1 Continued on Page 4

Solar Energy…

~ Your Source of Income and Wealth ~

Ranchers derive their income from solar energy. Energy from the sun is collected by the leaves of green plants, which convert this energy into a food source for cattle. Cattle convert this food source into nutritious beef, which is purchased and consumed by people around the world. The conversion chain that turns sunshine into dollars looks like this:

SUNSHINE PLANTS CATTLE BEEF $$$$$

Our profits will be maximized when we keep the entire conversion chain as simple and efficient as possible. Unfortunately, we live in a high-tech world that makes it very difficult for most ranchers to keep things simple and efficient.

After studying this conversion chain I realize it would probably require a book to fully discuss each link in detail. Well, I don’t have time to write a book and you probably don’t have time to read one, so I’ll try to keep this discussion as brief as possible. I hope to hit the high points and, in so doing, provide some food for thought.

SUNSHINE PLANTS: Solar energy is free, as well as extremely reliable. To date, no one has figured out how to put a meter on it. We often forget that solar energy is the origin and the basis of all agricultural production. Although this is the most important link in the conversion chain, it is probably the one ranchers overlook and neglect the most.

Many things are necessary to maximize the conversion of solar energy into plant material. The one thing ranchers have the most control over, however, is the surface area of green leaves. Green leaves enable a plant to collect the solar energy that falls on it. No matter how much sunshine there is, rangeland without green leaves cannot collect, store or convert any of it.

Green leaves are very tasty and will be quickly eaten, so how do we maintain sufficient leaf area to continue collecting and converting solar energy? First, we must never allow our rangeland to be grazed so severely that it has no leaves. Plants without leaves will take a long time to recover because they can no longer collect solar energy. Second, we must ensure that once a plant has been grazed it is allowed ample time for rest and re-growth before it is grazed again. Since new growth is very tender and nutritious, cattle will continue coming back to graze it again and again until they eventually harm and even kill the plants.

The best way to accomplish these two objectives is to utilize a rotational grazing system with at least twelve grazing paddocks. This makes it possible for us to move the cattle before they overgraze or harm any plants. With conventional grazing, some plants are severely overgrazed while others may not be grazed at all. Cows are not the least bit concerned about the conversion of sunlight into plant material. Their primary concern is to keep their bellies full. Cows are incapable of thinking or planning ahead. That is the job of the rancher.

A properly managed grazing system will provide plants with plenty of time for rest and regrowth between grazings — but that’s not all. With very little input, it is possible to increase grass production by at least 50 percent. WOW! That extra grass will allow you to run more cattle, which will ultimately generate much higher profits — from the same land base.

PHARO CATTLE COMPANY

CHEYENNE WELLS, COLORADO PHONE 1-800-311-0995 ———————————————————————————————————————————————————————————————–

Buy your bulls from someone who raises cattle the way you ought to.

Nov./ Dec. 2007 NEWSLETTER

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THE

PHARO CATTLE COMPANY

NEWSLETTER

Published bimonthly by:

Pharo Cattle Company 44017 County Road Z Cheyenne Wells, CO 80810

Editor: Kit Pharo

Phone: 1-800-311-0995

Email: Kit@PharoCattle.com

Website: www.PharoCattle.com

Our Mission: To help ranchers put more fun and profit into their business.

Call or Email for a Free Subscription

WARNING…

~ BIG Wreck Ahead ~

The current beef production model was built on cheap grain and cheap fuel. Times have changed! Cheap grain and cheap fuel are things of the past. However, as long as calf prices remain high (as they have been for the past 10 years), most ranchers will be able to survive.

Unfortunately, all good things eventually come to an end. Every high market will even-tually create a low market and every low market will eventually create a high market. Most cow-calf producers are headed for a BIG WRECK and don’t know it!

Two Options. You can either make the necessary changes to keep your ranch profitable during the impending down market — or you can join the whiners and complainers. As you ponder this situation, remember that we cannot solve today’s problems by using the same logic we used when we created them.

“We can’t solve problems by using the same kind of thinking

we used when we created them.”

— Albert Einstein (1879 —1955) —

Fall Bull & Heifer Sale Results...

Our Fall Bull and Heifer Sale was very well attended. We ended up sending bulls and heifers to 30 different states and three Canadian provinces. Nearly 50 percent of our bulls were purchased through one of our three stay-at-home options. More and more cattlemen are coming to the realization that our program and our bulls are "different for all the right reasons".

