Unit 10 - Ten Traits Of Financially Succesful Cow Calf Operations Flashcards
What are the 10 traits
1) Cultivate a business mindset
2) minimize feed costs = maximize grazing
3) minimize investment in machinery
4) avoid tax shelter investments
5) identify your strengths and specialize
6) control of the breeding season
7) seek alternative income streams
8) avoid industry fads
9) avoid small scale seedstock production
10) willingness to accept additional risk
11) work to add carrying capacity
How can you improve performance traits?
-measure the trait over time
-select for superior trait expression
-move the herd average over time
What tools can help improvements ?
-purchase appropriate bulls
-select against inferior trait expression in the rest of the herd via culling
What should you do first in the success of a cow-calf business?
Produce cattle that will:
-reproduce easily
-grow efficiently
-yield a valuable carcass
What’s the second thing to do in the success of a cow calf business?
Produce them inexpensively
What kind of business is a cow calf production business?
Capital intensive, low margin, and tradition bound
What can be a critical factor in achieving economic relevance?
Volume
What often dictates management practice?
Habit and experience rather than profit motive
How do you “1. Cultivate a business mindset”?
-set goals and keep detailed records
-measure and monitor progress toward goals
-commit to achieving financial success by making the cow calf enterprise a financial priority
-develop adaptable production and marketing strategies
-learn to manage risk, price volatility is here to stay
-leverage economies of scale and local basis advantage
How can you “2. Minimize feed costs”?
-feed explains 65-70% of variable cost
-replace high cost, low return feeding practices with higher returning alternatives
-schedule the calving season so that calving and lactation coincide with peak forage quality
-wean calves before cow body condition slips below moderate level
-minimized use of harvested forages
How much does adding 100lb In calf weight cost?
Roughly 1/3 of adding 100lb in cow weight
For every 3 days the calf is weaned, how many extra days of fall grazing is there for dry cows?
1 extra day
How much money can you save in winter cow feeding?
$150-$350
How can you “3. Minimize investment in machinery”?
-profit margins are slim; beef cows struggle to be profitable when used to support purchases of assets that depreciate heavily
-consider buying used equipment, leasing equipment, and outsourcing tasks that require heavy equipment
How can you “4. Avoid tax shelter investments”?
All investments should be made with the expectation of an increase in after tax equity - reinvest In the business
