Should i raise cattle

Accessed: 5 March, Vieira, Accessed: July 30, Accessed: August 10, Four distinct models of production were considered in the present study: 1 the traditional ranching system of the middle Rio Vermelho basin TRV , which is characterized by average levels of productivity in local and national terms , and the lowest level of technological development; 2 pasture with low levels of concentrated supplementation PCS ; 3 pasture with low levels of concentrated supplementation and confinement for fattening SCF , and 4 Intensive Pasture System IPS with supplementation during the rainy and dry seasons for the whole herd, except for the cows and bulls in maintenance, which were only supplemented during the dry season.

The same area of land The estimates of the investment needed in infrastructure were based on the parameters shown in Table 1 , which have been adjusted to the building style of the region, and including storage facilities for cattle feed and medication. To minimize environmental impacts, a demand of 40 liters of water was projected for each animal unit AU equivalent to kg of body weight , for which nine Australian-type drinking troughs were included for the traditional ranching system TRV , with 15 PCS , 18 SCF , and 14 IPS troughs for the other systems.

Even so, standard practice in the region is to allow cattle access to local rivers and streams. The number of feeding troughs needed for each system was determined by the type of supplementation and the strategic distribution of the units in relation to the number of pickets and the size of the herd.

Four 2. The use of a 60 hp tractor and a trailer with a capacity of 4 tons was included in the calculations for the two most intensive systems SCF and IPS.

In all four systems, four horses were included in the budget as working animals. The preparation of the soil for the establishment and maintenance of pasture was projected based on the direct recuperation method, given that the integration of pasture with crops or forest is not a common practice in the study region. Balieiro Neto et al. Accessed: july 18, This situation is further aggravated by inadequate management, which reduce the capacity of support of the pasture, as well as damaging the environment, resulting in losses for the producer, and society in general, over the short, medium, and long terms.

The application of nitrogenated fertilizers together with lime has proved effective for the recuperation and intensification of the production of the forage Brachiaria brizantha cv. The expenditure on lime, fertilizers, herbicides, and the labor costs of the application of these products and pasture seeding were considered to be variable costs, while all other components of the budget were recorded as fixed costs. Except for the TRV system, the seeding and maintenance of the pasture was projected considering different levels of fertilization, with maintenance every two years for the whole area of pasture, and the application of herbicides for the control of invasive plants.

In the specific case of the TRV system, pasture seeding and maintenance was projected in terms of the liming of the whole area of pasture see Table 2 and manual weeding.

The clearing mowing, swathing, and removal of fine debris , preparation of the soil harrowing and levelling, liming, application of herbicides and fertilizers , and mechanical seeding were all projected in terms of their labor costs hourly or daily rates and machinery rental hourly rates , with fuel and maintenance costs also included.

In all four systems, the pasture was seeded with Brachiaria brizantha cv. Marandu, the predominant variety of grass planted in the Rio Vermelho basin, which renders CQBAL 3. Accessed: July 12, The amount of fertilizer needed to guarantee the accumulation of forage necessary to satisfy the nutritional demands of the daily weight gain predicted for each production system was projected based on the reference values provided by Balieiro Neto et al.

The natural breeding season was planned for the period between November and February, when the greatest nutritional demands of the breeding cows coincides with the most productive period of forage, guaranteeing heavier calves, which are healthier and easier to manage PAULINO et al. For the low-technology extensive traditional system TRV , the herd was composed of one bull selected from the home herd for every 25 cows. In the other three systems, the ratio was approximately one bull to every 30 cows, with genetically superior bulls being selected to ensure the improvement of the genetic constitution of the herd.

The reproductive performance was improved through protein-based supplementation for dry and primiparous cows, in order to compensate for the lack of forage or its reduced nutritional value during the dry season, which precedes the breeding season. Newborn Nelore calves were assumed to weigh an average of Genetic analysis for gestation length, birth weight, weaning weight, and accumulated productivity in Nellore beef cattle.

The preparation of the supplementary diet for the calves in the IPS to ensure a daily weight gain was projected based on the production of 6. S , for the period between 8. Software livre. Aceessed: July 7, The husbandry parameters listed in Table 4 were used to constitute the herd in the first year, with the equilibrium being maintained during the 15 years of the project, when the whole herd was sold off, with a residual value of one hundred percent.

