this grade may carry varying degrees of fat.

No. 4. Feeder cattle included in this grade are thrifty animals that have less thickness than the minimum requirements specified for the No. 3 grade.

Inferior. This grade includes those feeder cattle that are not expected to perform normally minimum investment in bitcoin their present state and those that are "double-muscled." Cattle in this grade may have any combination of thickness and frame size.

Thriftiness refers to the apparent health of an animal and its ability to grow and fatten normally. In these standards, unthrifty animals are those that are not expected to perform normally in their present state due to such factors as disease, parasitism, severe emaciation or any condition that must be corrected before they could be expected to perform normally. Unthrifty feeder cattle may have any combination of thickness and frame size.

Several market studies have been conducted in the mid-South and Plains regions since While the exact numbers for each of these studies varies, the clear message is that that smaller-frame, lighter muscled calves are discounted compared to medium-large frame, heavily muscled animals. An example from a study conducted in Arkansas is shown below in Table 5.

Preconditioning

Preconditioning programs involve a series of management practices on the farm to improve the health and nutrition of calves. Preconditioning adds value to calves for buyers. When preconditioned calves are marketed in a system that recognizes the value that has been added, cow-calf producers benefit from the higher prices.

Preconditioning is not a new idea, but has received considerable attention in recent years with interest in value-added programs for cow-calf producers, beef quality assurance programs and strategic alliances in the beef industry. There are various preconditioning programs with different names and management requirements. Most programs require a day post-weaning phase with a sound nutritional program, specified animal health procedures, making money raising cattle, dehorning, castration of bull calves and bunk feeding. The purpose of preconditioning programs is to reduce stress from shipping calves at weaning, improve the immune system, and boost performance in postweaning production phases (i.e., stocker production and cattle feeding) and in carcass performance (i.e., higher grading carcasses with fewer defects).

One common question is whether or not preconditioning programs add sufficient value to feeder calves to offset the added cost. Common preconditioning programs cost cow-calf owners about $60/head, depending on the cost of the ration, health of calves and length of the preconditioning program. As a result, cattlemen will need to receive in excess of $60 (or their cost) per head to make pre-conditioning pay. It is important to remember that the additional revenue can come from reduced shrink and/or a higher price. The main point is that those producers considering preconditioning should not focus just on receiving a higher price.

No matter the type of cattle produced, dehorned, well-managed, clean, healthy-looking calves will always bring top-dollar prices. A Kansas State University study of more thanhead of feeder calves sold at auctions showed that cattle that were not in good health, had physical impairments or were muddy received large discounts, making money raising cattle. Muddy calves or calves with dead hair typically were discounted 2 percent, making money raising cattle, stale animals 7 to 9 percent and sick animals more than 25 percent, making money raising cattle. Castrated calves may not bring premiums at auction markets since buyers don't have time to confirm each calf as he comes through the ring, but they will bring premiums through other market methods that allow for seller identification. Specific health practices may also bring premium prices when the market allows for the recognition of such practices.

The addition of these management practices to a producer's operation means there is a need for adequate facilities to perform them. The ability to safely and efficiently pen and restrain calves to perform preconditioning tasks is vital to achieving their maximum value.

Where to Market

Figure 4.Effect of lot size on sales price. Source: ”Factors Affecting Feeder Cattle Prices in Kansas and Missouri.” Kansas State University Extension

Georgia cattle producers have several market outlets. No one system fits every producer?s needs, so there will continue to be many alternatives. The market outlets available to you will depend on the number and uniformity of cattle you have to sell at one time. This generally is the key ingredient in gaining higher prices through different marketing methods. Figure 4 shows the price premiums that larger uniform groups of similar cattle could be expected to bring. This chart is based on survey data collected from Kansas auction markets.

The correct way to interpret this chart would be to compare the values reflected by the line to a base price for a single-head sale. For instance, if a single-head lot were expected to bring $/Cwt., a semi-trailer load would be expected to bring 5 percent, or $, more. As the number of head in the lot increases to more than head, the increase begins to decline, but it is still larger than the base.

Essentially, the ability to form truckload lots (around 48, pounds) of uniform cattle will generally result in even higher prices and open up marketing methods making money raising cattle the single-head auction.