The interest and demand for our heifers is growing by leaps and bounds. Why? Because our heifers have been bred and selected for profit, efficiency and longevity. Most of the heifers we sold were guaranteed for calving ease. We sold 80 top-sort registered heifers for an average price of $2200. We sold over 600 commercial bred heifers for an average price of $1388.

Our forage-tested bulls looked great and were very well received. Many people still find it difficult to believe our bulls can look this good on an all-grass diet. Their thickness and fleshing ability have been bred in — NOT fed in. We sold 387 bulls for an average price of $3900, with a range of $1250 to $11250. Nearly 30 percent of our bulls sold for $3000 or less. Individual prices can be seen by going to our website.

Spring Bull Sale. We will be selling an outstanding selection of Angus, Red Angus and Hereford bulls on April 15, 2008. Make plans to attend if you would like to own a no-nonsense, range-ready bull from Pharo Cattle Company.

Gypsy Lady

No matter how poor you are, having a good dog will make you rich. Dogs are amazing creatures. They live to please us, and they love us with unconditional love.

I’d like you to meet Gypsy, my new border collie puppy. She came from Mark Hilker, a PCC customer who lives in southwest Nebraska. She is very mischievous — but she is my pride and joy.

Gypsy is too young to be working with cattle, but she is already watching and paying attention.

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My Asset Liquidation Trip...

By Tyson Pharo

What a trip!!! My friend, Johnny, and I left Colorado at 6:00 Sunday morning, July 8th. After a layover in Washington DC and a couple of flight changes, we landed in Durban, South Africa at 6:00 Monday evening. Africa is eight hours ahead of us so we had about 28 hours of travel time. Ian Mitchell-Innes and his wife, Pam, were waiting at the airport to pick us up — and it’s a good thing they were, because we’d have been lost without them! After eating supper with them, we had a three hour drive to their home. That was one very long day.

It didn’t take long to get adjusted; we were up by 8:00 am. I don’t think Johnny or I suffered from any jet lag. After breakfast, we met William, Ian’s son, and Pipi, their gardener and tracker. We were to spend most of the week with these two. The rifle we were borrowing for the week was a 30-06 with a 4 power scope. After a little target practice, the hunt was on. Ian’s ranch consists of about 18,000 acres which gave us plenty of room to hunt six different species of game. We were hunting kudu and nyala, which spend most of their time in the bush. With both of these animals the males have horns and the females don’t. The plains game we were hunting consisted of wildebeest, hartebeest and blesbok. With these animals, both the male and the female have horns, which is a little confusing for the untrained eye. Warthogs were also on the menu.

We basically hunted for six days straight. We would leave about sunup, and we were usually out after dark processing game. If we were hunting kudu or nyala we would drive out to the bush and then walk through it very slowly trying to catch some movement. These animals blend in very well, which makes it hard to see them before they see you, similar to our North American elk. When we hunted the plains game we would drive until we saw something then get out and make a stalk on them, similar to our pronghorn antelope. We killed at least one animal each day — so we never did get skunked. To make a long story short, I ended up shooting a kudu, a nyala, a wildebeest, a hartebeest, and a blesbok. Johnny shot a kudu, a wildebeest, a blesbok, and a warthog (very ugly). Having the taxidermy work done there cost us a fraction of what it would have cost in the US.

The time we spent with Pipi was quite unique and interesting. Pipi doesn’t speak much English and we can’t speak Zulu. Johnny didn’t have many problems with the language barrier, but I sure did. Pipi has worked for Ian for 26 years and he really knows the land and animals. Pipi let us take a look at his seven houses — for different wives and family members. Everything there was done the true Zulu way, from the perfectly straight walls to the cow dung floors that looked as hard and shiny as polished hardwood. His rock corrals must have taken years to construct.

We were treated great while we were there. It was like staying at a bed and breakfast with good company. The first two days we went back to the house for lunch, but we couldn’t eat much. I asked Pam if we could stay out and hunt instead of coming back at noon. That was fine with her, but she always sent a sack lunch with us after that. Her meals were excellent.

I did get to go out with Ian one day to look at his mob-grazing system and his mob. It was very interesting to see that many animals running together and the amount of ground cover left after he rotates through each paddock. The only places he has bare ground is where someone had set fire to his grass, which seems to be a problem there. If someone gets mad at you, they set your ranch on fire. I guess that is one of several differences between ranching in the USA and ranching in South Africa.

Red Hartebeest

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PLANTS CATTLE: The solar energy that has been collected by the leaves of green plants is converted into a food source for cattle. Although there are many factors involved in keeping this conversion link simple and efficient, one is much more important than all the others combined. Ironically, it may also be the most overlooked.

