Cattle Feeding in Iowa for the 21st Century

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Cattle Feeding in Iowa for the 21st Century

• How Iowa compares
• Adding value through cattle
• Discovering opportunities

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Value-based or Grid Marketing

• Compared to NCBA National Audit, cattle fed in
  Iowa had
• Higher marbling score
• Higher quality grade
• Higher percent Prime and Choice
• Higher percent Y1 and Y2
• Bottom line Higher value

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Regional DifferencesLand O Lakes Analysis

• 1999 closeouts from 25 feedlots in the Texas
  Panhandle
• 1999 closeouts from 8 feedlots in Western Kansas
• Combined, these groups would represent over a
  million hd of cattle.
• Compared to LOL average and Top 1/3 closeouts
  from IA, MN, NE, SD

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Corn Through Cattle

• Work with a professional feedyard
• For the 1988-1997 crop years the value of corn
  through cattle was
• .56/bu higher than harvest price
• Beat harvest price 9 of 10 years
• Beat the highest monthly price 6 of 10 years

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Distribution of Monthly Corn Prices and Value
Through Cattle, 1988-1997 Crop Years
35
30
25
20
15
10
5
0
1.01-1.25
1.26-1.50
1.51-1.75
1.76-2.00
2.01-2.25
2.26-2.50
2.51-2.75
2.76-3.00
3.01-3.25
3.26-3.50
3.51-3.75
3.76-4.00
Over 4.00
1.00 or less
Cash Corn
Monthly Corn and Cattle
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Value Added per Acre of Corn

• Feeding corn through cattle
• 150 bushels/acre _at_ .56/bushel
• 84/acre
• 500 acres 42,000

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Iowa as 1 Cattle State

• 1 in product quality
• 1 in food safety
• 1 in high-value beef exports
• 1 in environmentally sound systems
• 1 in technology adoption
• 1 in producer owned processing
• 1 in producer profitability

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Cattle Feeding in Iowa for the 21st Century

• Feedlot design and management to protect the
  environment and investment
• Marketing opportunities to capitalize on quality
• Quality assurance programs to define and access
  new markets