Oklahoma's Latest Farm
And Ranch News
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Dr. Derrell Peel Says There is No Such Thing as a Free Cow Lunch |
Dr. Derrell Peel, Oklahoma State University Extension Livestock Marketing Specialist, offers his economic analysis of the beef cattle industry as part of the weekly series known as the “Cow Calf Corner,” published electronically by Dr. Peel, Mark Johnson, and Paul Beck. Today, Dr. Peel analyzes the relationship between costs of production and profitability for various beef producers.
Cow-calf producers are enjoying record calf prices but maximizing profits still requires managing costs. In fact, one of the reasons given for the slow start to heifer retention is that high costs of production means that producer returns are not yet high enough to initiate herd rebuilding. While producers may not be able to influence the general input market conditions and prices, Figure 1 shows that the variable costs of production per cow vary tremendously across producers, with profitability differences largely due to cost management (KSU, 2021). Low profitability producers have a total variable cost of production 37.1 percent higher than the top third of profitability among producers. Total feed (pasture + non-pasture) costs ranged from 69.1 percent (top third of profitability) to 66.3 percent (bottom third of profitability) of total variable costs but total feed costs for low profitability producers were 31.6 percent higher. The top third of profitability included higher pasture costs but significantly lower non-pasture feed costs and, thus, lower total feed costs.
Non-pasture feed costs in include harvested forages (hay) and purchased supplement feed. Hay costs are frequently overlooked or undervalued, especially for producers who make their own hay. In Oklahoma, other (non-alfalfa) hay is primarily used for beef cattle production. Figure 2 provides a broad measure of hay use calculated as tons of other hay per beef cow per year. This quantity has increased from less than one ton of hay per cow prior to 1980 to an average of about 2.4 tons of hay per beef cow in the last decade.
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| Podcasts From Oklahoma Farm Report and More | |
Two of our regular reports are also podcasts that you can subscribe to- Our daily Farm and Ranch News with KC Sheperd- available here on the Apple Podcast Platform
The second is our daily Beef Buzz with Ron Hays- available here on the Apple Podcast Platform
Periodically- we offer interviews on our Ag Perspectives Podcast series- this podcast is available here.
Ron has also has a series of podcasts from interviews with newsmakers at the Cattlemen's Congress- Click here or you can find them on your favorite Podcast platform- look for them by searching for Cattlemen's Congress Conversations.
We are making plans to jump back into regular installments of what has been called the Road to Rural Prosperity- a new name and fresh content is in the works- for now- click on the blue button below for one of our favorites that is a timeless classic.
The link below is one of our most recent podcasts- Ron spotlighting the Life and Times of Dr. Kim Anderson, who has just retired from OSU.
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Our thanks to Midwest Farms Shows, P & K Equipment, Oklahoma Farm Bureau, Great Plains Kubota, Stillwater Milling Company, National Livestock Credit Corporation, Oklahoma Beef Council, Stewart Martin Kubota, Oklahoma Pork Council, Oklahoma Wheat Commission, Oklahoma AgCredit, the Oklahoma Cattlemens Association, and KIS Futures for their support of our daily Farm News Update.
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We invite you to check out our website at the link below too that includes an archive of these daily emails, audio reports and top farm news story links from around the globe.
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God Bless!
Reach Out To Us:
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Tim West
President/General Manager
Rural Oklahoma Networks
405-317-6361
***************
Mike Henderson
Director of Sales
405-615-4922
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KC Sheperd
Farm Director
Radio Oklahoma Ag Network
405-443-5717
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Ron Hays
Senior Farm/Ranch Broadcaster
Radio Oklahoma Ag Network
405.473.6144
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