Tag Archives: cattle

Cheapest Ranch to Buy Part 2

The second part of Jim Gerrish‘s excellent article and how to not only make your farm or ranch more profitable, but also improve soil, grazing, water, and wildlife.Building electric fence in rough countryJim Gerrish

In most locations, single-wire electric fence and water facilities are the main costs for improved grazing management.

What is the cheapest ranch you will ever buy? Part II

For a fraction of the cost of purchase, most ranches can make improvements that sometimes double their carrying capacity.

Jim Gerrish 1 | Aug 12, 2019

In Part 1 of this series, I made two fundamental assertions: The first was that time management of grazing period and recovery time is the primary determinant of pasture productivity. The second is that we should be assessing ranch output and profitability on a per-acre basis not on the per-animal basis commonly used in the ranching industry.

I ended that article with the observation that increasing pasture or range production by 40% would be more profitable than trying to increase individual animal productivity by 40%.

My 40% is not a magic number. It is simply the example I am using. I do that partly because of the commonly held idea that producing a 700-pound calf must be more profitable than raising a 500-pound calf. The other reason I am using 40% is because that is also a common level of increase in pasture productivity we see when ranchers implement management-intensive grazing (MiG).

MiG is the term I use to describe an approach to grazing management that is more intensive than the set-stocking or slow rotations common in the ranching industry. Our objective is to shorten the period of time any piece of pasture or rangeland is exposed to grazing animals. If we do this, the potential recovery period is always significantly extended. This is the key component of time management I have been referring to.

When we build subdivision fencing across the landscape of the ranch, we are not only subdividing space, we are also subdividing time.  Each time we make a smaller pasture increment, we reduce the amount of time the stock will be on that increment. That has a tremendous, and for some ranchers, an almost unbelievable change in the vigor and productivity of the pasture. With shortened grazing periods, we can more tightly control every aspect of the soil-plant-animal relationship. That is the component missing from almost all of the grazing management research of the last 100 years.

What is this management of time worth down on the ranch?

As mentioned above, the average increase in carrying capacity we see among our ranching clients adopting MiG and making investments in stock water development and subdivision fencing is about 40%. We have numerous clients who have doubled their carrying capacity. We have a few who have gotten less than 40%. All of this is the product of more effectively managing the period of time cattle are allowed to be in a particular area. On rangeland we usually work toward having that time period no more than 7-10 days. On productive pasture, we keep the length of the grazing period to no more than 3-4 days.

What does it cost to install all that fence, pipelines and tanks?

Every ranch is different, so of course the answer is that it depends! For example, is there already a good well on the property or do we need to drill a well? Is there already a pipeline network on the property that we can spur off of? Are there existing fences that are in reasonable locations that can be used in the new management scheme? These are the components that can make a difference. Here are examples from a couple of recent projects we have designed and which the ranchers implemented.

Jim GerrishA dozer pulling in water line.

Livestock water typically is the most limiting resource for managed grazing, but it is far cheaper than land.

Twice the ranch

On an 8,000-acre ranch in the Nebraska Sand Hills, we started a ranch that had 15-20 existing pastures with low-output windmills that allowed them to only carry 20-60 cows in each pasture. With a 7.5-mile pipeline project, 20 new stock tanks, and more than 20 miles of two-wire electrified high-tensile fencing, the ranch was split into about 60 permanent pastures with a stock-water supply system that allows 600-800 cows to be run in a single herd. The project cost was about $400,000 when we include the rancher’s labor contribution to the construction project. That is a big chunk of money, but on a per-acre basis it is only $50 per acre. In three years’ time, this ranch doubled its carrying capacity and the infrastructure investment was paid off in the third year.

That means they essentially bought another ranch for $50 per acre, while the cost to go out and actually purchase another ranch would have been $1,000 per acre, plus closing costs and added taxes.

Might double

Another recent project on a 30,000-acre ranch racked up an infrastructure development cost of about $1.1 million. That is a per-acre cost of about $36. Projecting a 40% increase in carrying capacity has the project paid off in year four. With a 40% increase in carrying capacity, the equivalent per acre purchase price is $90 per acre. I am confident this ranch will also experience a doubling of carrying capacity in 3-5 years, so the payoff rate should be accelerated. Why do I expect this ranch to double carrying capacity? Because the ranch is presently very under-supplied with stock water and much of the ranch is rarely even being grazed.

Remember the title on the article: “What is the cheapest ranch you will ever buy?”

It is the one you acquire by more effectively managing grazing and recovery time on the ranch you already own.

Read part one of this story here. Gerrish is internationally known grazier, grazing consultant and consultant. Find him at http://www.americangrazinglands.com.

