USDA OSU COUNTIES COOPERATING

DATE: October 2011 VOLUME: 10

Talking Points for the Cow-Calf ProducerBill Burton

As I sit at my desk and try and keep up with all that is going on in the world that affects the Cow-Calf Producer I find that my head can no longer absorb all of the facts and process them into anything coherent. We have drought conditions that limit pasture’s capacity to carry its normal number of animals which has made hay a rare and precious commodity. The cowherd continues to stay at very low levels nationwide due to the drought and other reasons that have caused beef prices to soar. Corn, which is required to finish the animals, is very expensive due to it being used to produce ethanol. To top it all off, we have an unsteady global economy which has a massive number of people unemployed. It is worth taking some time to examine each of these points and see how they are likely to impact the Cow-Calf Producer in the next few years.

Drought:

The drought that has been with us all through 2011 isn’t about to go away anytime soon. It has done its damage and what forage a producer has today is likely all they will have to winter their cows with. Projections show some easing of the drought conditions in northern and eastern Oklahoma but it is expected to hold fast in southern and western Oklahoma as well as all of Texas for the next few months.

In This Issue

Talking Points for the Cow-Calf ProducerOpportunity in High Value of Gain

Hay Testing Saves MoneyPlan Now For Next Years Forage Production Needs

Overseeding Fescue LawnsListeria and Cantaloupe

“Clarification on Issues Relating to Burning Household Trash”EHV – 1, A New Equine Concern for Oklahoma Horsemen

Mayflies

This newsletter was developed by your team of Area Specialists in the Northeast District. Our goal is the dissemination of research-based information.

Northeast Area Staff:

918-686-7800

Specialists

Bill BurtonAg Economics

LaDonna McCowan-Ferrier*, Ph.D.Water Resource

Josh Payne*, Ph.D.Animal Waste Management

Dave Sparks*, D.V.M.Food-Animal Quality & Health 

*Serves the NE and SE Districts     

Secretaries

Rachel Allen

Tracy Lieblang

The Oklahoma Cooperative Extension Service does not discriminate because of race, color, national origin, religion, gender, age, disability, or status as a Vietnam-era veteran, and is an Equal Opportunity Employer

This means that pasture conditions will continue to stay poor and wheat pasture isn’t going to be available to rescue anyone. Those producers that have done their best to keep most of their cowherd intact might be forced to liquidate like so many others already have. This will reduce their chances at making larger returns in the future, putting pressure on them to keep their bills paid.

Hay, when a producer can find it, costs so much that it’s difficult to see how economically it can be purchased. The only other option is to liquidate part of the herd which also raises difficult economic problems. The decision on how best to winter a cowherd has just become very complex. The only advice that experts will agree on is to not try and starve your animals through the winter and expect them to rebreed the next spring.

Scorecard for the Cow-Calf Producer: The drought has forced cows to be culled at a very high rate pushing cattle prices down in the short-term. Higher hay prices will cause production expenses to increase, decreasing the profit margin.

Reduced Cowherd:

It isn’t that the size of the US Beef Herd is shrinking fast but it is that it isn’t growing is what makes this a major point of discussion. Despite the fact that as of June 2011 the price for a 500 – 550 pound steer at Oklahoma City rose 10.5% in the last five years, beef cow inventories has fallen 13.7%.

At a time when literally everyone expected beef cow numbers to increase, this drought combined with other drought events in the last few years has not only kept numbers from increasing but actually caused the numbers to continue to drop. Over the same five years the price of all fresh beef has risen 25.7%

We won’t know the full extent of the impact on the US beef cowherd until the January 2012 Cattle Inventory Report but beef cow slaughter in the first six months of this year was up one percent over the same period of 2010.

Scorecard for the Cow-Calf Producers: Once the backlog of slaughter cows works its way through the marketing system then there will be fewer cows to produce steers and heifers for market and thus less meat available and therefore higher prices. The concern is how much more will consumers pay for beef before they begin to switch to other meats.

