Transcript Chapter 13: Range livestock production

Chapter 13 : Range Livestock Production
1. Economics of range
livestock production
a. Product demand
b. Prairie versus desert
ranches
c. Ranch size
d. Comparative financial
returns
e. Cattle price cycles
2. Range Livestock
management
a. Reproduction
b. Crossbreeding
c. Animal selection
3. Common use grazing
4. Drought management
5. Poisonous plant
problems
a. Types of poisonous
plants
b. Preventing livestock
poisoning
Components of Sound Western Ranching
1. Grazing Management
a. Stocking
b. Grazing system
c. Drought plan
2. Ranch Capitalization
a. Water
b. Fence
c. Corrals
d. Roads
e. Other
3. Livestock Management
a. Livestock selection
b. Breeding program
c. Healthcare
d. Supplemental feeding
e. Poisonous plants
4. Brush Management
a. Grazing
b. Fire
c. Herbicide
d. Mechanical
e. Biological
Components of Sound Western Ranching cont.
5. Government
Assistance
a. Drought relief
b. Technical assistance
c. Vegetation
management
d. Conservation
6. Government
Regulations
a. Endangered species
b. Clean air
c. Clean water
d. Land use
e. Penalties
f. Incentives
Components of Sound Western Ranching cont.
7. Product Demand
a. Livestock
b. Wildlife
c. Recreation
d. Plants
e. Ecosystem services
f. Other
8. Monitoring Programs
a. Rain fall
b. Forage production
c. Trend in ecological
condition
d. Livestock productivity
e. Financial returns
f. Riparian health
g. Soil health
h. Wildlife populations
i. Grazing use
Components of Sound Western Ranching cont.
9. Risk Management Programs
a. Climate
b. Biological
c. Political
d. Financial
e. Other
10. Integration and Management.
Types of risk confronting western
ranchers
1. Climatic
2. Biological
3. Financial
4. Political
Desert versus Prairie ranches;
Large versus small
• Prairie (eastern)
ranches are more
profitable due to lower
production costs per
animal unit.
1. Lower land requirement
per animal unit.
2. Forage is green for a
longer period during
the year.
3. Drought is less of a
problem.
4. Intensive land
management
5. Less government
regulation on private
land prairie ranches.
Large vs small ranchers
• Larger ranchers are
more profitable due to
economy of scale.
(Ranch economics handout)
Drought Management Principles
1. Drought is inevitable. Develop a forage reserve for
drought (stock at 65-75% of capacity).
2. Maintain one quarter of the livestock herd as a
readily marketable class of livestock.
3. Monitor monthly precipitation across the ranch.
4. Sell livestock quickly when drought conditions
become apparent.
5. Always have a good handle on ranch forage
resources.
6. Don’t rely on government feed programs.
7. Keep constant check on livestock water supplies.
Drought Management Principles cont.
8. Completely de-stock any pasture if stubble heights
drop below 1 inch on short grasses, 4.5 inches on
mid grasses and 8 inches on tall grasses.
9. Restock pastures after they receive one growing
season of deferment and average or above average
rainfall.
10. Don’t try to feed your way out of drought. Try to
retain one quarter of grazing capacity in drought.
11. Store silage, hay and other feeds when plentiful and
inexpensive.
12. Keep livestock well distributed across ranch during
drought.
Table 13. Forage Production (lbs/acre) on Moderately and Conservatively
Stocked Pastures in Drought Compared to 6-years average on the Chihuahuan Desert
Rangeland Research Center.
Grazing intensity
Drought
6 year
Drought year
years
Average
as percent
1994 & 1995 1993-1998 of Average
Moderate
(40-45% use)
44
194
23%
Conservative
(30-35% use)
89
273
33%
Source Molinar 1999, Molinar et al, 2002.
Table 12. Forage Production (lbs/acre) on Heavily and Moderately Stocked
Pastures in Drought Compared to 10-years Average on the Fort Stanton Experimental
Range in New Mexico.
Grazing intensity
Heavy
(50-55% use)
Moderate
(40-45% use)
Drought
Years
1974
10 years
Average
(1970-1979)
Drought year
as percent
of average
103
607
17%
235
740
32%
Source: Pieper et al. 1991, Holechek, 1994.
Common Use Grazing
 Advantages
 Limitations
1.
1.
2.
3.
4.
5.
Complementarity due to
differences in forage plant
and terrain preferences
Maintaining a desired
balance between forage
species
Providing stability in grazing
land ecosystems
Providing diversity of income
and more uniform cash flow
Aiding in the control of
internal parasites (i.e. for
sheep when cattle are
present)
2.
3.
4.
5.
Increased facility costs, such
as fencing, watering, and
handling facilities.
Reduced scale of enterprise
resulting in reduced
technological efficiency
Conflicts in labor needs
Need for increased
management skills and
knowledge
Greater predator problems
(adding sheep or goats to
cattle).
Common Use Grazing cont.
 Advantages
 Limitations
6. Developing mutually beneficial
interrelationships between
animal species
7. Maximizing yield of animal
products through greater
biological efficiency
8. Sheep utilization of forage
affected by cattle feces
6. Marketing made more complex
7. Antisocial behavior between
animal species in limited
situations
8. Differential suitability of
climates to different animal
species
9. Required proper stocking ratios
between animal species
Range Livestock Management Principles
1. Heterosis (hybrid vigor) can substantially increase
livestock productivity if cross-breds are used.
2. Control of breeding is critical.
a. High level of nutrition after calving is essential
b. Cow/bull ratio and pasture size must insure all cows
have the opportunity to get pregnant (1 bull to 20
cows considered optimal).
