Production Costs Hints

1. Production Costs Hints UW Extension Livestock Team Statewide Cow/Calf Seminars 2008

2. Production Cost Hints • Cow-calf Profitability is influenced by 4 factors • 1. Yearly cost of keeping a cow • 2. Number of cows exposed at breeding that calf • 3. Weaning or yearling weight of calves • 4. Price received for calves and cull cows

3. Production Cost Hints • Feed costs are the biggest expense a cow-calf producer has to wean a calf

4. Production Cost Hints • Feed costs are the biggest expense a cow-calf producer has to wean a calf • In most studies of cow-calf operations feed cost range from 55% to 80% of total costs

5. Production Cost Hints • Feed costs are the biggest expense a cow-calf producer has to wean a calf • In most studies of cow-calf operations feed cost range from 55% to 80% of total costs • Of total feed cost the biggest variation between operations was in winter feed charges

6. Production Cost Hints • Our “CHALLENGE” is to reduce feed charges without affecting cow body condition and future reproductive performance

7. Production Cost Hints • In Wisconsin the period of time we have to winter feed is December 1st –May15th • or 165 days.

8. Production Cost Hints • In Wisconsin the period of time we have to winter feed is December –April or 165 days. • During this period we have frozen ground and often have snow cover or mud

9. Production Cost Hints • Ask Yourself these questions: • Do I have adequate feed in storage for winter feeding? • Have I pre-purchased feed when prices were low? • Have I looked at energy and protein costs of various feeds and compared them for value? • Have I stockpiled forage for winter Grazing?

10. Production Cost Hints We enter spring with excess soil moisture

11. Production Cost Hints • Reduce Inventory Early • Sell Older Cows • Sell heavier feeders • Early Wean Calves • This reduces pressure on pastures • Do this before your neighbor since prices decline rapidly in dry areas where forced inventory reduction occurs

12. Production Cost Hints • Market Stockers Early • Reduce by choice • Animals still gaining • Price is still favorable • Buyers attitudes still good • Sort off cattle by weight • Let current price determine the ones to sell (light vs. heavy • Early Wean Calves • Reduces Cows Forage Needs • Calves more efficient if fed direct • Gives you larger window to market calves

13. Production Cost Hints • Have A Written Plan • Include the Actionsyou need to take to deal with Rising production costs or drought • Keep it Simple and easy to implement

14. Production Cost Hints Know Your Hay Needs 30 lbs per day x 165 days=4,950 lbs 4,950lbs/850 lbs=6 round bales per cow

16. Production Cost Hints Winter Grazing to Reduce Feed Cost: 1. Corn Stalk Grazing a. Average 5000 lbs. of residue in irrigated corn fields b. Average 2500 lbs. of residue in dryland corn fields c. Primary difference is leaf loss

17. Production Cost HintsRotational Grazing • Pastures are subdivided into smaller areas (paddocks) • A portion of the pasture is grazed while the remainder “rests” Lane • Rest allows pasture to: • Recover from grazing, • Rebuild energy reserves & plant vigor • Increase forage production by 30%

18. Strip Grazing in Fall

19. Production Cost Hints Graze stockpiled Forage: Alfalfa-hay fields for last harvest Rested cool season grasses (July-Oct rest) Warm season grasses Wheat, oats,rye, or barley planted in Aug/Sept Sudan grass, pearl millet, forage sorghum seeded in July

21. Production Cost Hints • Stand Ability for various forages • Tall Fescue-good Big Bluestem-good • Timothy-good Little Bluestem-good • Orchard grass-fair Switchgrass-good • Brome grass-poor Indian grass-fair • Alfalfa-fair • Red clover-poor

23. Production Cost Hints • Consider Windrowing late in season • Allows you to windrow graze • Cows will harvest the crop in the field • Manure will remain in the field • Requires electric fencing or snow cover • Provide only what the cows will eat in a week

24. Production Cost Hints • What about direct feeding • Must meet the cows energy and protein requirements • Can be done with hay, silage and various grains including byproducts • Need to make sure you have adequate bunk or feeder space

