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Backgrounding Calves on Pasture:
Opportunity to Explore
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Backgroundingdefined
Backgrounding is the growing of steers orheifers from weaning until they enter the
feedlot for finishing . . .
650800 pounds
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Kind of cattle to buy Considerable flexibility with respect to
weight of cattle bought and sold, feed
resources used, and rate of gain achieved Cattle weighing from 250 650 lbs. or
heavier can be backgrounded
Purchase weights of 350 550 lbs. mostpopular for steer calves
Heifers tend to weigh 30 50 lbs. less atsimilar age
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Kind of cattle to buy Light weight heifer calves usually bought
cheaper than steer calves, but will sell for
less than steers as 600 700 lb feeders Heifers tend to gain 5 10% slower and
about 5% less efficiently than steers
Dont be overly influenced by breed (I.e.
more difference within than between
breeds for performance traits)
Holsteins will do just fine; crosses popularin Corn Belt
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Production SystemsTypical backgrounding system:
Buy 400
450 lb. calves in fall, winter on stored feed,graze spring fall . . .
Sell 650 800 lbs
Daily rates of gain will vary from 1-1.5 lbs.
Buy 350 400 lb. calves in spring . . .
Graze spring fall . . .
Sell 700+ lbs. in late fall
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Skills to develop forbackgrounding
Cattle buying and selling skills
Skill in diagnosing and treating sick animals
Pasture management skill
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Beef steer/corn price rations = Price per cwt.of choice slaughter steers divided by perbushel corn price (Example: $70 2= $35)
Accurate indicator of cost of feedlot gain inrelation to beef cattle prices
Leads and causes shifts in relative profitability ofbackgrounding vs. cow-calf production
Decreases in ratio favor cow-calf production;increases in ratio favor backgrounding
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Ratio of 750 lb. Yearling to 425 lb.calf price ratio
Average of 89% fairly typical
Decline to 80% clearly favors cow-calf production
Increase to 100% clearly favors backgrounding
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Cattle buying andselling skills
Get historical dataand outlook(e.g. Equity and CattleFax)
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Oklahoma City Feeder SteersNo. 1 Medium 400500 Pounds
Year Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Average
1981 78.78 77.31 78.04 80.42 73.45 70.08 66.53 68.80 70.58 69.71 70.07 66.00 72.48
1982 63.91 65.05 69.71 73.00 73.80 71.10 69.84 71.12 69.51 65.40 65.00 69.29 68.89
1983 72.28 75.24 78.43 76.96 77.99 74.17 69.07 68.07 67.74 67.95 71.41 68.87 72.35
1984 70.09 72.49 72.20 73.28 71.16 67.30 66.90 68.46 67.90 66.89 69.05 70.88 69.72
1985 74.76 76.16 77.70 79.72 77.77 73.24 71.12 73.06 69.48 71.61 73.24 69.41 73.94
1986 71.59 73.34 72.97 71.99 70.00 67.50 69.91 72.71 75.57 71.94 72.27 72.18 71.83
1987 75.01 79.19 80.30 83.97 85.96 86.44 90.14 93.58 98.63 93.38 95.05 95.69 88.11
1988 96.96 104.42 101.70 105.03 102.33 93.98 95.89 99.74 97.75 100.55 102.05 101.64 100.17
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Oklahoma City Feeder SteersNo. 1 Medium 400500 Poundscontinued . . .
Year Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Average
1989 104.30 106.35 107.50 101.94 96.12 105.35 103.70 103.82 100.42 100.71 102.03 99.77 102.67
1990 101.23 105.13 105.89 111.35 109.74 106.14 106.03 110.42 106.41 104.25 108.96 112.33 107.32
1991 112.25 118.44 117.58 120.38 117.80 117.99 113.10 106.46 106.32 104.63 101.67 98.13 111.23
1992 96.11 104.49 106.72 102.20 98.84 99.45 99.69 102.86 100.08 96.00 99.92 97.70 100.34
1993 104.50 106.23 108.42 111.72 109.83 109.05 107.31 106.15 105.38 103.54 101.59 103.36 106.42
1994 102.44 105.46 108.60 107.61 100.46 92.48 95.13 93.55 88.66 87.50 91.18 93.00 97.17
1995 95.18 94.62 92.14 89.23 83.50 80.83 75.48 74.95 70.42 65.33 66.88 68.46 79.75
1996 66.27 66.28 65.26 62.30 58.64 61.83 62.75 58.87 67.44 66.65 70.00 71.29 64.80
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Oklahoma City Feeder SteersNo. 1 Medium 400500 Poundscontinued . . .
Year Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Average
1997 79.27 86.17 93.12 93.35 95.71 99.54 98.52 100.48 97.75 96.10 94.92 94.04 94.08
1998 96.14 97.49 101.36 102.59 102.78 85.76 78.15 78.95 77.70 82.33 88.95 87.50 89.98
1999 92.20 94.89 95.17 95.66 90.82 96.53 98.80 95.78 97.72 94.94 102.09 107.27 96.82
2000 110.65 111.12 117.57 111.14 107.57 108.58 113.90 109.75 104.46 108.34 110.27 109.97 110.28
20year
average88.20 90.99 92.52 92.69 90.21 88.37 87.60 87.88 87.00 85.89 87.83 87.84 88.92
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Cattle buying and
selling skills
Use enterprise budget projections
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Logical approach to determining enterprise
profitability
Grazing cost included with all other feedexpenses
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Short run:
Receipts greater than variable expenses
(cattle and feed and livestock expense)
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Long run:
Receipts greater than variable expenses
and fixed expenses (depreciation,
repairs, taxes, interest, insurance on
buildings, equipment, livestock)
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Dairy Steer Calves:350700 lbs. on pasture
56 months
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5/1/2001 Budget Estimates*
CattleCosts FeedCosts LivestockCosts Receipts Returns OverVariable Costs
$371/HD $36/HD $30/Hd $539/HD $102/HD
* Reference BCM-11, Enterprise Budget 5/1/01 for details
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Skill in diagnosing and
treating sick animals
Watch for these warning signs!
Rough hair coat Weight loss
Ears drooping Weak, listless
Eyes, nose-mucous discharge
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Skill in diagnosing and
treating sick animals
Establish a program with your veterinarian
for new arrivals (health check, deworming
program, etc.)
Ideally, review health program withseller of weaned calves
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Health Program Basics
Respiratory DewormingFly control Implants
Bloat prevention (>50% legume)
Trace mineral salt free choice
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Intensive rotationalgrazing
(i.e. rotational grazing with ahigh level of management; more
pastures; short grazing periods;
long rest periods; and high
stocking rates).
Skills
Network with other
producers
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Bought, managed, and sold right,backgrounding calves on pasture
offers another enterprise option
deserving attention.