Source: UTAH STATE UNIVERSITY submitted to NRP
MODELING TYPICAL INTER-MOUNTAIN CATTLE RANCHES: AN ECONOMIC ANALYSIS OF CATTLE MANAGEMENT AND MARKETING ALTERNATIVES
Sponsoring Institution
State Agricultural Experiment Station
Project Status
COMPLETE
Funding Source
STATE
Reporting Frequency
Annual
Accession No.
0225615
Grant No.
(N/A)
Cumulative Award Amt.
(N/A)
Proposal No.
(N/A)
Multistate No.
(N/A)
Project Start Date
Jul 1, 2011
Project End Date
Jun 30, 2016
Grant Year
(N/A)
Program Code
[(N/A)]- (N/A)
Recipient Organization
UTAH STATE UNIVERSITY
(N/A)
LOGAN,UT 84322
Performing Department
Agri Systems Technology and Education
Non Technical Summary
Mature beef cow size has increased over time. This has direct and indirect and economic consequences on ranch costs, herd productivity, gross returns, and ultimately ranch profitability. An expected outcome of this research is a clearer understanding of how ranch profitability changes with varying mature cow size. Furthermore, it is expected that the optimal cow size will impact and be impacted by calving and calf weaning dates. Ultimately, it is anticipated that optimal mature cow size will vary with the ranch resource base and with the time that calve are marketed (at weaning or after a period of retained ownership). As this knowledge is shared with cattle producers, it is believed that they will be able to increase their ranch profitability by selecting the mature cow size that is the "best" fit for their resources and their management objectives.
Animal Health Component
(N/A)
Research Effort Categories
Basic
(N/A)
Applied
(N/A)
Developmental
(N/A)
Classification

Knowledge Area (KA)Subject of Investigation (SOI)Field of Science (FOS)Percent
6013310301065%
6033310301035%
Knowledge Area
601 - Economics of Agricultural Production and Farm Management; 603 - Market Economics;

Subject Of Investigation
3310 - Beef cattle, live animal;

Field Of Science
3010 - Economics;
Goals / Objectives
The overall objective of this research project is to model three typical inter-mountain ranch scenarios: 1) a year round grazing operation with limited supplements; 2) a resource scenario where cattle are fed hay for three months; and 3) a resource scenario where cattle are fed hay for six months. The models will be used to evaluate the economic impact of mature cow weight and calving and weaning dates as well as analyzing the return associated with keeping calves beyond weaning in yearling type system. Specific objectives are: 1. Determine the economically optimal mature cow sizes on each of the three typical ranch resource scenarios for the typical calving and weaning date and with calves being sold at weaning; 2. Determine the economically optimal mature cow size, calving date and weaning date on each of the three typical ranch scenarios if calves are sold at weaning; and 3. Determine the economically optimal mature cow size, calving and weaning dates and retaining ownership alternative if calves are allowed to be retained beyond weaning in a yearling type system for each of the three ranch resource scenarios. Extension agents and a selected few producers will be identified and interviewed from unique ranch resource areas. The purpose of these interviews will be to determine present typical mature cow size, typical cow and calf management practices including calving and weaning dates and calf marketing practices, and to determine the availability and use of grazed and harvested range and forage resources. Data collected from these interviews will be used to construct three typical model base ranch scenarios for the inter-mountain area: 1) year-long grazing with minimal hay feeding, the Mild Winter Ranch; 2) nine months grazing with three months of hay feeding, the Moderate Winter Ranch; and 3) six months grazing with six months of hay feeding, the Severe Winter Ranch. Some of the specific variables for each model ranch would be: resources (public and private rangeland, irrigated pasture, crop aftermath, harvested forages, harvested grains, and purchased feeds); cattle genetics (mature weight, dominate breed, and if know EPDs on sires for milk production, weaning weight, yearling weight); and management strategies (calving date, weaning date, breeding season length, calf feeding, and yearling feeding). Once each of the base ranch models is completed, extension agents and producers in each area will be asked to review the models to determine if they are in fact representative of typical ranching operations for that area.
Project Methods
Linear programming (LP) will be used to determine the economically optimal mature cow size for each of the three typical ranches. The resource constraints will come from the base typical ranches. Prior published research will be used to determine the technical coefficients for alternative mature cow weights. These coefficients will not only be the differences in nutrient requirements for alternative weights but also differences in production such as weaning percent and weaned calf weight. While there will be many activities necessary to model each ranch scenario, the primary activities of interest will be the mature cow weight. Weight will vary from 1,000 to 1,500 pounds in 50 pound increments. The last five years of prices will be used to determine the costs and returns associated with each activity. The optimal mature cow weight will be determine based on the typical calving date and weaning date determined for each of the three ranch scenarios. The base LP model developed for each resource scenario will be expanded to include multiple calving dates and weaning dates for each of the mature cow weights. There are numerous calving dates available if one considers the full range between spring, summer and fall calving possibilities. However, to limit the complexity of this model at this time, only spring calving dates will be considered. The exact dates to consider will be based on the typical calving dates reported by producers from each base ranch scenario. Depending upon the typical calving date, a 30-day earlier date and a 30-day later date may be considered or alternatively a 30-day later date and a 60-day later date may be considered. Three alternative weaning dates will also be considered. Calf weaning dates will be 165 days, 210 days and 255 days from the average calving date. In this manner, the model should capture all of the interactions between mature cow weight, calving date, weaning date, nutrient availability, market seasonality and ultimately ranch profitability. The LP model developed to determine optimal cow weight, calving date and weaning date when calves are sold at weaning will be expanded to include additional on ranch retained ownership activities. Three different lengths of retained ownership will be consider: a 120 day feeding period; a 180 day feeding period; and a 180 day feeding period followed by a 120 day summer grazing period. These times may be altered some for each of the three different ranch scenarios to more closely match typical summer grazing periods. During the winter feeding time, activities will be included in the model for 1.0, 1.5, 2.0 and 2.5 pounds per day gain for the retained calves. This final model will be a fairly comprehensive model for each of the ranch scenarios. Answering the questions of the economically optimal mature cow weight, calving date, weaning date, and optimal calf marketing/retained ownership alternative will be of great interest to the scientific community and to cattle producers in the inter-mountain ranching areas.

