In part one of the Beginner Rancher Guide learn the different segments, considerations for land acquisition and other questions you need to answer before starting an operation.
By Markie Hageman
There are many steps to take before building any operation and cattle ranching is no exception. It can be overwhelming to research all the factors that come into play with this kind of venture. Always remember that your cattle are part of a business that relies on cash flow and budgeting for its success and sustainability.
In this mini-series, I will break down the basics of starting a beef operation from the ground up. There are many things you should consider before buying your first animal and no two operations are the same; there are many variables and not everything is applicable to your situation. The advice in this series is to be used as a guideline that you should customize to help you get started. Don’t underestimate finding a mentor, or a professional in the industry, to answer questions and help you in your beef cattle journey!
DETERMINE YOUR OPERATION TYPE AND SIZE
The first step in this process is to identify the type of operation you want and its feasibility in your location. This is crucial to determine because what works in one area of the country may not work for your specific location. Availability of land and certain feeds, weather conditions, laws and regulations are all considerations for which type of operation you begin. Some considerations, like land, are scarce to come by in different areas and have a great impact on how you’ll operate.
The average beef herd size in the United States is 50 head. This means that most ranchers are small farmers who hold off-the-farm careers or are diversified on their farm with other commodities. Knowing your herd size, regardless of which production cycle you will be a part of, also plays a role in whether or not you have the resources to operate within that amount and if it will be economically smart. For example, feedlots are typically more successful with large herds due to high risk and cost of feeding, so small operations have a hard time being sustainable but a cow/calf operation tends to do fine on a small scale or as a part-time position.
LAND
Land might be acquired in many ways by simply asking if someone has land to lease or looking in ranch ads, asking your local Farm Service Agency office, finding a realtor, or speaking with your local extension agent. Social media can also play a big role in making a connection to land suitable for your cattle. There are many “groups” you can join that are specific to cattle ranching and can help you search for land! Remember that you’ll need to be cognizant of the amount and quality of land you lease. Having cattle on small parcels in different areas isn’t uncommon, but is it efficient for you and your herd? Does the land have the ability to feed and water your cattle the way you want? Is there fencing and if so, is it adequate? These questions and more will need answering before purchasing or leasing land.
Land can be purchased or leased, from private sellers or as a federal lease. Regardless of what you are considering, land, in many locations, can be one of the hardest resources to come by. There are a multitude of reasons why this is, and it’s heavily dependent upon the area you live, but some other reasons are: water availability is limited, people don’t have connections to find land, property taxes or rent cost are high, quality of land isn’t suitable for livestock, land is being bought up by companies that can afford to offer more for the parcel, and the list goes on and on. This is one of the most discouraging parts of beginning your journey, but take heart in the fact that there are ways to find land; you just might be putting in some effort to find it.
PRODUCING VS. FEEDING
As if finding land wasn’t already a major hurdle for you to jump, you’ll have to make sure the land you find fits the operation you want to run. In the beef cattle industry, there are four segments in a beef cow’s production cycle before the final packing and retail segments; these are seedstock, cow/calf, stocker/backgrounder, and feedlot (finishing).
Stockers/backgrounders and feedlots are sectors of the beef industry that are feeding out cattle versus seedstock and cow/calf operations that are producing the cattle to be fed out (we will discuss each of these in more detail below). All segments of the production cycle are crucial to know so you can determine which operation works best for you. Take into consideration of each: feed costs, whether you need a pasture or not, and if your location is suitable for the operation you’re looking into, amongst many other things. Determining this also helps in creating a business and marketing plan and is necessary for loan opportunities.
SEEDSTOCK
A basic explanation of a seedstock operation is that they supply genetics by producing purebred cattle. Their goal is to provide purebred cattle to the industry in order to improve breed genetics and their cattle are registered with a specific breed association. An example of this is how Angus cattle might be registered with the American Angus Association, or Hereford cattle might be registered to the American Hereford Association. Seedstock operations offer pedigreed cattle and track Expected Progeny Differences on herd sires in order to provide buyers with enough information to help improve the buyer’s herd. I will break down more about purebred cattle versus commercial in the next series, but for now, these following sections will give you a glimpse into the main segments of the cattle production cycle.
COW/CALF OPERATIONS
Cow/calf operations are where a cow’s life begins. In this setting, you will be responsible for producing cattle to breed and calve. From there, you’ll have to select which calves you’ll keep as replacement heifers and which to cull once they are weaned and ready for the next step. You are responsible for raising the cow/calf pairs and selling the cattle you aren’t keeping.
For each cow/calf pair you have, you’ll need approximately 1.5 to 2 acres of grazing land per animal depending on your location. According to USDA, this amount of land is required in order to allow them enough forage for a 12 month period. Note that livestock will need about 4% of their weight in daily forage intake. The minimum acreage is a general rule of thumb, because land doesn’t produce equal amounts of grass year-round, and with gestating animals, whose dietary needs are greater, you’ll probably be supplementing them with hay or other feedstuffs in order to meet their nutritional needs. Additionally, grass needs to be carefully grazed in order to continue growing without damage; for this, you might consider a rotational grazing schedule and offering hay as well, both of which might help you if you’re limited on acreage or don’t have good grass.
As a producer, you’ll be responsible for determining calving season, some choose to calve in the fall, others in the spring and some calve year-round. Weather comes into play here because extreme conditions are obviously not safe for calves and pregnant cows. It can certainly be done, as ranchers in various parts of the country run operations in inclement weather, but it adds a risk factor and also plays a part in determining the breed of cattle that can handle your weather (breed selection will be discussed later in this series).