 

Grandpa Falconer

We all have people in our past who have helped us through the tough times and often we don’t recognise the impact they had until we are much older and those wiser ones are long past from our lives – perhaps even have died.  I didn’t know it at the time, but reflecting on the years i had with my grandpa – i realize now – he was my hero.

Sure, he wasn’t talkative or a hugger, but showed by example, a work ethic of getting up early (and making me get up early by pulling my toes to wake up), he would already have some chores done before i dragged my laziness out and ready to go do the chores that were away from the house.  The importance of finishing a job which included putting things away and cleaning up.  But, i LOVED going with him.  He’d let me drive the truck while he threw out small round bales to the cows to feed in the winter, taught me how to drive the old Farmall 460 and clip pastures with a 9 foot sickle bar mower AND how to change out a broken section.  And even when i drove (i think i was about 10) the pickup into a deep wash out along a ditch (he was on foot looking for a calf), he was more concerned whether or not i was hurt rather than upset about any damage to the pickup or that we had to walk a mile to get the aforesaid 460 to pull it out.   Additionally, he taught me how to ride and have a love for horses.  That was my passion for years.

Back from chores, every morning we stopped in at Tolly’s Garage on the western edge of Purdin, MO which had a population of 236 at the time – less now.  He would reach in for a Coca-Cola and I’d select my favorite – Chocolate Soldier.  Then i could just sit and act like i was one of the guys in the office area.  I was part of a small and important community even at age 8.

Today, my grandpa would have been 100, but he died August 9, 2008 and i continue to miss him though he corrected me a lot about how to raise cattle.  I’m still learning and still need correcting, but thankfully, i don’t make the mistakes he chided me about.

How many people get to farm or ranch the very land and legacy that his or her grandparent’s built?  Not many, but i do own and directly manage at least a portion of their legacy and i could not be more honored to carry on a tradition of land and livestock management.  I call this farm Tannachton Farm to reflect our Scottish roots and the commitment to regenerative and sustainable stewardship.

Heritage, Legacy, Tradition, Family  – cling to what is good

Cheers!

tauna

Grandpa Virgil Lee Falconer with Stanley and Stephen
Grandpa with his two sons, Stanley (my dad) and Stephen.  circa 1943

Virgil Lee Falconer tractor grinder

Grandpa Virgil Lee Falconer and tauna
Me on Danny and Grandpa on Gypsy
Jessica and Grandpa Virgil Lee Falconer 001
Grandpa with my three yayhoos, Jessica, Nathan, Dallas
Grandpa Virgil Lee Falconer
Grandpa always drove Chevrolet pickups, so do i!  Thanks to cousin, Heather for this great photo.

 

 

 

Genetics and Selection

There are very few reasons for mobs of livestock to have access to ponds beyond and emergency drinking water access. My reason here is that these heifers needed to be separated from the main cow herd for the 45 day breeding season and the only paddock I have does not have shade or even a high point to catch a breeze such as the pond dam where the heifers in the second photo are standing.

Ideally, allotting short term adequate shaded space is the optimal.  Video below shows comfortable cows and calves.

In many cases, cattle not selected for heat tolerance will immerse themselves in a pond for relief. The flip side is that oftentimes these cattle will tolerate severe cold better than the others. We can spend decades selecting for the genetics which thrive in each of our unique environments and management. Hopefully also providing a quality eating experience for the consumer.

This is a jarring photo and i hesitate to post it, but reality is, we don’t live in a perfect world and sometimes we make do until improvements can be made.  These purebred Angus heifers can’t tolerate much heat and humidity and stand in the pond. Not healthy for the pond or the cattle.
These heifers have up to 50% genetically selected heat tolerant breeds of either Longhorn or Corriente crossed with black or red Angus. Clearly more comfortable in Missouri heat and humidity.

 

The Art of Balance

The best for animal husbandry and land stewardship is often a balanced decision.  These past two years in north-central/northwest Missouri and a bit of southwest Iowa makes grazing management decisions tough to call.  Two years of unusually dry and hot summers each followed by severe cold and long winters has left our pastures and pasture management in tatters.  The following article printed in Midwest Marketer magazine is from Iowa State University Extension beef specialists Erika Lundy and Denise Schwab offers some ideas for consideration.  We live in toxic endophyte fescue country, so it is not a best practice to encourage its growth with the addition of any type of applied nitrogen.  Legumes planted can mitigate the effects by replacing the poisonous grass, but must be managed with proper grazing.

Make Forage Growth A Priority After Hard Winter

 

Forage Growth A Priority - Iowa State University - 2019.jpg

Meal for the Men

Allen is working his calves today and Monday (mine are tomorrow) – it’s time for their second round of vaccinations and some fall calving cows need pregnancy checking.  Weather is perfect except super windy.  My job is to prepare lunch for the guys for whenever they arrive.  It’s ready now (11:30), and i was notified that they’ll be in probably about 1p.  Hopefully, all will go smoothly.

