Chapter 13 : Range Livestock Production

1. Economics of range livestock production

a. Product demandb. Prairie versus desert

ranchesc. Ranch sized. Comparative financial

returns e. Cattle price cycles2. Range Livestock

managementa. Reproduction

b. Crossbreedingc. Animal selection3. Common use grazing4. Drought management

5. Poisonous plant problems

a. Types of poisonous plants

b. Preventing livestock poisoning

Components of Sound Western Ranching

1. Grazing Managementa. Stocking b. Grazing systemc. Drought plan

2. Ranch Capitalizationa. Water b. Fencec. Corrals d. Roadse. Other

3. Livestock Managementa. Livestock selectionb. Breeding program c. Healthcared. Supplemental feedinge. Poisonous plants

4. Brush Managementa. Grazing b. Firec. Herbicided. Mechanical e. Biological

Components of Sound Western Ranching cont.

5. Government Assistance

a. Drought reliefb. Technical assistancec. Vegetation

managementd. Conservation

6. Government Regulations

a. Endangered species b. Clean airc. Clean waterd. Land usee. Penaltiesf. Incentives

Components of Sound Western Ranching cont.

7. Product Demanda. Livestockb. Wildlifec. Recreationd. Plantse. Ecosystem services f. Other

8. Monitoring Programsa. Rain fall b. Forage productionc. Trend in ecological

conditiond. Livestock productivitye. Financial returnsf. Riparian healthg. Soil healthh. Wildlife populationsi. Grazing use

Components of Sound Western Ranching cont.

9. Risk Management Programsa. Climateb. Biological c. Political d. Financiale. Other

10. Integration and Management.

Types of risk confronting western ranchers

1. Climatic2. Biological3. Financial4. Political

Desert versus Prairie ranches; Large versus small• Prairie (eastern)

ranches are more profitable due to lower production costs per animal unit.

1. Lower land requirement per animal unit.

2. Forage is green for a longer period during the year.

3. Drought is less of a problem.

4. Intensive land management

5. Less government regulation on private land prairie ranches.

Large vs small ranchers• Larger ranchers are

more profitable due to economy of scale.

(Ranch economics handout)

Drought Management Principles1. Drought is inevitable. Develop a forage reserve for

drought (stock at 65-75% of capacity).2. Maintain one quarter of the livestock herd as a

readily marketable class of livestock.3. Monitor monthly precipitation across the ranch. 4. Sell livestock quickly when drought conditions

become apparent. 5. Always have a good handle on ranch forage

resources. 6. Don’t rely on government feed programs.7. Keep constant check on livestock water supplies.

Drought Management Principles cont.

8. Completely de-stock any pasture if stubble heights drop below 1 inch on short grasses, 4.5 inches on mid grasses and 8 inches on tall grasses.

9. Restock pastures after they receive one growing season of deferment and average or above average rainfall.

10. Don’t try to feed your way out of drought. Try to retain one quarter of grazing capacity in drought.

11. Store silage, hay and other feeds when plentiful and inexpensive.

12. Keep livestock well distributed across ranch during drought.

Table 13. Forage Production (lbs/acre) on Moderately and Conservatively Stocked Pastures in Drought Compared to 6-years average on the Chihuahuan Desert Rangeland Research Center.

Drought 6 year Drought yearyears Average as percent

Grazing intensity 1994 & 1995 1993-1998 of Average

Moderate(40-45% use) 44 194 23%

Conservative (30-35% use) 89 273 33%

Source Molinar 1999, Molinar et al, 2002.

Table 12. Forage Production (lbs/acre) on Heavily and Moderately Stocked Pastures in Drought Compared to 10-years Average on the Fort Stanton Experimental Range in New Mexico.

Drought 10 years Drought yearYears Average as percent

Grazing intensity 1974 (1970-1979) of average

Heavy(50-55% use) 103 607 17%Moderate(40-45% use) 235 740 32%

Source: Pieper et al. 1991, Holechek, 1994.

Common Use Grazing

Advantages1. Complementarity due to

differences in forage plant and terrain preferences

2. Maintaining a desired balance between forage species

3. Providing stability in grazing land ecosystems

4. Providing diversity of income and more uniform cash flow

5. Aiding in the control of internal parasites (i.e. for sheep when cattle are present)

Limitations1. Increased facility costs, such

as fencing, watering, and handling facilities.

2. Reduced scale of enterprise resulting in reduced technological efficiency

3. Conflicts in labor needs4. Need for increased

management skills and knowledge

5. Greater predator problems (adding sheep or goats to cattle).

Common Use Grazing cont.

Advantages6. Developing mutually beneficial

interrelationships between animal species

7. Maximizing yield of animal products through greater biological efficiency

8. Sheep utilization of forage affected by cattle feces

Limitations6. Marketing made more complex7. Antisocial behavior between

animal species in limited situations

8. Differential suitability of climates to different animal species

9. Required proper stocking ratios between animal species

Range Livestock Management Principles

1. Heterosis (hybrid vigor) can substantially increase livestock productivity if cross-breds are used.

2. Control of breeding is critical.a. High level of nutrition after calving is essential b. Cow/bull ratio and pasture size must insure all cows

have the opportunity to get pregnant (1 bull to 20 cows considered optimal).

