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Amid the threat of New World screwworm (NWS) and an uncertain economy, many producers are still determining whether or not to keep their calves this year.
There are several complex factors to consider to make the best decision for your ag operation. Below we explore some of the considerations for retaining calf ownership.
Cash flow is the most significant limiting factor to retaining calves for cow/calf producers. Business models and past practices are usually geared toward selling calves at weaning or shortly after.
Delaying income to retain ownership through finishing at the feedyard, however, is often more profitable than selling at weaning. Although there are costs associated with retaining calf ownership and risks such as potential mortality and downward market price, there are also benefits to keeping calves. Retaining calf ownership allows you to add quality and weight so you can potentially market at a higher value.
Determine your cash flow: FBN® Finance offers a free Cash Flow Projection Template to help you estimate the amount of cash that is projected to move through your ag operation. Download it for free here.
Labor has become a struggle for many operations. Facilities can also limit a producer’s ability to retain cattle. Understanding the limitations and constraints of labor and facilities is a factor that needs to be considered while developing a feeding plan.
Retaining ownership does not mean the calves must stay on your ranch or farm. If you maintain ownership and send your calves to someone else to feed, ask the feedlot or grow yard if they balance their rations for effective energy and amino acids. If they do not, you may be leaving money on the table.
Feed availability, especially in drought-stricken areas, can be the factor that prevents beef producers from keeping their calves at home. Lightweight calves can perform well on several different feeding regimens. Ingredient prices determine the best economic ration to obtain the desired rate of gain.
Rations can be developed utilizing by-products from low-quality products, such as gin trash and wheat middlings, to higher-quality products like DDGs and soybean meal. Forages also come in a range of quality, from corn stalks to silage and alfalfa.
Find the right mineral for your goals: Get answers to your loose mineral questions in this blog post, which helps make mineral selection easier.
Why should others get paid for the improvements in your cattle herd? Many ranches have tried to enhance their genetics to increase feed efficiency and improve carcass quality. The market sometimes overlooks this work and the cow/calf producer needs to be appropriately rewarded for their investments.
Retained ownership moves the ranchers a step or two closer to the beef consumer, which increases the probability of maintaining retail dollars.
Marketing calves come with unique challenges and opportunities at each supply chain step. From grass-fed to all-natural or one of many different post-weaning vaccination programs, starting with the end target market in mind is critical to optimizing the dollar received for your calves.
FBN offers a broad range of vaccines, dewormers, implants, and general animal health products for livestock producers. With convenient online purchasing options and fast, direct-to-farm delivery, FBN offers a streamlined purchasing experience for all your animal health products and supplies.
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