Cow-Calf Corner | August 7, 2023
The Cow-Calf Corner Newsletter Completes 20 Years
Derrell S. Peel, Oklahoma State University Extension Livestock Marketing Specialist
The Cow-Calf Corner (CCC) newsletter completed 20 years of providing production and market information to producers earlier in 2023. In the spring of 2003, Dr. Glenn Selk started the CCC newsletter and shortly after asked me to begin contributing to the publication. My first article was in April 2003 and has grown to be regular weekly articles for the past 11 years leading to a total of 870 articles and counting.
Dr. Glenn Selk, Professor Emeritus and former Extension Beef Reproductive Specialist, ended his tenure with the CCC in 2021, after 18 years. Dr. Paul Beck, Professor and Extension Beef Cattle Nutrition Specialist became co-editor with me. Dr. Beck and Dr. Mark Johnson, Professor and Extension Beef Cattle Breeding Specialist are weekly contributors now, along with guest articles from a variety of other Oklahoma State University extension specialists.
The CCC is currently distributed directly to a list of over 1450 subscribers, including media organizations, state extension services, industry organizations and state cattlemen’s associations. CCC articles are widely distributed through rebroadcasts and redistribution of articles resulting in an incalculable national and international reach.
The Cow-Calf Corner newsletter continues its mission of providing timely and practical cattle production and market information into the 21st year of publication. The newsletter is available for direct subscription at Beef Extension | Oklahoma State University (okstate.edu) or by scanning the following QR code:
 |
QR code |
|---|
Several Reasons for Slow Herd Expansion
Derrell S. Peel, Oklahoma State University Extension Livestock Marketing Specialist
The mid-year cattle inventory report showed that cattle numbers continue to get smaller and there is no significant indication of herd rebuilding so far. Despite sharply higher cattle prices this year, there is no data to suggest heifer retention or enough decrease in beef cow slaughter to initiate herd expansion, although the most recent weekly slaughter data are encouraging. The process thus far is considerably slower than the herd expansion after the drought in 2011-2013 pushed cattle inventories to a cyclical low in 2014. There are several reasons why producers are moving more slowly and cautiously thus far.
Continuing Drought - is still an issue in significant regions of cattle country. While drought is not likely causing a great deal of additional herd liquidation from a broader market perspective, it surely is preventing herd expansion in those drought-stricken areas.
Drought Recovery - Pastures and ranges in locations recently emerged from drought need time to heal after 2-3 years of drought damage and stress. Hay supplies are depleted and must be replenished. Many regions are still vulnerable to redeveloping drought and there is uncertainty that forage production may remain restricted.
Financial Recovery - Many cattle operations have suffered from considerable financial stress from drought and high input costs. The short run need to realize immediate returns from higher cattle prices may be causing continued heifer and cull cow sales for now.
Input Cost Uncertainty - High, and in many cases record high, input prices were a particular challenge in 2022. Record hay prices and elevated supplemental feed costs have had a huge impact in drought regions. Record or near-record high fertilizer, chemical and fuel costs have been a significant challenge for producers, especially in regions of introduced pastures. Though some input prices have moderated in 2023, input price uncertainty has producers reacting cautiously to higher cattle prices.
Interest Rates - Not only are inputs costs higher but sharply higher interest rates creates a different economic climate that may temper the pace of herd expansion compared to the 2014-2019 period. Higher finance costs will be a much more significant factor as breeding heifer and cow costs rise in the coming months.
Producer Expectations - All of the above factors contribute to the economic backdrop of the industry and become part of the producer expectations that are the key to herd rebuilding. Until enough cow-calf producers anticipate enough returns for a long enough period of time, herd expansion will be tempered. In the meantime, cattle supplies will continue to tighten. Market prices for calves and feeder cattle will continue to increase as the market provides more price incentives that will eventually strengthen producer expectations and jump-start herd expansion. That process is likely to begin in earnest in the remainder of 2023 and into 2024.
Retained Ownership?
