Production Systems Intensive versus Extensive

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Production SystemsIntensive versus Extensive

• Range 215
• February 14, 2005

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• INTENSIVE vs EXTENSIVE
• - LAND BASE
• SUPPLEMENTAL FEED -
• OPERATING COSTS -
• MANAGEMENT
• Dep CAPITAL App
• Cows PHILOSOPHY Grass

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Stocker/Yearling

• Advantages
• Low labor
• Efficient use of resources (low maintenance
  requirement, no reproduction)
• Very flexible excellent for operations with lots
  of grass but limited hay
• Require fewer capital expense items

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Stocker/Yearling

• Disadvantages
• Sourcing cattle is difficult -finding
  appropriate weight -no control of genetics
• Marketing can be brutal -no good risk
  management strategy
• Late season grass quality poor gains
• It takes capital! 500 calves will cost 200K
  - 250K
• Passion????

5
Buy low/sell high

• Avoid buying in market highs (January and
  April)
• Take advantage of market weakness (3rd week of
  Oct. thru Thanksgiving)
• Sell at market highs (July and September)
• Avoid market lows (October and August)
• Buy the right kind

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Adding yearlings to a cow-calf operation

• Spreads production risk - easy to adjust
  stocking rate - drought management tool
• Spreads market risk - two weight classes to
  sell

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Cows only200 cows 15 replacement rate 180
calves 50 kept as replacement heifers

• 90 steers _at_ 550 lb x .90 44500
• 40 heifers _at_ 500 lb x .85 17000
• 30 cull cows _at_ 1200 lb x .40 14400
• 20 cull heifers _at_ 800 lb x .75 12000
• 87,950

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Transition year160 cows 60 yearlings 15
replacement rate 180 calves 40 replacement
heifers 60 steers

• 30 steers _at_ 575 lb x .89 15350
• 50 heifers _at_ 500 lb x .85 21250
• 30 cull cows _at_ 1200 lb x .40 14400
• 16 cull heifers _at_ 800 lb x .75 9600
• 40 bred cows _at_ 800 32000
• 92600

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Cows and yearlings160 cows 60 yearlings 15
replacement rate 136 calves 40 replacement
heifers 60 steers

• 8 steers _at_ 575 lb x .89 4094
• 28 heifers _at_ 500 lb x .85 11900
• 24 cull cows _at_ 1200 lb x .40 11520
• 16 cull heifers _at_ 800 lb x .75 9600
• 59 yearlings _at_ 900 lb x .75 39825
• Feed on 40 cows 6000
• 84939