Progress 07/01/11 to 06/30/16

Outputs
Target Audience:Target Audience Intermountain area Cattle Producers. Changes/Problems:Changes/Problems Objectives 2 and 3 of the project were not accomplished. I took on a major administrative assignment, with a much reduced research assignment in year two of the project and was only able to accomplish objective 1. What opportunities for training and professional development has the project provided?Opportunities A graduate student was involved in the project to complete objective 1. He was given opportunities to understand beef cattle nutrient requirements and ration balancing to meet those requirements. He also had the opportunity to learn linear programming and simulation analysis. How have the results been disseminated to communities of interest?Dissemination An M.S. thesis is publicly available. A preliminary report of the findings was made to the Livestock Market Information Center, Technical Advisory Committee. This group is primarily agricultural economics extension specialists from participating states. There are also representatives from other livestock affiliate groups. Research finding from objective one, the optimal cow size for typical intermountain cattle ranches, were presented at the 2015 Utah Beef Cattle Field Day to approximately 185 cattle producers. What do you plan to do during the next reporting period to accomplish the goals?Plan of Work Final report. No further planned work.

Impacts
What was accomplished under these goals? Accomplishments A master of science student completed a thesis, "The Optimal Cow Size for Intermountain Cow-calf Operations: The Impact of Public Grazing Fees on the Optimal Cow Size." A fact sheet was published in 2015 highlighting the findings of objective one; the optimal cow size for intermountain cattle ranches. This research was a completion of objective 1 of this project. Three resource bases were considered with full supplemental winter feeding time varying from zero, to 90, to 180 days. Cow weights varied from 1,000 to 1,200 to 1400 pounds. Linear programming was used to solved for the optimal cow size on each resource base. The optimal cow size for the zero and 90 day, winter feeding ranches was the 1,400 pound mature cow. However, on the ranch were cows must be fed 180 days, the 1,000 lb. cow was the economically optimal cow size. Therefore, we found that the optimal cow size does vary with the resource base.

Publications


    Progress 10/01/14 to 09/30/15

    Outputs
    Target Audience:Target Audience Utah Cattle producers Changes/Problems:Changes/Problems It is unlikely that objectives 2 and 3 of the project will be accomplished by the end of the project given my present administrative assignment. What opportunities for training and professional development has the project provided?Opportunities None Provided How have the results been disseminated to communities of interest?Dissemination Research finding from the prior year on objective one, the optimal cow size for typical intermountain cattle ranches, were presented at the 2015 Utah Beef Cattle Field Day to approximately 185 cattle producers. What do you plan to do during the next reporting period to accomplish the goals?Plan of Work I do not currently have a graduate student working on the project.

