Cow-Calf Production from Alfalfa-Grass or Smooth Bromegrass Pastures Rotationally Grazed at Three Stocking Rates

Pastures containing alfalfa-grass or smooth bromegrass were stocked with .6, .8, or 1.0 cow-calf units per acre to compare cow and calf production in rotational grazing systems managed for optimum forage quality. To remove excess forage early in the grazing season, yearling heifers or steers grazed with the cows in each pasture at a stocking rate of .6 ccu per acre for the first 28, 37, and 40 days of grazing in years one, two, and three. Live forage density and days of grazing per paddock were estimated by sward height. Cows, calves, and yearlings were weighed and cows condition scored every 28 days. All cows grazed for 140 days unless forage became limiting. The cows on the smooth bromegrass pasture stocked at 1.0 cow-calf units per acre were removed after 119 days in 1994, 129 days in 1995, and 125 days in 1996. Cows on one of the alfalfagrass pastures stocked at 1.0 ccu per acre were removed after 136 days of grazing in 1996 because of lack of forage. Alfalfa-grass pastures tended to have a more consistent supply of forage over the grazing season than the bromegrass pastures. Cows grazing the alfalfa-grass pastures had greater seasonal weight gains and body condition score increases and lower yearling weight gains than the smooth bromegrass pastures. Daily and total calf weight gains and total animal production also tended to be greater in alfalfa-cool season grass pastures. Increasing stocking rates resulted in significantly lower cow body condition increases and yearling weight gains, and also increased the amounts of calf and total growing animal produced.

Cow-Calf Production from Alfalfa-grass or Smooth Bromegrass Pastures Rotationally Grazed at Different Stocking Rates

Pastures containing alfalfa-smooth bromegrass or smooth bromegrass were stocked with .6, .8, or 1.0 cow-calf units per acre to compare cow and calf production in rotational grazing systems managed for optimum forage quality. To remove excess forage early in the grazing season, yearling heifers grazed with the cows in each pasture at a stocking rate of .6 heifers per acre for the first 28 days of grazing. Live forage density and days of grazing per paddock were estimated by sward height. Cows, calves, and heifers were weighed and cows condition scored every 28 days. All cows grazed for 140 days except those grazing the smooth bromegrass pasture stocked at 1.0 cow-calf units per acre; these were removed after 119 days in 1994 and 129 days in 1995 because of lack of forage. Alfalfa-grass pastures tended to have a more consistent supply of forage over the grazing season than the bromegrass pastures. Cows grazing the alfalfa-cool season grass pastures had greater seasonal weight gains and body condition score increases and lower heifer weight gains than the smooth bromegrass pastures. Daily and total calf weight gains and total animal production also tended to be greater in alfalfa-cool season grass pastures. Increasing stocking rates resulted in significantly lower condition increases and heifer weight gains, while increasing the amounts of calf and total growing animal produced.

Beef Cow Feeding Demonstration

Pregnant mature beef cows were fed one of five rations: tub ground hay, low corn supplementation plus hay, high corn plus hay, low corn gluten feed (CGF) pellets plus hay, and high CGF plus hay. All treatments resulted in weight gains and limited body condition score changes. The hay and high CGF pellet diet resulted in statistically different weight gains compared with the other supplementation programs.

