Live Cattle Futures and Options: How Have They Done?

Futures did reduce price risk. Hedging produced a higher minimum return and higher return at the 25th percentile (75% of the returns are better than this figure) than did the cash market. The 50th percentile, or median return, was higher for yearlings in the cash market than hedged cattle, and the calves had mixed results. Although the differences are not great, there have been months when the option strategies performed better than cash or futures, (i.e., January–April and September–October), and there are months when they did not fare well (i.e., June–August).

Integration of Pasturing Systems for Cattle Finishing Programs

A 3-year study, using 84 fall-born and 28 spring-born calves of similar genotypes, was conducted to integrate pasturing systems with drylot feeding systems. Calves were started on test following weaning in May and October. Seven treatments were imposed: 1) fall-born calves directly into feedlot; 2 and 3) fall-born calves put on pasture with or without ionophore and moved to the feedlot at the end of July; 4 and 5) fall-born calves put on pasture with or without ionophore and moved to the feedlot at the end of October; 6 and 7) spring-born calves put on pasture with or without ionophore and moved to the feedlot at the end of October. A bromegrass pasture consisting of 16 paddocks, each 1.7 acre in size, was available. Each treatment group had access to 1 paddock at a time and was rotated at approximately 3-day intervals. In the feedlot, steers were provided an 82% concentrate diet containing whole-shelled corn, ground alfalfa hay, and a protein, vitamin and mineral supplement containing ionophore and molasses. As pens of cattle reached about 1150 lb. average live weight, they were processed and carcass traits were evaluated. Pasture daily gains were highest for cattle on pasture for the longest duration (P < .03), and overall daily gains were highest for drylot cattle (P < .01) and decreased with increased time spent on pasture. Although differences among treatments existed in numerical scores for yield and quality grades (P < .05 and P < .03, respectively), all treatments provided average yield grade scores of 2 and quality grades of low Choice or higher. Use of four production costs and pricing scenarios revealed that fall-born calves placed on pasture for varying lengths of time were the most profitable (P < .04) among the treatments. Furthermore, employing a 5% price sensitivity analysis, indicated that fed-cattle selling price had great impact on profit potential and was followed in importance by feeder purchase price and corn grain price. Overall, these findings should provide significant production alternatives for some segments of the cattle feeding industry and also lend substantial credence to the concept of sustainable agriculture.

Integrating the Use of Spring- and Fall-Calving Beef Cows in a Year-round Grazing System (A Progress Report)

Animal production, hay production and feeding, and the yields and composition of forage from summer and winter grass-legume pastures and winter corn crop residue fields from a year-round grazing system were compared with those of a conventional system. The year-round grazing system utilized 1.67 acres of smooth bromegrass-orchardgrass-birdsfoot trefoil pasture per cow in the summer, and 1.25 acres of stockpiled tall fescue-red clover pasture per cow, 1.25 acres of stockpiled smooth bromegrass-red clover pasture per cow, and 1.25 acres of corn crop residues per cow during winter for spring- and fall-calving cows and stockers. First-cutting hay was harvested from the tall fescue-red clover and smooth bromegrass-red clover pastures to meet supplemental needs of cows and calves during winter. In the conventional system (called the minimal land system), spring-calving cows grazed smooth bromegrass-orchardgrass-birdsfoot trefoil pastures at 3.33 acres/cow during summer with first cutting hay removed from one-half of these acres. This hay was fed to these cows in a drylot during winter. All summer grazing was done by rotational stocking for both systems, and winter grazing of the corn crop residues and stockpiled forages for pregnant spring-calving cows and lactating fall-calving cows in the year-round system was managed by strip-stocking. Hay was fed to springcalving cows in both systems to maintain a mean body condition score of 5 on a 9-point scale, but was fed to fall-calving cows to maintain a mean body condition score of greater than 3. Over winter, fall-calving cows lost more body weight and condition than spring calving cows, but there were no differences in body weight or condition score change between spring-calving cows in either system. Fall- and spring-calving cows in the yearround grazing system required 934 and 1,395 lb. hay dry matter/cow for maintenance during the winter whereas spring-calving cows in drylot required 4,776 lb. hay dry matter/cow. Rebreeding rates were not affected by management system. Average daily gains of spring-born calves did not differ between systems, but were greater than fall calves. Because of differences in land areas for the two systems, weight production of calves per acre of cows in the minimal land system was greater than those of the year-round grazing system, but when the additional weight gains of the stocker cattle were considered, production of total growing animals did not differ between the two systems.

