Ten ways to make money on 2016 cattle

Although the cows may be unaware the calendar has flipped over to a new year, producers need to begin planning for 2016 with a different mindset from 2015. Only a short twelve months ago cattle producers were loathing at high cattle prices. Some actually believed this was the dawning of a new era where prices had reached a level that would never return to old prices. Then reality hit.

In all fairness compared to where prices were only 4-5 years ago, the price drop is not a total bombshell. Gross receipts for 2016 will not be anywhere near last year but there is still opportunity for decent net returns. The problem is it is really easy to get used to high prices and a producer’s level of managing inputs seem to take a back seat.

2016 will be a return to normal buying practices by order buyers. This means mismanaged cattle will receive lower prices compared to the same cattle that have been properly managed.

During the peak of the recent high price cycle it was not uncommon for feeder bull calves that were pulled straight from the cow and weaned on the way to the sale barn to receive comparable prices to properly managed steers of the same weight. I can honestly say I saw on a few occasions 500 lb. bull calves bring more than 500 weaned steers during the peak. Although even this was a rare event, it did happen. It’s very easy for a producer to quickly develop bad habits in managing cattle when these things occur.

Cow-calf producers will need to develop a marketing plan for 2016 if they desire to have good net returns. It is possible, but only will happen with some effort applied that was not required during 2013-15.

Here is a list of 10 things a cow-calf producer needs to consider in 2016 if they want to obtain positive net returns on calves.

1. Male calves should be banded at birth, implanted with an approved growth regulator (Ralgro, Synvex, etc.), weighed, and identified by tag.

2. Schedule to work calves at pre-weaning (4-5 months). Vaccinate for blackleg, re-implant steers, deworm, and replace any lost tags.

3. Purchase a high quality mineral feeder if you don’t already have one. Keep the mineral feeder full at all times with a high quality mineral that meets the needs of cows and calves. Provide protein supplementation during the breeding season to get mama cows bred back quickly. This is especially needed if you are feeding low quality hay or pasture conditions.

4. Consider creep feeding calves. With low grain prices still in effect creep feeding continues to pay.

5. Forward graze calves. This low cost input can easily add more pounds to your calves and make you more money. A simple strand of polywire raised to a higher level will usually do the trick.

6. Cut back on producing hay. The cost of producing roll bale hay is the single most expensive item to wintering a cow. If your situation permits, stock-piling fescue or drilling wheat/rye into pasture fields is much more cost effective and more nutritious for the cattle.

7. Give your pastures a break. Rotating pastures even if its only one big field divided in two, will increase the amount of high quality forage the same acreage is providing.

8. Develop a high quality watering system. Clean, fresh water allows cattle to better utilize the forage they are eating. A muddy, shallow pond or stream promotes other problems such as foot rot, slower rebreeding rates, and poor quality water. Cost share assistance is available to all cattle producers in Clinton county thru the local Soil Conservation office. Call 387-5196 Extension 3 for more details.

9. Get the bull out! A defined calving season, 60-90 days has so many benefits I’ll have to write a separate article to cover this. Running a bull year-round makes it virtually impossible to implement most of the management practices a cow-calf producers needs to do to make a profit.

10. Join the Twin Lakes Cattle Association for 2016. For only $15 you can become a part of our local cattle association. Membership includes four quarterly meetings with informative guest speakers, free meals, opportunity to participate in group buying of minerals, dewormers, etc. at money saving prices, beef tours, and many more things. See Dr. Charles Daily at the Albany Animal Clinic or call 387-5086 to join.

Till next time, keep putting on the pounds!

Steve