I want to get into backgrounding calves overwinter. I live in Indiana and do not have alot of ground. Backgrounding would fit with my space and current equipment the best. With the prices of calves and feed right now do you see any profit in it this year? I like to buy them at 300 to 400 lbs, just put a couple hundred pounds on them and then sell them when it starts to green up in the spring. Any advice would be appreciated.
Outlook for Backgrounding Calves 06/07
- Thread starter SCRUBS620
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If you've never done it before it can be loaded with pitfalls and pratfalls. Rather then buy them yourself, why not see if a number of small producers in the area are interested in having some calves backgrounded then sold as a load come spring. You'll have to pencil the numbers pretty close to be able to keep your cost of gain low. A good scale system is almost a necessity to be able to sort calves as needed.
dun
dun
Stocker Steve
Well-known member
The feeder future prices look OK to me at about $100/cwt, but unless you forward contract in some way they are just a midpoint guess. Half the people think feeders will be worth more than that and half the people think feeders will be worth less than that...
There are quite a few backgrounding budgets on the web. They often show a modest profit around $30 a head. I think some of the keys to doing better than that are:
1) high average daily gain - processing & selling cost eat you up if you are not getting enough gain on an animal
2) local feed source - you cann't afford to pay mill prices most of the time
3) low death loss - if it is over 3% you need to make some changes
4) genetics - buying cattle you can push without getting them too fleshy
Dun gave some great advise. Start small and good luck!
There are quite a few backgrounding budgets on the web. They often show a modest profit around $30 a head. I think some of the keys to doing better than that are:
1) high average daily gain - processing & selling cost eat you up if you are not getting enough gain on an animal
2) local feed source - you cann't afford to pay mill prices most of the time
3) low death loss - if it is over 3% you need to make some changes
4) genetics - buying cattle you can push without getting them too fleshy
Dun gave some great advise. Start small and good luck!
regenwether
Well-known member
I would stick with steers if your going to sell them in the Sale Barn. Rememeber you want to grow frame not fat- lay off the corn..not hard with $3+ corn. Talk with your local Vet. Make sure you have a sound Vaccination program. Nothing will kill you faster if you start losing those calves. Good Luck!! 
I think everything here should be taken to heart, this is the 2nd year we have bought calves to feed in a small feedlot and re-sell. Be sure to know your feed cost, mineral, vaccinations and a death rate. We feed our own chopped hay, no grain and we are getting 2.5lb/day gain. Our feed cost are very low compared to buying feed, we bought valves averaging 400lb and plan to sell in January hoping the prices will bounce back. Also consider all natural markets and compare the gain loss from not implanting to the premiums in your area.
Stocker Steve
Well-known member
Sage":5il9z4ps said:
What kind of hay and TDN are you feeding?
I mix a ration depending on what we put up each year. We always take in a sample and get a feed analysis to go by. This year we are averaging 2.3lb gain/day starting with 412lb steers implanted with synovex C. The calves are now at 536lb on feed for 56 days, these calves were bought through the ring directly off the cow. Hereford/angus and Simmy/angus crosses. The ration is 47% barley hay 10.8%CP 53%TDN(NEm .49 NEg .24) and 53% 3rd crop alfalfa 20.2%CP 63.5%TDN(NEm .65 NEg .38) these are all on DM basis.
regenwether
Well-known member
For quite a few years I've been buying 4 wt. cattle. I don't resell them but rather keep them to 1250#'s. I have a lot of hay and figure my cost of gain is quite low until I get up to that 700 wt. range. For me... I like to buy them in the Dead of winter. I seem to have less health probelms getting them started. I'm going to continue doing this for a few more years. I've been thinking of something and would like anyone's input. I also have a cow herd. Those Cows that wean heavier calves-500 to 600 lbs. Those calve's tend to sail through the feedlot compared to the lighter weaning wt. calves. I'm steadly growing my cow heard and hope within 5-6 yrs I'll have enough not to have to buy any feeders. The cost of gain on those 4 wt. calves are low because they are on a high roughage ration. With that said...I think it is much more cheaper putting that gain through that cow and weaning a big calf. As I analyze my herd I see three things I must do: Start with good genetics, Cull those poorer cow's hard, Take advantage of Heterois.
Stocker Steve
Well-known member
regenwether":1spqe0om said:
I am sure that you are right that the 6 wt. calves do alot better than the 4 wt. calves on a high roughage winter diet. Can you compare profit of feeding more energy to the light calves to increase their ADG vs. using a surplus of lower quality cow feed to raising more calves yourself?
Stocker Steve
Well-known member
Sage":1fyv6t2w said:
What do you use to store, mix, and feed this hay based ration?
The hay is mixed s we chop it and it just sits in a big pile outside. We don't get much snow here so it keeps prety well. We chop every couple weeks so it doesn't spoil too bad. We feed in buks using an old silage wagon, very cheap and effecient. Theses calves are going to the sale January 5th weighing in at 640lb. Gain cost are right around $0.30/lb, the hang up will be the market change from when we bought them till now.
SCRUBS620
Well-known member
I read an article from a university (sorry forgot which one) that talked about limit feeding stocker cattle. Basically you feed just enough grain (I am not talking about full feed) to get the gain you want and just enough hay to keep them from getting sick. It said that they act like they are hungry for a while until they adjust but they still gain weight. I am assuming the feed conversion of the grain has to be alot better than that of hay. Anybody know what the conversions are for each? Has anybody tried this?
Stocker Steve
Well-known member
SCRUBS620":1yo42b7v said:
Kansas State is doing some work on this. Before grain prices jumped they had a bunch of stocker operators who were going away from grazing. They were tired of dry years, and with $2 corn they could make money drylotting. Call K.C. Olson if you want the details.
