“Got Risk? Beef Cattle Risk Management”
Steve Amosson, Ted McCollum, and Bridget Guerrero1
Executive Summary
Nearly half the agricultural cash receipts in Texas are generated by beef cattle
production. Texas ranks number one in fed beef production among all states. However,
recent droughts left this industry in a precarious financial position and brought about the
need for improved risk management skills to ensure the future success of this industry.
The primary objective of the Texas – Risk Management Agency (RMA)
partnership agreement was to inform beef producers of the tools and strategies available
to them to enhance their risk management skills. The project, entitled “Got Risk?” was a
coordinated effort with Texas Cooperative Extension (TCE), the Texas Department of
Agriculture (TDA), and the Texas Southwestern Cattle Raisers Association (TSCRA).
Sixteen papers were developed that addressed various risk management issues faced by
Texas beef producers. These papers were presented and distributed at eight one-day risk
management conferences held across the state at which 425 people participated. Paper
abstracts were sent to 19,000+ clientele via The Cattleman magazine.
The conferences had a significant impact on producer risk management plans.
Results of a conference exit survey indicated that ninety-one percent of the beef
producers that didn’t have a risk management plan were going to develop one and
seventy-five percent of producers that had a risk management plan were going to
modify it based on what they heard at the conference. Conference organizers received
almost 700 requests for additional information on the various topics covered. Many
complementary comments were received from participants. For example, one producer
wrote on the evaluation, “I was amazed at the amount of information and presentation
thereof. Keep up the good work. A day very well spent.”
Distribution and presentation of the materials developed also occurred through
other venues. These included presentation of materials to participants of Tomorrow’s Top
Producer program, Master Marketer program, the Advanced Topic Series course on Beef
Marketing and various marketing club meetings.
In addition to the conferences, a number of products were generated for the
project that will continue to provide risk management training benefits to producers. Five
popular press articles were developed on the various risk management topics and
published in The Cattleman magazine. More than 20,000 copies of a risk management
brochure containing abstracts of all the conference papers were distributed to producers
through The Cattleman magazine, TCE and TDA offices. The website where all the beef
risk management materials are located received 4,196 “hits” during the effort and
continues to be accessed. Sixty-one agents participated in the risk management training,
which can only add to the impact as they “spread the word” to more beef producers in
1
Regents Fellow, Professor and Extension Economist-Management, Professor and Extension Beef Cattle
Specialist, Extension Assistant, Texas Cooperative Extension, Texas A&M University.
their counties. In addition, a risk management Curriculum Guide publication on livestock
insurance options was developed for use with marketing clubs.
Introduction
Nearly half the agricultural cash receipts in Texas are the result of beef cattle
production – some $6.8 billion in 2001. Texas ranks first among all states in cow-calf
inventories, more than double the beef cow numbers from the second leading state. In
addition, Texas ranks number one in fed beef production among all states. Droughts in
1996, 1998, 2000, and part of 2003 left this industry in a precarious financial position and
brought about the need for improved risk management skills to ensure the future success
of this industry.
A number of risk management tools are or are becoming available to assist Texas
beef producers in managing risks. In this project, we used a multi-faceted approach to
make beef producers aware of the cadre of products and/or strategies that can assist them
in developing an effective risk management plan for their operation. First, conferences
for producers addressing risk management programs were held in eight locations
strategically located in all major beef production areas of the state.
Second, producers were direct mailed a product brochure that summarized risk
management tools and strategies that they could employ. This product brochure also
encouraged producers to visit the “Got Risk?” website to get more detailed information
on tools and strategies that they were interested in. Third, a Risk Management
Curriculum Guide publication was developed on Livestock Risk Protection for use with
marketing clubs in the state. Fourth, specialists were sent to selected Advanced Topic
Series courses, sessions of Tomorrow’s Top Agricultural Producers program, and
sessions of the Master Marketer program and County Extension Agent trainings to
present and distribute risk management information developed to participants of these
programs. Fifth, a more detailed assessment of risk management products, the
conference proceedings, was made available to producers via the “Got Risk?” website.
