1. DROUGHT Market and Management Considerations Derrell S. Peel Livestock Marketing Specialist

6. Livestock Marketing Information Center Data Source: USDA-AMS

7. Livestock Marketing Information Center Data Source: USDA-AMS

8. Livestock Marketing Information Center Data Source: USDA-AMS, Compiled & Analysis by LMIC

9. Livestock Marketing Information Center Data Source: USDA-AMS, Compiled & Analysis by LMIC

10. Livestock Marketing Information Center Data Source: USDA-AMS

11. Market Impacts Limited…so far – Reduced summer stocker demand – Changed market timing of winter grazing – Cow market impacts just beginning In the next few weeks – More impacts on regional cow markets Long term – Pre-empt herd expansion and extend high prices

12. Spring Droughts are Tricky Risk of acting too soon – Rapid improvement is possible Risk of delaying actions – Loss of market value – Increased expenses – Production impacts Maximum cattle production and nutritional needs

13. Worst Drought Management Plan Hold on …to everything …at all cost.

14. Drought Management Plan Start with worst case and work backwards to current situation. – Identify decision trigger points What has to be done When decision must be made

15. Drought Management Plan Total Destocking – Lack of water – Total lack of forage production/infeasible to purchase feed Too late for rain to help – Relocation of animals possible but difficult Maintain Core Breeding Herd – Young, dry, bred cows (7 years and less) – Reduce forage requirements

16. Reducing Forage Requirements Early weaning – Reduce forage and water requirements – Rebreeding – What to do with early weaned calves? Culling – Open cows/replacement heifers – Old cows, unsound (slaughter) – Older cows, physically sound (solo or maybe as pairs) – Cows over 7 years of age

17. Timing of Decisions from Late April 2-4 Weeks – Early weaning Cows in early lactation will drop body condition rapidly and may not rebreed – Cull open/old cows – Cull older cows if sold as pairs 1-2 months – Cull older cows With water, may be able to hold core herd for 3-4 months Late Summer – Total destocking or minimal core herd to winter

18. Post-Drought Plan Replacement females will be scarce and expensive Pastures need time for recovery – Depends on timing of end of drought Stocker production feasible while rebuilding breeding herd

19. Livestock Marketing Information Center Data Source: USDA-AMS, Compiled & Analysis by LMIC

20. Drought Resources DASNR drought web page – http://agwater.okstate.edu/research- extension/drought/drought. http://agwater.okstate.edu/research- extension/drought/drought – Financial planning (IFMAPS) – Tax Implications – Pasture and feed management – Nutritional management Government Programs (including CRP use) – http://www.agecon.okstate.edu/agpolicy/news.asp http://www.agecon.okstate.edu/agpolicy/news.asp