What is the Condition of Your Cow Herd? -

By: John Grimes, OSU Extension Beef Coordinator

Fall is a very exciting time for most of Ohio's commercial cow-calf operations. Since the majority of this state's producers utilize a spring calving season, they are in the midst of weaning and marketing this year's calf crop. This is the time to reap rewards for months of hard work and management towards the beef enterprise. Now is also a very important time to make management decisions that can affect your operation for years to come.

We are currently in the midst of record high prices for all classes of cattle. Regardless of the price of feeder calves, it is always of the utmost importance to maximize calf crop percentage from your herd. Most reproductive failures in beef females can be attributed to improper nutrition and thin body condition. If you have a concern over the body condition of your cow herd, this is a critical time to address this situation.

Scoring cows on the basis of body condition can be an important tool to help you maximize the reproductive potential of your herd. Body condition scores (BCS) basically describe the degree of fatness of a cow. A numerical range of 1 to 9 identifies the varying degrees of fatness, with 1 being very thin and 9 being excessively fat. Consult OSU Extension publication L-292, "Scoring Cows Can Improve Profits", for visual and descriptive aids with the various condition scores. If you prefer a video reference, this 8 minute YouTube from the Purdue Beef Team is well done.

The time period immediately after weaning is the ideal time to address body condition problems. For most spring calving herds, this would have the bulk of the cows in the second trimester of pregnancy. This is the easiest and most cost-effective time to make significant changes in the body condition scores of your cows.

Ideally, cows should be sorted by body condition at weaning time or approximately 100 days prior to calving. Group cows by condition score (example: thin, moderate and fat groupings) and feed them to reach a BCS of 5-7 by calving. This system will allow the producer to better match feedstuff quality with the nutritional requirements of the cow. Another suggested grouping system would be to group by supplemental feed needs. This system would go as follows: replacement heifers, young cows and thin older cows and mature cows in adequate condition.

Having cows in an ideal body condition at calving will pay dividends during the next breeding season. Cows scoring 4 BCS or lower can exhibit pregnancy rates at least 20% lower when compared to cows BCS 5-7. Regardless of feeder calf prices, this resulting loss of potential calves to sell could spell economic doom for many producers.

Beef Quality Assurance Certification Training

A Beef Quality Assurance Certification training (BQA) will be held on November 14^th at 10:00 am at the Adair County Cooperative Extension Service. BQA training includes education on proper handling of livestock to protect the safety of yourself and consumers. Certification is good for three year. Participants will be assessed a fee of $5 payable to KY BQA program to maintain the certification program.

The MAG-60 Program

To enhance the value of our feeder calves, KBN proposes the MAG (Management And Genetics) -60 (60-day postweaning) program. In this program, KBN will partner with beef producers to synchronize estrus in their beef females for timed insemination. Females will be time-inseminated to reduce the labor costs associated with AI. Producers will AI their females to a small, select group of sires that are proven in their ability to sire productive, profitable calves. The sires used will be selected by a committee that consists of UK Beef Extension Specialists, representatives of the semen supply companies, KBN, and producers. The same sires will be used for the entire project (3 breeding seasons).

Steers sired by AI will be managed according to CPH health requirements and will be backgrounded for a minimum of 60 days postweaning. The calves will be age and source verified and will be subjected to ultrasound to determine potential carcass merit. Thus, we will be marketing feeder steers that are age, source, and genetically verified for superior performance. According to our previous data (see above), these calves are $150 more valuable at harvest than steers from the same herds that are sired by non-proven natural service sires. Marketing agents in Kentucky have predicted that feeder calves that are age, source, and genetically verified are likely worth $7-10 more per hundred than a normal CPH-45 feeder if sold in load lots. Feeders produced in this program will be marketed in co-mingled, CPH-like feeder calf sales.

The heifers from the MAG-60 program will also greatly enhance the ability of our producers to increase profits. First, since all calves will be subjected to carcass ultrasonography, our cooperators herds can retain heifers with the genetic potential to excel in carcass traits. The ultrasound data can also be used to cull the cow herd of low performing mature cows. Second, heifers not retained will be developed and sold in a premium bred-heifer sale. This heifer sale(s) should also increase the cooperator's opportunity to diversify their marketing options and increase the profit potential.