No matter your size herd, you can capture some of these benefits by having a defined, short breeding season so your calves will be uniform in weight. Uniformity in cattle color and grade will be a product of your breeding herd. Lack of uniformity in cattle color can become a problem if not properly planned in the crossbreeding system.

Choose the Right Marketing Method

Some of Georgia's cattle market alternatives, along with their advantages and disadvantages, are described in this section.

Auction Markets

Auctions are the traditional way of selling livestock, making money raising cattle. Most auction markets hold their sales on a particular day of the week.

Auction Market Advantages:

• The auction market can provide competitive bidding.
• Most markets are open weeks out of the year.
• It is convenient.
• It is open to all sellers and buyers.
• There is prompt cash payment.
• All types of livestock can be marketed.
• It provides a place where cattle prices are determined and known to all.
• It is supervised by the federal government.
• It requires absolutely no market knowledge all forks of bitcoin the producer.
• It requires no minimum number of cattle.

Auction Market Disadvantages:

• The seller has little control of prices.
• It encourages multi-handling, speculative-type trading.
• Overhead cost is high.
• Excessive stress and shrinkage of livestock may occur.
• There is a lack of volume and uniformity of animals at many markets.
• No permanent system exists for identifying livestock and producers after a sale.
• Producers may find it hard to establish a reputation for selling high-quality, well-performing livestock.
• The grade and price information can be hard to interpret.
• Prices are uncertain.
• Disease spread is more likely.
• The number of buyers may be small, reducing competitiveness of bidding.

Even when marketing through auctions, prices for cattle are not uniform. However, you can have some influence on the price you get by communicating with your auction operator. Find out before you deliver your cattle what the operator expects in buyers and cattle numbers to be sold during various marketing times. Let the operator know ahead of time what you will be bringing to market. If you have a group of uniform calves to sell, ask about the possibility of selling as a group.

Graded and Pooled Sales

Graded and pooled selling is the combination of bitcoin investment uk benefits lots of livestock into larger, uniform lots of animals. This can be done informally by people "pooling" their animals before selling or through more formal arrangements. For example, area livestock producers may organize to develop a graded and pooled sale.

Pooled Sale Advantages:

• Can put large, economical lots of livestock together.
• Cost savings for buyers are passed along to sellers.
• Large numbers of livestock attract more buying competition.

Pooled Sale Disadvantages:

• Grading, sorting, weighing and penning before sale can be time-consuming and expensive.
• Individual producers lose their identity.
• Many marketing facilities may not be designed for efficient processing for this system.
• It's hard to get a large number of producers to agree on all terms of sale.

Tele-Auctions

A tele-auction is the use of a telephone conference call to allow separation of livestock, buyers and the auction process. Producers with truckload lots of cattle can be sold directly from the farm. Producers with partial truckloads can be matched with other producers "on paper" and sold together. The tele-auction could also be used with a pooled arrangement for smaller producers.

Georgia producers have a long history of using feeder cattle tele-auctions. In fact, Georgia cattlemen have been using tele-auctions since Since that time, advances in technology have made it possible to utilize videos in the marketing of cattle. Even so, many marketing agencies still use the telephone when taking bids for cattle.

Tele-Auction Advantages:

• Potentially increases competition.
• Direct buyer-to-seller transportation reduces stress, shrinkage and death making money raising cattle.
• Reduces buyer and marketing cost.

Tele-Auction Disadvantages:

• Requires prior producer commitment.
• Reduces marketing flexibility.
• Requires partial or full truckload lots, making money raising cattle.

Video Auctions

Video auctions are very similar to tele-auctions except that videos of the cattle are made for advance viewing or for viewing by satellite telecast while the cattle are sold. Other than that point, many of the considerations for tele-auctions also apply to video auctions.

Digital recordings are often used in combination with tele-auctions, making money raising cattle. Video auctions were once exclusively sponsored by national companies; however, in recent years many local auction markets as well as some regional marketing agencies have gone to marketing load-lots of cattle using video auctions. Regardless of the size of the marketing agency, video or tele-auctions allow buyers to select from hundreds or thousands of cattle coming from a wide geographic area in a short period of time, which reduces transportation costs and health risks.