Mark Z. Johnson, Oklahoma State University Extension Beef Cattle Breeding Specialist
The August 1, 2023 Oklahoma Market Report indicates 525 lb. steer calves are currently worth $1,475/head, 861 lb. yearling steers are worth $2,040/head and with fed cattle worth $185/cwt, a 1,400 lb. finished steer has a live value of $2,600. I have seen headlines this week of “Historically Strong Profit Opportunities” and “Strong Cattle Prices.” Recently my colleague, Dr. Derrell Peel predicted $4/lb. weaned calves, $3/lb. yearlings and $2/lb. fed cattle in the future. Overall, 2023 looks to be a very profitable year for all segments of the beef industry (cow-calf producers, stockers operations and cattle feeders). Low cattle inventories indicate high value of cattle of all classes for the next several years. Wow! This is great news and it leads to the question: Is retained ownership right for your operation?
To a commercial cow-calf operation retained ownership simply means holding onto your weaned calves and turning them into yearlings and/or fed cattle that will be marketed at a later date. When all industry segments are profitable (which is rare), it makes economic sense to capture more value and profit potential from your calf crop through retained ownership. As is so often the case, your answer to this question should be based on answering several other questions and financial analysis of what’s going on in your operation.
Consider the following:
- Can you afford to move a portion of your income into the next calendar year? Does your financial situation permit you to withstand the change in cash flow?
- Are you comfortable managing stocker calves? Does your schedule permit you the time to check on and treat calves during the high risk time post-weaning?
- Does you operation have the potential for planting and establishing a cool season forage base to be used for grazing calves and turning them into yearlings to be marketed next spring? Is daily feeding of a growing ration an option?
- Does your inventory permit you to put together semi-load lots (approximately 50,000 lbs.) to economize the transportation cost to feedlots?
- Are you comfortable turning over management responsibility of your calves or yearlings to someone else? Cattle finishing is a highly specialized business. Even if you are capable of turning your weaned calf crop into yearlings, it is not practical for most cow-calf operations to run a finishing operation.
- What do you know about the post-weaning genetic potential of your calves? Have you collected the cost of gain, health, carcass weight, carcass quality or yield grade data from past calf crops needed to assess the profit potential of retained ownership? Are you willing to make the commitment to collecting this type of information to base your decisions on in the future?
Reference: Oklahoma Market Report. August 1, 2023, Vol. 71 No. 31
What Implants Can I Use for Cattle on My Operation? Finishing
Paul Beck, Oklahoma State University, Extension State Beef Cattle Nutrition Specialist
Over the last few weeks I have been describing the new rules from the FDA regarding reimplanting beef cattle. Last week I showed the implants labeled for use during the stocker and “Growing Calves in Drylot” phase of production.
The new FDA rules affect the use of implants in grower/starter yards and finishing operations the most. Look for new implant programs and approvals for products in the near future to address these rulings.
The FDA provided a list of currently approved and marketed implants available.
Here is the list:
Growing Beef Cattle Fed in Confinement for Slaughter
| Implant Name | Approved use | Approved for Reimplant in this class |
|---|---|---|
| Component TE-IS w/ Tylan‡ (trenbolone acetate and estradiol and tylosin tartrate implants) |
For increased rate of weight gain and improved feed efficiency in growing beef steers fed in confinement for slaughter | No |
| Component TE-IH w/ Tylan‡ (trenbolone acetate and estradiol and tylosin tartrate implants) |
For increased rate of weight gain in growing beef heifers fed in confinement for slaughter | No |
| Component TE-200 w/ Tylan‡ (trenbolone acetate and estradiol and tylosin tartrate implants) |
For increased rate of weight gain and improved feed efficiency in growing beef steers and heifers fed in confinement for slaughter | No |
| Compudose (estradiol extended-release implants) |
For increased rate of weight gain and improved feed efficiency for up to 200 days in growing beef steers and heifers fed in confinement for slaughter | No |
| Encore (estradiol extended-release implants) |
For increased rate of weight gain and improved feed efficiency for up to 400 days in growing beef steers and heifers fed in confinement for slaughter | No |
| Ralgro (zeranol implants) |
For increased rate of weight gain and improved feed efficiency in growing beef steers and heifers fed in confinement for slaughter | No |
| Revalor-IS (trenbolone acetate and estradiol implants) |
For increased rate of weight gain and improved feed efficiency in growing beef steers fed in confinement for slaughter | No |
