“grazing education program increases livestock producer profitability” wesley tucker agriculture...

“Grazing Education Program Increases

Livestock Producer Profitability”

Wesley TuckerAgriculture Business Specialist

Bolivar, MO

Tucker FarmsTunas, MO

Heather & Jordan

Tucker Farms

MU Extension since 2001 My job is to help you make more money

The MO Grazing School Program

Started in 1990 by Started in 1990 by Jim Gerrish, Ron Jim Gerrish, Ron Morrow, and Morrow, and Maurice DavisMaurice Davis

3 day long 3 day long intensive forage intensive forage management management educationeducation

Original partners:Original partners: MU-FSRCMU-FSRC MU ExtensionMU Extension USDA-NRCSUSDA-NRCS MFGC/GLCIMFGC/GLCI

Linneus Grazing Schools…

2975 people from 40 states & 10 2975 people from 40 states & 10 foreign countries have attended foreign countries have attended Linneus Grazing SchoolsLinneus Grazing Schools

Started regional grazing schools Started regional grazing schools throughout the state in 1995throughout the state in 1995

Regional Schools…

Developed a CD for use by grazing Developed a CD for use by grazing school instructorsschool instructors

From 1995 – present over 13200 From 1995 – present over 13200 people have attended 480 regional people have attended 480 regional grazing schoolsgrazing schools

2012 – 28 grazing 2012 – 28 grazing schools with 750 schools with 750 participantsparticipants

2013 – 26 grazing 2013 – 26 grazing schools with 558 schools with 558 participantsparticipants

Grazing schools Grazing schools using similar using similar format now taught format now taught in several statesin several states

Why am I at a WIA conference talking about grazing schools?

“Weaning Time – To Sell or Not to Sell”

Wesley TuckerAgriculture Business Specialist

Monthly Average Steer Prices, Oklahoma City, 2003-2012

90

100

110

120

130

140

150Ja

n

Feb

Mar

Apr

May Ju

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Jul

Aug Se

p

Oct

Nov Dec

$/cw

t

400-500 lb

500-600 lb

600-700 lb

700-800 lb

800-900 lb

1200-1400

Average Value of 100 Pounds of Gain on Feeder Steers, 2003-12

Starting Weight, lbs Starting Weight, lbs

Start 350 450 550 Start 350 450 550

Month --dollars/cwt of gain-- Month --dollars/cwt of gain--

Jan 129.12 118.41 109.33 Jul 97.70 84.48 91.80

Feb 114.11 100.66 89.76 Aug 79.47 66.39 73.93

Mar 105.68 79.61 67.44 Sep 98.23 78.67 77.15

Apr 88.14 69.52 64.38 Oct 111.30 79.84 76.90

May 68.28 63.62 66.28 Nov 109.05 80.64 72.84

Jun 81.53 67.95 78.80 Dec 116.67 108.13 96.75

Avg 99.94 83.16 80.45

Average Value of Gain-Steers, Oklahoma City, 2003-2012

20

40

60

80

100

120

140Ja

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Mar

Apr

May Ju

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Jul

Aug Se

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Nov Dec

$/cw

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350#

450#

550#

650#

750#

850#

Value of 100# of Gain: 2000-10

Joplin, MO

Value of 100# of Gain: 2000-10

Value of 100# of Gain: 2000-10

Exogenous VariablesExternal Factors

Risk Management

Forward ContractingForward Contracting FuturesFutures (LRP) Livestock Risk Protection (LRP) Livestock Risk Protection

Insurance Insurance

Reasons to Wean

Is the market offering value gain Is the market offering value gain and can I control price risk? and can I control price risk?

Can I add weight cheaper than the Can I add weight cheaper than the market?market?

Can I add value and capture it?Can I add value and capture it?

Livestock Risk Management Conference – Pre 2001

3 days of training – Dr. Ron Plain3 days of training – Dr. Ron Plain FuturesFutures OptionsOptions ContractsContracts

Cut 50₵/cwtCut 50₵/cwt

What do you think the average cow-calf producer makes per cow per year? • BreakevenBreakeven

• Good Years – 2013 & 2014Good Years – 2013 & 2014• Bad Years – 2011 & 2012Bad Years – 2011 & 2012

• But what is “average”? But what is “average”? • Are you HOT or COLD?Are you HOT or COLD?

High vs. Low Profit Cow-Calf Producers (SPA Data IA: 1995-2000)

Return & Cost FactorsReturn & Cost Factors

High High 1/41/4

AveragAveragee

Low 1/4Low 1/4

Financial return to Financial return to capital, labor & capital, labor & mgmt. Per cowmgmt. Per cow

$127.69$127.69 -$9.90-$9.90 --$144.84$144.84

Total financial cost Total financial cost per cowper cow

$230.11$230.11 $362.87$362.87 $461.96$461.96

Total financial cost Total financial cost per cwt. producedper cwt. produced

$47.32$47.32 $72.23$72.23 $108.04$108.04

More SPA Data

• IA & IL study to determine what IA & IL study to determine what separated producersseparated producers• 1996-19991996-1999• Herd size: 20 to 373 cowsHerd size: 20 to 373 cows

Variables In The Equation• Cost VariablesCost Variables

• Feed CostFeed Cost• Operating CostOperating Cost• Depreciation CostDepreciation Cost• Capital ChargeCapital Charge• Hired LaborHired Labor• Family LaborFamily Labor

• Production VariablesProduction Variables• Calf WeightCalf Weight• Calf PriceCalf Price• Cull WeightCull Weight• Cull PriceCull Price• Weaning PercentageWeaning Percentage• Calving DistributionCalving Distribution

• Other Other VariablesVariables• Herd SizeHerd Size• InvestmentInvestment

Source: 2001 Beef Research Report – Iowa State University

Grazing Schools

AgronomistAgronomist Livestock SpecialistLivestock Specialist Ag Business SpecialistAg Business Specialist

How does it impact the bottom How does it impact the bottom line?line?

What Drives Profit?

““Management”Management”Control Feed CostsControl Feed CostsStock for Winter not SpringStock for Winter not SpringNutrient Recycling & ManagementNutrient Recycling & ManagementExtending the Grazing Season & Extending the Grazing Season &

UtilizationUtilizationForage Supply Drives Marketing Forage Supply Drives Marketing

28%

3%

% Change In Profitability

22%

Contact Information

Wesley Tucker(417) 326-4916

tuckerw@missouri.edu