    Impacts
    What was accomplished under these goals? Accomplishments A fact sheet was published in 2015 highlighting the findings of objective one; the optimal cow size for intermountain cattle ranches. This was a completion of objective 1 of this project. Three resource bases were considered with full supplemental winter feeding time varying from zero, to 90, to 180 days. Cow weights varied from 1,000 to 1,200 to 1400 pounds. Linear programming was used to solved for the optimal cow size on each resource base. The optimal cow size for the zero and 90 day winter feeding ranches was the 1,400 pound mature cow. However, on the ranch were cows must be fed 180 days, the 1,000 lb cow was the economically optimal cow size. Therefore, we found that the optimal cow size does vary with the resource base.

    Publications

    • Type: Other Status: Published Year Published: 2015 Citation: Other Russell, J., Feuz, D. (2015). The Optimal Cow Size for Intermountain Cow-Calf Operations (AG/2015-01pr ed.). http://digitalcommons.usu.edu/cgi/viewcontent.cgi?article=1703&context=extension_curall


    Progress 10/01/13 to 09/30/14

    Outputs
    Target Audience: Target Audience Utah Cattle Producers Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided? Opportunities Graduate student had the opportunity to learn linear programming and simulation analysis. How have the results been disseminated to communities of interest? Dissemination Thesis is publicly available. A preliminary report of the findings was made to the Livestock Market Information Center, Technical Advisory Committee. This group is primarily agricultural economics extension specialists from participating states. There are also representatives from other livestock affiliate groups. What do you plan to do during the next reporting period to accomplish the goals? Plan of Work Results will be presented to Utah Cattlemen at the Annual "Beef Day" in February 2015. A selected paper based on this thesis will be sent to the AAEA/WAEA annual meeting. A journal article reporting the findings will also be written and submitted.

    Impacts
    What was accomplished under these goals? Accomplishments A Master of Science student completed a thesis, "The Optimal Cow Size for Intermountain Cow-calf Operations: the Impact of Public Grazing Fees on the Optimal Cow Size." This thesis research was a completion of objective 1 of this project. Three resource bases were considered with full supplemental winter feeding time varying from zero, to 90, to 180 days. Cow weights varied from 1,000 to 1,200 to 1400 pounds. Linear programming was used to solve the optimal cow size on each resource base. The optimal cow size for the zero and 90 day winter feeding ranches was the 1,400 pound mature cow. However, on the ranch were cows must be fed 180 days, the 1,000 lb cow was the economically optimal cow size. Therefore, we found that the optimal cow size does vary with the resource base.

    Publications

    • Type: Journal Articles Status: Published Year Published: 2014 Citation: Stockton, M. A., Wilson, R. K., Feuz, D., Stalker, L. A., Funston, R. N. (2014). Bio-economic factors of beef heifer maturity to consider when establishing criteria to optimally select and/or, retain herd replacements. Journal of Animal Science, 92, 1-9.


    Progress 01/01/13 to 09/30/13

    Outputs
    Target Audience: Utah Cattle Producers Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided? A graduate student started on the project in September. He has been given opportunities to understand beef cattle nutrient requirements and ration balancing to meet those requirements. How have the results been disseminated to communities of interest? Nothing Reported What do you plan to do during the next reporting period to accomplish the goals? Graduate student will complete a thesis in the next year that at a minimum will address objective one of the project.

    Impacts
    What was accomplished under these goals? Graduate student learned how to determine beef cattle nutritional needs and how to create a ration to meet those needs. This is the first step in completing objective 1 of this project.

    Publications

    • Type: Journal Articles Status: Published Year Published: 2013 Citation: Stockton, M. C., Wilson, R. K., Feuz, D., Stalker, L. A., Funston, R. K. (2013). Using measurable physical characteristics to forecast beef heifer maturity: The identification of a maturity index. Journal of Animal Science (91), 1-7.


    Progress 01/01/12 to 12/31/12

    Outputs
    OUTPUTS: Data is being assembled to construct the set of typical farms. PARTICIPANTS: Dillon Feuz TARGET AUDIENCES: Utah Cattle Producers PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.

    Impacts
    Work is nearing completion on a simulation model from a prior grant that terminated this past September. That simulation model will be used for some of the modeling on this research project. A graduate student was recruited that will begin in Fall of 2013.

    Publications

    • No publications reported this period


    Progress 01/01/11 to 12/31/11

    Outputs
    OUTPUTS: There have been no outputs in the first six months of this project. Most of the data have been assembled to begin constructing the first of three base typical ranches. PARTICIPANTS: Dillon Feuz. TARGET AUDIENCES: Utah cattle producers. PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.

    Impacts
    None to report at this time.

    Publications

    • No publications reported this period