Marketing data indicates that numerous loads of like cattle are needed to optimize market value. To obtain at least 1,000 steers for market, we must AI about 4,000 cows (50-60% conception rate and 50% of each sex). Thus, we need to AI at least 4,000 females a season to ensure 1,000 steers will be available to market.

The Requirements

KBN will provide:

• $20 per female for semen and AI technician charges
  
• ½ of the cost of the ultrasound
  
• List of potential sires
  
• Promotion of the program
  

Producers will provide:

• All costs for estrus synchronization products (approximately $20-$25)
  
• Labor and facilities to accomplish the AI
  
• ½ of the cost of the ultrasound
  
• Cost for age and source verification
  

Expectations of producers:

• Provide a healthy, properly conditioned female for estrus synchronization
  
• Pay for the synchronization pharmaceuticals, labor, and facilities to accomplish the timed AI
  
• Work with the KBN field representatives and the AI service technicians to coordinate breeding
  
• Process the cattle to meet CPH-45 health requirements
  
• Age and source verify the cattle
  
• Background the cattle for a minimum of 60 days before sale
  
• Subject the cattle to carcass ultrasound and pay for one-half of the cost
  
• Market the calves through MAG-60 sales (either feeder calf or bred heifer sales)
  
• If the producer chooses to market the cattle elsewhere, the producer will reimburse KBN for the full amount of the cost-share ($20 for AI plus the cost of the ultrasound). Cooperators will sign a contract that indicates they will market their feeders through MAG-60 or repay KBN their costs.
  

Expectations of KBN:

• Provide funding for cost of semen and service ($20)
  
• Provide funding for one-half the cost of the carcass ultrasonography
  
• Work with the faculty at the University of Kentucky to develop a list of bulls of various breeds to use and a breeding strategy
  
• Provide personal service and technical support to organize the estrus synchronization and AI, age and source verification, carcass ultrasonography, and sale dates and delivery
  
• Promote the MAG-60 sales
  

Benchmarks

Fall 2011 - synchronize and AI 4,000 commercial beef females

Spring 2012 - synchronize and AI 4,000 commercial beef females

Fall 2012 - synchronize and AI 4,000 commercial beef females

We assume that 2400 calves will be sired by AI each of these seasons. We project that we will be able to market 1,140 steers and 740 heifers. We anticipate about 400 heifers to be retained for breeding in the herds of the cooperators.

Potential for Future Research

The University of Kentucky will be collecting hair samples from each cow in every breeding herd. We will also obtain a sample from the bulls used for AI. These samples will be stored and the data collected. The data that will be collected includes shipping weight, post-weaning carcass ultrasonography, conception rate to AI, and cow performance of those heifers that are retained in the breeding herds. We are also plan to work with the marketing agents to obtain as much of the feedlot and carcass performance as possible.

These data will be collected and used to help secure future federal grants. Dr. Darrh Bullock at the University of Kentucky is a member of the National Beef Cattle Evaluation Consortium. This group of geneticists is leading the national effort in identifying genes associated with the important economic traits in beef cattle production. These will be unique data and could help advance our knowledge on the genetic regulation of growth, feedlot performance, and reproductive performance of beef cattle.

Understanding cold stress in livestock

LEXINGTON, Ky., (Jan. 27, 2010) – Kentucky is right in the throes of winter, and arctic blasts can cause problems for livestock operations, ranging from frozen waterers to sick cattle.

"In these situations, hindsight is often 20/20 due to lack of preparation," said Jeff Lehmkuhler, University of Kentucky College of Agriculture beef specialist. "I encourage folks to jot down the 'little things' in these instances and tuck them away as reminders of what they can do during the warmer days of fall leading up to winter. The key is to remember to dig these notes out in the fall and start the preparation before the cold hits."

Although fall preparation is best to get livestock through the stress of winter's cold, Lehmkuhler said producers need to have a basic understanding of livestock cold stress and why it's so important to protect animals during this time of year.

The lower critical temperature (LCT) value for cattle is the lowest temperature or windchill at which no additional energy is required to maintain core body temperature.

"As the temperature declines below this lower critical value, the maintenance energy value for the animal is increased to maintain core body temperature," he said. "Animals maintain core body temperature by increasing their metabolism resulting in greater heat production, as well as other heat conservation strategies such as reducing blood flow to the extremities, shivering, and increased intake."

Cold stress results in approximately a 1 percent increase in the maintenance energy requirement for each Celsius degree or two degrees Fahrenheit below the LCT. Lehmkuhler said several things can influence lower critical temperature value.