The partnership of Texas Cooperative Extension (TCE), Texas Department of
Agriculture (TDA), and Texas & Southwestern Cattle Raiser’s Association (TSCRA)
combined unique characteristics that enhanced the project output and ensured the
successful completion of the effort. Development of the project was accomplished
through communications by several e-mails, telephone calls, and teleconferences with
individuals from the Risk Management Agency, Texas Cooperative Extension, Texas &
Southwest Cattle Raisers Association, and Texas Department of Agriculture.
Project Marketing Plan
The Beef Cattle Risk Management Programs were promoted in numerous ways.
First, a general article announcing the conferences were prepared by TCE media
specialists and distributed to the regional farm journals such as Livestock Weekly and
High Plains Journal. Second, Conferences were promoted through TDA and TSCRA
media outlets, including newsletters. Third, informational brochures were made available
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in all TCE county and TDA area offices. A “Got Risk?” website was developed which
contained the informational brochure, as well as the product brochure and the conference
proceedings after the last conference was held. Finally, as time for the conferences
approached, localized articles were prepared and released to area newspapers in and
around the site that the conferences were to be held. In addition, T.V. and radio
interviews were conducted promoting the conferences. McDonald Marketing
Communications supported all of these activities. The promotional program resulted in
the following:
 25,000 “Got Risk?” Informational brochures were printed and distributed to
potential conference participants through direct mailings, stock shows, meetings,
and displays.
 Over 148 news articles, columns, editorials, and advertisements were printed in
newspapers and magazines across the state of Texas promoting the “Got Risk?”
conferences. These articles appeared in local newspapers and newsletters, and in
publications such as Livestock Weekly, the High Plains Journal, and The
Cattlemen.
 The “Got Risk?” conferences were promoted and announced at numerous
meetings throughout the state of Texas.
 The “Got Risk?” conferences were advertised on at least 14 radio shows across
the state of Texas.
 Six TV interviews were conducted to promote the “Got Risk?” conferences.
 Advertising, as well as a link to the “Got Risk?” website, was placed on the
RMA, TDA, and TSCRA websites. As a result, the “Got Risk?” website received
131 hits in February, 452 in March, 471 in April, and 488 in May from interested
producers.
 The “Got Risk?” Beef Cattle Risk Management conferences were also promoted
through local county websites and the Texas Farm Bureau website.
 A four-page Product Brochure appeared in the June 2004 issue of The Cattleman
magazine that was distributed to 19,000 people.
Instructional Materials Developed
For the cattlemen target audience, there were three basic products: 1) regional
conferences with printed proceedings; 2) educational brochures; and, 3) a Risk
Management Curriculum Guide publication.
Regional, one-day conferences for producers addressing risk management
programs were held in eight sites strategically located in all major beef production areas
of the state and included:
 Amarillo – Monday, April 5, 2004.
 Wichita Falls – Wednesday, April 7, 2004.
 Hallettsville – Tuesday, April 20, 2004.
 Abilene – Wednesday, April 28, 2004.
 Sulphur Springs – Tuesday, May 11, 2004
 Waco – Tuesday, May 18, 2004
 Palestine – Wednesday, May 19, 2004
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
Alpine – Wednesday, May 26, 2004
The agenda for the one-day regional conferences included a general session in the
morning and afternoon with three concurrent breakout sessions offered thereafter. Of the
three concurrent breakout sessions, producers could choose two to attend. In addition to
hearing presentations over the topics included in the conference proceedings, producers
were also informed on the current Cattle Outlook and location of specific risk
management strategies. The risk management curriculum for the regional conferences
was assembled by project leaders and invited speakers. This included personnel from
Texas Cooperative Extension and Texas Department of Agriculture. These experts also
participated as instructors for the conferences.
In addition to hearing the presentations, each producer received a conference
proceedings issue. 1,000 “Got Risk?” Beef Cattle Risk Management Conference
Proceedings were printed and specifically included the following sections:
A. Managing Information for Profitability.
1. Cow-Calf Standardized Performance Analysis (SPA) Informing Decision
Makers.
