Oklahoma Farm Report masthead graphic with wheat on the left and cattle on the right.
Howdy Neighbors!
Ron Hays, Director of Farm and Ranch Programming, Radio Oklahoma Ag Network  |  2401 Exchange Ave, Suite F, Oklahoma City, Ok 73108  |  (405) 601-9211

advertisements
   
   
   
   
   
    
   
   
   
   
   

Agricultural News


Preconditioning Adds Value to Fall Calf Sales

Tue, 02 Sep 2014 15:58:52 CDT

Preconditioning Adds Value to Fall Calf Sales

By Steve Swigert, Agricultural Economist Consultant for the Noble Foundation


Cow-calf producers with calves to market in the fall of 2014 are going to have some interesting decisions to make. With calf market prices at all-time highs and feed prices lower than the past three years, are the calves going to be sold at weaning or are they going to be kept until a later date to make additional income?


It is crucial to determine what is best for the calves and what is best for the operation financially. There are several decisions to be made when working through this process.


The first decision is whether to market at weaning or keep the calves longer. If the calves are sold at weaning, income is available immediately and no more labor is needed to take care of the calves. If the labor and facilities are available to wean and precondition calves, assuming the calves have good to superior genetics, additional profits are available in most cases by keeping the calves after weaning.


When selling calves at weaning, the shrink on weaned calves can be significant, often ranging from 4 to 12 percent, depending on the sale and weather conditions. These same calves are discounted from $10 to $12 per hundredweight because they have not been through the weaning process.


Compare this to a +2 percent to -2 percent sale shrink at the end of a 45- to 60-day preconditioning period with no price discount for being a calf. In addition to the lost weight and lower price at weaning, the calves have an opportunity to have a daily gain of 2 to 3 pounds and typically sell at a higher price at the end of a typical 45- to 60-day weaning period in the fall. Considering these factors, the market value of the preconditioned calf is significantly higher.


To optimize the margins through this preconditioning process, it is crucial to keep the cost of gain as low as possible, preferably in the 80- to 90-cents-per-pound range or lower. This level of cost of gain can be achieved by planning ahead for feed, veterinary supplies, and hay or grazing.


By marketing calves at the end of the 45-day preconditioning period, consistently positive margins are achievable, and the margin can be significant in some years. For example, Noble Foundation producers in the Integrity Beef Alliance netted an additional $142 per calf during the 2013 preconditioning period.


In addition to the marketing opportunities at the end of a preconditioning period, these same calves will continue to perform through a wheat pasture or post preconditioning feeding program. With value of gain ranging from 85 cents per pound to $1.05 per pound, there are opportunities for increased profits the longer the calves are held. If you need help calculating the cost of gain and value of gain during this time, give the Noble Foundation a call.


   

 

WebReadyTM Powered by WireReady® NSI

 


Top Agricultural News

  • Oklahoma Grain Elevator Cash Bids as of 2:00 p.m. Friday April 3, 2020  Sat, 04 Apr 2020 16:32:49 CDT
  • Friday, April 3, 2020 Market Wrap-Up with Justin Lewis  Fri, 03 Apr 2020 15:39:59 CDT
  • Global Changes Could Impact U.S. Farmers' Spring Planting Intentions Says USDA Chief Economist Rob Johansson  Fri, 03 Apr 2020 14:30:08 CDT
  • Despite Global Challenges, U.S. Pork and Beef Exports on Record Pace through February  Fri, 03 Apr 2020 14:07:52 CDT
  • USDA Adds Additional Flexibilities for Crop Insurance to Support America’s Farmers and Ranchers  Fri, 03 Apr 2020 13:18:47 CDT
  • Coronavirus Impact Ripples Across Farm Country  Fri, 03 Apr 2020 14:15:59 CDT
  • *Deadline Extended* OKFB Accepting Applications for $1,000 Scholarships  Fri, 03 Apr 2020 11:39:47 CDT
  • National Sorghum Producers to Open Board Director Applications  Fri, 03 Apr 2020 10:17:47 CDT

  • More Headlines...

       

    Ron salutes our daily email sponsors!

    Oklahoma City Farm Show KIS FUTURES, INC. Oklahoma Ag Credit Oklahoma Farm Bureau National Livestock Credit Ag Mediation Program P&K Equipment AFR Insurance Stillwater Milling Oklahoma Cattlemen's Association

    Our Road to Rural Prosperity sponsors!

    Banc First OPSRC ORWA TPAOO TPAOO

    Search OklahomaFarmReport.com


       
       
    © 2008-2020 Oklahoma Farm Report
    Email Ron   |   Newsletter Signup   |    Current Spots   |    Program Links

    WebReady powered by WireReady® Inc.