Ten percent of the breeding cows were discarded annually, being replaced by heifers from the local herd, with all the surplus heifers being sold.

Higher birth rates were achieved in the more intensive production systems through the provision of improved nutrition, the acquisition of better quality, genetically-improved bulls, and the removal of cows with low rates of pregnancy.

The highest birth rates and lowest mortality rates, as well as the reduced age at first breeding and short interbirth intervals in the more intensive rearing systems resulted in much larger herds. In the IPS system, creep feeding resulted in the weaning of heavier calves with an enhanced capacity for the assimilation of the diet during the productive cycle, reaching terminal weight early.

The linear depreciation method was used to calculate the residual value of the infrastructure, tractor and trailer, pasture seeding in the TRV system, breeding bulls and working animals. Depreciation of the pasture was projected only for the TRV system, considering 20 years of productive life and a residual rate of zero percent, with maintenance every five years, given the low technological input of this system.

The fertilizer-based management in the remaining systems was estimated at two years, maintaining the productive capacity of the pasture, and thus with no projected depreciation. Lei n. Poder Executivo. To calculate revenues, a cash price of BRL per arroba Brazilian measure of live weight equivalent to 15 kg was considered for beef steers and surplus bulls, and BRL for surplus cows, with heifers of between and kg being priced at 1, BRL.

Accessed:October 30, The cash flow was structured considering fixed and variable costs, specified for each system, with receipts being generated solely by the sale of cattle. The separation of the total costs of producing beef in fixed costs which do not vary with the volume produced and variable costs which vary according to productivity permits a better evaluation of each element during the reproductive cycle.

In the present study, a cycle of one year was considered. The NPV was applied to assess whether the cash flow receipts less costs over the year period, discounted at a rate of 6. McGraw-Hill, For the evaluation of the projects, the IRR is compared with the MRA, which is equivalent to the interest on a savings account. If the IRR is higher than the inflation-adjusted real interest received on a savings account 6.

The gross margin GM represents the difference between gross receipts and effective operating costs variable costs minus the remuneration of floating capital. This indicator assesses whether receipts are sufficient to cover variable costs with effective outlay. The greater the positive value of the GM, the greater the short-term economic sustainability of the project, given the productive infrastructure in operation. The net margin NM is obtained from the difference between gross receipts and total operational costs effective operational costs less depreciation , which demonstrates the capacity of the productive unit to obtain gross receipts that exceed the effective short-term outlay and guarantee the replacement of capital infrastructure, machinery, animals, pasture, and other items over the long term, given the need to accumulate reserves to cover depreciation.

Networking allows you to make new connections that can lead to marketplace advantages. It is also a good idea to develop strategic partnerships with other cattle operations and related businesses. Always protect your personal and professional reputation. Another opportunity that is not considered often enough is to leverage your story in your marketing, it differentiates you from competitors and helps develop your personal brand and reputation. Ranching for profit can be a challenge. Marketing skills can separate a profitable ranch from a struggling one.

Business operations and management skills are essential for any cattle producer. Farming is a complex system that involves many components that are interconnected, therefore improving efficiency, and maximizing your resources helps produce the best possible product. Complete evaluations and analyses regularly, so you can ensure you are on the right path with your operation. Through ongoing analysis and evaluations, you will see the strengths and weaknesses of your ranch emerge, and will see opportunities to areas for improvement.

Use these evaluations as a baseline to make informed decisions that can yield greater profits! The best tip I have for anyone raising cattle is to never be shy about telling your personal production story, every opportunity you get! In any business, a strong financial plan is critical to ensure profitability. A financial plan can cover many aspects of your operation, including day-to-day business expenses and revenues, planning for financial challenges, and reinvesting back into the business.

Financial plans for raising beef cattle should include budgets, tax records, insurance, and a business reinvestment strategy. Budgets are living documents and need to be evaluated and adjusted regularly.

Include your utilities, feed, facilities, labor, equipment, operating, marketing, fertilizer, and any other associated costs in your budget. Use income projections to make financial and operation decisions, and ensure that your budget is on track.

