The end of the year is a good time to look at where you’ve been and where you are going next. 2020 is a year that I’m glad to bid good-bye and I have my fingers and toes crossed that 2021 will be better!!! No matter what goes on “out in the world” some things don’t change. We roll through the seasons, watching from the window as the snow flies, the grass grows and the leaves change. This the view from our deck.
Wishing you all the best for 2021! Happy New Year!
I just watched the president of Tyson Foods on the news telling people that there will be no meat on the store shelves which guarantees the shelves will empty even sooner. Of course he was blaming the pandemic for plant closures. The anchor thanked him for working so hard to keep food coming and for giving out 60 million to their employees. Isn’t he a wonderful, generous guy? Well, here are the numbers for the beef side of the equation. Keep in mind that these numbers are averages and estimates based on general numbers. In reality it is a very complicated business, but the general numbers will let you draw some definite conclusions.
On 4/29/20 per USDA reporting the choice cutout value was 357.38/cwt. Cutout value represents the estimated value of a beef carcass based on prices being paid for boxed beef cuts by retailers. The average price paid for live cattle was 97.98/cwt with the average weight of 1,499 and the average dressing percentage of 63.71%. Now let me carry those numbers a little farther.
1499 lbs x .9798 = 1,468.72 paid to the feedlot. The feedlot deducts the feed bill from that amount. Currently that feed bill will run somewhere between 450 and 550 per steer depending on the feed costs, days, etc., so the rancher who owns that steer will receive $968.72. Think about that for a minute. 968.72 for at least 18 months of work and expense. There is no shortage of available slaughter ready cattle. The backlog continues to grow each day as do the cattle (and their feed bill) who are being fed weeks longer than they should be.
Now let’s go to the other side.
1499 lbs x .6371 =955 lbs hanging weight. 955 lbs x 3.5738 = 3,412.98 3,412.98 less the cost of the animal 1,468.72 is 1,944.26. Wow, that is quite the margin. Now that packer is going to say he has expenses, so let’s keep digging.
I went back a year ago to see what things looked like then. The choice beef cutout value per the USDA on 4/30/19 was 231.84. Live cattle on May 1st of 2019 sold for 126.00. That number is not an average. That is what we sold cattle for on that date at a pay weight of 1,372 lbs. That looks a lot better for the rancher. Let’s see if the packer was losing money in 2019.
With those numbers in mind I looked at the Sterling Beef Profit Tracker for the week of March 29, 2019. According to that report packers margins were $140.07 and the cattle owner $149.27. So if the packers could make 140/head while paying 126/cwt and receiving 231.84 what do you actually think they are pocketing now? 126.00/cwt equals a profit for the rancher of $149 so what do you think the loss is at 97.98/cwt?
So remember that guy who is so worried about keeping everyone fed and taking care of his employees. Let’s look at the USDA numbers again. The April 29th, 2020 slaughter is 72,000 head down 49,000 hd from the previous year. I used a margin of $1600 each (using the previous year numbers, I came up with 186 for expenses per animal so I gave them a generous expense increase for this year and came up with a 1,600 margin).
April 29th 2020 – 72,000 hd slaughtered x $1,600 = $115,200,000.00
April 29th 2019 – 121,000 hd slaughtered x $140 = $16,940,000.00
That is the profit made in one day. Doesn’t look like the reduced slaughter capacity is hurting the packers at all does it?
I don’t begrudge anyone making a profit but there is something really, really wrong with this picture.
80% of all meat (chicken, pork and beef) processed in this country goes through the hands of 4 packers – Tyson, Cargill, National Beef and JBS. JBS is a Brazilian company so the money they make won’t even stay in this country.
4 companies – 80%
This is not a new problem. The cattle industry has been trying to get the attention of politicians and consumers for years without any luck. Now we see the results of allowing 4 companies to control our meat industry. The huge profits they are making are built on the losses of the American Rancher and the pocketbook of the American Consumer.
We need everyone to speak up. Call your congressman, sign a petition, email your cousin who works for the brother of your state senator, just do something to get someone to listen!
And if you can, buy locally produced food! You will get a better quality product and the money you spend will stay in your community.
Just a footnote here. As of today, May 7th, Choice cutout reached 458.54/cwt, a 100 dollar increase in a week, with retailers forced to bid increasingly higher prices. Live cattle sold today for 99.79/cwt an increase of 2.00/cwt. You can see these daily reports on the USDA website.
February in Missouri is usually not a nice month. This year was no exception. Rain and cold temps is the worst weather combination for new calves. I would prefer snow and frozen ground instead of mud, endless mud!
When weather conditions are bad (35 degrees and under with precipitation or dry with temps in the teens or single digits) we check through the cows and heifers every four hours round the clock. Typically we check heifers more often because the birth process for a heifer takes longer, meaning a stressed calf, and heifers don’t do a good job licking the calf off. We have thermometers-simple 10 dollar Walmart thermometers – in our pockets and every new calf gets checked unless it is up and nursing. A calf’s temp should be 100 to 102 so anything lower than that comes inside to warm up. We have found out the hard way that waiting to see if the temp will come up does not work!