You’ll also be responsible for the breeding of your cattle, which means you’ll either be responsible for a bull or selecting semen to breed your cows and heifers. If you haven’t heard of Expected Progeny Differences, or EPD’s, this is the point you might start hearing a lot about them (read further about these in the second installment of this series). With breeding decisions, it all depends on which type of cattle you’re running- purebred or commercial. Purebred cattle are registered animals and commercial cattle are crossbreeds that typically aren’t pedigreed (this too, will be covered later on in this series). Breeding decisions can also be based upon our budget but there are many things to consider for each. There is a difference in cost between having a live bull or using artificial insemination but both have their advantages and disadvantages so it’s best to research which method will work best for your herd. Whether or not one is more budget-conscious for you depends on the number
of cattle you have and what you’re selecting when it comes to bulls and semen.
When calves are weaned, around 7-9 months (this number varies), you can retain any that can improve genetics in your herd or replace any cattle you have lost, or you can choose to sell. We will go over marketing and selling your cattle later on in this series.
STOCKER/BACKGROUNDER
Calves from cow/calf operations can take different paths after they are sold. A couple of options are stocker/backgrounder operations. There are only a few differences between stockers and backgrounders, but both play a similar role in this step of the production cycle. These are both feeding sectors of the industry, where you’re not producing the cattle, but rather, buying them from cow/calf producers(most likely at a stockyard) and will feed them out until they make weight for the next step.
STOCKERS
Typically, calves are between 600-800lbs when they are sold to feedlots so a stocker will take weaners (weaned calves) and place them on pasture to put more weight on the cattle. Stockers are maximizing pasture and forage feeding to help their cattle gain weight efficiently. At this point, they are still on grass, silage, and hay rather than grain. Stocker operations might purchase backgrounded cattle to place into a stocker program. This program requires high-quality forage compared to a cow/calf operation. Depending on the quality of land you have, you’ll need about 2-2.5 acres per calf, in order to feed them out properly, unless you’re supplementing with hay and silage.
If you are able to, you can bring the cattle from a stocker program into your own feedlot or sell them as “feeders” to other feedlots.
BACKGROUNDER
In this operation, you’ll be “preconditioning” the calves prior to moving them to any feedlot program, or possibly into a stocker operation. Preconditioning is a practice that keeps the calves healthy; these practices include, but aren’t limited to, weaning, starting them on feed, vaccinating, castrating and dehorning. You’ll also play an important role in acclimating cattle into a feedlot by helping to destress the calves after shipping, being weaned and changing feeds.
This system is a little more hands-on and requires careful consideration of each calf’s health, more handling, separating cattle into groups based upon their weight and overall health, as well as knowing market conditions, nutrition knowledge, and the ability to give cattle access to feeds with intermediate energy levels.
FEEDLOT
The final stage of cattle production is cattle-finishing. This is done in order to prepare cattle for processing (harvesting) and retail. In this operation setting, you’ll be feeding cattle high-quality feeds in order to get weaned calves up to weight, which is typically 1,000 lbs, and up to grade.
There are many important factors for feedlot layouts to know; although not as much land is required for each cow as is in a cow/calf operation, you’ll need to have adequate shelter to keep animals protected during harsh winter or summer months and will need proper fencing around the perimeters. You’ll need feed bunkers, typically made of concrete, in order to deliver feed. Feedlots are dirt lots and can become muddy so having 3-5 feet mounds in each lot can give cattle dry ground to stand on. The lot should be well-drained and should be cleaned periodically. You’ll also have to design a feedlot that prevents manure runoff into streams and waterways, and if you build any retention lagoons or diversion ditches you’ll need to make sure you have approval.
As with any of your other operations, you’ll want to have a relationship with a veterinarian in order to maintain the health of your cattle, especially if you are preparing them for harvesting. You’ll need to make sure they are medicated properly and ready for shipping. Preconditioned calves are usually healthier, and because you might get cattle at different weights, or with different health levels, you’ll be separating cattle into quality groups on your operation so they all have quality attention.
When it comes to feed, this is a highly scientific process that requires good understanding of what kinds of feed are needed in order to put weight on cattle in an efficient way. Think about terms like crude protein, growing rations and finishing rations. In different locations, you’ll have access to different kinds of feed that consists of grain, protein and roughage. Depending on where your calves are in their quality, you’ll still be feeding an amount of forage in their diets. The main point here is that you’ll need to understand where your cattle are at all times, keep records of their time at your feedlot and know when to switch up their diets.
CLOSING THOUGHTS
Wrapping up the first section of this series, you probably have a lot of questions that are unanswered at this point. This is totally understandable and not uncommon. The most important thing to do is to start asking questions. Go to your cattlemen’s association meetings, get to know your local cattlemen, talk to your local extension agent, join social media groups, and talk to people who are willing to answer your questions realistically but also encouragingly. Too often, ranchers can be discouraging towards beginners because of all the hardships this industry experiences and barriers to entry are at every step along the way. Don’t be discouraged and don’t be afraid to ask the simple questions.
There will be more topics we discuss in the continuation of this series, such as policy, marketing your cattle, water systems, finding loans and choosing a breed, plus all the other topics I didn’t touch on in this piece. As stated at the beginning of this article, know that there are many variables in all subjects, and you can use this series as a way to find holes in your own research and have a guideline of where to go with your plan next. You can never be over-prepared or over-educated and over the next few months, I aim to help you become the most prepared and educated beginner rancher you can be!
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