the university of tennessee agricultural extension service a decision tool for improved beef cattle...
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The University of TennesseeAgricultural Extension Service
A Decision Tool for Improved Beef Cattle Production,
Management and Marketing System Analysis
Tammy L. McKinley
Extension Assistant
University of Tennessee
Emmit L. Rawls
Professor
University of Tennessee
John C. McKissick
Professor
University of Georgia
The University of TennesseeAgricultural Extension Service
Why construct a systems analysis tool for cow/calf producers?
• Changes are occurring rapidly in beef supply chains.– Increased information flows– Emphasis on consistency, quality, safety
• These changes are taking place at all levels, including the farm level.
• Successful producers will identify profitable changes to enable them to continue producing.
The University of TennesseeAgricultural Extension Service
Beef Cattle Managementand Marketing Systems
• An interactive analysis tool
• Developed by a multi-state, multi-disciplinary team from the University of Tennessee and the University of Georgia
The University of TennesseeAgricultural Extension Service
Beef Cattle Managementand Marketing Systems
• Designed to…
– Analyze an operation and estimate current production costs
– Allow user to explore impacts of selected changes in production, management and marketing decisions
– Use with help of Extension Agent
The University of TennesseeAgricultural Extension Service
Beef Cattle Managementand Marketing Systems
• General Information
• Breeding
• Forages
• Management
• Equipment
• Marketing
The University of TennesseeAgricultural Extension Service
General Production Information
The University of TennesseeAgricultural Extension Service
Breeding
Information on all breeding stock is entered and used to calculate costs, cull cow income, and nutrient requirements in other sections of the program.
The University of TennesseeAgricultural Extension Service
Forages/NutritionMultiple forages can be selected andacreage allocated based on use.
The University of TennesseeAgricultural Extension Service
Forages/Nutrition
Grazing methodcan be selectedfor each pastureand tons of drymatter utilizedper acre will becalculated.
Multiple fertilizer
sources andapplication
rates can bechosen for
each forage.
Calculated production based on yield response functions derived from research based data.
The University of TennesseeAgricultural Extension Service
Forages/Nutrition – Hay Storage
Storage methods are in most efficient to least efficient order.
A running total of forage available for consumption is calculated after storage and feeding method losses are deducted.
The University of TennesseeAgricultural Extension Service
Forages/Nutrition – Hay Storage
Once tons of hay to be stored is calculated then the user can select the length of time the hay is to be stored (5 months or less or more than 5 months) and the feeding method (with or without a ring) and the appropriate losses will be calculated.
The University of TennesseeAgricultural Extension Service
Management
Users can enter their health management program and calculate costs per head.
The University of TennesseeAgricultural Extension Service
Equipment – Fencing
Materials and annual costs can be calculated for permanent and temporary fencing.
The University of TennesseeAgricultural Extension Service
Equipment – Handling Facilities
Users can select components for handling facilities based on whether they are manufactured or site-built and calculate materials costs for each and the total facility.
The University of TennesseeAgricultural Extension Service
Marketing
Net market price is calculated based on premiums and discounts for frame, muscling, breed, horns, and sex.
Costs of marketing method, i.e. commission, hauling, and shrink are all accounted for when calculating the net market price.
The University of TennesseeAgricultural Extension Service
Marketing –Comparison of Marketing Methods
Users can compare two marketing methods based on commission, hauling, and both estimated and pencil shrink associated with each.
The University of TennesseeAgricultural Extension Service
Joe Farmer’s Operation
• Current situation
– 60 mature cows and 10 heifers
– Majority of calves born between February and March
– Average calf weaning weights• From mature cows – 450 pounds• From replacement heifers – 425 pounds
The University of TennesseeAgricultural Extension Service
Joe Farmer’s Operation
• Current situation
– 250 acres of tall fescue pasture and hay
– Feeds 210 round bales of hay over a 135 day winter feeding period
The University of TennesseeAgricultural Extension Service
Base Forage Program and Estimated Forage Production
Field Name Forage Acres
Fertilizer (N, pounds/acre)
Spring FallTons dry
matter/acreTotal tons dry matter
Hay field Tall fescue 50 57 0 2.21 110.50
Total Hay 110.50
Pasture 1 Tall fescue 115 0 0 0.79 90.85
Pasture 2 Tall fescue 65 38 0 1.07 69.55
Pasture 3 Tall fescue 20 0 0 0.79 15.80
Total Pasture 176.20
The University of TennesseeAgricultural Extension Service
Step 1: General Production Analysis
While producing over100 pounds less ofcalf per exposed
female thanbenchmark value
Almost twice the number of grazedpasture acres used
The University of TennesseeAgricultural Extension Service
Step 2: Current Forage Program vs. Herd Needs
The University of TennesseeAgricultural Extension Service
Grazed Forage Productionvs. Herd Needs with Base System
Total direct costs of forage production* is $7,248.50* excluding machinery and equipment costs
1 – low weaning weights2 – low calf crop percentage
The University of TennesseeAgricultural Extension Service
Step 3: Evaluate Possible Changes
• Apply 38 pounds of nitrogen per acre on pasture 1 for increased spring grazing
• Stockpile fescue on pasture 2 for increased fall and winter grazing
The University of TennesseeAgricultural Extension Service
Increase Spring Grazing
The University of TennesseeAgricultural Extension Service
Increase Spring Grazing
Total direct costs of forage production* is $9,502.50* excluding machinery and equipment costs
Dry matter producedincreased to 1.07 tons per acre
The University of TennesseeAgricultural Extension Service
Increase Spring Grazing
To economically justify this change...
= 2,504 pounds$2,254 increase in costs $ 0.90 per pound
Increase weaningweights by49 pounds per calf
— Sell more pounds of feeder calf
Increase calf croppercentage from74% to 83%
OR
— How?
The University of TennesseeAgricultural Extension Service
Stockpile Fescue
The University of TennesseeAgricultural Extension Service
Stockpile Fescue
Dry matter producedincreased to 37.6 tons in Sep/Oct
Total direct costs of forage production* is $10,602.30* excluding machinery and equipment costs
The University of TennesseeAgricultural Extension Service
Stockpile Fescue
To economically justify these changes...
= 3,727 pounds$3,354 increase in costs $ 0.90 per pound
Increase weaningweights by72 pounds per calf
— Sell more pounds of feeder calf
Increase calf croppercentage from74% to 87%
OR
— How?
The University of TennesseeAgricultural Extension Service
Summary
• The Beef Cattle Management and Marketing Systems program…
– Can be used to analyze a current operation and the possible production, management and marketing changes and their impacts
– Allows producers working with their Extension Agents to explore alternatives and plan for the future of their operations
The University of TennesseeAgricultural Extension Service
The End