A cold, busy Valentine’s Day! We had 6 out of 8 calves born that night inside to warm up.
Cold calves are put in one of the plywood boxes in the warm garage with heat lamps on them. We give them replacement colostrum (115 IgG) with a stomach tube when they come in, we usually split it into two feedings a couple hours apart. We also dry them off with towels and a blow dryer. It can take a couple of hours or sometimes half a day for a calf’s temp to get back to 100. It all depends on the calf and what his temp was when he came in. Thermometers only register down to 89 degrees after that it reads L for low. That is not a good sign and we’ve had several of those this year. When the calf’s temp is up, he’s had colostrum, and he’s standing on his own he goes back to his mother.
We have learned how to pick up and return the calf so the cow takes the calf back every time. We let the cow lick the calf for at least 15 or 20 minutes then we slip in as calmly and quietly as possible, check his temp, pick him up if necessary and leave. Cows will stay at the spot where they last saw their calf. Sometimes they wander off, but they always come back to that spot. Taking the cow to the pen is usually a mistake because when the cow gets worked up it is hard to get her to take the calf back. Putting the calf down in the same spot will bring the cow running, especially if Mitch does his very convincing calf bawl.
I can only image what the cow is saying. Something along the line of, “Do you want to go to time out young man? I’m so glad you’re back! Don’t you ever run off with those two legged things again! Stranger danger! You’re grounded for the rest of your life!”
The morning started out like any other morning during calving season. We loaded our gear and headed out on the beat. First stop will be the North Bottom pasture which houses 60 bred heifers. We had noticed a heifer acting like she was going to calve last night so we are expecting at least one new baby.
The victim, a distraught mother.
We find and tag a new calf as soon as we go through the gate, but not the one we were expecting. We find another new one, but not the one we are looking for. Finally there is number 4, but she doesn’t have a calf. She doesn’t act like she is trying to have a calf and she looks “empty”.
The missing baby wearing the wrong ID!
Hmmm, this is a puzzle. Detective work is never easy with cattle since you can’t question the witnesses. We do a routine search of the neighborhood, but don’t find any unidentified bodies dead or alive. The next step would be checking outside the pasture in case the calf had somehow gotten under the fence, but maybe we need to take another look at the heifers.
The perpetrator of this heinous crime, #14. She was found guilty and sentenced to solitary confinement until she has her own calf.
This time through we find #4 staring longingly at the first calf we tagged this morning, #14. We took a closer look at #14. She does not look like she has calved. Could it be that she has taken #4’s baby? We sit back an watch for a few minutes. Every time #4 tries to get close to the calf #14 circles in front of her. Now the clues all make sense. #14 thought she could take #4’s baby and we fell for it. The calf is wearing #14 in his ear!
Time to straighten this mess out. We settle for the ATV team instead of SWAT to force #14 to release the kidnapped baby. As we drive #14 out of the pasture and to the pen #4 rushes in and starts licking her baby. It’s a joyful reunion.
#14 will do her time in the house pen where there are no babies for her to steal until she has her own.
The happy family reunited!
This story is actually not that unusual, particularly with first calf heifers. Remember they are all close to calving so hormone levels are high and that urge to “mother” is a strong instinct. That instinct means survival in all species. These girls will all make good mothers, but sometimes it takes a little help from us.
We headed out the door at daylight to see what had happened overnight. It’s 57 degrees, an extremely balmy February morning in Missouri. Checked on the heifers first. All quiet except for the heifer walking around with her tail up and a bag of waters showing. We’ll give her some time. Time to check on the older cows. Surprise! The first set of twins. Two nice little heifer calves. We worked one and loaded the other one in the ranger. We never leave twins with a cow, even one who takes both of them, for two reasons; cows can’t count so we would have to make sure the calves stay together for a couple of weeks and it’s hard on the cow. She might raise two 400 pound calves, but she would probably be open in the fall so we let her raise one and put the other one on a nurse cow. Then we have two 600 pound calves and she will be bred next fall.
Twin heifer calf waiting to meet her new family.
Drinking breakfast with her new brother and adopted mom (Pumpkin).
We start back through the cows and immediately spot a problem. There is a cow walking around with a calf leg sticking out of her. Two feet with the bottom of the feet pointed toward the ground and the head laying on the front legs would be a correct presentation. The bottom of this foot is pointed toward the sky meaning the calf is trying to come back legs/butt first and there is only one leg showing. This is not good.
Back to the house, put the twin in the warming box, set the gates, and grab the four wheelers. We get the cow pulled out of the pasture and to the barn as quickly and calmly as possible. Mitch gets the other leg up,chains on and hooked to the calf jack. It only takes a few minutes and we have a live calf. Time is critical with a backwards calf. The cord breaks as a calf comes out, but because he’s coming backwards he can’t breathe so you have to get him out quickly.
He had a rough start, but you can see he is getting along great now!
