Cow-Calf Corner | October 10, 2022
Oklahoma Drought Conditions Worsening
Derrell S. Peel, Oklahoma State University Extension Livestock Marketing Specialist
The drought situation in Oklahoma is increasingly critical with winter approaching. According to the Drought Monitor, 99.97 percent of the state is in some stage of drought (D0-D4), with 75.77 percent in D3 (Extreme) or D4 (Exceptional) drought. Drought conditions in the Drought Monitor are summarized in the Drought Severity and Coverage Index (DSCI), which can range from 0 to 500. The Oklahoma DSCI was at 93 in mid-June and has advanced to 393 in the latest weekly Drought Monitor, currently the highest (worst) DSCI of any state in the nation. The DSCI has not been this high in Oklahoma since February 2013. According to the Oklahoma Mesonet system, the last 120 days are the driest for the period in records since 1921.
USDA rated Oklahoma pasture conditions 72 percent poor to very poor in the latest crop progress report. The same report showed that winter wheat planting in Oklahoma was 28 percent complete last week, well below the previous 5-year average of 41 percent complete at this time. Wheat that is planted will either not germinate or may not survive due to dry conditions. There is little prospect for winter wheat grazing this fall. Hay supplies are very tight and a wide range of hay types and qualities are being offered. Failed summer crops are being baled for hay including grain sorghum and soybeans. The risk of nitrates is high in many crops and all hay should be tested. Oklahoma Cooperative Extension Service (OCES) is offering reduced testing rates through the end of the year for nitrates, basic forage (quality), and livestock water. Contact your local County Extension office for assistance with sampling and testing forage and water.
The water situation may soon be the most critical, even more than forage, for many producers. Water quantity and quality is low and decreasing rapidly. Oklahoma relies heavily on surface water ponds which are filled by spring and summer thunderstorms. Ponds rarely get replenished in the winter, even in a normal year.
The impacts of drought are very evident in cattle auction volumes. Since July 1, the volume of feeder cattle in Oklahoma auctions has been 19 percent higher year over year, with the volume the last two weeks up nearly 28 percent over last year. The volume of cull cows has been up 112 percent year over year since July and is up 150 percent the last two weeks. Persistent drought conditions are continuing to force producers to market feeder cattle early and cull additional cows.
Help Needed for OSU Research
Oklahoma State University researchers are requesting input from farmers and ranchers to gauge their interest in crop and livestock insurance. Jenna Bryant, a graduate student in agricultural economics, hopes the findings will support efficient operations for agricultural lending insurance companies. The survey has 12 questions. Participants must be at least 18 years old and live and farm in Oklahoma. The link to the survey.
Bryant will use the survey results to determine the expected impact on customer retention, additional loan volume and any new loan volume. Findings will inform operations at Oklahoma Ag Credit locations and be made available to support efficient operations for all ag lending insurance companies. The survey closes November 15 and is open to all qualifying producers in Oklahoma. Your help with this survey is greatly appreciated.
Preparing for Financial Opportunity – Retention of Heifers
Mark Z. Johnson, Oklahoma State University Extension Beef Cattle Breeding Specialist
After a couple months of dealing with drought and heat related topics it’s time to look ahead at some of the financial opportunities on the horizon. Cattle producers need to act as business managers and assess inventories of all resources and commodities on hand to determine the best course of action to maximize their profit potential over the next several years. Regardless of what you have done in the past, now is the time to prepare for the financial opportunities that lie ahead in the cattle business. This week we address the upside of heifer retention.
Consider the following:
- Drought has resulted in cyclically low cattle inventories. The laws of supply and
demand dictate that when cattle inventories are low the future value of cows, calves,
yearlings and feds will increase. Feedlot placement data shows more heifers going
on fed as opposed to being retained as replacements. What opportunities does this
create? The opportunity to market bred replacement heifers at premium values in the
future.
- This week, the USDA Oklahoma Weekly Cattle Auction Summary tells us that 477 pound,
Medium and Large frame, Muscle Score 1 heifer calves traded at an average of $162.79/cwt.
This translates to a total value per head of $777.
- If we collect weights on our four to seven year old cows at weaning we can determine
the average mature weight of our cow herd.