"Both external and internal insulation influences the LCT. External insulation is basically the depth and thickness of the hair coat, condition of the hair coat and thickness of the hide," he said. "Thin-hided breeds such as dairy breeds tend to have a lower insulating factor than thick-hided breeds like Herefords. The condition of the hair coat is extremely important as an external insulation barrier."

He explained the hair coat acts as insulation similar to home attic insulation that traps air, enhancing the insulating value. If the hair is wet and full of mud, air is excluded reducing the insulating value and increasing heat loss from the skin to the environment. The density of the hair coat and if it is wet or dry impacts the windchill temperatures at which cold stress is considered mild, moderate or severe. As little as 0.1 inch of rain can immediately impact cold stress severity by matting the hair down reducing its insulating ability. Acclimation time, hide thickness, fat cover and other factors will also influence the degree of cold stress animals experience.

Ambient temperatures can impact the amount of dry matter cattle eat, providing an opportunity to compensate for increased maintenance energy needs. Producers either need to increase their animals' feed intake or increase the energy density of the diet by feeding higher quality hay or adding more grain or fat to the grain mix, Lehmkuhler said.

"Looking at the December 2009 Kentucky Mesonet daily average temperature combined with average wind speed for wind chill temperature and average daily precipitation a teachable moment is seen," he said. "Taking the straight average temperature and the days when precipitation was 0.1 inch plus, 30 percent of the month of December cows could have been experiencing some degree of cold stress if exposed to the elements. Taking into account the days with windchill, this is increased to 12 out of 31 days or 39 percent of the month."

Lehmkuhler recommends producers continue to monitor cows during the wintertime and make sure to maintain the animals' body condition.

"Poor quality hay may not provide adequate energy to maintain gestating cows that are entering the third trimester," he said. "Consider having the hay tested to determine if you need to supplement during times of possible cold stress, especially for the enduring cold spells."

He said to consider separating younger and thinner cows that may not have the same internal insulation as conditioned older cows and supplement them accordingly or offer them higher quality forage if available.

"Producers should move cows to fields with natural windbreaks or provide man-made windbreaks which are not the same as a barn," he suggested. "Poorly managed barns combined with poor ventilation may actually hamper efforts of improving the environmental conditions. Lastly, remember it is energy or calories that are really needed. If the protein level in the forage is adequate, do not make supplement decisions based on protein level; rather purchase the most affordable calories. Stay warm and keep the waterers flowing."

FSA News: Signup Continues for Livestock Indemnity Program

Livestock producers are reminded that the deadline to report death losses under the Livestock Indemnity Program (LIP) is no later than 30 calendar days after the loss becomes apparent to the livestock producer. Producers are eligible for compensation on livestock deaths in excess of normal mortality that occur due to adverse weather conditions.

Eligible causes of loss include extreme heat, extreme cold, lightning, tornado, floods, hurricanes, blizzards, wildfires, tropical storm, earthquake and typhoon. For cases of extreme heat or extreme cold the Kentucky State FSA Committee sets guidelines to determine the eligible days for payment that deaths occur on.

Producers must provide documentation according to one of the following:

Verifiable Documentation for proof of death may include, but is not limited to: (1) rendering truck receipts or certificates; (2) National Guard records; (3) veterinary records; (4) records assembled for tax purposes; (5) production records; or (6) FEMA records. Verifiable documentation may also include property tax records, private insurance documents, written contracts, purchase records, bank or other loan documents. Documentation must provide sufficient data that identifies the kind/ type/ weight range of livestock and the number of livestock lost.

Reliable Records may be provided if adequate verifiable proof of death records documentation is not available, in conjunction with verifiable beginning and ending inventory records as proof of death such as, but not limited to: (1) contemporaneous producer records existing at time of event; (2) Dairy Herd Improvement (DHI) records; (3) vaccination/branding records; (4) brand inspection records; (5) pictures with a date; and (6) other similar reliable documents.

Third Party Certification may be accepted only when participant certifies in writing on an FSA-926 that no other form of proof of deaths is available and includes the number and physical location of livestock in inventory at time death occurs. Documentation must also be provided to support the number of livestock in inventory at the time the deaths occurred.

For additional information contact the Columbia FSA Service Center by phone at (270) 384-6431 or 1-888-758-6634 or come by the office at 961 Campbellsville Road, Columbia KY.