Corn:

The price of corn averaged $2.30 per bushel in the years 1990 through 1992. With current prices in Oklahoma ranging from $6.68 to $7.80 it is obvious that any industry that utilizes corn is currently in turmoil. As most ranchers know feedlots rely heavily on corn to feed the animals up to their slaughter weight. With the cost of finishing animals this high one of two things should occur, either the cost is passed along and beef at retail increases or the price is passed back down and the price the cow-calf producer receives decreases. Currently anyone purchasing 750# steers and feeding them out is estimated to lose around $150 per head. For individuals these losses cannot be maintained but if the feedlot is the owner of the animals they have other concerns that can keep them purchasing these animals despite the loss. Feedlots are in the business of selling feed and they must calculate this aspect of their business into the profit and loss equations.

The long term outlook for corn comes down to a couple of basic factors, Ethanol is politically popular and likely here to stay for the next several years. This takes a high

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percentage of the US corn crop each year that causes the supply to be stretched thin for corn’s other users like feedlots. The other factor is that there is only so much crop ground in the US that is suitable to growing corn and every additional acre that goes into corn each year is coming out of another crop like soybeans, grain sorghum and wheat. This in turn pushes up the prices of these grains as well.

Scorecard for the Cow-Calf Producers: Corn prices have been projected to reach nine to possibly eleven dollars per bushel next year which will drive the cost of finishing steers and heifers even tighter. This price will either result in higher retail prices for beef or lower prices to the cow-calf producer. The question is how much US consumers will tolerate in higher beef prices.

World Economy:

Someone would have to be living under a rock to not know that the economies of most of the countries in the world are in dire straits. Unemployment has been a real problem in the United States, Europe and most other developed countries. The fear of a world-wide depression is real and while our leaders struggle to find the answers to this problem sectors like the beef industry must struggle just to survive.

In light of this background, the overwhelming question is how much can the US consumer of beef pay. In 2006, the US consumption of beef per capita was 65.9 pounds. In 2010, it had dropped to 59.6 pounds for a drop of 6.3 pounds per person per year. Over the same timeframe, pork consumption only dropped 1.8 pounds while all poultry dropped 4.9 pounds. The amount that consumers have spent on beef is almost exactly the same over that same time span so it would appear that consumers have said that they will pay only so much for beef and no more. If the

price increases for beef, then consumers will purchase less.

Scorecard for the Cow-Calf Producers: If the US economy continues to struggle and unemployment stays high, then it should be expected to see fewer pounds of beef sold at retail. This appears to dovetail into the smaller cattle inventory quite nicely. Cow-calf producers should be able to continue along with life as normal but with the ever present higher levels cost of production that now exists. Their profit margins should continue to stay in a similar range that they are today.

The critical point to be watching is if the economy does go into a depression and consumers just quit purchasing everything, including meat. At that point all of these factors must be reevaluated to see where the cow-calf producers in Oklahoma stand.

Opportunity in High Value of GainGreg Highfill, NW Area Livestock Specialist

The drought has significantly changed the marketing timetable of numerous ranches across Oklahoma. Many calves that would have been marketed this fall have already been weaned and sold. Cull cows that would have grazed through the summer grass season have been marketed months earlier than normal. Changes in marketing patterns can create

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“holes” or weak points in cattle markets. When various calf weight classes are disproportionally discounted relative to others, the value of additional weight gain from stocker growing programs can be increased. Due to the drought and high grain prices, there is currently a depressed demand for light weight stocker calves and therefore the value of gain is particularly high.

Value of Gain – Sept 2011

Wt Price cwt Value Value

of Gain

400 140 $560 $130$132$123$103

500 138 $690

600 137 $822700 135 $945800 131 $1048

For cattle producers with the forage and feed resources available to economically grow stocker weight calves, this might be an opportunity to convert their ranch resources into cash flow. With the Jan 2012 CME futures price for feeder cattle in the $141/cwt range and the current auction price for 525 weight stockers at $138/cwt, the gross margin in a growing program is over $300 per head. The challenge, of course, is the producer’s ability to control feeding cost. If producers utilized a ration that was 40% grain (commercial pellet, DDG’s, etc) priced at $300 per ton and 60% hay (medium to high quality grass hay) priced at $150 per ton, the ration cost would be about $205 per ton or $ .1025 per pound. If we assume an average feeding weight of 650 lbs. and a feed intake of 18 pounds per day, the feed cost would be $1.85 per day. (18 x .1025 = $1.845) This is only the feed cost, so the labor, death loss, interest and other expenses would also have to be accounted for. Obviously there are always price risks in stocker enterprises, but for the ranches with the labor, facilities and

feed resources to grow stocker calves, the current market discounts provide an opportunity to capture the increased value of gain.

