Higher Bred Cow Values Ahead

Derrell S. Peel, Oklahoma State University Extension Livestock Marketing Specialist

 

Cattle prices are advancing for all classes of cattle.  Prices for Oklahoma feeder steers (under 700 pounds) and heifers (under 650 pounds) have increased 12-20 percent since the end of 2022.  Bigger steers and heifer prices have increased five to eight percent, still weighed down by high corn prices.  Fed cattle prices at the end of March are up about 6 percent from December 2022.  

 

Prices for Boning slaughter cows in Oklahoma are up almost 39 percent from December and were $98.24/cwt. at the end of March for average dressing cows.  Average dressing Breaking cows were $104.74/cwt. and average dressing Lean cows were $92.69/cwt. at the end of March.

 

Bred cow values are seasonally higher going into April but it appears that the lingering drought conditions is holding bred cow values somewhat lower than otherwise for this time of year.  Given growing expectations that drought conditions will moderate through the coming months, bred cow and heifer values are likely to increase sharply by this fall.

 

Current bred cow values for Medium/Large No. 1 cows, 5-8 years of age, second trimester (T2) bred, 1100-1200 pounds in Oklahoma were $1332/head last week.  Younger (2–4 year-old) cows averaged from $1300 - $1550/head for second to third trimester cows.  Based on prior research and current broader market conditions, bred cow values would likely be $100-$300/head higher without drought impacts.  

 

What can we expect for bred cow values later?  Again, assuming drought conditions show significant improvement, bred cow and heifer prices will likely increase dramatically, beginning, perhaps this fall, and into 2024.  Based on the previous research, including seasonal patterns and fall futures market values for feeder cattle and corn, the 5-8 year old cow currently valued at $1332/head could easily increase to $1700/head or higher by this fall.  I expect bred cow values to increasingly reflect and incorporate expectations for higher calf prices in the coming months. 

 

The prior research also provides insights into the range of values for bred cows.  The base cow described above assumes average quality.  Variations from low to high quality decrease or increase value of the cow by roughly 15 percent, about $200/head less for low quality to $200/head more for high quality cows compared to average quality.  On average, the value of bred cows is highest at ages 3-5 and begin to drop sharply after age 7.  Bred cow value is higher for later stages of gestation, with bred cows valued roughly $150/head more in the third trimester compared to the first trimester.  Black-hided cows are valued roughly $100/head more compared to non-black hided cows.  Current bred cow values could range from less than $1000/head to nearly $2000/head in the current market across a wide range of quality, age, stage of gestation, and hide-color factors.  Cow and heifer markets are likely to be even more dynamic in the coming months.

 

 

Fertilizer at Half Price!

Mark Z. Johnson, Oklahoma State University Extension Beef Cattle Breeding Specialist

 

During a time of drought, inflation, low hay inventories and high input costs, when I recently checked the price of urea fertilizer and learned it was selling at 43% of the cost of one year ago, I felt like someone had just handed me a winning lottery ticket!  As follow up to last week, we dig a little deeper into the importance of fertilization of improved grass pastures.  Bermudagrass, Crab grass and Old World Bluestem are examples.  First, native range grass pasture is wonderful for beef production.  It does not require fertilization, it is resilient, requires less management and input, and with proper management and grazing pressure is more consistent in the amount of beef produced per acre from year to year.  That being said, this article addresses fertilization of improved grasses.  Improved grasses require intense management, equipment, weed control and with ample fertilization and moisture have the potential to produce higher amounts of forage dry matter and beef per acre than native grasses.  The charts below show the level of production that can be achieved (with ample moisture) from improved grasses relative to the amount of nitrogen applied per year.

 

Relationship of Bermudagrass Yield to Nitrogen Fertilization

 

Relationship of Old World Bluestem Yield to Nitrogen Fertilization

 

To summarize, Bermudagrass shows a linear relationship in level of the forage produced to nitrogen applied and a greater production potential than Old World Bluestem, but both respond favorably to nitrogen fertilizer.  As covered last week, as we deal with drought stressed pastures be “ahead of the game” in your pasture management plan this year.  Apply herbicide to control weeds and fertilizer early to give improved grass pastures the potential to grow all the forage possible when moisture and growing conditions are favorable.

