March 11, 2023
11:00 a.m.
Bull and Bred Heifer Sale.
Mark your calendars!
Hello All:
ICEonomics: There are 2 ways to increase profit in your operation; you can either a.) increase revenue or b.) decrease costs. Both require work, at minimum brain work, but most likely muscle work, too. So, which is “easier”? At ICE we have done primarily two things to increase revenue; we have transitioned from a cow-calf operation selling weaned calves at a sale barn to being a seedstock operation selling bulls and bred heifers. This transition began in 2004 when we leased our first set of Pharo Cattle Co. cows. In addition, we have developed a direct-market grass and grain-fed beef operation (primarily to add value to all of the culls from the seedstock operation). The development of both of these enterprises has been far (far…far…far, think echo across the Grand Canyon) from easy.
So, let’s assume you don’t want to start a seedstock operation (bravo, wise decision!). I would still recommend aiming to market at least a portion of your cattle as direct-market beef. The satisfaction of providing happy customers with great beef is valuable intrinsically, if not indeed extrinsically as well. If the facilities or forage acres don’t currently exist for finishing beef, be cautious before taking on the demands that beef finishing requires.
So, that leaves decreasing costs…I think the far easier option! One of the best ways to decrease costs…DO NOTHING! Big caveat: You are not going to be able to hold to a protocol of pity for your animals. Some must flip a major switch from “I am here to care for my cattle” to “My cattle are here to care for me.” Some suggestions for starting your quest down the dark road to profitability:
1. Quit putting up with problems: Cull open cows, cull bad-uddered cows, cows with disposition problems, cows that jump fences, cows that can’t calve on their own, cows that have dink calves year after year, and so on. In the cattle business as well as in life, when you get rid of problems you tend to have fewer problems!
2. Quit feeding your cattle. I would argue that feed (grazing forage and supplements) is, by far, the highest input cost you have for your cattle on a year-round basis. Until you try not feeding them (supplements, which can include hay), you won’t know what cows can make it on significantly less premium nutrients. Without separating cattle, you can’t feed the bottom 30% without feeding the top 70%. If the 70% can make it without supplements, the 30% need to learn how to or leave (you should prepare for up to 50%, or more, to leave). We are stunned at what our cattle can do, give God the thanks, and appreciate the genetics that make it possible. Graze, don’t feed.
3. Quit treating your cattle. Now, I’m not suggesting inhumane husbandry. Sometimes a humane bullet is much cheaper than the time and vet bill you will get otherwise. Overwhelmingly, we do not take sick cattle to a vet; they get better or die (most get better!). When we used to take cattle to a vet, we would end up with a big vet bill and a dead animal anyway. I’m not blaming vets. They are amazing and important for healthy animal work. This suggestion goes back to #1; if your problems die, you have fewer problems.
Preg-Checking Perspective: In the last newsletter I revealed that we have 97% of our cows pregnant with an on-time calf. How much would it be worth to have a herd of cows that grazed only grass forage in the summer and stalk residues through the winter, with no supplements, calved on their own in the pasture in May and had a 97% conception rate? And, kept their calves at their side through the winter on crop residues so you didn’t have an extra expense of feeding/managing their calves? What’s the secret? Start with good genetics and adhere strictly to suggestions 1, 2 and 3 above. It won’t be immediate, it will take years, you will face significant frustration, but you will eventually have a herd of cattle that inspire awe…then keep doing what got you there…the process never ends.
Grace and truth and thanks to you all. May God rain down all sorts of good and perfect gifts to you in 2023…HAPPY NEW YEAR!
Lanny Greenhalgh | Steward
[email protected] | (402) 984-6375
www.icecattle.com
This time of year we always have weather potential to match our name! We had a cold spell which dipped the temperature to -15 with wind chills in the -40s. One of these pictures shows our upcoming sale bulls walking across a corn stalk field in that weather. No windbreaks, no supplementation of any kind…just stalks, water, salt and mineral. This is how we develop all of our seedstock and run our cows, all year long. You won’t find another seedstock producer this crazy or animals that have been put through such a test…so they last in your herd. This kind of pressure sorts out those that can’t take it…we never want problems in our cattle to become your problems, they just as well become great tasting BEEF!
