Risk Management

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Refresher Day One

• Production risk factors
• Measuring resources
• Feed and Forage
• Cattle
• Labor
• Facilities

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Homework

• Two scenarios
• Drought, July 1 - Sept 1
• Lost 25 of pasture acres
• Others?

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Your Strategies?

• Please list them on flip chart

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Drought, July 1 - Sept 1

• Early Wean
• Supplement with coproducts / corn / commercial
  supplements
• Buy hay
• Sell cows
• Move cows

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Drought, July 1 - Sept 1

• Supplement or Substitute
• Extend pastures
• Nebraska work found 1 pound DM of distillers
  grains can replace 1.72 pounds DM of grass
• If this formula holds, 4 lbs of DDGS could
  replace 6.88 lbs of grass, or 16.5 of grass
  needed by 1300 lb cow with calf

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Drought, July 1 - Sept 1

• Supplement or Substitute
• Extend pastures
• What is relative cost of grass vs distillers?
• DDGS needs to be economical to be a big
  advantage, but could get bump in reproduction
  from fat added to diet from DDGS

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Drought, July 1 - Sept 1

• Complete feed cost comparison worksheet

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Drought

• Hay 50 hay comes from first cutting so roughly
  only 50 yield gt 250 tons hay
• Should you fertilize the hay ground to stimulate
  growth likely no benefit until it rains
• Did you get enough rain after Sept. 1 to make a
  late cutting of hay, or stockpile it for fall
  grazing?
• When can you graze in the fall without impacting
  next years growth cut before Sept. 15 OR wait
  till after killing freeze (28 degrees for 4 hrs)

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Drought

• Pastures no grass so now what?
• wean calves early reduces nutritional needs on
  cow by 30 or more,
• reduce forage intake from calf - 6-7 month old
  calves will be consuming about half the amount of
  forage as their dam
• may help stimulate estrus

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Drought

• Creep feed calves to get started on feed before
  weaning what is the additional cost of creep
  feed??
• Feed conversion about 8-12 pounds feed per pound
  of gain
• Oklahoma Nebraska data show that milk
  consumption remains the same, but creep feed
  replaces forage intake (N. Dak pub on creep
  feeding)

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Impacts of Drought

• Damage to pasture
• Higher feed costs
• Loss of body condition, poor performance
• Selling cattle lose genetic progress

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Lost 25 of Pasture Acres

• Improve pasture management on remaining 75
• Purchase or rent new pasture
• Supplement/substitute with other feed
• Sell some cows

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Lost 25 of Pasture Acres

• Move to lease or custom arrangement with other
  producer
• Custom arrangement on one enterprise (heifer
  development, backgrounding)
• Early weaning
• Creep feeding

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Lost 25 of Pasture Acres

• Real world problem
• 2004 IBC survey 30.8 of cow calf producers
  list lack of pasture land major problem
• 1997-2002 pastures acres in Iowa decreased
  14.5
• 1997-2002 land investment/cow increased 29.9

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Lost 25 of Pasture Acres

• Sell 43 head loss of genetic base
• Income tax implications
• Conversion of current hay ground need 25 less
  winter feed can it go into crop production?
• Cull cows sell low producing cows, physical
  problems

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Lost 25 of Pasture Acres

• Boost pasture management
• Increase pasture rotation from continuous to 4-5
  paddocks increase 15
• Move to more intense management from 4-5 paddocks
  increase another 15
• Move from unimproved grass to legume/grass
  increase 30-50
• (long term change)

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Lost 25 of Pasture Acres

• Boost pasture management
• Rotational grazing, increasing to 5-6 paddocks
  (weekly move)
• costs of additional fencing
• will paddocks lay out feasibly
• water sources are they located in each new
  paddock or need to be added

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Lost 25 of Pasture Acres

• Improve fertility of pastures to increase
  production
• Cost of fertilizer especially N
• Rates to use and timing
• Frost seed clover instead cost of seed vs N
• Stands of 1/3 clover produce equal to N
  fertilized grass only
• Pasture Guide 30-50 lb/ac N may increase dm
  yields 40-50

