The rising cost of grain and fuel affects everyone, from the farmer to the consumer. In the middle is the feed lot owner. Balancing between profit and loss, the feedlot does not want to own those cattle quite so long. Enter the local producer. Individual producers have a unique opportunity to keep their calves longer, and be paid more for them by putting on some of that weight the feedlots used to.
Johnny Gunsaulis, with the University of Arkansas Extension in Washington County, said he has been encouraging producers to consider keeping their cattle longer and reap the benefits.
"If you look at most sale reports from any livestock market in the area you'll see what (steers and heifers) bring per pound at 600 lbs. versus 900 lbs. is essentially the same. So every pound after that 600 lbs. is worth $1 or $1.05," Gunsaulis said.
Beyond the benefit of weight, concerns for the health of younger animals makes older animals more valuable as well.
“Feed yards are looking for animals without the health maintenance requirements that calves have,” added Steve Owens of Joplin Regional Stockyards, in Joplin, Mo.
Buy it or raise it?
There are two methods of backgrounding; buy and grow out, or raise and grow out. Buy and grow is the method for landowners who aren’t looking for the full time work of a cow/calf operation. “The advantage here is that you can schedule when you have cattle,” said Owens. “You have them four to six months and get a return. But it’s not for everybody. Backgrounding requires a knowledge of the land, cattle health and nutrition and having the facilities to work them.”
The disadvantage is that you are purchasing them from the producer, and that’s money out of your pocket.
For the cow/calf producer, the raise and grow method adds to the daily work load but without the added cost of purchasing the calves.
Health considerations will be a concern with both methods, but Gunsaulis said maintaining a vaccination program on all your animals will be a benefit, and "especially if people are buying calves and grouping them together."
Requirements for growth
Genetics play an important role in growth, but attaining that perfect 1.5 to 2 lb. per day weight gain requires good health and nutrition practices. Gunsaulis said, "These animals will have higher nutritional requirements than that of maintaining a cow. They need to be on something allowing them to put on 2 lbs. per day, high quality grass or a little bit of supplement each day."
He recommends utilizing cool season annuals such as rye, oats, wheat, ryegrass and mixes of all of the above, and also clovers. "It's tough to get the gains we want on bermuda and fescue at certain times of the year. There's also been some increased interest in corn silage for winter as opposed to hay feeding during winter."
By using rotational grazing and matching it to the grass type and season, backgrounders can maximize their profit potential.
