The University of Tennessee Agricultural Extension Service A Decision Tool for Improved Beef Cattle Production, Management and Marketing System Analysis Tammy L. McKinley Extension Assistant University of Tennessee Emmit L. Rawls Professor University of Tennessee John C. McKissick Professor University of Georgia

The University of Tennessee Agricultural Extension Service Why construct a systems analysis tool for cow/calf producers? Changes are occurring rapidly in beef supply chains. –Increased information flows –Emphasis on consistency, quality, safety These changes are taking place at all levels, including the farm level. Successful producers will identify profitable changes to enable them to continue producing.

The University of Tennessee Agricultural Extension Service Beef Cattle Management and Marketing Systems An interactive analysis tool Developed by a multi-state, multi- disciplinary team from the University of Tennessee and the University of Georgia

The University of Tennessee Agricultural Extension Service Beef Cattle Management and Marketing Systems Designed to… –Analyze an operation and estimate current production costs –Allow user to explore impacts of selected changes in production, management and marketing decisions –Use with help of Extension Agent

The University of Tennessee Agricultural Extension Service Beef Cattle Management and Marketing Systems General Information Breeding Forages Management Equipment Marketing

The University of Tennessee Agricultural Extension Service General Production Information

The University of Tennessee Agricultural Extension Service Breeding Information on all breeding stock is entered and used to calculate costs, cull cow income, and nutrient requirements in other sections of the program.

The University of Tennessee Agricultural Extension Service Forages/Nutrition Multiple forages can be selected and acreage allocated based on use.

The University of Tennessee Agricultural Extension Service Forages/Nutrition Grazing method can be selected for each pasture and tons of dry matter utilized per acre will be calculated. Multiple fertilizer sources and application rates can be chosen for each forage. Calculated production based on yield response functions derived from research based data.

The University of Tennessee Agricultural Extension Service Forages/Nutrition – Hay Storage Storage methods are in most efficient to least efficient order. A running total of forage available for consumption is calculated after storage and feeding method losses are deducted.

The University of Tennessee Agricultural Extension Service Forages/Nutrition – Hay Storage Once tons of hay to be stored is calculated then the user can select the length of time the hay is to be stored (5 months or less or more than 5 months) and the feeding method (with or without a ring) and the appropriate losses will be calculated.

The University of Tennessee Agricultural Extension Service Management Users can enter their health management program and calculate costs per head.

The University of Tennessee Agricultural Extension Service Equipment – Fencing Materials and annual costs can be calculated for permanent and temporary fencing.

The University of Tennessee Agricultural Extension Service Equipment – Handling Facilities Users can select components for handling facilities based on whether they are manufactured or site-built and calculate materials costs for each and the total facility.

The University of Tennessee Agricultural Extension Service Marketing Net market price is calculated based on premiums and discounts for frame, muscling, breed, horns, and sex. Costs of marketing method, i.e. commission, hauling, and shrink are all accounted for when calculating the net market price.

The University of Tennessee Agricultural Extension Service Marketing – Comparison of Marketing Methods Users can compare two marketing methods based on commission, hauling, and both estimated and pencil shrink associated with each.

The University of Tennessee Agricultural Extension Service Joe Farmer’s Operation Current situation –60 mature cows and 10 heifers –Majority of calves born between February and March –Average calf weaning weights From mature cows – 450 pounds From replacement heifers – 425 pounds

The University of Tennessee Agricultural Extension Service Joe Farmer’s Operation Current situation –250 acres of tall fescue pasture and hay –Feeds 210 round bales of hay over a 135 day winter feeding period

The University of Tennessee Agricultural Extension Service Base Forage Program and Estimated Forage Production Field Name ForageAcres Fertilizer (N, pounds/acre) Spring Fall Tons dry matter/acre Total tons dry matter Hay fieldTall fescue Total Hay Pasture 1Tall fescue Pasture 2Tall fescue Pasture 3Tall fescue Total Pasture176.20

The University of Tennessee Agricultural Extension Service Step 1: General Production Analysis While producing over 100 pounds less of calf per exposed female than benchmark value Almost twice the number of grazed pasture acres used

The University of Tennessee Agricultural Extension Service Step 2: Current Forage Program vs. Herd Needs

The University of Tennessee Agricultural Extension Service Grazed Forage Production vs. Herd Needs with Base System Total direct costs of forage production* is $7, * excluding machinery and equipment costs 1 – low weaning weights 2 – low calf crop percentage

The University of Tennessee Agricultural Extension Service Step 3: Evaluate Possible Changes Apply 38 pounds of nitrogen per acre on pasture 1 for increased spring grazing Stockpile fescue on pasture 2 for increased fall and winter grazing

The University of Tennessee Agricultural Extension Service Increase Spring Grazing

The University of Tennessee Agricultural Extension Service Increase Spring Grazing Total direct costs of forage production* is $9, * excluding machinery and equipment costs Dry matter produced increased to 1.07 tons per acre

The University of Tennessee Agricultural Extension Service Increase Spring Grazing To economically justify this change... = 2,504 pounds $2,254 increase in costs $ 0.90 per pound Increase weaning weights by 49 pounds per calf — Sell more pounds of feeder calf Increase calf crop percentage from 74% to 83% OR — How?

The University of Tennessee Agricultural Extension Service Stockpile Fescue

The University of Tennessee Agricultural Extension Service Stockpile Fescue Dry matter produced increased to 37.6 tons in Sep/Oct Total direct costs of forage production* is $10, * excluding machinery and equipment costs

The University of Tennessee Agricultural Extension Service Stockpile Fescue To economically justify these changes... = 3,727 pounds $3,354 increase in costs $ 0.90 per pound Increase weaning weights by 72 pounds per calf — Sell more pounds of feeder calf Increase calf crop percentage from 74% to 87% OR — How?

The University of Tennessee Agricultural Extension Service Summary The Beef Cattle Management and Marketing Systems program… –Can be used to analyze a current operation and the possible production, management and marketing changes and their impacts –Allows producers working with their Extension Agents to explore alternatives and plan for the future of their operations

The University of Tennessee Agricultural Extension Service The End