1. Damona Doye Sarkeys Distinguished Professor and Regents Professor, Oklahoma State University Roger Sahs Extension Assistant, Oklahoma State University Larry Falconer Professor,Texas AgriLife Extension Service

3.  Minimum temperature: -31°F, Nowata, 2/10/11  Number of days with temperature 100°F or higher: 101 days, Grandfield  Warmest summer(June-August): 86.9°F, Statewide average  24-hour snowfall: 27 inches, Spavinaw, 11 PM, 2/8/11 to 11 PM 2/9/11  Wind gust: 151 mph, El Reno, 5/24/11  Hail stone diameter: 6.0 inches, 2 miles north of Gotebo, 5/23/11  Lowest annual total precipitation: 6.2 inches, Hooker

4.  2011producer meetings ◦ Drought management strategies ◦ Decision support tools  Evaluation of drought impact  Extension educator training  Reinvesting in the beef industry  Lender workshops  2012 producer meetings

5. Numerous meetings around the state….  Feeding/hay strategies  Pasture management  Hay issues: nitrates, prussic acid and aflatoxin  Livestock water quality  Culling strategies  Potential economic outcomes associated with choices, including tax repercussions

6.  IFMAPS (Intensive Financial Management and Planning Support)  Beefextension.com, Cow/calf, Calculators ◦ Early weaning decision aid ◦ Repurchase decision tool ◦ Sell cows now or later ◦ Cow bid price estimate calculator ◦ Enterprise budget software

7. Factors to consider:  Cost per day if I keep the cow  Current sale value of the cow  How long will the difficult environmental conditions last  Cost of replacement in the future  Time value of money  Tax issues

8. Cost per Day to Maintain Cow ($) Days till repurchase $2.50$3.00$3.50 Jan 2012150$395$470$544 May 2012270$716$851$987 Aug. 2012370$985$1,170$1,355 Assumes 5% time value of money Example: Your maintenance cost per day is $3 and you think May 1 is a reasonable repurchase target date. If you think the sell–buyback spread will be less than $851, you should sell and buyback.

10. CommodityLoss Estimate Crops (grains, hay, soybeans, cotton)$904,954,000 Specialty crops$ 11,156,000 Horticultural crops$ 81,836,000 Total crops$997,947,000 Acreage loss of approx. 100%Corn, soybeans, grain sorghum, alfalfa, other hay Reduced calf value$135,000,000 Lost pasture production$153,200,000 Reduced winter stocker/forage$88,000,000 Additional feed costs$291,300,000 Total livestock loss$667,600,000 Estimated total head sold250,000 – 300,000

11.  Eastern and Western OK  Market outlook  Reinvesting in the beef herd ◦ Rebuild slowly using stockers ◦ Rebuild fast buying cow/calf pairs ◦ Rebuild with leased cows  Risk management tools  Farm transition program options

13. 6 sessions around the state addressing:  Market outlook  Reinvesting in the beef industry  Risk management tools  Farm Service Agency guaranteed loan options  Bank examiner perspective

14.  Market outlook  Reinvesting in the beef industry  Tax choices  Pasture recovery management

16. Net Present Value of the Investment Cow Operating Cost per Year Cow/calf Purchase Price $550$600$650 $1,750$688$332($19) $2,000$428$67($284) $2,250$152($199)($550) www.beefextension.comwww.beefextension.com under Cow-calf, Calculators, Cow Bid Price Estimate Calculator

17.  SAEA symposia may lead to Choices article ◦ Choicesmagazine.org  Work on NCFMEC livestock leasing publication  Work on additional software tools ◦ Forage  More producer meetings… ◦ Livestock leasing ◦ Quicken for farm financial records ◦ Farm transitions