3. Non-breeding animals must be identified and
removed from the herd.
4. Calf crops should be at least 80% and lamb crop
100%
5. Separate first calf heifers from cows during calving –
first heifers need extra care.
Range Livestock Management Principles
cont.
6. Do not overfeed heifers or cows, this causes
dystocia (calving difficulty).
7. Calving should be prior to forage growth so cow and
calf can capitalize on the high quality forage.
8. Vaccinate livestock for the diseases in the area.
9. Do not permit an extended breeding season.
 Advantages of 65-day breeding season
a. Increased weaning weights
b. More uniform calves
c. Can identify low producing cows
Range Livestock Management Principles
cont.
10. Do not overgraze
Consequences
a. Reduced weights
b. Smaller calf crops
c. Death losses are increased
d. Forage resource is destroyed
11. Supplement minerals that are deficient.
General Rules to Prevent Livestock
Poisoning by Plants
 Prevention is the best cure.
1. Do not misuse the range so as to bring about
the invasion of new species –may be poisonous.
2. Learn to recognize poisonous plants.
3. Avoid areas where poisonous plants are
abundant.
4. Do not force animals to remain on the range
after they have utilized the good forage species.
General Rules to Prevent Livestock
Poisoning by Plants cont.
5. Do not allow animals on the spring range until the
good forage species have made sufficient growth to
support them.
6. When animals have been on dry feed, or have been
deprived of forage they should not be put on ranges
containing poisonous species until well fed.
7. Use plenty salt – lack of it may cause the animals to
eat plants not normally eaten.
8. Graze with the kind of livestock not poisoned by the
plant in question.
9. Poisonous plants may be sometimes eradicated by
grubbing or spraying where economical.
Basic Information
1. Historically, return on investment for Western
ranches has been between 1-3%.
2. The average 250 animal unit ranch in New Mexico is
valued between $750,000 and $1,400,000.
3. As ranch size increases, the profitability of ranching
tends to increase due to economy of scale.
4. The average medium size in ranch in New Mexico
involves about 250 animal unit and has provided the
operator with about $26,000 per year in net income in
1989-1992 period.
Basic Information cont.
5. Since WWII, real returns from western ranches
peaked in 1961 and have since gradually
trended downwards with periodic upturns such
as 1978-1979 and 1988-1992.
6. Generally sheep ranches give higher returns
than cattle ranches. In recent years yearling
operations have been more profitable than
cow/calf operations.
7. Ranches on arid lands in the west are less
profitable than ranches in the great plains and
southeastern USA.
Basic Information cont.
8. Percentage calf/lamb crop is the major factor
influencing the profitability of mother/young
ranching operations.
9. Compared to other businesses and investments,
ranches are low in profitability. In recent years
corporate profits have been around 12%, long
term US government bonds (30 years) 7.5%,
money market accounts 3-4%, corporate bonds
(AAA) 8-10%, junk bonds 12-16%, and stock
market returns (S & P) 500) of 18%. In contrast,
western ranches have returned around 1-2% in
arid lands (deserts) and 3-5% in the Great Plains.
Western ranching is considered more risky than
any of these other investments.
Basic Information cont.
10. Presently the outlook for the 2000’s is for cattle
prices to increase due to rising demand. The
problem is that ranching costs are increasing.
11. Arid land ranches are inefficient for beef production
compared to more humid areas because low, erratic
rainfall and rugged terrain require more
infrastructure per animal unit than in the wetter
areas. Furthermore, intensive management practices
are more difficult when animals are scattered over
large areas.
(Ranch economics handout)
Advanced Information
1. Range improvements such as rotation grazing
systems, brush control and seeding have seldom
been financially effective on western ranches
compared to alternative investments (bonds, stocks,
money market funds, real estate). In many cases
these range improvements have actually lost money
for the rancher. Brush control has been a particularly
poor investment although exceptions exist (big
sagebrush range) because brush often reinvades the
area within 5 to 15 years. Recovery of investment
usually requires 20 to 30 years of increased forage
benefits.
Advanced Information cont.
2. Financial benefits of grazing systems and brush
control tend to increase as precipitation
increases. These investments are most effective
in areas with over 20 inches of annual
precipitation and relatively flat terrain.
3. Supplemental feed is the major variable cost for
western ranches. In New Mexico it varies
between $30 and $60 per animal unit depending
on year and range type. Research shows this
cost should be between $10 and $20/AU on well
managed ranged.
Advanced Information cont.
4. Based on the research, financial returns are
much higher on good condition than poor or fair
condition range. This is particularly true in arid
areas. The surest way to improve range
condition and forage production is with a
conservative stocking rate (35% use of forage).
5. Drought has been one of the biggest factors
adversely impacting ranchers on western
ranges. Conservative stocking has proven to be
one of the very best strategies to minimize the
adverse impact of drought in ranching monetary
returns.
Advanced Information cont.
6. Financially, the most sound strategy for arid land
ranches is to use a conservative stocking rate (35%
use of forage), a continuous or simple deferred
rotation grazing scheme, a carefully thought out
supplemental feeding program, and intensive
breeding program and intensive replacement heifer
management program.
*7. Percentage calf crop weaned and sold is the major
factor regarding cattle ranching profitability on
western ranches. Stocking rate has been the most
important factor governing calf crop on western
ranges.
8. Generally rotation grazing systems have reduced
calf/lamb crop and weaning weights compared to
season-long or continuous grazing in arid areas.
This in turn has reduced monetary returns.