Questions about Backgrounding Operation

[Jogeephus]

I have been thinking about expanding our cattle operation by putting some more acreage in cattle. I was thinking about backgrounding calves. Never done this before. Cow calf operation has always suited me. But I like learning new stuff. I mapped the new farm out and designed a pretty efficient setup where I can handle four trailer loads at a time. On paper it looks good but it will be expensive to set up. If I do it - what type of returns are you looking at per head and how much time does it take. Another concern I have is the animal ID. If this goes into affect, how do you think it will affect backgrounding?

 

[Howdyjabo]

Where do you plan on getting the calves- what size- what do you intend to feed them-what size do you plan on moving them- how do you plan to market them- and unless you get calves preconditioned do you have the skills(and time) to start them- and do you have a big enough bank roll to carry you if these first loads loose money.

ID issues shouldn't be a problem with backgrounding. Just some extra paperwork.

 

[dun]

I don;t have a comment on any of thestuff you asked. But from the point of a client having had calves backgrounded, you need have a sharp pencil and keep up with the paper work on cost of gain. If you are planning on marketing them to feedlots, you'll need a good scale setup and the manpower to sort the calves at least once a month.

dun

 

[Jogeephus]

The three operations I have looked at buy in 3 to 4 weight. Each is a little different, some put 200 lbs on em and other put a bit more.

None of these operations buy preconditioned calves....hence there will be inherent health problems....but I worked for a vet for 15 years so this shouldn't be insurmountable.

The good thing ... if I do this ... I won't have a lot of initial debt since all the equipment - scales, land, tractors, trucks etc - can be used in this operation as well. The fella that I sell most of my cows through can purchase and deliver the cattle to the operation. Also, I can background my own calves in this operation as well. It just seems like a logical step but ... I've never done it before cause I like my momma cows.

My friend who suggested I do this, is in the business. According to him, you turn money quicker and you don't have the expense of keeping the momma. Essentially, I think his point was that I will not make as much per head but I can carry more head on a given space and turn them more frequently than you can a cow calf operation.

As for feed, most operations I saw use millet in summer, wheat, rye and oats in winter and supplement either through creep feeders or a grain hay mix prepared in a Jaylor tub grinder.

Either way, I will probably be expanding the operation I just don't know what route to take as yet.

My plans are to expand while I still have a good paying job and good health so I can get the infrastructure in place and paid for. Since I do most of the work myself instead of hiring it out, I want to see if this is a goal worth working toward.

Another goal I have is to get to the point of selling only trailer loads. I have just gotten to the point of being able to do a little of this and it seems to make a difference. Though we raise a good quality calf, it just doesn't seem to make that big of a difference at the sale barn. My cousin farms in Nebraska, and has offered to help me with marketing the trailer loads there. She has connections and knows who is who. This I thought could help me build some alliances there.

As for losing money. Wouldn't want to lose any. But could lose some if the end justifies it. I normally ease into something slowly. I'd probably end up expanding my cow calf operation to the point of where I can make two good loads of calves. Once I preconditioned them and sold em. I'd buy one load and go from there. If it worked out ok - I'd expand from there and decide which operation suited me the best.

 

[Howdyjabo]

It takes time to start calves-- I see problems if you are trying to do 4 loads along with a full time job. If you get a train wreck (and its guaranteed to happen sooner or latter) going you won't have the time to get it under control.

I would think of starting by just buying enough animals to make up a tractor trailer load along with your home grown calves.
Keep them seperate for at least 6 wks- then put them together.

There are backgrounders that get by by just turning animals loose- do or die and do well-- BUT...... they have high acreage(keeping disease spreading to a min) with excellent quality grazing(mountain pastures,wheat ect)- and they only put in calves during the cream of weather conditions- they also only put in calves once a year so there isn't alot of disease vector issues going on.And they buy top quality animals.
They are making their money on cheap easy gains.




Oklahoma State has a bunch of programs downloadable- that will help you put a pencil to the cash flow.

 

[Jogeephus]

Yeah, I agree with you about the train wreck and understand I would be spreading myself too thin if I was to do both. But I don't plan on doing both. This would be my working retirement or a change in careers if it proves to be financially sound.

 

[Texas PaPaw]

There are some books I would highly recommend to anyone considering a new cattle venture. In order of priority:

1. "Knowledge Rich Ranching" This is about the business side of cattle. Price cycles, marketing, etc. IMO- a must read if profit is your motive.

2. "Thoughts & Advice from an Old Cattleman" Written by Gordon Hazard. Gordon is renowned for his long term profitable stocker operation. He gives an easy to understand explanation of his operation and why he does it that way. He has the best receiving/health conditioning program for sale barn calves that I know of. The best how-to book on stocker cattle I've every read.

3. "Pasture Profits with Stocker Cattle" This book was written by Allan Nation about Gordon Hazard's operation. A good book but I like the book written by Gordon better. By reading both books, I think a person might get a better perspective on things than by reading only one of them.

Books 1 & 3 are available at the following site:

http://www.stockmangrassfarmer.net/Bookshelf.html

I purchased all 3 at different times from SGF but "Thoughts & Advice....." are not currently listed at this site but is still listed in the SGF magazine. You can call them at 800-748-9808 to order.

Good luck & happy trails.

Brock

 

[Jogeephus]

Thanks TexasPaPaw just ordered two of them. Will try and get the third tomorrow. I've found the cost of a book is very inexpensive education. Whats the saying, "if you think the cost of an education is expensive try the cost of ignorance." And boy am I ignorant ;-)