Growing Calf Budget – Sept 2011Jan 2012 CME Feeder Cattle 750 lbs. $141 $1057Sept 2011 – OK Auct. 525 lbs $ 138 $ 725

Gross Difference $ 332Feed Cost – 120 days $1.85 $ 222Death loss, other cost $ 40

Gross Return (2 lb ADG) $ 70

Hay Testing Saves MoneyGreg Highfill, NW Area Livestock Specialist

Without all the pieces to a puzzle, you will never get the whole picture. With the dramatic increase in hay prices that have occurred this past summer, the value of knowing the protein and energy content of your hay is more important than ever. For a minimal $12 test, producers can save hundreds of dollars in winter feed cost in both reduced supplemental feed expense and more effective hay feeding strategies. When calculating the winter supplementation needs of the beef herd,

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the vital piece of information needed is the protein and energy content of the forage being consumed. Testing their hay will arm producers with the data required to design a winter feeding program which is the most cost effective for their specific forage resource.

Protein is the first limiting nutrient in most winter feeding programs. The protein requirement for a 1300-pound gestation beef cow in the middle one-third of gestation is 1.6 pounds per day. During the last one-third of gestation that increases to 2.0 pounds per day. With the knowledge of the hay protein value coupled with the calculated hay intake, producers can be very confident in the daily protein intake of their cow herd. By matching their forage resource with the nutrient requirement needs of their herd, producers are able to reduce winter feeding cost.

Plan Now For Next YearsForage Production Needs

C.K. Rice, SE District Area Agronomist

Now is a good time of year to look back and reflect on how our forage production went for the year and what we might do better next year in order to supply our cows with the forage they will need for the coming year. The following paragraphs list management options that we might consider for our 2011 forage year.

Ryegrass and fescue are both good cool season plants that will many times bridge the gap in forage production from early March to late April when our Bermuda grass has yet to start growing rapidly. 130#/ac of urea applied in mid February will insure quick production of about a ton of extra forage that can be utilized for early spring grazing. When fertilizing for the cow herd for this time of year, fertilize 1 acre of cool season grasses for every cow in your herd. This should supply grazing for about 3 months starting in early March.

Fertilizer has gotten expensive, but when running an economical analysis, it is still cheaper to grow the forage and let the animals harvest it, rather than make up the shortfall of forage with hay and supplementation.

Always assume it’s going to rain and get your fertilizer on your Bermuda grass in early May. Don’t wait till you get a rain and assume it will keep raining. Many producers will tell me that they are afraid they will waste their money and lose their nitrogen if we go into a drought. A research test conducted in Haskell county in the summer of 2005 showed that urea, applied at 217#/ac on May 13 produced 4,703 lbs of forage for the growing season compared to no fertilizer that produced 1,577 #/ac. Rainfall for the months of May and June totaled less than 2 inches, rainfall for the rest of the growing season totaled about 7 inches with most significant rainfall occurring in late August with 3.84 inches of rain.

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Although it was a long time before it got a significant rain, the fertilizer was still there to do its job and most of the year’s production resulted from growth in September after the 3.84 inch rainfall event.

Weed control can be an important part of any ranch management plan. Why do we practice weed control? It’s to reduce the competition between the weeds and the grass. When done properly it should not have to be done every year. Treating a 1/3 of your pastures every year should give sufficient control for grass release on that pasture for 3 years. Timeliness can also be important. The earlier you can get control of your weed problems, the better off your going to be. For most pasture weeds, the earlier we can kill the weeds, the more water, nutrients and sunlight that are available for grass growth. The earlier we control weeds, the easier and cheaper they are to control. Consider spraying your pastures in late April when the weeds are small and easy to control.

