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DROUGHT Market and Management Considerations. Derrell S. Peel Livestock Marketing Specialist. Livestock Marketing Information Center Data Source: USDA-AMS. Livestock Marketing Information Center Data Source: USDA-AMS. Livestock Marketing Information Center
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DROUGHT Market and Management Considerations Derrell S. Peel Livestock Marketing Specialist
Livestock Marketing Information Center Data Source: USDA-AMS
Livestock Marketing Information Center Data Source: USDA-AMS
Livestock Marketing Information Center Data Source: USDA-AMS, Compiled & Analysis by LMIC
Livestock Marketing Information Center Data Source: USDA-AMS, Compiled & Analysis by LMIC
Livestock Marketing Information Center Data Source: USDA-AMS
Market Impacts • Limited…so far • Reduced summer stocker demand • Changed market timing of winter grazing • Cow market impacts just beginning • In the next few weeks • More impacts on regional cow markets • Long term • Pre-empt herd expansion and extend high prices
Spring Droughts are Tricky • Risk of acting too soon • Rapid improvement is possible • Risk of delaying actions • Loss of market value • Increased expenses • Production impacts • Maximum cattle production and nutritional needs
Worst Drought Management Plan Hold on …to everything …at all cost.
Drought Management Plan • Start with worst case and work backwards to current situation. • Identify decision trigger points • What has to be done • When decision must be made
Drought Management Plan • Total Destocking • Lack of water • Total lack of forage production/infeasible to purchase feed • Too late for rain to help • Relocation of animals possible but difficult • Maintain Core Breeding Herd • Young, dry, bred cows (7 years and less) • Reduce forage requirements
Reducing Forage Requirements • Early weaning • Reduce forage and water requirements • Rebreeding • What to do with early weaned calves? • Culling • Open cows/replacement heifers • Old cows, unsound (slaughter) • Older cows, physically sound (solo or maybe as pairs) • Cows over 7 years of age
Timing of Decisions from Late April • 2-4 Weeks • Early weaning • Cows in early lactation will drop body condition rapidly and may not rebreed • Cull open/old cows • Cull older cows if sold as pairs • 1-2 months • Cull older cows • With water, may be able to hold core herd for 3-4 months • Late Summer • Total destocking or minimal core herd to winter
Post-Drought Plan • Replacement females will be scarce and expensive • Pastures need time for recovery • Depends on timing of end of drought • Stocker production feasible while rebuilding breeding herd
Livestock Marketing Information Center Data Source: USDA-AMS, Compiled & Analysis by LMIC
Drought Resources • DASNR drought web page • http://agwater.okstate.edu/research-extension/drought/drought. • Financial planning (IFMAPS) • Tax Implications • Pasture and feed management • Nutritional management • Government Programs (including CRP use) • http://www.agecon.okstate.edu/agpolicy/news.asp