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Lost 25 of Pasture Acres

• Convert hay ground to pasture ground and purchase
  winter feed needs
• costs of purchased vs home raised hay
• availability of hay to purchase
• limit fed hay rations may be able to produce
  enough on remaining hay ground along with corn
  stalk bales

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Lost 25 of Pasture Acres

• Wean calves at 100 days instead of 190
• Reduce cows nutritional needs 30-50 - 66,000
  pounds less dry matter intake in July-October
• Reduce needs of the calf 100,000 lbs dry matter
  consumption from pasture in July, August
  September

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Lost 25 of Pasture Acres

• Modify cow herd genetics select for more
  moderate size cows to reduce forage needs
• According to FP21, reducing mature cow size from
  1300 pounds to 1200 pound reduces feed intake 8
  
• Reducing cow size to 1150 reduces feed intake 12

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Lost 25 of Pasture Acres

• Dry lot or add more feed to grazing program
• Feed hay or silage to extend grass
• Dry lot cattle, let grass recover
• Look at low cost feeds and limit feeding options

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Assumptions - Winter Rations

Feed Prices Hay 75/ton Corn 68/ton
(1.90/bu) Corn stalks 30/ton Corn gluten
feed 85/ton Dried Distillers grain
95/ton Feed Waste Hay 10 Stalks 15
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Ration 1 Full Fed Hay
38 pounds hay per day Total Feed fed 347
ton Feed cost per day 205.51 For winter
25,072

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Ration 1 Full Feed Hay

• Total Feed fed 347 ton
• Feed cost per day 205.51
• For winter 25,072
• Challenges
• Over feeding - Excess energy and protein
• Weight gain over fetal growth
• Controlling feed waste

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Ration 1 Full Fed Hay

• What if you limit hay consumption?
• (with good quality hay, mature cows)
• Hay processor or roll out needed amount?
• Reduce consumption and cost 10-12
• from full fed
• Challenges
• More labor?
• Requires sorting by age group and condition
• Muddy conditions increase waste and labor

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Ration 2 2/3 Hay/1/3 stalk mix
25.5 lb hay, 13 lb stalks, 2.5 lb corn for 12
heifers Feed cost per day 166.34 For winter
20,293 Total Feed fed 221 t hay, 112 t
stalks, 185 bu corn

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Ration 2 2/3 Hay/1/3 stalk mix

• Feed cost per day 166.34
• For winter 20,293
• Winter Feed Savings 4779
• Total Feed 221 t hay, 112 t stalks, 185 bu corn
• Challenges
• Excess hay
• Controlling waste
• Uniform consumption

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Ration 3 Limit Supplement
9 lb hay, 25 lb stalks, 5 lb gluten 3.5 lb corn
to 1st heifers, 3 lb corn to 2nd heifers Feed
cost per day 134.42 For winter
16,399 Feed fed 78 t hay, 216 t stalks, 43 t
gluten, 243 bu corn

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Ration 3 Limit Supplement

• Feed cost per day 134.42
• For winter 16,399
• Winter Feed Savings 8673
• Feed fed 78 t hay, 216 t stalks, 43 t gluten,
  243 bu corn
• Challenges
• Controlling waste
• Uniform consumption

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Ration 4 Limit Fed
10 lb hay, 12 lb corn, 1 lb DDG Feed cost per day
122.09 For winter 14,895 Feed fed 91
to hay, 3921 bu corn, 9 t DDG

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Ration 4 Limit Fed

• Feed cost per day 122.09
• For winter 14,895
• Winter Feed Savings 10,177
• Feed fed 91 to hay, 3921 bu corn, 9 t DDG
• Challenges
• Uniform consumption
• Hungry cows!

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Rations Summary (Cows)
Cost/Day Hay Saved Hay Acres Hay 1.
43 0 117 Limit Hay 1.27 55T 105 Hay/Stalks
1.15 126T 75 Limit/Supp .93 269T 27 Lim
it/Grain .83 256T 31

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Impacts of Loss of Grazing Acres

• More out of pocket costs with added supplement or
  custom hire
• Loss of management efficiency, lack of control
• Feeds costs increase more than benefit
• Cost/benefit of pasture improvement

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Impacts of Loss of Grazing Acres

• Pay too much for purchased land
• Pay too much rent
• Cattle cycle adds more price risk
• Poor business arrangement (lease agreement)

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Risks of Forages and Health

• Health Disorders
• Deficiencies and toxicities
• Excess costs of supplements and minerals
• Others?