| Revalor-S (trenbolone acetate and estradiol implants) |
For increased rate of weight gain and improved feed efficiency in growing beef steers fed in confinement for slaughter | No |
| Revalor-XS (trenbolone acetate and estradiol extended-release implants) |
For increased rate of weight gain and improved feed efficiency for up to 200 days after implantation in growing beef steers fed in confinement for slaughter | No |
| Revalor-IH (trenbolone acetate and estradiol implants) |
For increased rate of weight gain in growing beef heifers fed in confinement for slaughter | No |
| Revalor-H (trenbolone acetate and estradiol implants) |
For increased rate of weight gain and improved feed efficiency in growing beef heifers fed in confinement for slaughter | No |
| Revalor-XH (trenbolone acetate and estradiol extended-release implants) |
For increased rate of weight gain and improved feed efficiency for up to 200 days after implantation in growing beef heifers fed in confinement for slaughter | No |
| Revalor-200 (trenbolone acetate and estradiol implants) |
For increased rate of weight gain and improved feed efficiency in growing beef steers and heifers fed in confinement for slaughter | No |
| Synovex C (progesterone and estradiol benzoate implants) |
Synovex C is only approved for use in growing beef steers fed in confinement for slaughter when it is used as part of a reimplantation program with Synovex S (see next column). | Yes Synovex C is approved for increased rate of weight gain in growing beef steers fed in confinement for slaughter in a reimplantation program where Synovex C is the first implant and a Synovex S implant is administered approximately 70 days later. |
| Synovex S (progesterone and estradiol benzoate implants) |
For increased rate of weight gain and improved feed efficiency in growing beef steers fed in confinement for slaughter | Yes Synovex S is also approved for increased rate of weight gain in growing beef steers fed in confinement for slaughter in a reimplantation program where Synovex C or Synovex S is the first implant and a Synovex S implant is administered approximately 70 days later. |
| Synovex H (testosterone propionate and estradiol benzoate implants) |
For increased rate of weight gain and improved feed efficiency in growing beef heifers fed in confinement for slaughter | No |
| Synovex One Grower (trenbolone acetate and estradiol benzoate extended-release implants |
For increased rate of weight gain for up to 200 days in growing beef steers and heifers fed in confinement for slaughter | No |
| Synovex Choice (trenbolone acetate and estradiol benzoate implants) |
For increased rate of weight gain in growing beef steers fed in confinement for slaughter and for increased rate of weight gain and improved feed efficiency in growing beef heifers fed in confinement for slaughter | Yes Synovex Choice is also approved for increased rate of weight gain for up to 200 days in growing beef steers and heifers fed in confinement for slaughter in a reimplantation program where Synovex Choice is the first implant and a Synovex Choice, Synovex Plus, or Synovex ONE Feedlot implant is administered 60 to 120 days later. |
| Synovex Plus (trenbolone acetate and estradiol benzoate implants) |
For increased rate of weight gain and improved feed efficiency in growing beef steers fed in confinement for slaughter and for increased rate of weight gain in growing beef heifers fed in confinement for slaughter | Yes Synovex Plus is also approved for increased rate of weight gain for up to 200 days in growing beef steers and heifers fed in confinement for slaughter in a reimplantation program where Synovex Choice is the first implant and a Synovex Plus implant is administered 60 to 120 days later. |
| Synovex One Feedlot (trenbolone acetate and estradiol benzoate extended-release implants) |
For increased rate of weight gain and improved feed efficiency for up to 200 days in growing beef steers and heifers fed in confinement for slaughter | Yes Synovex One Feedlot is also approved for increased rate of weight gain for up to 200 days in growing beef steers and heifers fed in confinement for slaughter in a reimplantation program where Synovex Choice is the first implant and a Synovex One Feedlot implant is administered 60 to 120 days later. |
My take home messages from this list:
- Ralgro is approved for the preweaning “Beef Calves”; “Growing Beef Cattle on Pasture” and “Growing Beef Cattle Fed in Confinement for Slaughter” stages as well, but has no reimplant label claims.
- Synovex-S and Synovex-H are only approved for “Growing Beef Cattle Fed in Confinement for Slaughter”.
- Until the finishing phase of production both Compudose and Encore are only approved in steers.
- All Component brand implants containing Tylan (Elanco Animal Health products) will now have to be approved and scripted by a veterinarian due to the VMD ruling.
- The only implants labeled for reimplanting during finishing are Synovex brand implants and these reimplant labels are very specific regarding products and timing of reimplanting cattle.