Critical Control Points for Profitability in the Cow-Calf Enterprise

Financial, economic, and biological data collected from cow-calf producers who participated in the Illinois and Iowa Standardized Performance Analysis (SPA) programs were used in this study. Data used were collected for the 1996 through 1999 calendar years, with each herd within year representing one observation. This resulted in a final database of 225 observations (117 from Iowa and 108 from Illinois) from commercial herds with a range in size from 20 to 373 cows. Two analyses were conducted, one utilizing financial cost of production data, the other economic cost of production data. Each observation was analyzed as the difference from the mean for that given year. The independent variable utilized in both the financial and economic models as an indicator of profit was return to unpaid labor and management per cow (RLM). Used as dependent variables were the five factors that make up total annual cow cost: feed cost, operating cost, depreciation cost, capital charge, and hired labor, all on an annual cost per cow basis. In the economic analysis, family labor was also included. Production factors evaluated as dependent variables in both models were calf weight, calf price, cull weight, cull price, weaning percentage, and calving distribution. Herd size and investment were also analyzed. All financial factors analyzed were significantly correlated to RLM (P < .10) except cull weight, and cull price. All economic factors analyzed were significantly correlated to RLM (P < .10) except calf weight, cull weight and cull price. Results of the financial prediction equation indicate that there are eight measurements capable of explaining over 82 percent of the farm-to-farm variation in RLM. Feed cost is the overriding factor driving RLM in both the financial and economic stepwise regression analyses. In both analyses over 50 percent of the herd-to-herd variation in RLM could be explained by feed cost. Financial feed cost is correlated (P < .001) to operating cost, depreciation cost, and investment. Economic feed cost is correlated (P < .001) with investment and operating cost, as well as capital charge. Operating cost, depreciation, and capital charge were all negatively correlated (P < .10) to herd size, and positively correlated (P < .01) to feed cost in both analyses. Operating costs were positively correlated with capital charge and investment (P < .01) in both analyses. In the financial regression model, depreciation cost was the second critical factor explaining almost 9 percent of the herd-to-herd variation in RLM followed by operating cost (5 percent). Calf weight had a greater impact than calf price on RLM in both the financial and economic regression models. Calf weight was the fourth indicator of RLM in the financial model and was similar in magnitude to operating cost. Investment was not a significant variable in either regression model; however, it was highly correlated to a number of the significant cost variables including feed cost, depreciation cost, and operating cost (P < .001, financial; P < .10, economic). Cost factors were far more influential in driving RLM than production, reproduction, or producer controlled marketing factors. Of these cost factors, feed cost had by far the largest impact. As producers focus attention on factors that affect the profitability of the operation, feed cost is the most critical control point because it was responsible for over 50 percent of the herd-to-herd variation in profit.

A 13-Year Summary of the ISU Beef Cow Business Record

A 13-year summary of the Iowa State University Extension Service’s Beef Cow Business Record (BCBR) was compiled to show the trends in cost, profit, and production for beef-cow enterprises in Iowa. During these 13 years, 966 yearly records were summarized on herds with an average size of 74.6 cows. Each year-end summary sorts the producers with profits in the top and the bottom thirds of the group so that differences can be analyzed. The average cost to maintain a beef cow from 1982 to 1994 was $370.80. Cost components included in this average total were: feed and pasture, $177.10; operating, $45.40; depreciation, taxes, and insurance, $19.70; labor, $44.90; and capital, $83.70. Producers sorted into the top one-third profit group had 13-year average total cow costs of $309.80, but the bottom onethird profit group averaged $437.10. Economic returns per cow for these same 13 years were: return to capital, labor, and management, $139.50; return to labor and management, $56.20; and net profit, $20.20. Top-profit producers had an average net profit of $126.20 per cow, whereas the least profitable group had an average loss of $107.40. Of this $233.60 difference, $127.30 was due to production cost, and the remaining $106.30 was caused by gross return differences. The average number of pounds of beef produced per cow from 1984 through 1994 was 567. This production was achieved with 2.5 acres of pasture, 3.9 acres of cornstalk grazing, and 4,675 pounds of stored feed per cow unit. Top-profit producers used 673 pounds of stored feed per hundredweight of production, but the least profitable producers used 1,015 pounds. Top-profit producers produced 74 pounds more per cow while using 1,313 pounds less stored feed.

