Press Release (for immediate release)
October 7, 2004
Contact: Steve Metzger, North Dakota Farm Business
Management Instructor 701-652-2951
Email : smetzger@ndsuext.nodak.edu
Beef
Calves, Sell’em or Feed’em?
Carrington
-- With prices for fall weaned calves at historically high levels how might beef
cow-calf producers determine the best course of action when it comes to selling
or feeding calves? How might
producers work through the various prices, feed costs, rates of gain and other
livestock particulars to determine what will really make their operation the
most profit?
If
producers are to consider selling or feeding calves they need to consider a
variety of facts and figures that can greatly affect the final product.
Producers must first of all be either set up to feed calves or be able to
make arrangements with commercial feedlots.
While home lots may cost as little as 10 cents per day, commercial lots
typically charge from 25 to 30 cents per head per day plus the cost of feed
which can typically run from 60 to 90 cents per head per day.
Other items such as veterinary bills are usually added to the daily lot
and feed charges.
A
key element for producers to understand is that of the cost of the ration on a
per pound of gain basis. By
definition the ration must meet the growing nutritional needs of the calf.
Producers need to carefully examine their feeds and know if the feeds
when fed in the intended quantities will meet the calves nutritional needs and
growth projections.
This
could be true this year with the ample supply of immature grain corn in many
parts of the state. Some producers
may be tempted to over feed corn silage that may be low in energy due to the
absence of the grain portion. Producers
may wish to consider feeding barley, which in North Dakota is in greater
abundance than grain corn this year and is fairly economical to purchase.
A balanced ration is critical to maximizing both rate of gain and
profitability.
Understanding
the difference in the breakeven prices and profitability levels of the same
types of calves priced only $5 or $10 per hundred-weight higher or lower is
critical if producers are to recover more than the value of the feeds alone and
gain a realistic profit for their management, risk and labor.
Producers may get a feel for upcoming calf prices by observing the feeder
calf futures prices for the various months. These
futures prices are based on 700 to 849 pound medium and large framed number one
feeder steers.
Beef
producers may go online at www.ndfarmmanagement.com to review beef
backgrounding and finishing budgets for various weights of calves with various
prices, rates of gain and assorted feed costs.
These breakeven prices and budgets were developed with the listed
“Feeder Calf Budgeting Spreadsheet”. Producers
may with the use of the Excel™ spreadsheet program run these from the web site
or download them and use them in that manner.
These items are found in the reports section of the web site.
Producers
can find additional information on this and other crop and livestock enterprises
as well as a variety of other farm data at the
afore-mentioned website. Additional
information on the North Dakota Farm Business Management Program may be secured
from Steve Zimmerman, ND State Supervisor for Agricultural Education at the
State Capitol, at 701-328-3162.
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