Document expenses and revenues and maintain these records for tax purposes. Seek tax incentives and grant programs on the state and federal level that can increase profits and help you invest in upgrades to equipment. Insurance protects your cattle operation from the unexpected situations that may arise in your business. Your insurance should be sufficient to cover the land, facilities, cattle, and people on the operation. Get several quotes and evaluate your coverage regularly to ensure you are well protected in the event of an unforeseen situation.

Business profits can be reinvested to grow and expand your cattle operation. This includes equipment and facility upgrades or updates, increasing your herd size, diversifying the operation, or investing in more land.

Plan for financial investments ahead of time by deciding where money is best spent to further expand profits. A ranch is a highly complicated and interrelated system, where one management decision affects many other areas of the ranch, sometimes with unintended consequences. Contingency planning, like financial planning, is a good business practice!

A contingency plan should consider who will take over if you are unable to manage the operation, financial resources for unforeseen circumstances, and strategies for addressing hardships. Develop a plan for operation management if an unforeseen incident occurs.

Reduced production from high brush densities can be overcome by implementing brush management practices. These practices are usually relatively expensive, and must be accounted for when considering the cost of operation or purchasing land. The land health must also be considered. A quick soil test on introduced pastures will give you an idea of the soil fertility and what type of nutrient inputs will be needed to meet the management goals you have for the property.

Native grass communities could be shifted to less desirable grasses or low production because of past overgrazing. These issues can be corrected with proper management but will need to be thought through when developing a grazing management plan or an analysis of the economic feasibility of purchasing and operating a property. Water location and quality is essential when evaluating land for cattle production. As a general rule of thumb, cattle prefer not to range more than one-half to three-quarters of a mile from a water source.

Therefore, make sure water sources are no farther than 1 mile apart in each pasture. The closer the better, as areas closest to the sources will be more heavily grazed; those furthest away will have little to no grazing activity. Larger and deeper impoundments will typically have better water quality.

The larger the water source, the less susceptible it is to drying up in a drought. Well water is usually better quality and a more dependable source, especially during droughts. However, it is prudent to test all water sources to ensure there are no pollutants that could cause an animal to reduce intake or harm.

Well water can be high in sulfur and salts that can be detrimental to cattle performance. What infrastructure will come with the ranch? Is there is an overhead feed bin on-site that could be negotiated in staying after the sale? They allow for flexibility in feed types as well as when and from where feed can be procured.

Are there quality and large-enough working pens that are strategically placed on the property? Robbins said if you are in a hot climate like Texas or Florida, you may want to avoid furry Highland cows, but sleek, heat-tolerant Brahman cows will thrive. Even within breeds, you can make certain choices to ensure your cows are as comfortable in their new home as possible. The economic forces in your area — for example, the cost of feed — may also impact the breed that you choose.

Knight said to avoid continental breeds and larger frame breeds like Charolais, though they are well-suited farms in the Midwest, where easy geographical access to grain feed leads to lower prices. Some strains of a particular breed also may be slightly better for milk or meat, but generally you can find a cow that matches your goals regardless of which breed you choose. Knight and Robbins agreed that it is best to avoid buying blind or purchasing cows from an auction or sale barn, even though the prices may be lower.

Robbins said that the exception is if the sale is a registered sale, where they will provide important information about the animal, like vaccination history and past pregnancies. Just like dogs and cats need annual vaccines, cows need vaccines.

Depending on your area, they might need a rabies shot. Knight and Robbins both recommended asking the seller of the cow who their veterinarian is, but there are other ways you can find one. Your cooperative extension should also have a list of veterinarians that you could work with.

For cows, the quality of the land — specifically, the foraging material on it — matters just as much as the amount of land.

If your forage quality is low, you may need to provide your cows with more land or two supplement their diet. I wish there was a one size fits all answer to that, but unfortunately, you have to know what you have. Robbins explained legumes like cow peas and crimson clover are good in the summer, and cold season legumes like hairy vetch will supplement pasture-fed cows in the winter. Even if you plan to grass-feed your cows, use a soil test make sure your forage is providing them with all the minerals they need.

The required supplement depends on what you feed them and where you are located. Cows also require some infrastructure — namely, fencing around the pasture to keep them on your property.