The “new normal” in cattle production

For a lot of years, to many of us, it might have seemed the term “pasture management” meant simply stocking as many bred cows and pairs on a pasture as the spring flush would support, and then planning to feed “cheap” hay from the time the grass ran out until the next flush came along.

While there may have still been some “cheap hay” around last year, those days are likely gone. With seemingly every acre that will support a corn or soybean plant being shifted out of hay production, any quality hay that can be found to purchase will likely command a premium. To prevent every available acre from being shifted out of hay into a corn/soybean rotation, I wonder if average quality mixed hay starting at $100 per ton will become the “new normal” cost of hay.

Maybe that’s not all bad. In fact, perhaps we’ve reached a point in time where maximizing numbers of cows and calves should not be the management objective. In a place and time where quality beef is commanding a premium, and grass and forage utilization must be optimized, maybe lesser cow numbers grazed for more of the year will become the “new normal” feed management plan.

If graze able forage becomes abundant due to more intense management or lesser cow numbers, perhaps the most profitable use of the extra forage is grazing an extra 100 to 300 pounds onto the calves after weaning and before marketing them. Imagine a system where calves were fence line weaned onto stockpiled late summer or fall pastures in the field beside momma. Today, heavier calves ready for the feedlot are commanding a premium compared to what we’ve experienced in the past. Lightweight bawling babies simply require too much feed for them to bring the premiums they used too, not to mention health-related issues. Perhaps feeding calves to heavier weight on grass will become the “new normal” for the intense pasture manager.

Have cattle and calf prices found “new normals” we can enjoy for years to come as cattle numbers are at lows not experienced in more than 50 years? Yes, probably! However, history tells us that expenses will eventually seek “new normals” too, likely returning profit margins to numbers similar to those experienced previously. Until expenses catch up with the prices we presently enjoy, it certainly behooves cattlemen to explore a “new normal” for controlling expenses.

Despite taking a close look at finding ways to extend grazing efforts, could it be that the hay we do feed will be found stored under cover, chopped, and then fed in bunks as the “new normal” during times of the year when sufficient pasture is not available?

The point is, it certainly appears we are traveling in uncharted territory. We are all enjoying historically high prices for cattle, calves and culls. At the same time, it’s also perhaps the best time to explore management techniques, which will help retain and preserve some of the profit margin we are enjoying now.

During his presentation Best Management Practices, and Adjusting Management to Match Markets and Economic Conditions in the fourth week of this winter’s Ohio Beef Cattle School, Francis Fluharty offered this summary as his “keys to success” or perhaps his view the “new normals” he’s expecting.

• In the future, benchmarking performance will be a key to maintaining profitability in the beef industry.

• Herd health and nutritional programs must be tailored for specific marketing strategies.

• Animal welfare will make minimizing stress to the calf even more important than it is now.

• Use management strategies and products that enhance health, minimize digestive disorders, and improve feed efficiency history

If you missed that session of the Ohio Beef School, or would like to review it, visit http://go.osu.edu/feb24. As you watch and listen, consider what the “new normal” might become for yourself.