Let cattle harvest their own feed! The conversion link between plants and cattle cannot be made any simpler or more efficient than this. Cattle come with four legs and a mouth as standard equipment. Even with all the technology that is available, man has not yet been able to design a more efficient harvesting machine.

Ranchers who choose to harvest the feed and haul it to their cattle forfeit enormous amounts of efficiency and profit. Although these ranchers try to justify what they are doing, it is becoming more and more difficult to justify the cost of equipment, depreciation, repairs, fuel and labor. They simply cannot compete with ranchers who let their cattle harvest their own feed.

Other management practices. The concept of allowing your cattle to graze year-round can be greatly enhanced through the implementation of some other management practices. The most important practice is a properly managed and controlled rotational grazing system (see page 1). You cannot expect your cattle to graze grass that does not exist.

Calving in sync with nature is another management practice that will enable your cows to harvest most of their own feed. The most profitable ranchers that I know of let Mother Nature feed their cows when their nutritional requirements are the highest. Ranch management consultant Gregg Simonds says, “The only two things that really matter in a cow-calf operation are feed cost per cow and reproductive rate.” Referring to calving in sync with nature, Gregg continues by saying, “Ironically, the fastest and easiest path is usually the one that is most resisted.”

Last but not least, you must consider the type of cattle you are producing. Some are much more efficient at harvesting their own feed than others. We have found that our most efficient foragers are small to moderate in size. They are very easy fleshing and they have a tremendous amount of volume and capacity. This is the type of cow that continues to be very productive with minimum inputs. How can you produce this type of cow? Purchase your herd bulls from a seedstock producer who requires his cattle to harvest their own feed. They are few and far between.

CATTLE BEEF: Since ranchers get paid for producing beef, this is a very important link in the conversion chain. Cattle are amazing animals. Because of their unique four-stomach digestive system they are able to digest very low quality plant material that cannot be utilized by most other animals. This will always be the biggest advantage the beef industry has over the pork and poultry industries.

Grass-finished beef. Now that’s a novel idea, isn’t it? Not really. Man has been eating grass-finished beef for thousands of years. It wasn’t until the 1950’s, when American farmers produced a surplus of grain, that feeding large quantities of grain to cattle became the norm. This brought about some drastic changes in the beef industry — but were those changes for the good?

Is the beef you buy in the supermarket today as flavorful or as tender as it was 40 or 50 years ago? Those who are old enough to know will quickly say, “No.” With the advent of grain feeding, cattlemen started selecting for larger framed, exotic-type cattle that produce lean meat with very little marbling (intramuscular fat). Marbling has a huge effect on juiciness and flavor, as well as a lesser effect on tenderness.

Has grain feeding made beef producers more profitable? Even when grain was cheap, it cost more to produce a pound of beef on grain than it did on grass. Cattle will never be able to convert grain to meat as efficiently as hogs and chickens. On the other hand, hogs and chickens will never be able to convert low quality forages to meat as efficiently as cattle. Continued on Next Page

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I’m not saying we should quit feeding grain to cattle, although some have been quite successful at producing and marketing grass-finished beef. I am suggesting, however, that we put more gain on our cattle with low-cost forages before we start feeding grain. Why not let our cattle do what they were designed to do? We are wasting time and money when we try to make them do something they were not designed to do.

Unfortunately, not all cattle have the ability to efficiently convert grass to beef. Even fewer have the ability to finish (marble) on grass. There is a big difference between grass-fed and grass-finished. Any old cow that eats grass can qualify as grass-fed beef. In contrast, grass-finished beef is beef that has been fattened, with substantial amounts of marbling, on an all-grass diet. The type of animal that works best in this link is the same type that works best in all of the conversion links.

BEEF $$$$$: This may be the weakest link in this conversion chain for most cattlemen. It’s not hard to produce a product, but most cattlemen find it very difficult to receive adequate compensation for their labors. Often they sell their product for less than their cost of production. That tends to take most of the fun out of ranching.

Most farmers and ranchers are in a commodity business. They produce a commodity, they haul it to town and they sell it for whatever someone else is willing to pay them on that particular day. Essentially, they have no control over the markets and prices they receive. The commodity business, by definition, is a breakeven business. It is difficult (but not impossible) to make money in a commodity business.

Let’s briefly discuss three possible ways to increase our profits in the beef business. 1) Produce our product for less. 2) Sell a product with added value. 3) Get out of the commodity business.