Managing Weak Calves

By: Dr. Charles L. Stoltenow, North Dakota State University Extension Veterinarian

Weak born calves can be caused by a number of different infectious and non-infectious conditions. This spring the most probable cause of weak calves will be related to physical condition of the cow. The thinner the cow or heifer, the more likely the occurrence of weak calves. That's only the first hurdle. The second will be the immune status of the calf during the early days of its life.

Neonatal calves depend on the cow for all physical and mental development prior to calving. All
muscle tissue, nerve fibers, and energy reserves present in the calf are dependent on the nutritional status of the cow. Cold weather and snow have significantly increased the protein and energy requirements of the cow.

The best cure for weak calves is prevention. Cows and heifers in good condition (body condition score of 5 or 6) have stronger calves than cows and heifers in thin condition (body condition score of 3 or 4). These calves stand quicker and nurse sooner. Cows and heifers in good condition also produce more colostrum than cows and heifers in thin condition. For adequate production of muscle, nervous tissue, and energy reserves in the calves, cows and heifers need adequate protein and energy in their diet.

Whether or not a calf is born weak, all calves require colostrum soon after calving to have a fighting chance of survival. Colostrum, the first milk from the dam, is high in immunoglobulins or antibodies. Calves are born with a limited immune system and are dependant on their mothers to supply antibodies needed during the first six weeks of life.

A calf needs to consume about 5-6% of its body weight within the first six hours of life and again before 12 hours of life. For an 80 pound calf this is approximately 2 quarts of colostrum per feeding. Why is this important? Because the calf's digestive tract undergoes "intestinal closure".

Specialized absorptive cells in the calf's gut are sloughed and the transport of antibodies from inside the gut to the circulatory system inside the calf is no longer possible. Since the calf cannot produce its own antibodies until about four to six weeks of age, it is totally dependant on antibodies derived from the colostrum for protection in its early life.

What do you do if there is no source of colostrum for the calf, such as the cow or heifer dies, or the colostrum leaked out of the udder before the calf was born? Cow-calf producers should have a source of colostrum identified before going into the calving season. Colostrum can be stored by freezing. Colostrum can be obtained from late-term cows or heifers which have a stillborn calf, from heavy producing cows (but make sure its calf receives adequate colostrum before taking any), from some dairy farms, and colostrum supplements which can provide substantial doses of antibodies to newborn calves are available from veterinarians and veterinary outlets.

Whatever the colostrum source, the same time constraints are in effect. The colostrum should be consumed within the first 6-12 hours of life of the calf. The key to assuring adequate colostrum for your calf crop is being prepared.

Forage Focus: Using Stockpiled Fescue

Rory Lewandowski, OSU Extension Educator, Agriculture and Natural Resources

One question that beef producers might be asking regarding stockpiled fescue is; when should stockpiled fescue be utilized? If fescue was last grazed, clipped, or harvested for hay in early August and has been stockpiling since that point, a considerable amount of plant material will have accumulated by the time by the time the growing season ends and plants go dormant. Work done in Ohio suggests that if stockpiling was started in early August with 50 units of nitrogen applied around mid-August, and assuming normal precipitation, it is not unreasonable to accumulate more than a ton and a half of dry matter, in fact, 3500 to3700 pounds/acre could be available. Even without nitrogen fertilization a ton or slightly more dry matter could have accumulated. Most cattlemen I have talked with regarding stockpiled fescue say they like to wait until after a couple of hard frosts before turning cattle in to the fescue because cattle will graze it better. This brings up a question of when to begin grazing stockpiled fescue.

Much of the tall fescue in our area is infected with an endophyte, a fungus that produces a toxic substance known as ergovaline. The endophyte and ergovaline are responsible for the reduced palatability of fescue during the summer months. The fescue toxicosis associated with ergovaline is responsible for elevated body temperatures, restricted blood flow to extremities and poor animal performance. It has been generally assumed that ergovaline doesn't pose a problem in stockpiled fescue, in part because the ergovaline seems to concentrate in seed heads and stockpiled fescue is vegetative. Yet, the fact that cattle don't really eat stockpiled fescue well until after a couple of hard frosts suggest there are still concentrations of ergovaline present in infected fescue that reduce palatability until after frost.

