The threat of drought in any year is a real problem for most of the country. Many of us have sometimes seen severely less than average rainfall, which can strain our businesses. The most frustrating thing about it is that drought is one of the few things we, humans, have no control over.
And if things could not seem worse, we can also see higher-than-average prices for the inputs we need, such as fuel, fertilizer, and grain. Drought and high feed prices can result in higher cow/calf costs nationwide. This scenario is a real problem because agriculture is one of the few industries with a very thin profit margin.
Despite the current challenges, it’s crucial to recognize your resilience as an agricultural producer. You’ve successfully weathered storms before, and you can do it again. While you can’t always control what is happening, there are ways that you can make it more tolerable for you. Here are four strategies that can help you navigate these challenging times:
Know your break-even costs.
Understanding your product’s break-even costs is not just a theoretical exercise; it’s a practical tool that can guide your decision-making. In the context of cattle farming, the break-even cost is the minimum amount of money you need to make from selling your calves to cover all your expenses, including the cost of maintaining the herd, feed, and other inputs. Once you know what that is, you can confidently move forward, knowing that you’re not intentionally losing money.
Here is an example of figuring a break-even cost:
Weaning weight and weaning rate will determine the effective weaning weight, total pounds of calf weaned divided by the total number of calves exposed. This formula means that a herd of 100 cows exposed to weaned 90 550lbs calves will yield a total of 49,500lbs at weaning or 495lbs weaned per cow. At an annual cost of $750 to keep a cow, the feeder calf price required to break even would be $151.51 per cwt. You get that number by dividing $750 by 495 lbs.
Try to improve calf performance.
Now that we know the break-even point, we can work towards it. Instead of just reducing costs, which could impact quality, let’s focus on improving the performance of your product, the calf. This approach helps you reach your break-even point and holds the potential for increased profitability in the long run.
There are a couple of different strategies you can use to improve performance. One way you can do this is by using implants, which are small pellets that contain hormones to promote growth, to get them to gain extra weight. Implants can work, particularly if you have access to quality pastures, and creep feeding, which is the practice of providing supplemental feed to nursing calves, is an option. Ensuring reproductive success is another way to ensure success moving forward.
I warn you to stay moderate with this strategy. Many ways can improve performance, but they can come at a cost, some more than others. It is essential to stay moderate and keep your expenses manageable. Think of it more in terms of investing your money; pick the strategies that will give you the most return on your investment.
If you need to feed supplements, there are ways to reduce your feed costs:
- Increase forage production
- Test your forage’s nutrition value
- Minimize hay waste
- Track your feed costs
In a previous post, I discuss these strategies in more detail: “Some simple ways to reduce your feed costs.”
Consider early weaning during drought.
One tried and accurate method that producers have used for decades to reduce their costs is early weaning. Early weaning works because you are taking the nutritional requirements off of the cow. In turn, this means that she will need less feed to meet her requirements. Early weaning calves at 6-8 weeks of age can effectively get high rebreeding rates in even very thin cows. However, it’s important to note that early weaning can be stressful for both the cow and the calf, and it may require additional management and resources. It’s a strategy that should be carefully considered and implemented based on the specific conditions and resources available on your farm.
This concept works because lactation roughly doubles a cow’s protein and energy requirements. When you remove that calf, the quantity and quality of forages needed are obviously reduced. Of course, early weaning is not advocated for all producers all the time, but it does have its uses. It can be an attractive option if large amounts of forage need to be bought.
The age at which you decide to wean the calves early is essential. According to Oklahoma State, calves can be weaned early, at 40-80 days of age. When calves are 40 days old, they do not require milk replacers in the ration because they are old enough to begin eating dry feed. Since smaller calves can have difficulty competing for feed, keeping them in similar age groups is essential.
The first two weeks after early weaning are crucial. Calves must overcome the stress of weaning and learn to eat dry food very quickly. The first ration should be highly palatable and high in protein and energy. It must be highly palatable because the total ration consumption will be small at first. Creep feeding in the pasture early can help reduce some of this stress and then go to feed quicker.
Some strategies for dealing with early-weaned calves:
- The calves should be placed in a small pen with some shelter. The feed bunk and water source should be easily accessible and recognizable. Placing them perpendicular to the fence will increase this since the calves will walk the fence trying to find momma.
- Calves should be fed a started ration till consumption reaches 4-5lbs per head per day. Getting this amount usually takes about 10-14 days. The starter ration should have a type of roughage, such as cottonseed hulls. However, if hay is used instead, producers should use molasses to minimize dust. Soybean meal is a preferred supplement because it is high in crude protein. In order to allow the more timid calves a chance to eat, limit the number of calves to 20 per pen during the first few days.
- After 10-14 days with the starter ration, the calves can be moved to a larger enclosure. Once they are moved, you can move to a different ration provided in a self-feeder. You should use the second ration for about six weeks. Then, you can use a finisher-type ration until the average weaning age.
Keep the land in mind during drought.
The most crucial detail to remember is to take care of the land first. This detail will ensure that you can continue after these problems have passed.
An important thing to remember is not to put undue stress on your pastures by overstocking. The stocking rate, which is the number of animals per unit of land, is not a constant number and can always change. It’s directly related to forage production, which can decline during drought. By managing your stocking rate, you can ensure that your pastures remain healthy and productive, even during challenging times.
How you remove cows from your pasture is very crucial. It is imperative that you reduce your numbers in the correct order. Start with early weaning calves, then remove your older, less productive cows and possibly any replacement heifers. The key is to keep your most productive breeders in place for when things improve.
The soil and the forages are the foundation of your operation. You should look at yourself more as a grass farmer, and cows are just a means of harvesting.