For lunch:

  • Beef short ribs offered with BBQ sauce
  • Homegrown slow simmered green beans with onions and garlic
  • Paraguayan Corn Bread (this is a new recipe for me i’ve made a few times this week – adding this one to my lineup and will post recipe soon)
  • Deviled eggs laid by our silly old hens
  • Blackberry cobbler
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Paraguayan Corn Bread (Sopa Paraguaya)
OLYMPUS DIGITAL CAMERA
It was a challenge to fill a plate with neatly peeled eggs.  Although i set a couple dozen back, it was still not long enough for them to peel easily.  In other words, they are too fresh!
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Home picked blackberries with fresh ground wheat berries for the batter.  Yeah, and sugar, and honey, and butter, and milk, and baking powder, and cinnamon.

 

What a landowner looks for in a lessee

What A Landowner Looks For in A Lessee

Helpful article in the April 2019 Issue (4) of Progressive Cattleman.

Online article.

 

What a landowner looks for in a lessee

Jenny Pluhar for Progressive Cattleman Published on 25 March 2019
Frank Price (left) and Grant Teplicek

“Is this Jenny?”

“Yes. …”

“This is John Q. Public. I heard you have a ranch available for lease, and I run some cattle. …”

That opening line pretty much guaranteed I was not going to consider that offer to lease. Most likely John Q. had a job in town. He may have been the pharmacist, owned the hardware store or been a schoolteacher. But in my neck of the woods (Texas), “running cattle” is the ultimate sexy, cool, cowboy thing to do.

The mere fact so many think it is easy offends me. That fellow on the other end of the phone hoping to lease from me needs to be managing a complex ecosystem and ensuring sustainability into the future. He is running a business where profitability is closely linked to stewardship of the land. He is not just “running cattle.”

This was not my first rodeo. I have changed lessees for these owners twice before over 24 years. We tend to choose carefully and hope to have long-term relationships. I have been threatened: “I will pay more than John Doe; aren’t you supposed to make the most money possible for the owners?” “You’ll never find someone to go along with all your stipulations.” “If I lease your place, I will decide how to operate it.” “Give me the owner’s number; I will tell him I will pay more.”

Nope, yep and nope. By all means, call the owner. He will hang up on you, guaranteed. My goal was to find the right lessee, someone who wanted to manage that complex ecosystem, strive for sustainability, make a profit. The happy ending is: Although I received the above-mentioned phone call probably a hundred times, I had four outstanding candidates to lease the ranch, and another four queued up if the first four opted out.

Serious about stewardship

What to look for in a lessee? How to find the guy or gal who can manage a complex ecosystem and steward the rangeland resource while still making a profitable living for their family? Face it, if we don’t take profitability into account, the goal of stewardship becomes just another buzzword.

Of the calls I received, only one was actually a credible possibility – and only because I had lost touch with the young man. I knew and respected him but was out-of-date on his progression in the ranching industry. The viable candidates were people I contacted, folks I knew from field days, ranch tours, word-of-mouth. I knew them to be serious about stewardship, profitable, eager to learn and progressive-type operators. I had observed them in action, often at Texas Grazing Land Coalition activities, Texas and Southwestern Cattle Raisers School for Successful Cattlemen, local workshops.

My initial concern was that none of them would want to consider this property. It is remote and, frankly, was beat up – continuously grazed, overstocked, infrastructure needing attention, definitely a ranch in rehab. Lucky for me, I had four respectable land stewards who were interested.

After a bad experience with past lessees, the owners and I were determined to make a good selection. We were in no hurry, which was key to a successful process.

I spent a day on the ranch with each potential lessee. We climbed on the side-by-side and attempted to see as much as possible. Thirty-thousand acres is a lot of ground to cover, but I wanted them to see the good, the bad and the ugly. And I wanted to gauge their goals. The owners and I have some specific goals, focusing primarily on improving rangeland conditions.

It is a mighty challenge, and I needed to know if the candidates were up to the task and aware of the degradation of the resources. Those hours on the ATV allowed me to quickly assess their mettle. Did they know the plants? Did they know how much water a cow-calf pair or a stocker needed daily? Were they savvy on stocking rates, animal unit equivalents, grazable acres and harvest efficiency?

Then I turned the tables. I asked to see country each candidate leased – in my book, that’s the “résumé” of a rancher. What does the place you operate look like? So I spent a corresponding day with each of them, riding around, looking closely at how they conducted business.