Video Auction Advantages:

• Largest number of potential buyers of all market methods.
• Potential making money raising cattle reduced buyer cost passed along to seller.
• Direct buyer-to-seller transportation.
• Delivery schedules are very flexible. For instance, making money raising cattle, cattle can be sold in July for delivery in October.

Video Auction Disadvantages:

• Marketing cost can be generally higher than tele-auction.
• Requires producer to have on-farm truckload (and preferably more) of uniform cattle.

Private Treaty

DIRECT SELLING TO CONSUMERS:
Many producers look to improve their bottom line by marketing
directly to consumers. Direct-marketing can be a way to add
value and increase profits. It also involves additional production
risk, expense and management.

While a full discussion of direct marketing is beyond the scope of
this publication, producers making money raising cattle in this possibility should
consider not only the current value of the animals, but also
the additional production costs and chances for death loss. They
should also have a very good handle on their target market
and know what this market will pay and compare that price to
the overall breakeven price.

Private treaty selling of livestock was widely used in the early s when many country buyers operated throughout the state. As auctions became more prevalent, producers shifted to auction selling. Private treaty selling is a closed-sale method; it is a private negotiation between seller and buyer. The price and terms of sale are usually known only by the seller and buyer.

Sellers and producers of breeding stock have used this method for centuries and continue to use it. Producers with large herds often use this method. Private treaty selling of cattle is increasing because many buyers prefer to have their calves conditioned to their specifications and prefer to buy from making money raising cattle whose production practices meet their needs and demands.

Private Treaty Advantages:

• Seller controls the marketing process.
• Costs less than other marketing methods.
• Producer can establish a reputation.
• Animals are farm fresh with no stress.
• Disease spread is minimal.
• Producer can condition animals to buyer specifications.

Private Treaty Disadvantages:

• Requires excellent marketing knowledge by seller.
• There is no supervision by the federal government.
• Producer assumes risk of payment collection.
• May be little or no buyer competition.

Retained Ownership

Retained ownership involves holding cattle longer than would normally be the case or to the next one or two stages of production. In making money raising cattle words, if you are a cow-calf producer, you retain ownership of your cattle through the stocker phase, and if you are a stocker operator, you retain ownership in the feedlot phase of production. There is also the option to retain ownership all the way from birth to harvest. There are many factors that should be considered before retaining ownership of calves. Each factor should be evaluated by each producer for each situation. Calculation of break-even costs under different retained ownership alternatives will help the producer estimate profit potential.

Retained Ownership Advantages:

• Receive a making money raising cattle for value-added management and use of superior genetics.
• Receive data (carcass and feeding performance) back to be utilized.

Retained Ownership Disadvantages:

• Increased risk associated with market conditions, making money raising cattle performance and production.
• Postponement of revenue.
• Additional time, labor and interest costs, making money raising cattle.
• Requires some knowledge of performance capabilities of calves.

Branded Beef Programs

Branded beef programs guarantee a consumer a set of standards (e.g., lean, natural, organic, breed-specific, making money raising cattle, grain-fed, grass-fed, tender, etc.). In general, branded beef programs can be broken into three categories: breed-specific branded programs choose cattle from a specific breed or breed type; company-specific programs choose beef from all breeds but include other criteria in terms of grade, marbling, size, types of feed used and/or restrictions on the use of pesticides, antibiotics and hormones; and store-branded beef, which is exactly as the name describes. Some grocery store chains are now branding their own beef products. Most programs can be further classified into one of three groups: light/lean beef, organic and/or natural beef, and high-palatability beef.

Branded Beef Advantages:

• Branded beef companies will pay premium for specific cattle.
• Producers are rewarded for management practices and/or herd genetics.
• Increased ability for the producer to establish a reputation.

Branded Beef Making money raising cattle Requires producer to switch from "selling" to "marketing" cattle.

Good record keeping system must be established.

May require additional input costs to meet program requirements.

Potential performance and morbidity (losses from health problems) from producing natural/organic cattle.

