1. “Grazing Education Program Increases Livestock Producer Profitability” Wesley Tucker Agriculture Business Specialist Bolivar, MO

2. Tucker Farms Tunas, MO

4. Heather & Jordan

5. Tucker Farms

6. MU Extension since 2001 My job is to help you make more money

8. The MO Grazing School Program Started in 1990 by Jim Gerrish, Ron Morrow, and Maurice Davis Started in 1990 by Jim Gerrish, Ron Morrow, and Maurice Davis 3 day long intensive forage management education 3 day long intensive forage management education Original partners: Original partners:  MU-FSRC  MU Extension  USDA-NRCS  MFGC/GLCI

9. Linneus Grazing Schools… 2975 people from 40 states & 10 foreign countries have attended Linneus Grazing Schools 2975 people from 40 states & 10 foreign countries have attended Linneus Grazing Schools Started regional grazing schools throughout the state in 1995 Started regional grazing schools throughout the state in 1995

12. Regional Schools… Developed a CD for use by grazing school instructors Developed a CD for use by grazing school instructors From 1995 – present over 13200 people have attended 480 regional grazing schools From 1995 – present over 13200 people have attended 480 regional grazing schools

13. 2012 – 28 grazing schools with 750 participants 2012 – 28 grazing schools with 750 participants 2013 – 26 grazing schools with 558 participants 2013 – 26 grazing schools with 558 participants Grazing schools using similar format now taught in several states Grazing schools using similar format now taught in several states

14. Why am I at a WIA conference talking about grazing schools?

15. “Weaning Time – To Sell or Not to Sell” Wesley Tucker Agriculture Business Specialist

17. Average Value of 100 Pounds of Gain on Feeder Steers, 2003-12Starting Weight, lbs Start350450550Start350450550 Month--dollars/cwt of gain--Month--dollars/cwt of gain-- Jan 129.12 118.41 109.33Jul 97.70 84.48 91.80 Feb 114.11 100.66 89.76Aug 79.47 66.39 73.93 Mar 105.68 79.61 67.44Sep 98.23 78.67 77.15 Apr 88.14 69.52 64.38Oct 111.30 79.84 76.90 May 68.28 63.62 66.28Nov 109.05 80.64 72.84 Jun 81.53 67.95 78.80Dec 116.67 108.13 96.75 Avg 99.94 83.16 80.45

19. Value of 100# of Gain: 2000-10 Joplin, MO

20. Value of 100# of Gain: 2000-10

21. Exogenous Variables External Factors

22. Risk Management Forward Contracting Forward Contracting Futures Futures (LRP) Livestock Risk Protection Insurance (LRP) Livestock Risk Protection Insurance

23. Reasons to Wean Is the market offering value gain and can I control price risk? Is the market offering value gain and can I control price risk? Can I add weight cheaper than the market? Can I add weight cheaper than the market? Can I add value and capture it? Can I add value and capture it?

24. Livestock Risk Management Conference – Pre 2001 3 days of training – Dr. Ron Plain 3 days of training – Dr. Ron Plain  Futures  Options  Contracts  Cut 50/cwt

25. What do you think the average cow-calf producer makes per cow per year? Breakeven Breakeven Good Years – 2013 & 2014 Good Years – 2013 & 2014 Bad Years – 2011 & 2012 Bad Years – 2011 & 2012 But what is “average”? But what is “average”? Are you HOT or COLD? Are you HOT or COLD?

26. High vs. Low Profit Cow-Calf Producers (SPA Data IA: 1995-2000) Return & Cost Factors High 1/4 Average Low 1/4 Financial return to capital, labor & mgmt. Per cow $127.69-$9.90-$144.84 Total financial cost per cow $230.11$362.87$461.96 Total financial cost per cwt. produced $47.32$72.23$108.04

27. More SPA Data IA & IL study to determine what separated producersIA & IL study to determine what separated producers 1996-19991996-1999 Herd size: 20 to 373 cowsHerd size: 20 to 373 cows

28. Variables In The Equation Cost VariablesCost Variables Feed CostFeed Cost Operating CostOperating Cost Depreciation CostDepreciation Cost Capital ChargeCapital Charge Hired LaborHired Labor Family LaborFamily Labor Production Variables Calf Weight Calf Price Cull Weight Cull Price Weaning Percentage Calving Distribution Other VariablesOther Variables Herd SizeHerd Size InvestmentInvestment

29. Source: 2001 Beef Research Report – Iowa State University

32. Grazing Schools Agronomist Agronomist Livestock Specialist Livestock Specialist Ag Business Specialist Ag Business Specialist  How does it impact the bottom line?

33. What Drives Profit? “Management” “Management”  Control Feed Costs  Stock for Winter not Spring  Nutrient Recycling & Management  Extending the Grazing Season & Utilization  Forage Supply Drives Marketing

34. 28% 3%

35. % Change In Profitability 22%

37. Contact Information Wesley Tucker (417) 326-4916 tuckerw@missouri.edu