Following the days on the ranch, I asked each to tell me what they saw. I developed a few questions. What did they see as the shortcomings of the ranch? And how would they overcome those obstacles? What about the advantages? How would we collaborate, communicate? How would they handle the necessary labor?

Why would we care about the labor? The ranch is remote. School is nearly a 50-mile bus ride away with the potential for the ability to transfer to the school district only 20 miles away. Sadly, substance abuse is a real problem among ranch cowboys in the Texas Panhandle. This location is not for everybody. Leasing this ranch and putting someone out there with a young family or a fast crowd of friends is not going to get the job done. “Cowboys” who have limited skill sets and want to drive around or spend aimless time horseback are a dime a dozen. We recognize the need for the labor to be able to manage the resource, not just cake the cattle in the winter and ride a horse all summer.

Up for a challenge

By now you are thinking, “Man, she put these potential lessees through a bunch of hoops just to ‘run some cattle’.” It was exciting to find four candidates who found the opportunity to improve the conditions, something that excited and challenged them. They provided potential solutions to our challenges, grazing and monitoring plans, communication plans and really showed off their eagerness and enthusiasm. Anyone who says there are not young, enthusiastic ranchers wanting a chance to get started or expand in the business hasn’t looked around very hard.

Finally, the owners and I interviewed them together. That face-to-face meeting is important. It also allowed the potential lessees to gauge if they wanted to enter into a challenging ranch rehab and do business with the owners. These things go both ways. Our extensive process allowed for plenty of time for both sides to assess the situation and evaluate the potential.

The best advice for folks looking to lease land is really pretty simple. Think of it as a job interview. What do you bring to the table? How will you work with the landowner? Plan to forge a relationship, stewarding the land for the good of the owner and your own profitability. If you are just looking to “run some cattle,” put that phone down and go look for something else to do.

Ranching is the management of a complex ecosystem, grazing animals all with the goal of economic and environmental sustainability. It’s not rocket science. Literally. It’s way more complicated.  end mark

PHOTO: Frank Price (left) of Sterling City, Texas, explains the improving forage conditions on a lease property to Grant Teplicek of USDA-NRCS. Photo provided by Jenny Pluhar. 

Jenny Pluhar

Feeding Hay to Improve Your Land – Part 5

Part 5 of Jim Gerrish article on Feeding Hay to Improve Your Land.  American Grazinglands Services. 

Find Part 1, Part 2, Part 3, Part 4. and Part 6

Reprinted from On Pasture.

By   /  March 25, 2019  /  2 Comments

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In case you missed them, here are links for previous articles in this series: Part 1, Part 2Part 3, and Part 4.

We have so far only considered the role of buying and feeding hay as a Nitrogen source for your pastures. Hay is also a great source for slow-release Phosphorus to benefit your pastures.

Manufactured P fertilizers have recently been shown to be detrimental to the presence and function of beneficial mycorrhizal fungi in the soil. Using fed hay as a P source rather than concentrated soluble fertilizers feeds the fungi rather than diminishing them.

Factors Limiting Plant Growth

Nitrogen is generally considered to be the first most limiting nutrient for plant growth in terrestrial environments. Phosphorus is very often the 2nd most limiting nutrient. Unlike the N fixation process carried out by legumes in association with Rhizobia bacteria, we cannot create P out of thin air.

P is critical to both plants and animals as all energy transfers within plant and animal are mediated by P containing compounds. Abundant P is necessary to have healthy pastures and livestock.

Almost all P excreted by animals is in the dung. Because most cattle defecations occur when the animal is at rest, dung tends to accumulate where animals congregate – on the feeding line for example, or where cattle bed in hay not consumed. It does not get spread out over the entire pasture area if feeding is limited to small areas of the pasture.

This why spreading the hay out in the feeding process helps the P cycle.

Excess Nutrients Cause Problems

While P is a critical component of life, it also has pollution potential if we are allowing manure to concentrate in areas prone to surface runoff and soil erosion.

Mismanaged hay feeding can lead to excessive runoff of fecal material into surface water leading to aquatic weed growth and algal blooms. The ‘dead zone’ in the Gulf of Mexico and Chesapeake Bay are due to P runoff as well as N runoff.

How Much P Does Hay Feeding Provide?

Using our previous example of bale grazing with over 20 tons of hay/acre fed, the P load would be about 80 lbs/acre. That is not an excessive amount of P, although the N load was quite high.

Since that P is almost all contained in dung pats, it is slowly released back to the soil through microbial decomposition processes. The greater the biological and insect activity in the soil, the quicker the release process.

We only have a possibility of P contamination of surface waters when there is actual water runoff and/or soil erosion taking fecal particles and soil to the riparian areas.

The key to minimizing risk of P pollution from hay feeding is keeping the feeding areas well away from surface water.

Let’s keep them high & dry!