An article published in the Journal of Crop Science, volume 43 in 2003 examined ergovaline levels in stockpiled fescue over two winter seasons in Missouri. Previous research had suggested that ergovaline concentrations of 150 parts per billion (ppb) and higher were associated with symptoms of fescue toxicosis during winter months. This study found that there was a rapid loss of ergovaline after mid-December. In the two years of the study ergovaline levels fell below the 150 ppb level by early January in one of the years and by early February in the other year. Researchers suggested that the rate of ergovaline decrease may be related to temperature and rainfall levels. The year in which ergovaline levels declined the slowest was a warm, dry fall and winter as compared to the year when levels declined quicker. Colder temperatures may be associated with less growth allowing for earlier decomposition of ergovaline and it is thought that ergovaline also may be leached out of the plant with rainfall. The conclusion of the article was that since stockpiled fescue retains dry matter and quality throughout the winter, the best use of infected stockpiled fescue was during the late winter period.

A more recent study published in December of 2007 in the Forage and Grazinglands Plant Management Network examined, among other factors, the total ergot alkaloid (of which ergovaline is a part) concentration or endophyte infected fescue from December to March. This study was repeated over 5 years. The results showed an 81% decrease in the ergot alkaloid concentration from early December until early January. So once again, it appears that if the use endophyte infected stockpiled fescue can be delayed until into January, animal performance may be better.

Regardless of when the cattleman decides to allow cattle to graze stockpiled fescue, how the cattle are allowed to graze will determine how efficiently the grass is used. Cattle turned into a large area with unrestricted access to stockpiled fescue are likely to waste 60 to 70 percent of the forage due to trampling and manure deposition. In other words only 30 to 40% of the stockpiled forage is actually eaten. Grazing studies have shown that by restricting access to no more than a 3 day of forage, utilization can increase to levels in the 65 to 70% range. I've talked to some producers who manage even more intensely, restricting access to a one-day supply and they have bumped utilization up to around 80% or better. Research at the Missouri Forage Systems Research Center compared 14-, 7-, and three-day forage allocation strips on stockpiled tall fescue. Strip grazing on a three-day frequency yielded 40% more grazing days per acre than allocating a 14-day forage supply and produced the same level of animal gain.

A final point to keep in mind while managing the fence for stockpiled forage is that a back fence is not needed since the plant is dormant and not growing. This type of management will also help to reduce the amount of trampling and mud created.

Kentucky Beef Cattle Market Update

Kenny Burdine, Livestock Marketing Specialist, University of Kentucky

The Kentucky fall calf market appears to be bouncing on the bottom as prices for 5 weight steers were virtually unchanged from October to November, while 7 weights slid by about $1 per cwt. Prices for the first week of December were also steady, suggesting that prices are not likely to reach the low levels of 2008. But, they sure came close.

As we look ahead to 2010, the outlook hasn’t changed a great deal from where it was this summer. Supplies remain tight and beef production has been low. Cow slaughter and on-feed numbers suggest that the size of the US cow herd is likely to decrease once again by January.

To see much improvement in cattle prices, we need to see some strength in the box. Cutout values have really struggled to sustain anything above $140 per cwt. since spring, and slaughter cattle prices have struggled to break out of the low $80’s. It appears that movement of upper-end beef products has been slow at the retail level, making it difficult to build much value into cattle. If the economy improves in 2010, consumer spending on beef will increase, supporting prices through the entire beef system.

I’ll end 2009 on a positive note. While even the best macroeconomists struggle to predict how long this economic downturn will last, most agree that some positive signs are out there. When the US economy does turn around, and beef demand improves, cattle numbers are going to be at levels we haven’t seen since the 1960’s. When that happens, tight supplies and increasing demand should equate to some attractive prices for feeder cattle.

Feeding Culls May Be Effective Marketing Strategy

By Dr. Rick Rasby, Professor of Animal Science, University of Nebraska - Lincoln, Lincoln, NE

Producers searching for inventive ways to add dollars to their beef cow-calf operations may want to consider retaining and feeding cull cattle as a value-added marketing strategy.

Based on the last six years of Iowa Beef Cow Business Records analysis data, 21 percent of gross revenue for cow-calf operations comes from the sale of culled breeding animals. Therefore, selling cull animals represents a significant portion of the income generated in a beef cow enterprise. If a producer can improve the weight and value of cull animals while keeping the cost low, significant improvement in income can occur.