2. Financial and Risk Management Assistance: A Planning Tool for Cattle
Producers.
3. Tomorrow’s Top Agricultural Producer (TTAP): A Comprehensive Business
Planning Program.
4. Learning to Manage Price Risk: The Master Marketer Educational Program.
B. Programs and Services Available for Cattle Producers.
1. State Government Programs and Services Available for Cattle Producers.
2. Federal Government Programs and Services Available for Cattle Producers.
3. Insurance Products for Cattle Producers: Livestock Risk Protection (LRP).
C. “Thunder on the Horizon”
1. Beef Quality Assurance and Country of Origin Labeling (COOL) / U.S.
Animal Identification Program.
2. Economics of U.S. Animal Identification Program and Foreign Animal
Disease Outbreaks.
D. Managing Risk During Weather Cycles.
1. Range / Pasture Management – Forage Allocation and Fertility, Herd
Management – Culling, Nutrition, and Feeding, and Long-Term Impacts of
Drought on Ranch Economic Viability.
E. Production Risk Management.
1. Forage Management Decisions – Fertility and Brush Control – Herd
Management Decisions.
2. Marketing Cull Cows.
F. Value-added Marketing.
1. Backgrounding and Commingled Marketing Opportunities.
2. Branded Beef and Retained Ownership Opportunities.
3. People Ranching Diversification Opportunities.
4. Farm and Ranch Management Web Resources.
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Results
Attendance at each of the Beef Cattle Risk Management Conferences is shown
below (Table 1). A total of 3,825 contact hours were made during these conferences. An
evaluation form was developed and distributed to the participants at the Amarillo,
Wichita Falls, Hallettsville, Abilene, Sulphur Springs, Waco, Palestine, and Alpine
programs. From this evaluation, we gathered the distribution of professions among
participants (Figure 1).
Table 1. Attendance at the Beef Cattle Risk Management Conferences
Beef
Producers
County
Agents
Other
Participants
Others*
Total
Abilene
19
5
0
13
37
Alpine
10
7
5
10
32
Amarillo
25
13
13
22
73
Hallettsville
44
5
8
9
66
Palestine
23
6
8
12
49
Sulphur Springs
28
8
2
16
54
Waco
37
3
6
16
62
Wichita Falls
19
14
6
13
52
205
61
48
111
425
Total
*TCE, TSCRA, TDA, & Sponsors
Figure 1. Areas of occupation for participants who completed
the evaluation at the Beef Cattle Risk Management Conferences.
6.3%
Beef Producer
0.7%
County Agent
Student
3.7%
Lender
6.3%
Education
0.4%
Agribusiness
7.4%
Government
Other
11.1%
64.1%
Participants made positive remarks about the conferences in the evaluations that
were collected. Some of their remarks included the following:
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
“Good information on materials and programs available to assist producers with
vital production decisions. Speakers were knowledgeable and informative on
respective subjects.”
 “Very good program. It presented problems that could occur in my operation and
some possible solutions.”
 “I liked the website resources provided and “hands on” example of bid price for
beef cows.”
 “I was amazed at the amount of information and presentation thereof. Keep up
the good work. A day very well spent.”
 “Conference proceedings were very helpful. Good information throughout the
entire seminar.”
Also from this evaluation, conference organizers received 696 requests for additional
information on the various topics covered.
Following the conferences, 25,000 product brochures were printed to encourage
interested producers to visit the “Got Risk?” website to view the conference proceedings.
Of these, 19,000 were distributed through the June issue of The Cattlemen magazine and
the remainder were made available through all TCE county and TDA area offices. Also,
approximately 150 producers received a product brochure when attending a Range Tour
in Martin County. The product brochures summarized the risk management strategies
that were explained in detail in the conference proceedings.
In addition, a series of columns that detailed alternative risk management
strategies were developed and published in The Cattlemen magazine on the following
dates and topics:
 March 1, 2004 - “Give Cow-Calf Production a SPA Treatment”
 April 1, 2004 - “Can You Really Afford to Raise Hay?”
