available capital very quickly, and its annual deprecia- tion costs can seriously reduce ranch profi ts. Most of us enjoy buying equipment, but heavy metal disease can kill your profi ts. “A gooseneck stock trailer is probably not necessary
if you haul cattle to market only once or twice a year,” says Dr. Jason Banta, Texas A&M AgriLife Extension Service. “Used 16-, 24-, or 32-foot trailers in good condition
will range in price from $8,000 to $13,000. Save input costs by renting a trailer or hiring someone to haul cattle for you; however, it is a good idea to own a bumper-pull stock trailer with a 4- or 5-cow capacity, so you have a way to haul sick cattle to the veterinarian. “One of the highest input costs that reduce ranch
profi ts is depreciation of hay harvest equipment,” Banta continues. “This equipment usually includes a mower, conditioner, rake, baler, at least 2 tractors, hay forks and trailers. It is hard to justify this much equipment unless you are in the custom hay harvesting business. “Always lease hay equipment if at all possible,” Banta
says. “The best way to avoid these expenses is to avoid harvesting hay. When and where possible, let your cows harvest the forage while it is standing in the fi eld.
Consider purchasing hay that is needed during the cold part of winter instead of trying to produce it yourself. Above all, try not to practice recreational hay baling.” “A new 1-ton pickup with all the available extras is
hard to justify every year to 2 years,” says Bevers. “The economical way is to drive a pickup until necessary repairs justify its replacement. Will a half- or three- quarter ton truck fulfi ll its purpose as well as a 1-ton? Do you really need seat warmers in South Texas? Does the extra trim help the truck perform better? Resistance to the newest, biggest and best equipped truck on the road is a good cost control practice.” Bevers says, “A beef producer must be product-effi -
cient and business-minded to survive rising production costs.” Available ways to reduce expenses vary with each operation. A few management alternatives that you may wish to consider include: • Maintain adequate pasture forage. • Raise feed effi cient animals. • Recognize the value of a calf. • Build fl exibility into the marketing program. • Manage equipment inventory. Implementing some or all of these suggestions can help beef producers survive in a high-cost environment.
LITTLEROBE ANGUS • RANCH
19th Annual Production Sale
Saturday, March 22, 2014 • 1 P.M. At the Ranch • South of Higgins, Texas 50 Bulls – 12 to 18 months old 40 Open Heifers
All cattle sell with solid EPDs, performance and ultrasound information. Satisfaction Guaranteed! Time-Tested Genetics Since 1950
LITTLEROBE ANGUS • RANCH
Duane & Donna Jenkins
Email:
lilrobe@wildblue.net •
www.angusjournal.com/littlerobeangus Dale & Brenda Jenkins: Cell 806-255-8873
tscra.org March 2014 The Cattleman 103 11790 CR 30 • Higgins, TX 79046 • 806-852-4171
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