Monday, August 11, 2008

August 2008


Comments from Jim:
The summer grazing season is progressing nicely as I write this newsletter. Hay prices are still out of sight and feed grains; especially corn is higher than a kite. What affect this will have on calf prices this fall is yet to be seen.
The last edition of Over the Wire covered cow efficiency in terms of pounds of calf produced versus cow size. This edition of the newsletter will concentrate on the calving season as it relates to efficiency and profitability for cow calf producers. I will try to look at the advantages and disadvantages of calving in the spring; the late spring; and in the fall.
Feel free to give me a call if you have any questions on this topic or any other cattle related issue.
Sincerely,
Jim Church
University of Idaho
Extension Educator, Livestock

The Pros and Cons of Early Spring, Late Spring or Fall Calving Season

Cattle producers are living through some very interesting times. Production costs are going through the roof, calf prices appear to be holding steady or slightly decreasing and the rate of consolidation is staggering. We are in an election year and the buzz word is “change”. If you want to see change, watch what happens to the cattle business over the next 5 to 10 years. It may make your head spin.

Those producers that are in it for the long haul, are faced with carefully analyzing their business management plans in order to stay competitive. One management practice that has been discussed with more regularity in the last year or two is calving season. High feed costs are driving this discussion. That is why we need to look at the pros and cons of calving in the early spring, versus calving in the late spring, versus calving in the fall.

To begin with, changing the time of year that you calve is a major decision that can have a dramatic affect on your operation. My recommendation is to walk before you run when considering a calving season change. Dr. Kris Ringwall, North Dakota State University Extension Beef Specialist, stated in a publication on calving season changes that the masses of producers will tend to do what makes money over the long haul. In other words, what works best and makes money for producers in a region of the country, is usually the calving season that the majority of producers are using.

Dr. Gerald Stokka, Extension Beef Veterinarian from Kansas State University outlined in a K-State publication on calving season that choosing the time of year to calve should be based on economic, management and health considerations. This recommendation was echoed by the publication written by Dr. Ringwall. I think we need to look at these considerations:

Economic Considerations:

When considering the economic affect of a change in calving season a producer must analyze the change in the value of the calf, the change in the annual cow costs and the change in the cost of
facilities. Let’s look at all of these:

1. Value of the calf – if we change from an early spring calving herd to a late spring calving herd the calves will be lighter at weaning time. This is not a big deal if the calves are backgrounded, however if the calves are sold at weaning the later calves can be as much as 100 pounds lighter than the early spring calves. The price per pound will be more, but the total dollars received could be less if the calves are sold at weaning. Fall born calves sold at weaning in the spring, will weigh similar to early spring calves and will actually have a price advantage over spring born calves due to historic seasonal price differences for calves. So on average, total dollars received for calves sold at weaning will probably be highest for fall born calves, followed by early spring born calves and then calves born in late spring.
percent of the total cow unit revenue. For example, if cow unit revenue is $550 then total feed costs including pasture should be no more than $220.

Late spring calving matches the nutrient requirements of the cows more closely with the forage resource than other calving seasons, therefore annual cow costs would be the lowest.

Dr. Stephen Blezinger, a management consultant from Sulphur Springs, Texas wrote about this topic in an article that appeared in Cattle Today. Dr. Blezinger indicated that a study conducted in Nebraska showed that late spring/summer calving cows were fed 3000 pounds less hay per cow than cows that calved in early to mid spring. Protein costs were the same but the late calving cows were wintered out on crop aftermath and other forages late into the winter feeding period.

Another cost that must be taken into account for fall calving operations is the cost of creep feeding calves during the winter months. To insure adequate growth, fall born calves should be creep fed an energy feed. With grain prices high, this could be a considerable expense.

Cost of facilities – Calving in late winter or early spring requires more calving facilities than other times of the year. Calves need protection from cold temperatures and wet conditions. Late spring and fall calving herds require fewer calving facilities. Therefore, facility costs are highest for winter/early spring calving operations and lowest for fall calving.

2. Annual cow costs – Feed costs make up 60 to 70 percent of the annual cost of owning a cow. Therefore calving season can have a dramatic affect on annual cow costs. We all know that nutrient requirements for cows are greatest 30 days prior to calving up through the first trimester of the subsequent pregnancy. Calving at a time when the pasture and range forage is of high quality, will reduce production costs. Production costs increase when harvested forages have to be fed to meet nutrient requirements during the critical pre-post calving time frame.

Research has shown that in order to sustain profitability cow feed costs should be no more than 40 percent of the total cow unit revenue. For example, if cow unit revenue is $550 then total feed costs including pasture should be no more than $220.

Late spring calving matches the nutrient requirements of the cows more closely with the forage resource than other calving seasons, therefore annual cow costs would be the lowest.

Dr. Stephen Blezinger, a management consultant from Sulphur Springs, Texas wrote about this topic in an article that appeared in Cattle Today. Dr. Blezinger indicated that a study conducted in Nebraska showed that late spring/summer calving cows were fed 3000 pounds less hay per cow than cows that calved in early to mid spring. Protein costs were the same but the late calving cows were wintered out on crop aftermath and other forages late into the winter feeding period.

Another cost that must be taken into account for fall calving operations is the cost of creep feeding calves during the winter months. To insure adequate growth, fall born calves should be creep fed an energy feed. With grain prices high, this could be a considerable expense.

Cost of facilities – Calving in late winter or early spring requires more calving facilities than other times of the year. Calves need protection from cold temperatures and wet conditions. Late spring and fall calving herds require fewer calving facilities. Therefore, facility costs are highest for winter/early spring calving operations and lowest for fall calving.
3. operations. Each producer must analyze what is available in terms of facilities and make decisions accordingly. Keeping facility costs low is critical for long term profitability

Management Considerations:

Calving in late winter or early spring requires more labor. Weather problems require producers to be on hand to get newborn calves in barns out of the weather, or have enough barn space to calve inside out of the elements. This is labor intensive. Late spring and fall calving cows are out on grass and require much less attention. Labor costs are reduced greatly. However, producers calving in late spring or fall need to have pastures with facilities that allow the producer to provide assistance if a cow experiences calving difficulties.

Pasture quality should also be a concern for producers that calve in late spring or fall. If the increased nutrient requirements are being met through pasture grasses, then the pasture must have forage that is of high quality and in quantity to satisfy the needs of the herd. Otherwise, supplements need to be provided.

Health Considerations:

Disease in newborn calves is reduced significantly when cows calve out on pasture in late spring or fall. The cattle are distributed widely throughout the pasture which reduces the buildup of disease organisms. Weather stress from cold, snowy weather is way lower and mud is usually not a problem. Very few if any calves have to be treated for scours. The overall health of the calves is better and death loss due to scours or some other stress related disease in way lower in late spring and fall born calves compared to winter or early spring calves.

Research has proven that under wet, muddy conditions, a calf’s energy requirement increases and the ability of the calf to absorb immunoglobins in the colostrum is reduced which makes the calf more susceptible to scours.

Summary:

So what does this tell me? To begin with, there are a lot of factors that must be considered when selecting a calving season. In North Central Idaho, I would say that the calving season is split about 50-50 between spring and fall calving herds. Which season is the best for this region? I don’t know; each operation is different. However like I indicated earlier, every good businessman should continuously analyze his/her business to determine production efficiency and profitability. Look at annual cow costs, value of the calves at marketing time along with facility costs and make changes only if they will improve the bottom line. Changing a calving season can really upset cash flow which may make the banker extremely nervous.

Good luck with the upcoming marketing season for spring calvers and for the fall calvers, have a great calving season.

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