Many factors influence cull values, but two that producers can use to their advantage are price seasonality and weight and condition of harvested cattle. Typically, culls have their lowest market period from October to December, mainly because of market saturation. February and March markets can range from $3 to $4 per cwt. higher. Therefore, adding weight and condition to cull cattle through the fall and early winter has the potential to garner a better bottom line.

This strategy has many challenges as well as opportunities. Adding weight to mature cows is not efficient, especially if a producer is doing it using stored feedstuffs. Cows can require 10 to 14 lbs. of dry matter intake for every pound of gain.

Producers either need to provide a very low cost feed source, such as corn stalks with quite a bit of downed corn or stockpiled pastures, or, drylotted cows should be fed a high energy ration so they achieve the best conversions possible.

In a study conducted at South Dakota State University, cull cows were fed a high energy ration of 76 percent corn, 15 percent corn silage and 9 percent protein supplement. The animals gained 2.8 to 3.1 lbs. per day. As the SDSU study demonstrates, it is possible to achieve decent gains with cull cows. Additionally, research shows cows implanted with a moderate-level implant can see a 10 to 15 percent gain advantage.

As the culls gain weight and condition, their dressing percentage when sold as beef rises. Generally, value increases as dress percentage increases. And, past markets show an 8 to 12 percent price increase moving a harvested cow from canner to cutter or utility.

Producers who want to add value to culls should first make sure they're working with healthy, sound animals. Cows that are already fat won't gain in the lot, so it's best to use animals with a body condition score of 3 to 5. It's also best if culls can be managed separate from the rest of the herd so pregnant cows aren't gaining the same amounts as the culls.

Cattle Prices to "Ride the Recovery" Upward

By Chris Hurt, Extension Economist, Purdue University

"Ride the recovery" may be the theme for the cattle industry in coming months. That, of course, is the economic recovery that is thought to be underway. A host of economic indicators suggest that the recession has ended and the economy has more positive signs than negative. This is true for the U.S. and the world economy.

Unfortunately the beef industry also rode the recession downward. So far this year, through the month of September, beef production has been down by five percent but finished cattle prices have been almost $11 lower than in the same period last year. Nebraska finished steers averaged $93.60 per live hundredweight in the January to September period in 2008. This year those values dropped to $82.75. Steer calf values have also been about $11 per hundredweight lower and feeder cattle about $9 lower.

Beef and cattle prices move downward with recession and upward with recovery. They are generally more directly impacted by changes in economic prospects than pork or poultry markets. The indicators of recovery are beginning to become more numerous in such data as the rise in the average length of work week, rising building permits, falling numbers of new claims for unemployment, and of course the rising stock market. The recovery is expected to be slow by historic standards with unemployment remaining high into 2010. However, the unemployment rate is a lagging indicator and not the one to use as the measure of recovery.

Inflationary investing may be another reason cattle are underpriced. In the past six weeks there has been a resurgence of inflationary buying in futures markets. This has also been related to the continued weakening of the U.S. dollar where the lead futures contract has been down five percent since September 1. Since that date, the lead futures contracts for various commodities have been shooting upward: corn up 19 percent, copper and gold five to ten percent higher, and crude oil up 14 percent. In contrast, the lead contract for live cattle futures has been down about two percent. This may well mean that cattle are cheap relative to other commodities.

The fundamentals are positive for beef as well. Production will continue to drop as both export and domestic demand improve with the recovery. USDA expects exports to increase by three percent over the next 12 months. Given that the rest of the world may recover more quickly than the U.S. with the dollar to stay weak, exports could do even better. Per capita available supplies in the U.S. will decline by two percent over the coming 12 months and competitive supplies of pork per person will be down five percent.

While more cattle have moved into feedlots in recent months, the overall indicators suggest that the breeding herd will continue to drop in the January 2010 inventory report. Cheaper corn, meal, and feed ingredients late this summer did cause a larger number of lighter weight calves to move into feedlots. In August and September, placements of cattle weighing under 700 pounds were up eight percent while those over 700 pounds were up one percent. With corn and feed prices moving upward in recent weeks, it is likely that placements in October will slow once again. Perhaps more importantly was that the number of heifers in feedlots on October 1 was up four percent, indicating a relatively low rate of heifer retention to go back into breeding herds. This supports a one to two percent drop in beef cow herd numbers in the January 2010 inventory.

