By Brenda Boetel
This year, cow/calf producers will see an increase in cost of production due mainly to the rise in feed and fuel prices; however, a corresponding increase in feeder cattle prices has not yet occurred. The drought has exacerbated these high feed costs as high-quality grazing opportunities are limited, forcing some producers to begin supplementing with hay and sileage earlier than normal.
The prolonged drought and high temperatures have 42% of US range and pasture conditions rated at poor or very poor, compared to 30% during this same week in 2020 and only 19% on average over 2015-2019. Hay supplies are also well below average and some producers are running out of forage. Drought like conditions have caused some western ranchers to sell cattle 30 to 45 days earlier than normal, basically starting the fall calf run for 2021.
Weaning/selling calves earlier, in August or early September, rather than October/November, is a management practice often used during drought situations. Not only do calves eat a fair amount of pasture, but lactating cows also require more feed. The balancing act is determining whether the additional days you can keep cows on pasture, thereby reducing over-wintering costs, is greater than the hit you will take from lower proceeds from calf sales. Light calves generally bring higher prices per pound, but with less pounds to sell the profit may be lower.