Reducing the number of days feeding hay will generally increase the profit return on a cow herd. Another easily achieved way of reducing hay fed is by fertilizing Bermuda grass in late August, letting it grow un-grazed in September and October and then allowing the cattle to harvest it in late November, December and Early January. Protein content and TDN will generally stay above the cow’s nutritional needs for this time period and it works out to much less time feeding for you.

Start planning now for your 2012 forage needs. It’s never too early to plan for the future. For more information on the above forage management systems, stop by and visit with your local county extension educator.

Overseeding Fescue Lawns

Randy Pirtle, Washington County Ext. Director

Tall fescue lawns that have become thin over the summer can be thickened up by overseeding during September. Start by mowing the grass short (1 to 1.5 inches) and removing the clippings. This will make it easier to achieve good seed-soil contact and increase the amount of light that will reach the young seedlings. Good seed-soil contact is vital if the overseeding is to be successful. Excess thatch can prevent seed from reaching the soil and germinating. Normally we want 1/4 inch of thatch or less when overseeding. If the thatch layer is ¾ inch or more, it is usually easiest to use a sod cutter to remove it. A power rake can be used to reduce a thatch layer that is less than 3/4 inch but more than a quarter inch.

Once thatch is under control, the soil should be prepared for the seed. This can be done in various ways. A verticut machine has solid vertical blades that can be set to cut furrows in the soil. It is best to go two different directions with the machine. A slit seeder is a verticut machine with a seed hopper added so the soil prep and seeding operation are combined. A third option is to use a core aerator. These machines will punch holes in the soil and deposit the soil cores on the surface of the ground. Each hole produces an excellent environment for seed germination and growth. Make three to four passes with the core aerator to insure enough holes for the seed. Using a core aerator has the additional benefit of reducing the

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amount of watering needed to get the seed germinated and growing. Aeration also increases the water infiltration rate, decreases compaction, and increases the amount of oxygen in the soil. Fertilizer should then be applied at the rate suggested by a soil test, or a starter fertilizer should be used at the rate suggested on the bag.

Seeding is the next step and is usually done with half the amount of seed used when working with bare ground. For tall fescue, the normal rate is 6 to 8 pounds per 1,000 square feet, and so the overseeding rate is 3 to 4 pounds per 1,000 square feet. This should be broadcast over the prepared area. Water everything in and then keep the seedbed constantly moist to ensure rapid germination. Frequent, light waterings should give way to deeper and more infrequent irrigation as seedlings become established. Fertilize again 4 to 6 weeks after seeding to keep plants growing well and to build up food reserves. Use a high-nitrogen fertilizer.

Listeria and CantaloupeRandy Pirtle, Washington County Ex. Director

The following information comes from Steven Newman, Colorado State University, regarding safe handling of melons in light of the Listeria outbreak associated with Colorado-grown cantaloupe. Below is a link with a printable half-page information sheet provided by the Larimer County Extension in Colorado. There is also a fact sheet from the University of California, Davis, which includes detailed instructions about washing and cutting melons.

This is one of the first known outbreaks of Listeria associated with cantaloupes, but there have previously been several outbreaks of Salmonella and E. coli O157:H7 linked to melons sofollowing recommended safe handling practices is always important:

* Listeria can survive and grow at refrigerator temperatures, so if a consumer has stored Rocky Ford melons from the identified source area in the refrigerator, it would be a good time to clean surfaces with soap and water and wash reusable shopping bags.

* The Colorado Department of Health and Environment has advised high risk

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audiences to avoid Rocky Ford melons that are from the known source and this includes people age 60 and older; those with weakened immune systems from transplants or certain chronic diseases, immunosuppressive therapies or medications; and pregnant women.

* Symptoms of listeriosis can include fever and muscle aches as well as diarrhea, headache, stiff neck, confusion and convulsions. Listeriosis also can cause miscarriages and stillbirths.