Cattle prices are expected to generally move upward over the coming year. Nebraska finished steers are expected to rise from the current low $80s to the middle $80s by the end of the year. The general pattern to higher prices is expected to continue in the first quarter with prices in the mid-to-higher $80s. Early spring daily highs could move into the very low $90s or higher depending on the strength of the economic recovery. Summer prices normally are a few dollars lower, but that may not occur in the summer of 2010 as prices could stay in the low to mid $90s.

In 2008 Nebraska choice steers averaged $92, fell to about $83 with the recession this year and are expected to climb back to the low $90s with the recovery in 2010. So the theme for the beef industry in the coming year is "ride the recovery." What are the threats? The clearest threat is that the economic recovery will be anemic, or that there is a second recessionary dip.

Assuming the industry is able to ride the recovery, the implications are fairly clear. Stay long cattle at least for now. This means retaining ownership of calves for a longer period, considering feeding out calves rather than selling them this fall, and for feedlot cattle, waiting a bit to forward price the finished cattle in order to give inflation investors a little time to locate the cattle futures trading pit.

Preliminary Results: 2008 Beef Cattle Enterprise Study

By Jonathan Shepherd, KFBM

In this study, two beef cattle enterprises are analyzed- calves sold at weaning (calves sold) and calves retained for at least 45 days after weaning (backgrounded).

Kentucky beef producers realized negative net returns (over all costs) for 2008 in both enterprise categories. However, both categories did realize positive returns above feed costs with an average of $6,347.38 and $12,052.40 for calves sold and calves backgrounded, respectively. Total feed costs associated with the calves sold group increased over 77% since 2003 and almost 40% for the backgrounding group. Non-feed cash costs increased for both groups from 2003 to 2008 by 51% for calves sold and 45% for backgrounding. Returns per $100 feed fed was $120.86 for calves sold in 2008, a decrease of over 31%. For calves backgrounded, this decrease was even more significant at 46.5% of returns per $100 feed fed of $126.20. For the calves sold enterprise, price received per CWT for market animals increased 7.8% from $85.50 in 2003 to $92.21 in 2008.

Prices received per CWT for breeding animals for this enterprise decreased from $45.87 in 2003 to $42.13 in 2008. For the calves backgrounded enterprise, price received per CWT for market animals increased 15.8% to $96.41 and for breeding animals an increase of 2% was realized to $47.67. Herd size increased on average since 2003 for calves sold, up approximately 32% to 104 cows and decreased 5.8% for the backgrounded group to 108.4 cows. Total pounds of beef produced increased for the calves sold enterprise: up 41.7% to 58,105 pounds for 2008. However, the calves backgrounded group showed a decrease in total pounds produced by 12% to 66,230 pounds. Pounds of beef per cow increased between 2003 and 2008 to 560.2 for the calves sold enterprise (increase of 7.9% from 2003) and decreased to 610.98 pounds for the backgrounded group (decrease of 7.3%) for 2008.

Sample Rations for Beef Cows and Calves

The chart below provides sample rations for beef cows and calves based upon hay quality. It is important to test forages to ensure that cows and calves are receiving the proper nutrition. Many feed dealers will test your forages for free. In addition, farmers may also get their forages tested free of cost through the Adair County Cooperative Extension Service, funding provided by the Adair County Ag Development Council.

Chart Developed by Kevin Laurent, UK Beef Associate
Click on the chart for a larger view.

Adding Fat to the Diet Can Improve Reproductive Performance

By:Dr. Les Anderson, Beef Extension Specialist, University of Kentucky
From Off the Hoof

Over the past 15 years, 30 different research trials have been conducted that examine the impact of supplemental fat on reproductive performance of beef and dairy cattle. Fats (or lipids) have been fed before and after calving and during the breeding season. Research on feeding supplemental fat has resulted in varied and inconsistent results as it relates to reproductive efficiency including positive, negative, and no apparent effect.

Several different fat sources have been studied. Plant oils have thus far shown to have the greatest impact on reproduction. Some of the more common sources of plant oils include: sunflower, safflower, whole cottonseed, rice hulls and soybeans. In addition, animal tallow, calcium salts, and fishmeal have also been evaluated.