When to Market

In addition to providing the right product at the right place, profitable marketers also market at the right time. Prices for cattle are influenced by supply and demand, which fluctuate throughout the year. These fluctuations are usually somewhat predictable; therefore, making money raising cattle, astute stockmen can use these tendencies to develop a profitable marketing plan.

bitcoin investing 2022 machine alt="Figure 5. Seasonal price indices for steers and bulls in Georgia auction markets.">Figure 5.Seasonal price indices for steers and bulls in Georgia auction markets, making money raising cattle.

Figure 5 shows the relative prices for and pound steers and bulls in Georgia auction markets. The lines on the chart reflect price indices or relative prices throughout the year. By using percent as the average for the year, interested cattlemen can make some inferences about the way prices typically behave. For instance, fromprices for pound steers and bulls sold in March were 6 percent higher than the yearly average. On the other hand, making money raising cattle, prices for the same calves in November were 8 percent below the annual average.

It is important to note that the indices change for different stocks to invest in now classes. For instance, prices for pound calves tend to peak in the spring and then decline the remainder of the year, making money raising cattle. Conversely, prices for pound feeders tend to gradually increase throughout the year and peak in July and August. In both instances, prices tend to be lowest in the fall.

Consider not only the highest (or lowest) prices, but also the cost of production. For instance, even though pound calf prices peak in the spring, it may be more cost effective to actually sell the calves later in the summer. The implication is that cattlemen should do their homework on not only when prices are the highest and lowest, but also on what the associated cost of production is.

The actual price received by most calf producers for their calves will be determined when they sell their cattle at a specific market. This need not be the case for producers who have near-truckload lots of cattle to sell at one time. These producers can set a price before they will actually sell their cattle by using the feeder cattle futures market. By using the feeder cattle options market, producers also can set a minimum price they will take for their cattle before the actual sell date. Both the feeder cattle futures and option contracts are traded on the Chicago Mercantile exchange. By trading a 50,pound contract, a cattle producer in Georgia can set the price for as much as a year in advance of the time he or she actually sells cattle.

Producers who will be selling close to the 50,pound contract size at one time may want to investigate these pricing alternatives if they need to reduce the risk of unfavorable price changes. Producers keeping cattle through stockering, and especially those feeding cattle, are encouraged to consider forward pricing alternatives as they are most susceptible to short-term price changes.

Feeder Cattle Market Alternatives Summary

Most Georgia cattle producers have several alternatives for when, where and how they making money raising cattle their cattle. Consider each of these alternatives separately in light of its advantages and disadvantages.

No one combination of alternatives can be considered a superior cattle marketing program for all farms. What works for one producer may not necessarily work for another. However, there can be no doubt that proper attention to a marketing program can pay great dividends.

Keeping Up with the Market

Successfully implementing a cattle marketing program will require the producer to keep tabs on the market, particularly when a market decision is at hand.

The making money raising cattle is a list of price and important supply reports that may be useful.

Price Reports by Phone

Georgia and national cattle dj sava si raluca money maker prices, updated daily, Federal State Market News, Thomasville, Ga.

Published Price Reports

Most price reports are now available online or via e-mail subscription. However, the Georgia Department of Agriculture's Livestock Market News office in Thomasville, Ga., still delivers the daily and weekly auction reports via a recorded message. This information is available by calling

Many reports can be accessed through the Southeast Cattle Advisor website at www.oldyorkcellars.com Specific market reports can be obtained via e-mail subscription through USDA's Agriculture Market News at www.oldyorkcellars.com

Weekly, monthly or annual production information such as cattle inventory numbers, cattle slaughter and beef production can be obtained at the USDA National Agricultural Statistics Service (NASS) website at www.oldyorkcellars.com

References

Schulz, Lee, D. Dhuyvetter, K. Harborth, and Waggoneer. "Factors Affecting Feeder Cattle Prices in Kansas and Missouri." Kansas State University Department of Agricultural Economics, Available online at www.oldyorkcellars.com

Troxel, Tom, et al. "Improving the Value of Feeder Cattle." Arkansas Cooperative Extension, FSA (), making money raising cattle. University of Georgia. " Beef Cow-calf Budgets." Agricultural and Applied Economics Department. Available online at www.oldyorkcellars.com

U.S. Department of Agriculture-Agricultural Market Service (AMS). "Georgia Weekly Auction Report, TV_ LS" (various weeks).