Low-cost production. Low-cost producers strive to create a breakeven price that is much lower than their neighbors. Therefore, they will remain profitable while most are losing money. There are many ways to lower production costs — but it cannot be done with high-maintenance cattle.

Added value. There are several ways to add value to your product. Most require you to retain ownership of your calves past weaning. One example would be to double the value of your heifer calves in one year simply by exposing them to a bull. What other opportunities do you have to double your money in one year?

Sell a product. You can get out of the commodity business and sell your product (beef) directly to the end consumer. Sure, this requires more work but wouldn’t it be nice to control your markets? When the price of calves goes down, what happens to the price of beef in the grocery store? It stays the same, doesn’t it? Wouldn’t it be nice to never have to worry about the cattle cycle or the cattle markets again? There are some huge opportunities out there for those who are ambitious enough to go after them. Markets for natural, organic and/or grass-finished beef are growing at unbelievable rates. Very few ranchers are taking advantage of these opportunities.

Speaking Engagements…

♦ Jan. 4 & 5 — West Plains, MO Ph. 417-256-2140 (ask for David Hall)

♦ Jan. 7 & 8 — Columbia, MO Ph. 660-263-5702 (ask for John Turner)

♦ Jan. 23 & 24 — Sidney, MT Ph. 406-444-6619 (ask for Heidi Olbert)

♦ March 29 — Sioux Center, IA Ph. 712-943-7882 (ask for Darrell Geib)

Other engagements will be announced in our weekly email updates.

Same House — New Address?

If you have a new “911” address, you need to send it to us.

The address we have for many of our 24,000 newsletter subscribers is incorrect and will not barcode. You must provide us with your correct mailing address if you want to continue receiving our free bimonthly newsletter. Ask your post office for help.

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The New and Improved Me...

I’ve become the type of person I used to poke fun at — and I can’t wait to tell you about it. Like many aging baby boomers, I have become more and more concerned about my health and wellbeing — or lack thereof.

For some time, a couple of PCC cooperative producers have been trying to talk me into doing a 7-day fast and cleanse program. They said, “It will make you feel better than you’ve ever felt before.” I was interested, but I knew I would not have enough willpower to go more than one day without food.

In August, Deanna and I finally decided to give it a go. What’s the worst that could happen? If I failed, I failed. It wouldn’t be the first time I failed at something. We ordered two cleansing kits, and set aside one week that we would not eat or drink anything but water — lots of water.

For over 25 years, I had been drinking one or two pots of coffee per day — by myself. The first two days without coffee were the most difficult for me to deal with. After that, though, it was easy. I’m convinced that everyone has enough willpower to complete this 7-day fast and cleanse program. It was so easy that I decided to extend my fast to 10 days. I discovered that I eat as much out of habit as I do for sustenance.

With our newfound willpower, Deanna and I decided to make a habit of eating much healthier foods. Along with our beef, we are eating a lot more raw vegetables and fruits. We are also doing our best to avoid highly processed foods — especially those that contain white sugar, white flour and/or high fructose corn syrup. I have since learned to love foods that I spent most of my life trying to avoid. I have traded my coffee for a healthy apple cider vinegar drink (with a teaspoon of raw honey) two or three times a day. Both Deanna and I have grown quite fond of this hot drink.

Square Britches. Back in my rodeoing days, I wore size 28 x 34 Wranglers. The last pair of Wranglers I purchased was size 33 x 33 (square britches). What’s happened to my youthful figure? Prior to my 10-day fast/cleanse and my modified diet, I was having a lot of trouble getting into my square britches. I guess you could say I was getting too big for my britches.

Since my fast/cleanse and my modified diet, I have taken my belt up three notches. My belt buckle is no longer facing the floor at a 45 degree angle. I have lost 25 pounds. For the first time in a long time, I have extra room in my britches. I even have to hike them up a little every now and then. I don’t think I will ever be able to get back to wearing size 28 x 34 Wranglers, but I am headed in the right direction — and I feel great!

I have taken a couple of prescription medications for over 10 years. Since my 10-day fast/cleanse, I have not taken either of those medications — nor have I felt like I needed to. We live in a society that loves to treat the symptoms, while ignoring the problems. It makes a whole lot more sense to fix the problems.

Another benefit that Deanna seems to appreciate a whole lot more than I do is the fact that I no longer snore. I suppose it is because I have gotten rid of some excess fat in my neck area. For what-ever reason, I feel like I am now sleeping more soundly than I used to.