Press release from CDPHE: http://www.cdphe.state.co.us/release/2011/091211.pdf

Links to melon information:CSU Farm to Table Cantaloupe Facts:http://farmtotable.colostate.edu/files/cantaloupefactsheet1.pdf

University of California, Davis, Fact Sheet: Cantaloupe: Safe Methods to Store, Preserve, and Enjoy: http://ucanr.org/freepubs/docs/8095.pdf

“Clarification on Issues Relating to Burning Household Trash”

Randy Pirtle, Washington County Ext. Director

Many of the counties have now lifted burn bans so the issue of burning household wastes is now a more realistic topic to discuss.

Many people have inquired about the current legality of burning household trash with the many rural trash hauling services available in the region. Although there are many opinions on this topic the following information is provided for clarification and guidance. The information is excerpted from the pertinent rules cited below covering open burning as issued by the Oklahoma Department of Environmental Quality, the governing state authority on this matter.

Title 252. Oklahoma Administrative Code Chapter 100. Air Pollution ControlSubchapter 13. Prohibition of Open Burning.252: 100-13-2. Definitions.

"Combustible materials" means any substance which will readily burn and shall include those substances which, although generally considered incombustible, are or may be included in the mass of the material burned or to be burned.

"Open burning" means the burning of combustible materials in such a manner that the products of combustion are emitted directly to the outside atmosphere.

252: 100-13-5. Open Burning Prohibited.

No person shall cause, suffer, allow, or permit open burning of refuse and other combustible material except as may be allowed in compliance with OAC 252: 100-13-7.

252: 100-13-7. Permissible Open Burning.

The open burning of refuse and other combustible materials may be conducted as specified in the paragraphs set forth below if no public nuisance is or will be created and if the burning is not prohibited by, and is conducted in compliance with, other applicable laws and the ordinances, rules, and orders of

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governmental entities having jurisdiction, including air pollution control ordinances, rules, and orders. ...

(7) Where NO COLLECTION AND DISPOSAL SERVICE IS AVAILABLE, the burning of refuse and other combustible materials generated in the operation of a DOMESTIC HOUSEHOLD (is allowed) if the following conditions are met:

(A) the material to be burned must not be the combined waste from a building designed to accommodate more than three such households:

(B) the burning must be conducted on the property on which the waste is generated; and,

(C) the initial burning may begin only between three hours after sunrise and three hours before sunset and additional fuel may not be intentionally added to the fire at times outside the limits stated.

EHV – 1, A New Equine Concernfor Oklahoma Horsemen

Dave Sparks, DVM

Today more than ever, horse owners and trainers are traveling across the country with their horses and congregating at bigger and bigger events. Many of the events are located right here in Oklahoma. Anytime livestock is moved to new locations and/or congregated in large groups, the potential for disease outbreaks is a concern. Up until now, the main concern for horsemen and equine veterinarians has been efforts to avoid EIA or Equine Infectious Anemia. This is why Coggin’s tests are required at most equine events. This diagnostic test, incidentally, is named for its creator, Dr. Leroy Coggins, an OSU alumnus.

Equine Herpes Virus has always been very common in horses. The main problems it causes are abortions in broodmares and respiratory disease in young horses. Since 2005, however, there have been numerous outbreaks of a central nervous system disorder caused by Equine Herpes Virus type – 1 caused by a genetic mutation that has resulted in a myeloencephalopathy strain. This new strain had caused disease outbreaks at racetracks, training facilities, private farms, and veterinary clinics in Delaware, Florida, Kentucky, Louisiana, Maryland, Michigan, New Jersey, New York, Ohio, Pennsylvania, and South Carolina. For whatever reason, the outbreaks were in eastern states and involved small numbers of horses residing on a particular premise. This allowed these outbreaks to be managed and contained without much difficulty.

In EHV – 1 myeloencephalopathy the virus significantly decreases the blood flow to the brain and spinal cord, resulting in a demyelinization of the sheaths surrounding the conductive fibers in the central nervous tissue. The horse displays incoordination, ataxia, and rigid stiffening of the hind limbs. As the disorder progress the horse may assume a sitting posture and may roll over or flip backwards. Treatment is beneficial if started early in the course and consists primarily of treatment with antiviral drugs and supportive therapy. If treatment is not administered or started late in the course of the disease, death or permanent CNS impairment is common.