Dr. Rick Funston, University of Nebraska beef specialist, reviewed the research pertaining to this topic. His conclusions about added fat in cow and heifer diets suggested that some of the improvements reported may be due to the added energy from the fat source. He suggests that until these relationships are better understood, producers are advised to strive for low cost and balanced rations. IF a source of supplemental fat can be added with little or no change in the ration cost, it would be advisable to add it to the ration. Adding fat would be most likely to have a benefit on reproduction with young, marginally thin, growing cows in a year where limited nutrients are available. In other words, two and three year old cows (in a body condition score of 4 or 5) with low quality and/or quantity of roughage available, are most likely to get a boost from adding whole soybeans, whole cottonseeds, safflower, or sunflowers to their diet.

To examine the potential impact of feeding fat on reproductive performance, Dr. Jeff Lehmkuhler and I conducted a trial this spring on 160 extremely thin cows. Approximately 30 days before breeding, this herd of cows averaged a body condition score of only 3.5 (1-9 scale) and weighed less than 1000 pounds. About 125 of the cows were fed 25 pounds of wet distillers grain (about 12-13 pounds of WDG on a dry matter basis) while on pasture. The analysis of the WDG indicated a TDN of 89%, CP of 34%, and 10% fat. The remaining cows were not supplemented. Estrus was synchronized in all the cows by inserting a CIDR device for 7 days prior to turning the bulls in. Bulls remained with the cows for 70 days. Pregnancy rate was determined about 110 days after the beginning of the breeding season.

All the cows gained weight throughout the experiment. The cows fed the WDG gained over 100 pounds and more than one body condition score (went from a BCS of 3.5 to a 5). The cows that were not fed WDG also gained weight. Feeding WDG improved pregnancy rate as 85% of cows fed WDG became pregnant while only (60%) of the cows that were not fed WDG. This trial is further evidence of the positive impact of supplementation on rebreeding potential in beef cows. Although we cannot determine in this trial if the fat contained in the WDG was the key component impacting fertility, it seems apparent that feeding WDG for 30 days prior to breeding has the potential to improve the reproductive rate of cows in poor body condition.

A New Technology for Determining Pregnancy in Your Cows

Dr. Les Anderson, Beef Extension Specialist, University of Kentucky

Last month I discussed the importance of obtaining a pregnancy diagnosis on your cows this fall. Pregnancy rates appear to be lower than normal this year likely due to the cows suffering through two consecutive years of drought. I received several questions regarding a fairly new technology for determining pregnancy in cattle. Researchers have developed a method to determine pregnancy in cattle via blood sampling. The blood test is called BioPRYN and is marked by a company called Bio Tracking LLC.

The blood test method to determine pregnancy is simple and accurate. First, a blood sampling kit needs to be ordered from the company. The easiest method is to go to biotracking.com and look for their products. Usually, the cost is about $1.55 per cow for the kit. All the tubes should be labeled according to the instructions in the kit. The most difficult part of this process for most producers will be obtaining the blood sample. Cows must be at least 30 days pregnant and 90 days from calving for the test to work. Also, producer’s who have no experience taking a blood sample will need to schedule this test with their local veterinarian. Once the sample is obtained, the samples are packaged and sent to one of Bio Tracking’s 25 laboratories located across the US. The cost for the test is $2.40 per cow. So the total cost per cow will be the cost of the kit ($1.55), plus the test cost ($2.40), plus the cost of mailing and any costs associated with obtaining the sample if you cannot do it yourself. Likely the cost per cow will be less than $5 for most producers.

The results are normally obtained with 2-3 weeks and the accuracy of the test is very high. If the test calls the cow open, then the producer is 99+% sure the cow is open. When the test determines a cow pregnant, you can be 93-95% sure they are pregnant. This test will not determine stage of pregnancy (i.e. 90 days versus 120 days).

Many beef producers in Kentucky have limited access to large animal veterinarians. Using this blood sampling technique for pregnancy determination may be a solution to these producers who have been unable to obtain a pregnancy diagnosis in their cows.

CWT Announces Third Round

By Kenny Burdine, UK Ag Economist

CWT (Cooperatives Working Together) has announced another round of dairy herd buyouts. Bids are to be submitted by October 15. Producers bid a price per cwt. on a year’s worth of milk production per cow. As a quick example, a $5 per cwt. bid on 15,000 lbs of annual milk production would be $750. Then the producer would also receive the income from the sale of the cow at market. There is a list on the CWT website of member cooperatives. Many producers are likely already selling in participating coops and are therefore eligible.

Beef producers should primarily be aware of the timing. With bids accepted through October 15th, I would expect that slaughter would largely take place in November and early December.