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Ways to deal with drought and high prices

The threat of drought this year is a real problem for most of the country. Many of us have seen severely less than average rainfall and it has put a strain on our businesses. The most frustrating thing about it is that drought is one of the few things that we as humans have absolutely no control over.

And if things could not have seemed worse we are also seeing higher than normal prices for the inputs that we need such as fuel, fertilizer, and even grain. A combination of the drought and high feed prices will result in greater cow/calf costs across the country. What makes this a real problem is that agriculture is one of the few industries where the profit margin is very thin.

With these current problems many producers are asking themselves how they will be to make. They are wondering if they are even gonna be in operation next year. Though you can’t always control what is happening there are ways that you can make it more tolerable for you. Here are 4 things that you can do to help you make it through this:\

Know your breakeven costs

As with any business, it is important to know what your product’s breakeven costs are. What a breakeven cost shows is the minimum amount of return that you can make on that product that covers your costs. Once you know what that is you can move forward without losing money intentionally.

Here is an example of figuring a breakeven cost:

Weaning weight and weaning rate will determine effective weaning weight, total pounds of calf weaned divided by the total number of calves exposed. This 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 breakeven would be $151.51 per cwt. You get that number by dividing $750 by 495lbs.

Try to improve calf performance

Now that we know the breakeven point we can try to reach that point. You could do the common answer which is to reduce costs but that will affect the quality. Instead, a better option would be to improve the performance of your product which is the calf.

There are a couple of different strategies you can use to improve performance. One way that you can do this is by using implants to get them to gain extra weight. This can work particularly if you have access to quality pastures and creep feeding is an option. Ensuring reproductive success is another way to ensure success moving forward.

I do warn you not to go overboard with this strategy. There are many ways that you can improve performance but they can come at a cost, some more than others. It is important to not go overboard and increase your expenses more than you can handle. 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 are needing to feed supplements there are ways to reduce your feed costs:

I go into more detail about these strategies in a previous post “Some simple ways to reduce your feed costs”.

Consider early weaning during drought

One tried and true method that producers have used for decades to reduce their costs is early weaning. This works because you are taking the nutritional requirements off of the cow. What this does in turn is that she will need less feed to meet her requirements. Early weaning of calves at 6-8 weeks of age can effectively get high rebreeding rates in even very thin cows.

This concept works because lactation is roughly double the protein and energy requirements of a cow. When you remove that calf obviously the quantity and quality of forages needed are reduced. Of course, early weaning is not advocated for all producers all of the time but it does have its uses. It can be an attractive option if large amounts of forage are needed to be bought.

The age that you decide to wean the calves early is important. 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. This is because they are old enough to begin eating dry feed. Since smaller calves can have difficulty competing for feed it is important to keep them in similar age groups.

The first 2 weeks after early weaning are very important. Calves must overcome the stress of weaning and learn to eat dry food very quickly. The first ration should be highly palatable along with being high in protein and energy. This is 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:

Keep the land in mind during drought

The most important detail to remember is to take care of the land first. Taking care of the land will ensure that you can keep going after these problems have passed.

An important thing to keep in mind is to not put undue stress on your pastures by overstocking. Keep in mind that it is not a constant number and can always change. The stocking rate will change as forage production declines from things like drought.

How you remove cows from your pasture is very crucial. It is very important that you reduce your numbers in the correct order. Start with early weaning calves, then remove your older less productive cows, then 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.

 

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