According to Mac Young’s research, the answer is yes. By Robert Fears
fi nancing is used to pay operating expenses and to obtain capital for buying cattle,” said Young. “Produc- ers need to optimize weaning rates (calf numbers) and calf weights to improve profi tability and help mitigate higher risks.” According to the Beef 2007-2008 National Animal
Health Monitor Survey Report by USDA, calves are vac- cinated for clostridial diseases by 6 out of 10 ranchers. Five out of 10 ranchers castrate bull calves and growth implants are used by only 1 out of 10. One out of 3 producers deworm their calves. Failure to adopt these management practices reduces beef producer profi ts, especially for small-herd owners who are the least likely to use the practices. The FARM Assistance strategic planning model was
used to illustrate the individual fi nancial impacts of us- ing calf management practices by South Texas ranchers. Five scenarios were evaluated, listed in Table 1. A 2,000-acre ranch in this model consists of 1,800
tscra.org
acres of native pasture and 200 acres of established coastal bermudagrass used only for grazing. Under normal stocking conditions, the herd includes
200 cows (1 animal unit to 10-acre stocking rate) and 8 bulls (1 bull to 25 cows). Production inputs, yields, costs and estimates for
overhead charges were based on typical rates for the region. Assets, debts, machinery inventory and sched- uled equipment replacements for the projection period were the same in all management scenarios. It was as- sumed that the ranch had only intermediate-term debt. Cattle prices used were from the Live Oak Livestock Commission Company auction report in Three Rivers for June 9, 2014. Assumptions in the study were that a typical ranch
pregnancy-tests cows, does an annual breeding sound- ness exam on bulls and has a 90 percent calving rate. Weight gain and death loss assumptions in the scenarios were based on research conducted by Texas
April 2016 The Cattleman 75
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