Evaluation of Wet Distillers Grains in Finishing Diets for Yearling Steers

A feeding trial was conducted with 940-lb yearling steers fed 113 days to determine the feeding value of distillers grains relative to corn grain. Replacing corn and urea with wet distillers grains for 20% of the diet dry matter tended to increase gain with no increase in feed consumption, resulting in improved feed conversion. Replacing 40% of diet dry matter with wet distillers grains decreased feed intake without affecting gains, and improved feed efficiency. The overall average estimated net energy value of wet distillers grains was 1.20 Mcal NEg per pound dry matter. This experiment confirmed the observations in previous cattle feeding experiments, that for finishing cattle wet distillers grains have a high energy value compared with cracked corn grain. Another objective of the study was to determine if cattle being fed wet distillers grains could be suddenly changed to a different diet if the supply of wet feed was suddenly disrupted. It was found that if intake is managed during the change, that distillers grains portion of the diet can be suddenly changed from wet to dry and then changed back to wet after a week, without sacrificing performance of the cattle.

Jackson County Heifer Development Project Summary

The heifer development project was a five year project conducted on the site of the former Jackson County Farm north of Andrew, Iowa, for four years and on an area producer’s farm for the fifth year. Heifers arrived around December 1 each year and the average number of heifers each year was 43 with a low of 37 and high of 47. After a 30+ day warm-up period the heifers were put on a 112-day test from early January to late April. They were fed a shelled corn and legume-grass hay ration consisting of between 13% and 14% crude protein and a range of .44 to .58 megacal/pound of NEg over the five years. During the 112-day test heifers gained 1.86, 1.78, 1.5, 1.63 and 2.2 pounds per day, respectively, for years 1992 through 1996. The actual average breeding weight was less than the target weight in three years by 5, 12 and 22 pounds and exceeded the target weight in two year by 17 and 28 pounds. Estrus synchronization used a combination of MGA feeding and Lutalyse injection. Heifers were heat detected and bred 12 hours later for a three-day period. On the fourth day, all heifers not bred were mass inseminated. Heifers then ran with the cleanup bull for 58 days. The average synchronization response rate during the project was 79%. The overall pregnancy rates based on September pregnancy averaged 92%. The five year average total cost per head for heifer development was $286.18 or about $.85 per day. Feed and pasture costs averaged 61% of the total costs.

Jackson County Heifer Development Project Update

The heifer development project took place the past four years on the site of the former Jackson County Farm north of Andrew, Iowa. Heifers arrived around December 1 with 38 heifers delivered for 1992, 44 for 1993, 46 for 1994, and 47 for 1995. After a 30+ day warm-up period, the heifers were put on a 112-day test from early January to late April. They were fed a shelled corn and legume-grass hay ration consisting of between 13% and 14% crude protein and .48, .58, .44, and .54 megacal/pound of NEg respectively for the years 1992 - 1995. During the 112-day test heifers gained 1.86, 1.78, 1.5, and 1.63 pounds per day respectively for years 1992 through 1995. The 1995 heifers averaged 853 pounds at breeding (22 pounds under target weight). This compares with previous years in which the breeding weight was less than target weight in two years by 5 and 12 pounds and exceeded the target weight in one year by 17 pounds. Estrus synchronization used a combination of MGA feeding and Lutalyse injection. Heifers were heatdetected and bred 12 hours later for a three-day period. On the fourth day, all heifers not bred were mass inseminated. Heifers then ran with the cleanup bull for 58 days. The synchronization response rate in 1995 was 83%, which compares with the three year previous average of 77%. The overall pregnancy rates based on September pregnancy exams were 94.6% in 1992, 93% in 1993, 91% in 1994, and 91.5% in 1995. Development costs for the 326 days in 1995 totaled $269.14 per heifer. This compares with the average of $286. 92 for the three previous years. The four-year average total cost per head for heifer development was $282.48, or about $.84 per day. Feed and pasture costs represented 58% of the total costs, or $.49 per day.

Soybean Aphid Efficacy Evaluation

Soybean (Glycine max), grown in Iowa and most of the north central region of the United States, has not required regular insecticide use. The soybean aphid, Aphis glycines (Hemiptera: Aphididae), causes yield losses from direct plant feeding, and has been shown to transmit several plant viruses. In Iowa, soybean aphid can colonize soybean fields in June and has developed into outbreaks in July and August capable of reducing yields by nearly 40 percent.

Soybean Aphid Efficacy Evaluation

Soybean, Glycine max (L.), grown in Iowa and most of the north central region of the United States, has not required regular insecticide usage. The soybean aphid, Aphis glycines (Hemiptera: Aphididae), causes yield losses from direct plant feeding, and has been shown to transmit several plant viruses. In Iowa, soybean aphid can colonize soybean fields in June and has developed into outbreaks in July and August capable of reducing yields by nearly 40 percent.