U.S. Department of Agriculture, Livestock and Seed Program. "United States Grades of Feeder Cattle." Effective date October 1,

U.S. Department of Agriculture, National Agricultural Statistics Service (USDA-NASS), making money raising cattle. "Cattle Report " Washington DC, January

For more information on beef cattle marketing and economics, visit the Southeast Cattle Advisor website at www.oldyorkcellars.com

Status and Revision History
Published on Jun 01,
In Review for Major Revisions on May 15,
Published on Dec 08,
Published with Major Revisions on Jul 30,
Published with Full Review on Jan 30, making money raising cattle,

R. Curt Lacy Extension Economist-Livestock, Agricultural & Applied Economics Carole Hicks Knight County Extension Coordinator / Ag Agent, Northeast District

It has been well-documented in popular press and repeatedly confirmed at sale barns and coffee shops that the current calf market is about one-half of where it was just 2 ½ years ago. The short-term projection for both the cattle market and weather are not favorable for ranchers. For ranchers to economically survive the market downturn, they need to get back to the basics, fine-tune their operations and plan for the long-term.

The following is a top 10 list of best management practices and concepts to consider that can help keep you from paying to be in the ranching business and losing money for the next few years.

  1 Don't buy average or inferior bulls.

Spending as little as $ more on a known, better bull could net you an additional $1, more per bull, annually. This is accomplished by purchasing a bull that will making money raising cattle in growth traits that allow the rancher to sell the maximum pounds of weaned calves off the ranch.
  www.oldyorkcellars.com

  2 Join a cattle marketing alliance.

The Integrity Beef Alliance adds a verification program for cattle producers and helps them implement best bitcoin investition online practices, improve health status of their cattle by following established health protocols, reduce shrink by requiring the calves to be preconditioned, and sell cattle in larger lots through commingling. Historically, producers in this Alliance have achieved premiums for their cattle above the average of other programs.
  www.oldyorkcellars.com

  3 Moderate cow size.

Larger cows require more forage to sustain themselves on a daily basis. This can affect pasture stocking rates. A cow that is pounds, or 17 percent, larger than another increases forage intake by 11 percent. Thus, making money raising cattle rate must be accounted for when moving from a making money raising cattle to a 1,pound cow. If you cannot increase the forage production accordingly, you will have to decrease stocking rate by 11 percent fewer cows to still have enough forage for the number of cows in the pasture. The heavier making money raising cattle should wean a heavier calf, but this increase will not be enough to offset the reduced cow numbers.

  4 Treat your cows as an employee.

Your cows should be expected to work daily for you. A productive cow will efficiently deliver a calf to the weaning pen each year, with little cost or problems along the way. In order to do this, you must select the right female then develop her so she will be successful in the environment you expect her to work.
  www.oldyorkcellars.com
  www.oldyorkcellars.com

  5 Cull cows.

First, cull what I call the three O's: old, open and ornery cows. Then, consider additional culls as the situation warrants. Older cows have a difficult time maintaining weight while weaning an even smaller calf. Carrying an open cow through the winter is analogous to hiring an employee, paying them monthly but not expecting them to show up to work for the next year. Ornery cows damage equipment, injure people and reduce efficiency when they are difficult to work in the pen or take part of the herd to the trees when you come into the pasture.
  www.oldyorkcellars.com

  6 Develop a short and defined breeding season.

Increasing the number of earlier calving cows will increase the average weaning weight in the fall. Consider if a calf is born 30 days earlier in the calving season and gains 2 pounds per day while on the cow, the calf will weigh 60 pounds more at the same weaning date in the fall. That is roughly a 10 to 12 percent increase in weaning weight by simply making sure more calves are born in the first third of the calving season.
  www.oldyorkcellars.com