In May of 2011 everything changed following a cutting horse event in Utah attended by over 400 horses over a nine day period. These horses then scattered across the country to attend other events or to return to their state of origin. An additional 1,200 horses were exposed in 19 different states, including Oklahoma. Thanks to the awareness of the owners involved, equine practitioners, and the

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professional staff of Oklahoma Department of Agriculture Food and Forestry (ODAFF), there was only one active case in Oklahoma before the problem was contained, and that animal recovered. Proper response must be without delay to minimize the spread of this very contagious and potentially deadly disease. This type of response requires the cooperation of horse owners, event managers, event veterinarians, facility managers, private veterinary practitioners, and ODAFF to achieve early detection and early testing.

All encephalitis/central nervous system/ neurological conditions are reportable diseases in Oklahoma. Your awareness and cooperation could help to prevent a crippling financial loss to the equine industry in Oklahoma as well as untold financial and emotional strain on Oklahoma’s horse owners. For more information on this disease or to report a suspected case contact your local veterinarian or Dr. Mike Herrin, ODAFF staff veterinarian at 405-522-6142.

MayfliesRandy Pirtle, Washington County Ext.

Director

There are many different species that emerge at various times through the season. Mayflies belong to the order Ephemeroptera –

ephemeral describing their brief lives as adults. Some species do not live for more than 24 hours, just long enough to mate and lay eggs. As aquatic insects, Mayfly nymphs are called naiads. They have gill-like structures for breathing. Mayflies are an important food source for fish, amphibians, crawdads, and other insect predators associated with water. Mayflies can emerge in great numbers. Kansas State University entomologists indicate that they have been reported to pile up more than 3 feet deep, covering roadways and causing cars to slip off into ditches. We generally see them in large quantities after a shower.

Dates to Remember

September 29 – Poultry Annual 3 Hour Update Training, Kiamichi Tech Center, Idabel, OK

October 6 – Poultry Annual 3 Hour Update Training, Darrough Room, Agriplex, Hugo, OK

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October 18 – Poultry Annual 3 Hour Update Training, Kiamichi Tech Center, Stigler, OK

October 20 – Poultry Annual 3 Hour Update Training, Kiamichi Tech Center, Poteau, OK

November 1 – Poultry Annual 3 Hour Update Training, Methodist Church, Checotah, OK

November 8 – Poultry Annual 3 Hour Update Training, Indian Capital Tech Center, Stilwell, OK

November 8 – Poultry Annual 3 Hour Update Training, NE Tech Center, Pryor, OK

November 10 – Poultry Annual 3 Hour Update Training, Community Center, Jay, OK

November 10 – Poultry Annual 3 Hour Update Training, Community Center, Colcord, OK

November 29 – Poultry Annual 3 Hour Update Training, Kiamichi Tech Center, Stigler,, OK

November 30 – Poultry Initial 9 Hour Training, Indian Capital Tech Center, Stilwell, OK

Average Fertilizer Pricesin the NE District

September 21, 2011

Fertilizer Average RangeUrea (46-0-0) $604 $587 - $638DAP (18-46-0) $696 $677 - $748Potash (0-0-60) $636 $617 - $689*Average of 4 dealers

Bill BurtonArea Economist

Dave Sparks, D.V.M.Area Food-Animal Quality & Health

Specialist

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Oklahoma State University, in compliance with Title VI and VII of the Civil Rights Act of 1964, Executive Order 11246 as amended, Title IX of the Education Amendments of 1972, Americans with Disabilities Act of 1990, and other federal laws and regulations, does not discriminate on the basis of race, color, national origin, gender, age, religion, disability, or status as a veteran in any of its policies, practices or procedures. This includes but is not limited to admissions, employment, financial aid, and educational services.

Issued in furtherance of Cooperative Extension work, acts of May 8 and June 30, 1914, in cooperation with the U.S. Department of Agriculture, Robert E. Whitson, Director of Oklahoma Cooperative Extension Service, Oklahoma State University, Stillwater, Oklahoma. This publication is printed and issued by Oklahoma State University as authorized by the Vice President, Dean, and Director of the Division of Agricultural Sciences and Natural Resources and has been prepared and distributed at a cost of $3.30 for 10 copies. 0911

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