 

What happens to the nitrogen if we don’t get rain?  It is there in the soil ready to provide nutrition to plants when it does rain.  As stated in a recent Cow-calf Corner article: “prepare for 

drought during times you are getting moisture and prepare for moisture during times of drought.”  Take inventory of the forage you will need to support your cow-herd this summer.  Soil test to see if other macro-nutrients like phosphorus (P) or potassium (K) are needed to feed plants.  Fertilize accordingly.  You won’t get much production from improved grass pastures without adequate fertilization.       

 

 

Using Warm Season Annuals to Restore Hay and Grazing Inventory

Paul Beck, Oklahoma State University Extension Beef Cattle Nutrition Specialist

 

This year hay inventories at the start of winter-feeding season were largely depleted and there appears to be very little carryover for next year. Continued dry conditions are limiting the potential hay yields from wheat and other cool-season crops. Limited regrowth for most of our native hay meadows last fall will limit production from that resource this summer unless we start getting more rain to drive new growth soon. 

 

Warm-season annuals such as millets, sorghums, and sudangrass hybrids have been planted as alternative hay crops, but recent interest in cover cropping systems have increased interest in planting complex species blends with potential for hay or grazing. The species and varieties in these blends have been selected for agronomic benefits not necessarily for forage production, but many of them make surprisingly great forage crops.

 

When trying to find a way to restore forage inventories this summer here are some thoughts to consider. 

 

Are there useful forage plants that can volunteer? Crabgrass works well for grazing and hay in crop fields following wheat harvest but is dependent on rain for reseeding and is not very productive in dry climates. Other plants we often consider to be weeds like broadleaf signal grass, johnsongrass and other ‘stubblegrass’ types of annual grasses have good forage attributes.

 

Moisture at harvest and the ability to get the crop dried down for baling is something to consider. Many of our potential emergency hay crops have thick stems and are high in moisture when we should be harvesting them. Mold, heating, and spontaneous combustion are risks when baling high moisture crops. Large high density bales should be 15% or less moisture and small lower density bales should be 18% moisture or less to minimize the risk of heating damage. 

 

Species of forage affects forage quality. Legumes and cool-season annual grasses have the highest potential forage quality. Perennial cool season grasses are slightly lower in quality. Warm-season annual and perennial grasses have much lower inherent forage quality, so better management is needed to make a forage product with adequate nutrient profile to meet livestock needs.

 

The tradeoff between increasing yield by cutting at an advanced plant maturity and decreasing forage nutritive quality can be expensive. For example, a sorghum-sudangrass hybrid harvested at the boot stage was 15% crude protein and 66% total digestible nutrients, while the same crop harvested after it was fully headed out was 8% crude protein and 58% total digestible nutrients. The yield of the mature forage was over 25% greater (8,900 pounds per acre for fully headed vs 7,000 for boot stage sorghum-sudan). If we are feeding an early lactation beef cow the fully headed hay, she will need 8.4 pounds of a dried distiller’s grains supplement to meet her protein and energy deficiencies, but only 1.8 pounds of supplement would be needed for the same cow fed the forage harvested in the boot maturity stage. So, 6.6 pounds more supplemental feed per day is needed to meet her nutrient requirements than the forage harvested in the boot stage of maturity. The over $1.30 added cost in supplemental feed per day is equivalent to over $100/ton of hay fed.

 

There are risks when planting annuals for forage crops. Continued drought may limit productivity or result in total crop failure. Planting early will give more management options and James Rogers, North Dakota State Extension Forage Crops Specialist, may have put it best…”A wise man once told me regarding drought and forage supplies there is risk in planting, but nothing is going to happen unless I put seed in the ground.” 

 

Presentations from the March 30, 2023 Rancher’s Thursday Lunchtime Series over this topic will be posted.