 May 1, 2004 - “Pasture Management Practices to Lower Feed Costs”
 June 1, 2004 - “Evaluating Marketing Strategies to Increase Profits”
 July 1, 2004 - “Byproduct Feed Alternatives for Cows or Stockers”
Finally, a Risk Management Curriculum Guide publication on the topic of
Livestock Risk Protection was developed for use with marketing clubs in the state, as
well as several Texas Cooperative Extension programs. This publication was also posted
to the web to allow wider distribution.
Selected risk management strategies and tools identified were presented to
“captive” audiences to increase the direct dissemination of project products. These
programs included; Advanced Topic Series, Tomorrow’s Top Agricultural Producer
program, Master Marketer program, and marketing club meetings and County Extension
Agent trainings. A total of 5,216 contact hours were made during these programs.
A “Got Risk?” website was developed which contained the informational
brochure, the product brochure and the conference proceedings. This website was used
to distribute information as well as gauge the effectiveness of the project by recording the
amount of interest expressed by producers and agribusiness electronically. The amount
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of interest expressed was measured by the number of “hits” received on the conference
related materials posted on the site. The number of hits is shown below for each month
and totaled 4,196 through the end of September (Figure 2).
Figure 2. "Got Risk?" Website Hits
900
800
Number of Hits
700
600
500
400
300
200
100
0
Feb
March
April
May
June
July
August
Sept
Month
Summary and Conclusions
The primary objective of the Texas – RMA partnership agreement was to inform
beef producers of the tools and strategies available to them to enhance their risk
management skills. The project, entitled “Got Risk?” was a coordinated effort with
Texas Cooperative Extension (TCE), the Texas Department of Agriculture (TDA), and
the Texas Southwestern Cattle Raisers Association (TSCRA). Sixteen papers were
developed that addressed various risk management issues faced by Texas beef producers.
These papers were presented and distributed at eight one-day risk management
conferences held across the state at which 425 people participated. Paper abstracts were
sent to 19,000+ clientele via The Cattleman magazine.
The conferences had a significant impact on producer risk management plans.
Results of a conference exit survey indicated that ninety-one percent of the beef
producers that didn’t have a risk management plan were going to develop one and
seventy-five percent of producers that had a risk management plan were going to modify
it based on what they heard at the conference. Conference organizers received almost 700
requests for additional information on the various topics covered.
Distribution and presentation of the materials developed also occurred through
other venues. These included presentation of materials to participants of Tomorrow’s Top
Producer program, Master Marketer program, the Advanced Topic Series course on Beef
Marketing and various marketing club meetings.
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A number of products were generated for the project that will continue to provide
risk management training benefits to producers. Five popular press articles were
developed on the various risk management topics and published in The Cattleman
magazine. More than 20,000 copies of a risk management brochure containing abstracts
of all the conference papers were distributed to producers through The Cattleman
magazine, TCE and TDA offices. The website where all the beef risk management
materials are located received 4,196 “hits” during the effort and continues to be accessed.
Sixty-one agents participated in the risk management training, which can only add to the
impact as they “spread the word” to more beef producers in their counties. In addition, a
risk management Curriculum Guide publication on livestock insurance options was
developed for use with marketing clubs.
Overall the “Got Risk” project was a success on almost every level. The
coordinated effort by the three partners, Texas Cooperative Extension, Texas Department
of Agriculture and Texas Southwestern Cattle Raisers Association resulted in one of the
most extensive promotional campaigns ever conducted. The adoption rate of materials
presented in the conferences by participants far exceeded expectations. The internet
delivery, as well as, the continued use of project products developed in other programs is
going to extend/expand the impact well beyond the ending date of this project.
The one disappointing aspect of the project was conference attendance fell below
expectations. This problem can be directly traced to the timing of the conferences which
was dictated by the time horizon of the partnership agreement. Adjustments to earlier
dates of award notifications even by a few months could have lengthened project
planning process and enhanced the project results.
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