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Health Disorders

• Page 39-40 of Pasture Management Guide
• Grass tetany
• Prussic acid poisoning
• Nitrate poisoning
• Poisonous plants

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Health Disorders

• Page 41 of Pasture Management Guide
• Bloat
• Keep some grass in the mix
• Feed poloxalene
• New clovers and alfalfa most risk

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Health Disorders

• Page 42-43 of Pasture Management Guide
• Parasites
• Pink Eye
• Fescue toxicosis

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Fescue

• Manage, renovate or replace?
• Management
• Dilute with supplemented feeds
• Dilute with legumes and other grasses
• Maintain management to reduce other stressors
• No magic solutions

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Cow Mineral Balance

• Three Factors
• Mineral provided in base ration
• Mineral composition in the mineral
• ex. 30 or 60 PPM
• Daily mineral intake
• ex. 2 ounces versus 4 ounces

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Key Minerals for the Cows
Early lactating cows have highest mineral
requirements.
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Key Minerals for the Cows
Early lactating cows have highest mineral
requirements.
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Mineral Math

• PPM mg/kg Parts Per Million
• 1 Kilogram 2.2 pounds
• 454 grams 1 pound
• 1 PPM approximately
• 3 people out of Iowas whole population
• of 2.9 million people

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Mineral Risk

• Without mineral supplement
• Mineral deficiencies
• Iodine
• Selenium
• Zinc
• Copper

• Risk may not be deficiency
• Over consumption
• Increased feed cost

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Cow Herd Mineral Intake

• Determining cow intakes
• calculate weekly needs for the herd
• mineral feed tag intake suggestions X
• number of cows in the group X
• seven days
• Example 4 ounces X 50 cows X 7 days
• 1400 ounces or 87.5 pounds
• Fifty pound bag should last this group four days
  (50/13.5) lbs per day

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Cow Herd Mineral Intake

• Have cattle satisfied on mineral intake
• May require 2-5 days of heavy feeding
• Remove residual from mineral feeder and fill with
  one bag of mineral.
• Monitor how long the mineral lasts

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Feeding Mg

• When to feed high Mg mineral?
• Suggested
• 30 days prior to turnout
• through July 1

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Over-Consumption of Mineral

• Cut mineral with plain salt
• 25 salt on first batch and monitor intake as
  previously discussed
• Provide plain salt in addition to mineral
• Re-read feeding directions
• Change mineral suppliers

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Chelated Minerals

• Most studies do not show a response between
  organic and inorganic sources.
• Chelated minerals have higher bioavailabity
• however higher concentration of inorganic
• will compensate

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Best Management Practices

• Key mineral concerns are
• selenium
• zinc
• magnesium
• iodine
• cobalt
• copper

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Best Management Practices

• Use wet chemistry for mineral analysis
• not NIRS
• Many minerals interact with each other to change
  requirements
• example high K increases need for Mg (tetany)
• Base rations which meet cows protein and energy
  provide most of the mineral needs as well.

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Best Management Practices

• Read and understand feed tag
• Mineral profiles of serum (blood) are not good
  indicators of problems
• Minerals can be both deficient and toxic

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Evaluate Adequacy of Mineral

• Cow require 10 PPM copper
• Daily intake of dry matter 36 pounds or
• 16.4 kilograms
• 16.4 Kg X 10 PPM 164 mg copper required
• 16.4 Kg X 6 PPM in forage 98.4 mg in base
• Mineral needs to provide 65.6 mg
• 65.6/2800 PPM copper .023 Kg or .8 ounces

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Developing YOUR plan

• Assess current situation
• Use resources to evaluate options
• Decision-making software
• Extension
• Veterinarians
• Feed suppliers
• Lender
• Set short and long term goals

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Developing YOUR plan

• Prioritize and stage changes based on your goals
• Short term reactions based on changing conditions
• Long term impacts need to be considered
• Dont forget five or ten year plans based on your
  objectives dont lose your way!

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