Evaluation of a Year-Round Grazing System: Summer Cow-Calf Progress Report

A comparison was made between two different summer grazing systems. One system was the summer component of a year-round grazing system, involving the rotational stocking of smooth bromegrass--orchardgrass--birdsfoot trefoil pastures and winter stockpiles pastures with cowcalf pairs co-grazing with stocker yearlings at .75 animal units per acre. That system was compared with a minimal land system involving the rotational stocking of smooth bromegrass--orchardgrass-- birdsfoot trefoil summer pastures with cow-calf pairs grazing at .64 animal units per acre and hay removal from 25% of the pasture. Stocker yearlings or hay removal were used as management tools to remove excess forage and optimize forage quality. Hay was removed once from three fourths of the winter stockpiled pastures and one fourth of the allocated summer pastures. Cow-calf pairs grazing in the year-round system utilized on fourth of the winter stockpile pastures due to lack of forage, whereas cow-calf pairs grazing with hay removal were supplemented with harvested hay for two weeks during the summer. Grazing system did not affect cow body weight, condition score, or daily calf weight gain. Growing animal production per acre was affected by grazing system, with the minimal land system having a higher production level.

Evaluation of Stockpiled Berseem Clover and Brown Midrib Sorghum x Sudangrass as Supplements for Grazed Cornstalks in Beef Cow Wintering Systems

Berseem clover and oats were incorporated into a corncorn- oat/berseem clover rotation in 1994 and 1995. Two cuttings of oat-berseem clover hay were harvested during the summer before forage was allowed to stockpile for winter grazing. In 1995, a brown midrib sorghum x sudangrass hybrid was seeded into a field adjacent to a corn field. After corn grain harvest in 1994 and 1995, Charolais x Angus x Simmental cows in midgestation were allotted to replicated fields containing corn crop residues with no complementary forages at 2.5 acres/cow, or corn crop residues and stockpiled berseem clover (2:1) at 2.5 acres/cow to simultaneously graze, or to a drylot. In 1995, cows were allotted to fields containing corn crop residues and brown midrib sorghum x sudangrass (7:3) at 2.5 acres/cow. Berseem clover had greater concentrations of digestible organic matter and crude protein than corn crop residues at the initiation of grazing, but had a more rapid decrease in digestible organic matter concentration than corn crop residues. Brown midrib sorghum x sudangrass forage also had a higher initial concentration of digestible organic matter, but an equal rate of decrease in digestible organic matter concentration to corn crop residues in ungrazed areas of the field. Cows grazing berseem clover with corn crop residues had greater body condition score increases during the first half of the grazing season than cows grazing corn crop residues without complementary forages. Cows grazing corn crop residues without complementary forages required 2,786 and 1,412 less lb hay per cow than cows maintained in a drylot in 1994 and 1995. In 1994, simultaneous grazing of berseem clover with corn crop residues did not reduce hay feeding more than feeding corn crop residues alone. However, in 1995, grazing berseem clover or brown midrib sorghum x sudangrass with corn crop residues reduced the amount of hay required to maintain cows by 358 and 376 lb hay per cow compared with grazing corn crop residues without complementary forage.