3. Non-breeding animals must be identified and removed from the herd.

4. Calf crops should be at least 80% and lamb crop 100%

5. Separate first calf heifers from cows during calving –first heifers need extra care.

Range Livestock Management Principles cont.

6. Do not overfeed heifers or cows, this causes dystocia (calving difficulty).

7. Calving should be prior to forage growth so cow and calf can capitalize on the high quality forage.

8. Vaccinate livestock for the diseases in the area. 9. Do not permit an extended breeding season.

Advantages of 65-day breeding seasona. Increased weaning weightsb. More uniform calvesc. Can identify low producing cows

Range Livestock Management Principles cont.

10. Do not overgrazeConsequencesa. Reduced weightsb. Smaller calf cropsc. Death losses are increased d. Forage resource is destroyed11. Supplement minerals that are deficient.

General Rules to Prevent Livestock Poisoning by Plants

Prevention is the best cure.

1. Do not misuse the range so as to bring about the invasion of new species –may be poisonous.

2. Learn to recognize poisonous plants.3. Avoid areas where poisonous plants are

abundant.4. Do not force animals to remain on the range

after they have utilized the good forage species.

General Rules to Prevent Livestock Poisoning by Plants cont.5. Do not allow animals on the spring range until the

good forage species have made sufficient growth to support them.

6. When animals have been on dry feed, or have been deprived of forage they should not be put on ranges containing poisonous species until well fed.

7. Use plenty salt – lack of it may cause the animals to eat plants not normally eaten.

8. Graze with the kind of livestock not poisoned by the plant in question.

9. Poisonous plants may be sometimes eradicated by grubbing or spraying where economical.

Basic Information

1. Historically, return on investment for Western ranches has been between 1-3%.

2. The average 250 animal unit ranch in New Mexico is valued between $750,000 and $1,400,000.

3. As ranch size increases, the profitability of ranching tends to increase due to economy of scale.

4. The average medium size in ranch in New Mexico involves about 250 animal unit and has provided the operator with about $26,000 per year in net income in 1989-1992 period.

Basic Information cont.

5. Since WWII, real returns from western ranches peaked in 1961 and have since gradually trended downwards with periodic upturns such as 1978-1979 and 1988-1992.

6. Generally sheep ranches give higher returns than cattle ranches. In recent years yearling operations have been more profitable than cow/calf operations.

7. Ranches on arid lands in the west are less profitable than ranches in the great plains and southeastern USA.

Basic Information cont.

8. Percentage calf/lamb crop is the major factor influencing the profitability of mother/young ranching operations.

9. Compared to other businesses and investments, ranches are low in profitability. In recent years corporate profits have been around 12%, long term US government bonds (30 years) 7.5%, money market accounts 3-4%, corporate bonds (AAA) 8-10%, junk bonds 12-16%, and stock market returns (S & P) 500) of 18%. In contrast, western ranches have returned around 1-2% in arid lands (deserts) and 3-5% in the Great Plains. Western ranching is considered more risky than any of these other investments.

Basic Information cont.

10. Presently the outlook for the 2000’s is for cattle prices to increase due to rising demand. The problem is that ranching costs are increasing.

11. Arid land ranches are inefficient for beef production compared to more humid areas because low, erratic rainfall and rugged terrain require more infrastructure per animal unit than in the wetter areas. Furthermore, intensive management practices are more difficult when animals are scattered over large areas.

(Ranch economics handout)

Advanced Information

1. Range improvements such as rotation grazing systems, brush control and seeding have seldom been financially effective on western ranches compared to alternative investments (bonds, stocks, money market funds, real estate). In many cases these range improvements have actually lost money for the rancher. Brush control has been a particularly poor investment although exceptions exist (big sagebrush range) because brush often reinvades the area within 5 to 15 years. Recovery of investment usually requires 20 to 30 years of increased forage benefits.

Advanced Information cont.2. Financial benefits of grazing systems and brush

control tend to increase as precipitation increases. These investments are most effective in areas with over 20 inches of annual precipitation and relatively flat terrain.

3. Supplemental feed is the major variable cost for western ranches. In New Mexico it varies between $30 and $60 per animal unit depending on year and range type. Research shows this cost should be between $10 and $20/AU on well managed ranged.

Advanced Information cont.4. Based on the research, financial returns are

much higher on good condition than poor or fair condition range. This is particularly true in arid areas. The surest way to improve range condition and forage production is with a conservative stocking rate (35% use of forage).

5. Drought has been one of the biggest factors adversely impacting ranchers on western ranges. Conservative stocking has proven to be one of the very best strategies to minimize the adverse impact of drought in ranching monetary returns.

Advanced Information cont.6. Financially, the most sound strategy for arid land

ranches is to use a conservative stocking rate (35% use of forage), a continuous or simple deferred rotation grazing scheme, a carefully thought out supplemental feeding program, and intensive breeding program and intensive replacement heifer management program.

*7. Percentage calf crop weaned and sold is the major factor regarding cattle ranching profitability on western ranches. Stocking rate has been the most important factor governing calf crop on western ranges.

8. Generally rotation grazing systems have reduced calf/lamb crop and weaning weights compared to season-long or continuous grazing in arid areas. This in turn has reduced monetary returns.