backgrounding calves (2)

7/29/2019 Backgrounding Calves (2)

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Backgrounding Calves on Pasture:

Opportunity to Explore


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Backgroundingdefined

Backgrounding is the growing of steers orheifers from weaning until they enter the

feedlot for finishing . . .

650800 pounds


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Kind of cattle to buy Considerable flexibility with respect to

weight of cattle bought and sold, feed

resources used, and rate of gain achieved Cattle weighing from 250 650 lbs. or

heavier can be backgrounded

Purchase weights of 350 550 lbs. mostpopular for steer calves

Heifers tend to weigh 30 50 lbs. less atsimilar age


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Kind of cattle to buy Light weight heifer calves usually bought

cheaper than steer calves, but will sell for

less than steers as 600 700 lb feeders Heifers tend to gain 5 10% slower and

about 5% less efficiently than steers

Dont be overly influenced by breed (I.e.

more difference within than between

breeds for performance traits)

Holsteins will do just fine; crosses popularin Corn Belt


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Production SystemsTypical backgrounding system:

Buy 400

450 lb. calves in fall, winter on stored feed,graze spring fall . . .

Sell 650 800 lbs

Daily rates of gain will vary from 1-1.5 lbs.

Buy 350 400 lb. calves in spring . . .

Graze spring fall . . .

Sell 700+ lbs. in late fall


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Skills to develop forbackgrounding

Cattle buying and selling skills

Skill in diagnosing and treating sick animals

Pasture management skill


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Beef steer/corn price rations = Price per cwt.of choice slaughter steers divided by perbushel corn price (Example: $70 2= $35)

Accurate indicator of cost of feedlot gain inrelation to beef cattle prices

Leads and causes shifts in relative profitability ofbackgrounding vs. cow-calf production

Decreases in ratio favor cow-calf production;increases in ratio favor backgrounding


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Ratio of 750 lb. Yearling to 425 lb.calf price ratio

Average of 89% fairly typical

Decline to 80% clearly favors cow-calf production

Increase to 100% clearly favors backgrounding


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Cattle buying andselling skills

Get historical dataand outlook(e.g. Equity and CattleFax)


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Oklahoma City Feeder SteersNo. 1 Medium 400500 Pounds

Year Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Average

1981 78.78 77.31 78.04 80.42 73.45 70.08 66.53 68.80 70.58 69.71 70.07 66.00 72.48

1982 63.91 65.05 69.71 73.00 73.80 71.10 69.84 71.12 69.51 65.40 65.00 69.29 68.89

1983 72.28 75.24 78.43 76.96 77.99 74.17 69.07 68.07 67.74 67.95 71.41 68.87 72.35

1984 70.09 72.49 72.20 73.28 71.16 67.30 66.90 68.46 67.90 66.89 69.05 70.88 69.72

1985 74.76 76.16 77.70 79.72 77.77 73.24 71.12 73.06 69.48 71.61 73.24 69.41 73.94

1986 71.59 73.34 72.97 71.99 70.00 67.50 69.91 72.71 75.57 71.94 72.27 72.18 71.83

1987 75.01 79.19 80.30 83.97 85.96 86.44 90.14 93.58 98.63 93.38 95.05 95.69 88.11

1988 96.96 104.42 101.70 105.03 102.33 93.98 95.89 99.74 97.75 100.55 102.05 101.64 100.17


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Oklahoma City Feeder SteersNo. 1 Medium 400500 Poundscontinued . . .


1989 104.30 106.35 107.50 101.94 96.12 105.35 103.70 103.82 100.42 100.71 102.03 99.77 102.67

1990 101.23 105.13 105.89 111.35 109.74 106.14 106.03 110.42 106.41 104.25 108.96 112.33 107.32

1991 112.25 118.44 117.58 120.38 117.80 117.99 113.10 106.46 106.32 104.63 101.67 98.13 111.23

1992 96.11 104.49 106.72 102.20 98.84 99.45 99.69 102.86 100.08 96.00 99.92 97.70 100.34

1993 104.50 106.23 108.42 111.72 109.83 109.05 107.31 106.15 105.38 103.54 101.59 103.36 106.42

1994 102.44 105.46 108.60 107.61 100.46 92.48 95.13 93.55 88.66 87.50 91.18 93.00 97.17

1995 95.18 94.62 92.14 89.23 83.50 80.83 75.48 74.95 70.42 65.33 66.88 68.46 79.75

1996 66.27 66.28 65.26 62.30 58.64 61.83 62.75 58.87 67.44 66.65 70.00 71.29 64.80


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Oklahoma City Feeder SteersNo. 1 Medium 400500 Poundscontinued . . .


1997 79.27 86.17 93.12 93.35 95.71 99.54 98.52 100.48 97.75 96.10 94.92 94.04 94.08

1998 96.14 97.49 101.36 102.59 102.78 85.76 78.15 78.95 77.70 82.33 88.95 87.50 89.98

1999 92.20 94.89 95.17 95.66 90.82 96.53 98.80 95.78 97.72 94.94 102.09 107.27 96.82

2000 110.65 111.12 117.57 111.14 107.57 108.58 113.90 109.75 104.46 108.34 110.27 109.97 110.28

20year

average88.20 90.99 92.52 92.69 90.21 88.37 87.60 87.88 87.00 85.89 87.83 87.84 88.92


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Cattle buying and

selling skills

Use enterprise budget projections


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Logical approach to determining enterprise

profitability

Grazing cost included with all other feedexpenses


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Short run:

Receipts greater than variable expenses

(cattle and feed and livestock expense)


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Long run:

Receipts greater than variable expenses

and fixed expenses (depreciation,

repairs, taxes, interest, insurance on

buildings, equipment, livestock)


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Dairy Steer Calves:350700 lbs. on pasture

56 months


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5/1/2001 Budget Estimates*

CattleCosts FeedCosts LivestockCosts Receipts Returns OverVariable Costs

$371/HD $36/HD $30/Hd $539/HD $102/HD

* Reference BCM-11, Enterprise Budget 5/1/01 for details


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Skill in diagnosing and

treating sick animals

Watch for these warning signs!

Rough hair coat Weight loss

Ears drooping Weak, listless

Eyes, nose-mucous discharge


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Skill in diagnosing and

treating sick animals

Establish a program with your veterinarian

for new arrivals (health check, deworming

program, etc.)

Ideally, review health program withseller of weaned calves


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Health Program Basics

Respiratory DewormingFly control Implants

Bloat prevention (>50% legume)

Trace mineral salt free choice


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Intensive rotationalgrazing

(i.e. rotational grazing with ahigh level of management; more

pastures; short grazing periods;

long rest periods; and high

stocking rates).

Skills

Network with other

producers


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Bought, managed, and sold right,backgrounding calves on pasture

offers another enterprise option

deserving attention.

backgrounding calves (2)

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