Back to check on the heifer. No progress there. We give her about thirty minutes and check her again. Still no progress. It’s time to see what the problem is. The heifers are in a pasture that is not easy to pull from, but she is very cooperative. In the chute we find that the calf is positioned correctly, but he is bigger than we like for a heifer. It’s a tight fit, but another live calf!
Looking happy and healthy the next day out in the pasture with mom.
Okay, now we can go in and eat breakfast! Welcome to calving season where you never know what might happen.
It’s snowing! When you are a kid the words “snow day” means no school, sled rides, snowball fights, snowmen and snow ice cream. When you are an adult “snow day” means slick roads, melting snow on the floor, wet coats and gloves, frozen car doors, and trying to keep the kids entertained in between forays out into the snow. When you are a rancher or a cow it means cold and wet.
Two different winter views from my deck!
Cattle handle cold really well. They put their heavy coats on in the fall and don’t take them off until spring. They are equipped for the cold, but Missouri weather is known for it’s rapid and extreme changes. Image if you had to wear your heavy coat outside on one of those beautiful 65 degree winter days that we had recently. Those days are harder on cattle than a really cold January day, but snow means wet and being wet means the cows need extra energy to stay warm.
We figure how much hay the cows need by their weight. Since we can’t weigh each cow or each bale of hay we have to use estimates and experience to come up with the right amount. We estimate that the average weight of the cows is 1200. 1200 x 3% = 36 lbs. Again estimating that each bale weighs 1200 lbs Mitch will unroll 9 big bales for this set of 276 cows. On a cold wet day he will add a bale. That amount allows for waste and there will be waste. Nothing they like better than standing on their food. If tomorrow when he goes to feed there is still hay on the ground he’ll cut back a bale.
If you think your grocery bill is high just image watching these girls eat their way through 9 bales at $45 each. Every day!
As I was watching him roll out the hay I saw a cow come out of the woods late and by herself. I decided to back track her trail in the woods to see what had held her up. It looks suspicious.
This is what I found at the end of the trail. An early calf, thanks to the neighbors bull. Everything looks fine. It was a nice surprise on a snowy day and I got to take a walk through the quiet snow covered woods!
So much food! Thanksgiving is all about family and food. We had lots of both! Our three out-of-state kids and their families made it home for the holiday so the house was overflowing. Now the house is quiet and the refrigerator is full of leftovers. That refrigerator made me think about the abundance of food we have in this country so I did some looking at agriculture numbers.
Thanksgiving Dinner Numbers
46 million Thanksgiving turkeys
40 million green bean casseroles
50 million pumpkin pies
250 million pounds of potatoes (all varieties)
142 million pounds of cranberries
Average cost of a 2019 Thanksgiving dinner for 10 people $48.91 – 4.89/person
Food accounts for 12% of a. U.S. household monthly expenses. Compare that to France at 25%, Germany at 22%, U.K. 27%, Turkey 36% and Spain 31%. We truly have a lot to be thankful for!
Plates full of food! Tables covered with pies and cakes. This is my parents house full of family! This is what happens when you have eight children, 25 grandchildren, 7 great-grandchildren then add in spouses. Not much elbow room at the dinner table! 53 people came to dinner and no one left hungry!
Agriculture is a big part of our economy. In 2018 exported ag products added up to 139.6 billion dollars. Cattle, corn and soybeans are the top exports. Farming accounts for 1% of the U.S. GDP. When you add all ag and related industries (timber, food processing/service, textiles, leather and stores selling ag goods) that amounts to 11% of U.S. employment – 21.6 million people.
Family farms produce 87% of all ag products sold in the U.S.
98% of all farms/ranches in the U.S. are owned by families and family partnerships/corporations.
The average American farmer feeds 166 people!
There has been a 34% decrease in soil erosion since 1982.
There has been a 40% decline in the amount of feed it takes to produce 100 pounds of milk in the last 40 years.
Corn yield per acre has increased 360% since 1950.
More than 1/2 of American farmers intentionally provide habitat for wildlife.
56% of all farms have at least 1 female decision maker and the number of Hispanic and African American farmers continues to increase each year.
The number of beginning farmers, less than 10 years experience, has increased to 25%, but their average age is 46 years old. 1/3 of all farmers/ranchers are over the age of 65.
Agriculture has a lot to be proud of, but I also found some disturbing numbers.
In 2018 15 cents of every dollar spent by consumers on food went back to the farmer/rancher. The balance of that dollar went to processing, marketing, transportation and distribution.
In 1980 farmers and ranchers received 31 cents of every dollar.
The small family farm and ranch will disappear if we continue to see those margins decrease. The shift to larger operations simply reflects the economies of scale. You have to get bigger to survive.
Currently less than 2% of the U.S. population is connected to agriculture. Misunderstandings are a common problem between the agriculture community and the 98% non-ag population.
You can find more interesting and thought provoking stats on the USDA and American Farm Bureau Foundation sites.
Take a good look in your refrigerator and pantry and be thankful for the men and women who struggle 365 days a year with the weather, low markets and high inputs. Stand up for the American farmer and rancher when someone criticizes agriculture. These guys work hard to feed you and the world!