Nutrition
Nutrition Articles
Planning for a Successful Beef Operation
Fundamental to all agriculture is an acre of land. Multiple acres can be added together to make a farm but the principle of ‘the acre’ still applies. For this unit the farm family needs to profit to be successful and so considers what can be done with this acre to generate income above expenses. The characteristics of the soil in concert with rainfall determines what use ‘the acre’ is best put to in the quest for profit. With adequate rainfall and good soil characteristics high value crops can be grown which in turn predict what equipment and storage assets are needed to achieve the goal. For soil of less quality or areas of lower rainfall alternative uses become important. Grasses and other forages can thrive where the higher value crops don’t and here is an opportunity for cattle to be the main activity. The world has more land of this type than any other. Land is a long term asset and is expensive. Whatever the quality of the acre a good business practice is to maximize its potential in generating income.
Currently in North America the cow herd is at a low point even though beef production has been steady over the last 10 years or so. Some of the shortfall from straight beef is being made up from dairy/beef crosses. This year 2024 is going to be steady for beef production and demand from the consumer remains strong. In Canada the cow herd is contracting to its lowest point in 35 years1 so the opportunity exists for new entrants to enter the beef production business. Existing herds will continue to be liquidated, transferred or sold as retirements and generational transfers occur.
For new entrants there remains the fundamental principles of business to wrestle with and decisions are made around what is possible based on the potential of the land. Being in the top 25% of beef producers will ensure the best possible opportunity to make a profit every year2. The plan for profit begins by structuring the intermediate farm assets around the fundamental realities of land and weather. It answers questions like what equipment is needed, what structures need to be built, what type of cattle can thrive on the farm and how are management tasks structured to give the best chance for success. Eventually a feed plan is needed taking into consideration owned land forage and grain production, purchased ingredients, and assets needed to achieve efficient feeding. Feeding animals represents a significant part of the operating costs taking into consideration breed, gender, position of the animal in its life cycle, quality of ingredients, supply considerations, efficient tools to deliver feed and all costs associated with these elements. A cost of production document will assemble these considerations and serve as a guideline to achieving profit. Beef producers are price takers not price setters so efficiency in all aspects helps getting to the goal.
Highline® has produced a line of mixers including a self-propelled self-loading mixer addressing the need to accurately blend available ingredients to produce a best cost ration for all stages in the life of the animals. Best use of forages is to mix them based on nutrient profiles and unit cost. This activity requires an accurate mixer but the mixer can’t achieve this on its own. The operator must have an idea of the needed outcome for the mix and recognize when that is achieved. New operations which are just starting will need large amounts of capital. A beef operation can be profitable most years where close attention is paid to doing the tasks that make for profit2. Uppermost in these tasks is feed management for maximum efficiency and Highline® mixers deliver dependable service to producers who are committed to reducing waste in the feeding activities. A quality Highline® mixer can improve feed management and return value over its cost which means it can be cash flowed successfully.
1. The Cattle Site, Global beef, veal production to remain unchanged in 2024 – GAIN, 13 November 2023.
2. Differences Between High-, Medium-,and Low-Profit Cow-Calf Producers: An Analysis of 2012-2016 Kansas Farm Management Association Cow-Calf Enterprise, Dustin L. Pendell (dpendell@ksu.edu) and Kevin L. Herbel (kherbel@ksu.edu)Kansas State University Department of Agricultural Economics – January 2018, Kansas State University Department of Agricultural Economics Extension Publication