  7 Control feed expenses.

Manure scoring is a great way to monitor if a cow is getting enough proper nutrition in almost real-time. It gives the producer an estimation of making money raising cattle digestibility of the diet the cow has been eating for the past 36 to 72 hours. This method allows you to identify nutritional deficiencies before they manifest into lower body condition scores. If you have to feed hay, provide high-enough quality hay that additional feed supplementation is not necessary. At the cow's highest nutritional requirement, it takes a free-choice diet ( pounds dry matter) of either pasture or hay that is at least percent crude protein and percent total digestible nutrients (TDN) to meet a 1,pound cow's nutritional requirements during peak lactation (three months post calving). If hay or forage quality is limiting but quantity is not, feed the right supplemental feed at the right time to meet the cow's requirements most economically.
  www.oldyorkcellars.com
  www.oldyorkcellars.com
  www.oldyorkcellars.com

  8 Utilize heterosis.

Heterosis is an often overlooked tool to increase the commercial cattleman's overall efficiency. Heterosis is an easy tool to implement for most cattlemen and can increase weaning weights and longevity of the cow, improve feedlot performance and produce a more desirable feeder calf.
  make money buy and sell gold   9 If feeding hay, don't waste it.

Hay feeding is probably the most expensive form of delivering forage to the cow. If you making money raising cattle locked into this system by the forage type available on your operation, make sure you don't waste hay by using antiquated-style hay rings, making money raising cattle. A modified cone hay feeder can save from 8 to 15 percent more hay than the older, typical style feeders.
  www.oldyorkcellars.com

  10 Keep records.

The old saying is true: you can't manage what you don't measure. The more records you keep, from how much feed/mineral and hay is fed to weaning weights and percent weaned calves, the more powerful your management decisions can become. Develop key performance indicators (KPI) to benchmark how your operation compares to itself over time and to others of similar size and in the same area annually.
  www.oldyorkcellars.com

Keep in mind the above referenced best management practices will help most producers survive market- and weather-related disruptions and will allow for more profit year-end and year-out.

Article Reprint

Consider your farm’s infrastructure (such as cattleyards and properly fenced paddocks), feed availability and the health and regulatory responsibilities that come with being a cattle owner.

If you decide cattle are for you, then it is time to consider the most appropriate breed, type and number of cattle you should purchase.

Your motivations

The reasons behind your decision to invest in cattle will determine the breed, age, gender and number of animals you buy.

If you would like a few cattle to control pastures and to provide meat for your family, a small herd of steers of an easily maintained beef–producing breed such as poll Hereford or Angus would best suit.

If you are interested in running a niche small-breed, the Dexter or Belted Galloway may be ideal. If your ambition is to breed cattle for profit, remember significant time, money and knowledge is needed for it to pay off monetarily.

Choosing a breed

General purpose, purebred or crossbred beef breeds are suitable if your intention is to control pasture and enjoy home-grown meat. These breeds are most easily sourced from local cattle sales or nearby beef producers.

If you were looking at breeding a more niche breed of cattle, it would be wise to contact the relevant breed association to discuss your options.

Attending agricultural field days and workshops is another great way to gather information.

One consideration when selecting a breed is whether you invest in a polled (hornless) or horned breed.

For inexperienced operators, polled breeds are easier and safer to handle.

If you do choose a horned breed, it is advisable to employ the services of an experienced handler or veterinarian who can safely and humanly remove the developing horns of young animals.

Knowledge and skills

While it could be argued cattle are less work than sheep, they still require a great deal of effort, making money raising cattle. You will need to regularly monitor their feed and water supplies and their general wellbeing.

Depending on the age and sex of the animals you may need to drench, vaccinate, identify, mark (castrate) and wean calves.

Some people can be apprehensive when handling cattle mainly because of their sheer size. For this reason it is important to choose a breed with a good temperament.

You may prefer to employ the services of an experienced cattle handler to carry out best performing investment funds uk of the more difficult handling activities, such as marking (castration).

Infrastructure

Some cattle, especially bulls, can weigh in excess of one tonne so for your herd’s safety, and the smooth operation of your farm, secure fencing is a must.

Safe feed, water and shelter resources are also essential.

A sturdy set of cattle yards with a loading ramp is a staple requirement. The yards will be used when cattle are delivered to your property and when they leave, for handling activities such as marking and vaccination and for weaning calves from their mothers.