25. Production Cost Hints • Consider Byproduct Feedstuffs • Distillers Grain • Brewers Grains • Wheat Mids • Grain Screenings • Cannery Waste(Sweetcorn,carrots) • Potatoes

26. Production Cost Hints • Take advantage of lowest commodity prices based on energy and protein • Corn at $5.00/bushel is 9 cents per lb (one lb of corn has the energy of 2 lbs of hay) • Oats at $3.50/bushel is 10 cents per lb • Round bales at $40 each(assume 3/ton equals $120 per ton) are 6 cents per lb at $200 per ton the cost is 10 cents per lb or $65 per bale • Soybeans are $12 per bu. or 20 cents per lb

27. Production Cost Hints • Needs of 1100 lb cow last 1/3 of pregnancy • 10.3 Mcals of energy • 1.6 lbs of crude protein

28. Production Cost Hints • Needs of 1100 lb cow last 1/3 of pregnancy • 10.3 Mcals of energy • 1.6 lbs of crude protein Needs of 1100 lb cow first 4 months after calving • 15 Mcals of energy • 2.6 lbs of crude protein

29. Production Cost HintsFeed Values of Common Feeds % DM Mcal/# % Protein Alfalfa 90 .94 16 Brome 89 .80 11 Orchard 88 .85 11 Straw 91 .70 4 Oats 89 1.3 12 Corn 88 1.5 9

30. Production Cost Hints • For our examples we will use 1100 lb cow • If your cows are lighter or heavier you will need to reduce or add addition feed

31. Production Cost Hints • Balance a ration using values from table and cow needs for energy and protein • Ration 1: corn, alfalfa hay • 8 lbs of corn provides-8.2 Mcals and .7 lb protein

32. Production Cost Hints • Balance a ration using values from table and cow needs for energy and protein • Ration 1: corn, alfalfa hay • 8 lbs of corn provides-8.2 Mcals and .7 lb protein • Still need energy and protein from hay

33. Production Cost Hints • Needs: 10.3 Mcal 1.6 lb protein Have: 8.2 Mcal .7 lbs protein Need 2.1 Mcal .8 lbs protein

34. Production Cost Hints • Alfalfa Hay: Provides= .94 Mcal and 16 % • Need: 2.1 Mcal and .8 lbs protein • To meet Energy needs we need 2.3 lbs of hay(2.1divided by .94) but this will be short protein(2.3 x .16=.1/3 lb) so we feed 3 lbs of hay

35. Production Cost Hints • Alfalfa Hay: Provides= .94 Mcal and 16 % • Need: 2.1 Mcal and .8 lbs protein • Balance for protein .8 divided by 16%=5 lbs of hay This will meet protein needs and exceed energy(5 lbs x .94=4.7 Mcal)

36. Production Cost Hints • COST on a Daily Basis • 8 lbs corn at $.09=$..72 • 5 lbs hay at $.06===.30 • Total cost $1.02 per day Allow for 10% waste and DM conversion $1.02 x 110%= $1.12 per day

37. Production Cost Hints • If daily feed charges are $1.12 and we feed for 165 days our winter feed costs are: • 165 x $1.12= $184 for the feeding period • We still need to add the cost of mineral and salt but we have accomplished our goal with winter feed costs

38. Production Cost Hints • All Hay diet: • Standard cow winter ration • Feed 20 lbs of alfalfa/grass hay per day(.85Mcal of energy and 13 5 protein) Provides 17 Mcal or energy Provides 2.6 lbs protein • However, feed free choice most cows consume 30-35 lbs of hay per day

39. Production Cost Hints • Hay exceeds needs for energy and protein even allowing for waste • Cost at $120/ton is $.06 per lb or $1.20 per day or $198 for the winter feeding season. • However, fed free choice cows consume 30 lbs or more per day • The secret limiting consumption to 20 lbs

40. Production Cost Hints Cows Waste by eating over the top and throwing hay out Keep Feeders as high as possible

41. Production Cost Hints • Use round bale feeders or cone feeders • Weigh your hay bales and limit amount fed to 20 lbs • Limit access to free choice hay to 8 hours per day