- If we assume: 1) these heifers will be 14-15 months old by May 1, 2023 when we are
ready to begin our breeding season, 2) they need to be at 65% of their mature weight
at that time to be cycling and ready to breed and, 3) our average mature cow weighs
1,300 pounds.
- It permits us to calculate the following:
- 1,300 x .65 = 845 pounds target weight by May 1, 2023
- 845 – 477 = 368 pounds of gain needed over the next 200 days
- 368/200 = 1.84 pound average daily gain needed from now until breeding season
- As we take inventory of our hay, silage, feed grains and potential for winter grazing
we need to arrive at a ball park figure for the cost of gain (COG) on the 368 pounds
needed to reach the target weight. This could be achieved in multiple ways depending
on available feed resources. For this example I will assume a cost of gain at $.80,
$1.05 and $1.30 to make the following calculations:
- At $.80 COG: 368 x .80 = $295. This added to the current value of the heifer at $777 equals $1,072. To account for opportunity cost, financing, additional grazing past breeding season, potential death loss and the cost of breeding naturally or AI, I am raising this value by 10% resulting in a breakeven value of $1,180. Do you believe bred heifers will be worth at least $1,180/head a year from now?
- At $1.05 COG: 368 x 1.05 = $387. This added to the current value of the heifer at $777 equals $1,164. Again, raising that value by 10% to account for previously stated expenses results in a breakeven of $1,281.
- At $1.30 COG: 368 x 1.30 = $479. This added to the current value of the heifer at $777 equals $1,256. Again, raising that value by 10% results in a breakeven of $1,382.
Manage your business, do the math, take inventory of your resources and consult with a nutritionist. Each of the breakevens calculated above are below the fall values of good quality, spring calving, bred heifers over the past couple of years.
Resource: USDA Oklahoma Weekly Cattle Auction Summary. AMS Livestock, Poultry & Grain Market News. Oklahoma Dept. of Ag Mrkt News. October 7, 2022
Weaning Strategies for Preconditioning Calves
Paul Beck, Oklahoma State University State Extension Beef Nutrition Specialist
Weaning is a stressful time for calves. There are social stresses associated with removal from the dam and disrupting social hierarchy, physical stresses of transportation and the marketing system, and nutritional stresses of changing feed and water sources. There is a lot of interest in finding the best way to wean calves when we are preconditioning. Common options that have been researched include: abrupt weaning - which is stressful and completely changes the environment the calf is accustomed to; nursing prevention tools – which prevent suckling but maintain contact with the dam; Short term separation from the dam to acclimate calves to weaning pens, feed and water sources; and fenceline weaning – placing cows and calves in adjacent pastures for 7 days allowing contact but preventing suckling.
Researchers from the OSU College of Veterinary Medicine compared these methods and found that for the 2 weeks before weaning calves fitted with a nose flap had reduced gains and weaning weight. During the 28-day preconditioning period calves that had fenceline access to dams and calves that had short term (24-hour separation) from dam gained the most, while abrupt weaned calves and calves fitted with a nose flap pre-weaning gained the least.
The reduced performance by the calves fitted with the nose flap can be explained by research that the nose flap decreased activities like grazing, walking, ruminating, and playing, while increasing sucking attempts increase and time spent near the dam. Additionally, blood cortisol levels (an indicator or stress) increase when the nose flap is present. Calves in the fencelne weaning system only spent 2 days with the majority of time spent within 15 feet of the fence and time spent near the fence reduced dramatically over the next 3 days. Fenceline weaning was shown to reduce stress and increase grazing and feeding behaviors during the weaning process. The success of the short term separation treatment shows the benefits of familiarization of calves to supplements and facilities prior to weaning.
Preconditioning is a good way to add value to calves. Last year the Oklahoma Quality Beef Network enrolled over 2,674 calves with an average premium of $14.89/cwt, this gives an estimated increased gross revenue of $199,000 for the producers involved in the program. Research has shown that buyers of preconditioned calves can expect 90% reduction in first treatment sick-pulls from respiratory disease, a 60% reduction in calves treated three times, and 64% reduction in chronically morbid calves. Reductions in bovine respiratory disease can have huge impacts on performance throughout the stocker or finishing phases, resulting in higher overall performance and feed efficiency and higher quality carcasses. Reducing stress while we are weaning is a good idea to increase calf gains during preconditioning and backgrounding.