|
It’s okay if your cost of production goes up, claims Texas
AgriLife Extension Forage Specialist Larry Redmon, as long as
your profit margin increases accordingly. However, too many
producers are seeing their profits decline or disappear.
At a 2010 Cattle Industry
Convention Cattlemen’s College® session, Redmon said a primary
reason for reduced profitability is that many ranches are
overstocked.
“If a rancher is feeding hay in
July, it’s not a good sign. But I see that happening,
particularly in drought-stricken areas,” Redmon said. “I would
argue that the most important aspect of a forage-based livestock
operation is stocking rate.”
According to Redmon, one of the
reasons that a ranch might be overstocked is increased cattle
size. A rancher might be grazing the same number of cattle that
Granddad grazed on the same place, but today’s cattle are bigger
and require more forage than smaller cattle of the past.
Another reason could be that the ranch may be producing less
forage due to a lack of soil fertility. This is often true for
“improved” grass pastures, Redmon explained. Bermuda grass, for
example, was developed to produce a significant volume of forage
in response to adequate fertilization. However, as a result of
higher fertilizer costs, producers might be using less
fertilizer or foregoing fertilization altogether.
“A soil test will tell you what
you need. Without a soil test, you may under-apply nutrients
that are lacking, or you may over-apply nutrients and waste
money,” Redmon stated. “And always weigh the cost and benefit.
Make sure fertilization will pay.”
Redmon said producers may want
to consider seeding pastures to alternative forage species that
don’t require high levels of fertilization. They may not produce
the same volume of forage, but input costs will be much lower.
Another option for some producers may be to return pastures to
native grasses that don’t require any fertilization after
establishment.
Another reason why ranches may
be overstocked is that less grazeable forage is available due to
encroachment of weeds and brush. Redmon advised producers to
implement control programs noting that such programs still are
affordable and cost-effective.
Reminding producers of the
adverse effects of overstocking, Redmon said brush and
unpalatable species will increase, dominating the plant
community, while desirable forage plants decline. Environmental
quality is adversely affected, too, as a result of increased
rain run-off from severely overgrazed and denuded pastures.
Overstocking also reduces drought resistance of range and
pasture plants.
“If you stock your ranch
according to the amount of forage produced from average
precipitation, you will be overstocked,” Redmon stated. “If you
stock at 75% of average carrying capacity and graze 40% to 50%
of standing forage, you can withstand fluctuations in annual
precipitation — except during periods of prolonged drought.
“When that happens, it’s often
wise to consider selling some cattle or moving cattle to
someplace where there is adequate grazing. Otherwise, you end up
hurting future forage production, and animal performance is
adversely affected unless you provide costly supplemental feed.”
|