As recommended, Deanna and I did another 7-day fast/cleanse in October. I firmly believe that most diseases and ailments can be prevented and/or cured with a regular cleanse and a healthy diet. If we always ate healthy, we probably wouldn’t need a cleanse.

When we started our second fast, I started jogging/walking one or two miles every morning during the pre-dawn hours. I used to use the excuse that I don’t have enough time for exercise. That excuse no longer holds water. It takes me less than 10 minutes to jog/walk a mile. This is a very simple and easy workout. It is also great fun for my new puppy, Gypsy. Someone once said, “If your dog is fat, you are not getting enough exercise.”

We plan to do another fast/cleanse before Christmas. The program we’re following recommends a cleanse every two months for the first year, and quarterly thereafter. To get the most out of this program, I highly recommend eating healthier foods. If you would like to know more about this fast/cleanse program, send an email to Kit@PharoCattle.com with “Fast/Cleanse” in the subject line.

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eBay-Type Auction...

Our PCC Internet Auction is up and running again. This is an online, real-time, eBay-type auction that makes it possible for cattle to be bought and sold via the internet.

More information will be provided in our weekly email updates. If you are not receiving our email updates, send your email address to Kit@PharoCattle.com.

PCC Auction

WANTED: Volume Bull Buyers

We still have a good selection of forage-tested bulls available in quantity lots (6 or more) at afforda-BULL prices. We know that our no-nonsense, range-ready bulls can breed more cows for more years — with fewer problems than most ranchers are used to having with their bulls. We are just looking for a few select opportunities to give our bulls a chance to prove themselves in a real-world ranch environment.

Average Retention Rate

Lecture ——––——––——— 5%

Reading ———————— 10%

Audio/Visual ——––—–—— 20%

Demonstration ——–——— 30%

Discussion Group ——–—— 50%

Learn by Doing ————— 75%

Teach Others —————— 90% (Immediate Use of Learning)

The Learning Pyramid

Learning...

One should never stop learning. When we stop learn-ing, we will start dying. Make time, on a regular basis, to learn new things. Don’t be afraid to step out of your comfort zone every now and then.

The Learning Pyramid to the right illustrates the best and the worst ways to learn. Can you see why most of our schools, universities and churches are not very effective at teaching?

“I was pleased to buy five more of your bulls. I’m slowly trying to get my neighbors to come around to your way of thinking.”

Vern Moore — Wyoming

check out our website

www.PharoCattle.com

Itching Ears...

In 2 Timothy 4:2-3, we read, “Preach the word; be prepared in season and out of season… For the time will come when men will not put up with sound doctrine. Instead, to suit their own desires, they will gather around them a great number of teachers to say what their itching ears want to hear.”

Folks, that time has already come. Most of us are guilty of seeking books, and people, and church groups who will tell us what we want to hear, even if it contradicts God’s word. Well, that’s not going to work! God’s word and God’s truth will lead us through the narrow gate and on to eternal life, but everything else will lead us to eternal destruction (Mt. 7:13-14).

You cannot afford to blindly accept what others tell you as the truth — no matter who they are. You need to read God’s word for yourself. You need to have your own personal relationship with Jesus. Read your Bible!

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~ WANTED ~

Your Email Address If you have not yet sent us your email address, you are missing out on everything we provide in our weekly emails:

•Industry Discussions and Commentaries •Weekly Happenings here at PCC •Market and Weather Comments •Guest Editorials and Funny Stories •Links to Interesting Stories and Articles •Updates to our Classified Ad Page •PCC Internet Auction Announcements •Shared Emails from Other Subscribers •Our Sunday Morning Inspirations

DON’T WORRY… we will continue mailing you a hard copy of our newsletter. Send your email address to Bulls@PharoCattle.com.

SPRINGSPRING BULL SALEBULL SALE

Tuesday, April 15 th

♦ Our bulls won’t melt and fall apart when you take them home.

♦ Our bulls will service more cows for more years than most bulls.

♦ Many will be guaranteed for calving ease. ♦ Our sale will be broadcast on RFD TV, as

well as on the Internet. ♦ FREE delivery to many central locations.

— 300 to 350 Bulls —

PHARO CATTLE CO. PRSRT STD 44017 County Road Z US POSTAGE PAID CHEYENNE WELLS, CO. 80810 PERMIT NO. 28 Grand Island, NE PHONE 1-800-311-0995

E-MAIL Kit@PharoCattle.com Deanna@PharoCattle.com

WEBSITE www.PharoCattle.com ADDRESS SERVICE REQUESTED

Cowboy Logic: “Seat belts are not as confining as wheelchairs.”