Badlands - Cornell Value Discovery

[Jeanne - Simme Valley]

Badlands - in the previously locked thread, you asked MikeC & I if we had good luck with the Cornell Value Discovery Program (a feedlot program where we keep ownership).
Mike responded:
"Decatur County Feedyards has certainly had good luck with it.

They are one of the few feeders around that can co-mingle a pen of calves and accurately charge each owner for the amount of feed their individual calves eat.

They have without a doubt one of the largest databases of feed efficiency, gain, and carcass data statistics around.

They have a good handle on what makes money in the cattle business. Part of that is due to the CVD."

And, yes, I also agree they have one of the best feeding programs available. Their computer program that calculates the feed intake is being used by other trials.
And Cornell does a great job getting them finished quickly. They harvest several different dates to get them finished to the maximum profit.
We just delivered this past weekend, and the final harvest will probably be in May next year. They have cattle all shapes, colors & sizes.
I am really pleased to report our 4 steers last year had the highest PROFIT/hd and highest Adjusted Return to Cow/Calf Producer of any other farm (206 feerders). Our steers had $83.30/hd profit, Adjusted Return $852.92/head (PB Simmental) - next closest farm for Profit/head had $45.38/hd (Angus), The next closest farm for Adjusted Return was $794.66/head (shorthorn)

 

[dun]

Our backgrounder uses the Cornell model. Since he can calculate things so accurately his is the lowest cost of gain we've ever had. Another plus is getting a feedbill every month vs the other backgrounders we've used that kind of slap together a feed bill when all the calves leave.

dun

 

[purecountry]

Jeanne, what exactly do you mean by profit/hd? You've got one price of $83.30/hd, then the adjusted is 852.92/head. Just wondering what exactly you mean. $85 profit per animal is not much profit, and $852.92/hd is incredibly high. I think I'm missing something here.

 

[Jeanne - Simme Valley]

The profit/hd is Cornell's calculation of placing a value on the calf at the time of delivery (as if you purchased the calf) and deducted all expenses and that's the actual net profit per head.
The adjusted price per head was our take home check per head. (both included a $25/hd data collection fee) So in the "real world", my 4 steers had a $108.30/hd profit (adding in the $25). I think most feedlots would love a $100 net profit per head.
This is the 3rd year that we put steers on the test. The previous year had about the same net take home $$ - they had not listed the profit/hd based on individual farms.
The report did not give farm names (politically correct you know), but I matched up each group & know which farm had what profit.
We are super happy with our results :heart:

 

[Jeanne - Simme Valley]

Dun, we don't get any bill. We pay $25/hd to nominate them - which is the $25 they keep for all the data/processing.
Upon delivery, we pay another $50/head.
No other money exchanges, til we get our check at the end (with our $50 credited). Works good for me!!!

 

[dun]

Dun, we don't get any bill. We pay $25/hd to nominate them - which is the $25 they keep for all the data/processing.
Upon delivery, we pay another $50/head.
No other money exchanges, til we get our check at the end (with our $50 credited). Works good for me!!!

We aren't dealing with a major feedlot. This is just one of the members of the marketing association that's working out of his pocket. Since he's feeding anywhere from 250-400 calves each go round we pay as we go.

dun

 

[MikeC]

The profit/hd is Cornell's calculation of placing a value on the calf at the time of delivery (as if you purchased the calf) and deducted all expenses and that's the actual net profit per head.
The adjusted price per head was our take home check per head. (both included a $25/hd data collection fee) So in the "real world", my 4 steers had a $108.30/hd profit (adding in the $25). I think most feedlots would love a $100 net profit per head.
This is the 3rd year that we put steers on the test. The previous year had about the same net take home $$ - they had not listed the profit/hd based on individual farms.
The report did not give farm names (politically correct you know), but I matched up each group & know which farm had what profit.
We are super happy with our results :heart:

Jeanne, That's a good program for folks to actually see what kind of cattle they are raising. We have the same basic concept in the "Pasture to Rail" program.

Getting back to the "Hobby" farm conversation. (I'm not particularly talking about the people here either. If they didn't want to improve themselves they wouldn't be here in the first place)

But most of the smaller guys around here have no idea what kind of beef they are raising. When they figure out they are in the "FOOD" business the better off we'll all be. They just rob the calves off mama and send them off.

"Inconsistency" is one of the main pitfalls in the beef business, and if everyone joined up to a program such as yours, it would tend to eliminate some of the "inconsistency" on the grocer shelves and on the plate.

 

[dun]

That's the primary reason we're in the marketing group we're in. After backgrounding for x days they're sold in potload lots. Part of the agreement with the feedlotsthat buy them is that they return carcass and gain data to the producers. That's also why we ultraosund the replacment heifers.
Wasn;t all that long ago that any calf particualry blacks would make you money. Now with this program we're only making about an additional $35 a head over what we would have if we sold them at weaning. But at least we know what kind of animalks we're raising.

dun

 

[Jeanne - Simme Valley]

I go one step further on their program - I have my steers ultra sound scanned - to get that data into the ASA base - plus I send the final carcass data in to them also.
Years ago, we retained ownership with an individual and our carcasses graded Select. Whether it was feedlot performance or cattle performance, we were not pleased with that, so this new modern Simmental is doing what we expect them to do.
Dun, I fully understand having to pay as you go. And I had expected to have to do that, so this is kind of a bonus

 

[dun]

Dun, I fully understand having to pay as you go. And I had expected to have to do that, so this is kind of a bonus

The first couple of backgrounderswe used billed us at the end. Their record keeping wasn;t all that splendid and our cost of gain was a lot higher then it iswith the guy that's doing it now. The others based it on some formula but I think using the Cornell model that this guy uses alowws us a better handle on the actual cost of gain.
This is the 5th group of calves he's backgrounded for our group. I also have a sneaking suspicion that sincehe is a member and has calves in the program that he may be a bit more attentive to what's going on. He's also a really great guy and a third generation cattleman.

dun

 

[nagwag]

Jeanne - congrats on your steer group. Is your farm right along I86? Also were the Shorthorn steers from a farm in Youngstown?

 

[Jeanne - Simme Valley]

Nagwag
Our farm is 10 minutes off of I-81 near Cortland. And yes, the shorthorn farm is Green in Youngstown.
If you're ever in the area, your welcome to come visit. Love to show our cattle.
Dun - it pays for the feeder to have some sort of incentive. With Cornell, they are gathering data. Do a superb job.