Evaluation of a Year-Round Grazing System: Summer Cow-Calf Progress Report

A comparison was made between two different summer grazing systems at the McNay Research Farm. One system was the summer component of a year-round grazing system, involving the rotational stocking of smooth bromegrass-orchardgrass-birdsfoot trefoil pastures and winter stockpile pastures with cow-calf pairs co-grazing with stocker yearlings at .75 animal units per acre. That system was compared with a minimal land system involving the rotational stocking of smooth bromegrass-orchardgrass-birdsfoot trefoil summer pastures with cow-calf pairs grazing at .64 animal units per acre and hay removal from 25% of the pasture. Stocker yearlings or hay removal were used as management tools to remove excess forage and optimize forage quality. Hay was removed once from three fourths of the winter stockpiled pastures in 1996 (Yr. 1) and all the pasture in 1997 (Yr. 2). One hay removal occurred on one fourth of the allocated summer pastures in Year 1 and one half of the pastures in Year 2. In Year one, cow-calf pairs grazing in the year-round system utilized one fourth of the winter stockpile pastures due to a lack of forage on the summer pastures, whereas in Year 2 cowcalf pairs grazed winter stockpile pastures to remove forage as a second cutting of hay. Cow-calf pairs grazing with hay removal were supplemented with harvested hay for two weeks during the summer of Year 1 due to lack of grazable forage; in Year 2, no supplementation was needed. Grazing system did not affect cow body weight, condition score, or daily calf gain in either year. Growing animal production per acre was affected by grazing system, with the minimal land system having a higher production level in Year 1 and Year 2. The year-round system also produced more net winter forage than did the minimal land system in Year 1. Differences in forage yield and quality were only observed between winter stockpile forages of tall fescue-red clover and smooth bromegrass-red clover and summer pastures during the months of June, July, and August.

Evaluation of Stockpiled Berseem Clover and Brown Midrib Sorghum x Sudangrass as Supplements for Grazed Cornstalks in Beef Cow Wintering Systems

Berseem clover and oats were incorporated into a corn-oat/berseem clover rotation in 1994-1996. Two cuttings of oat-berseem clover hay were harvested during the summer before forage was stockpiled for winter grazing. In 1995, brown midrib sorghum x sudangrass hybrid was seeded into a field adjacent to a corn field. This was repeated in 1996 with a standard sorghum x sudangrass hybrid. After corn harvest in 1994–1996, Charolais x Angus x Simmental cows and heifers in midgestation were allotted to corn crop residue, corn crop residue-berseem clover, and corn crop residue-sorghum x sudangrass fields at 2.5 acres/cow, or to a drylot. Berseem clover had greater concentration of digestible organic matter and crude protein than corn crop residues. Corn crop residue digestible organic matter concentration was lower than berseem clover and the brown midrib sorghum x sudangrass, but was higher than that of the standard sorghum x sudangrass hybrid in 1996. Cows grazing corn crop residues without complementary forages required an average of 2,374 less lb. hay per cow than cows maintained in a drylot in 1994-1996. In 1994 and 1996, simultaneous grazing of berseem clover with corn crop residues did not reduce hay feeding more than feeding corn crop residues alone, yet did significantly reduce the amount of hay needed in 1995 to maintain cows by 358 and 376 lb. hay per cow compared with grazing corn crop residues without complementary forage.

Profiting from the Cattle Cycle: Alternative Cow Herd Investment Strategies

Beef cow herd owners can benefit from incorporating price signals into their heifer retention decisions. Whereas a perfect forecast of calf prices over the productive life of the heifer added to the herd would be ideal, such information is not available. However, simple decision rules that incorporate current or recent prices and the knowledge that the cattle cycle likely will repeat itself can help producers improve their investment decisions. A dollar cost averaging strategy that retains the same dollar value of heifers each year and a rolling average value strategy that retains a 10-year average value of heifers out performed strategies that sought to maintain a constant herd size or a constant cash flow.

Alternative Cow Herd Investment Strategies: Constant Size and Constant Investment

Two heifer replacement strategies were compared over a 25-year period. One strategy retained the same number of heifers each year to maintain a constant herd size. The second strategy retained the same dollar value of heifer calves each year based on their opportunity cost as feeder calves. The constant investment strategy herd size varied throughout the period, but generated higher average profit and higher net worth than did the constant herd size strategy. Constant investment is a simple strategy to adjust the level of investment in beef cows and the resource base (pasture, labor, winter feed) in response to market signals driven by the cattle cycle. This strategy automatically increases heifer retention when the opportunity cost is low and reduces the number retained when cost is high. The effect is a lower average cost of cows in the herd, lower overall investment, and a higher net return on investment. Iowa producers, who often have greater flexibility in land use than producers in other major beef cow regions, can better utilize this strategy that generates greater profits and net worth growth.