“When cattle numbers are down, producers need
to maximize the return per head,” Swigert says. “Pre- conditioning offers that potential.” According to Swigert’s research, 2008 was the only
one of the past 15 years where the average of precondi- tioned spring-weaned calves in Noble’s Integrity Beef Alliance program did not make money when marketed in the fall. Producers participating in the program have averaged a net increase of $100 per head for precondi- tioning for the 45- to 60-day time period, he says. In 2014, some netted as much as $300 to $350 per head. In many years, the net profi t from the precondition-
ing phase was as much or more as from the cow-calf phase, thus doubling the net income to the operation with the same number of calves, Swigert says. While this doesn’t happen every year, it is a means of increas- ing revenue for the operation without signifi cantly changing the structure of the ranch. “Over time, preconditioning can provide signifi cant
economic value if a producer does everything right,” Swigert says. “But it’s not worth the time or effort if a producer has genetically inferior cattle, a poor health program or poor nutrition. Death loss can wipe out any potential gains.”
If you have good cattle,
the longer you keep them, the more money you tend to make.
Preconditioning also requires facilities and exper-
tise. The availability and cost of these elements need to be considered before embarking on a new program. “I’ve worked with people who didn’t have the fa-
cilities and expertise to handle the preconditioning themselves, but because of the potential upside they contracted with other people to do the precondition- ing for them,” Swigert says. “It’s important to put a pencil to it.” In addition, producers should put a pencil to the
cost of gain versus the value of gain. Wells says, “Preconditioning makes the most sense
when the value of gain is greater than the cost of gain. The difference between the 2 is the profi t margin.” The value of a preconditioning investment is real-
ized in several ways. First, preconditioning removes the “bawling calf” discount at the auction market and
act like owners – they have a vested interest in the cattle they care for. Get to know the individuals who make Cactus Feeders a success.
Cactus Feedyard Pistol Audrain, Manager Cactus, TX (806) 966-5151
Centerfire Feedyard Martin Daharsh, Manager Ulysses, KS (620) 356-2010
Frontier Feedyard Ross Kelso, Manager Spearman, TX (806) 882-4251
Hale Center Feedyard Jess Turner, Manager Hale Center, TX (806) 879-2104
Southwest Feedyard Buddy Thomas, Manager Hereford, TX (806) 364-0693
Stratford Feedyard Tres Hess, Manager Stratford, TX (806) 396-5501
Ulysses Feedyard Randy Shields, Manager Ulysses, KS (620) 356-1750
Wolf Creek Feedyard David Watts, Manager Perryton, TX (806) 435-5697
Wrangler Feedyard Walt Garrison, Manager Tulia, TX
(806) 668-4741 At Cactus, our Employee Stock Ownership Plan (ESOP) makes each employee an owner of the company.
When they think like owners, they take care of the cattle as if they own them. That’s the secret to what has made Cactus Feeders a continuing success. Retained Ownership
Call Brent Caviness, Surcy Peoples, Bill Hicks or Dusty Lubbock
806-373-2333 • 877-698-7355
tscra.org
Partner on Cattle • Sell Us Cattle
www.cactusfeeders.com
FEEDERS July 2015 The Cattleman 51 When our employees drive through the gate, they think and
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