Damona Doye
Sarkeys Distinguished Professor and Regents Professor, Oklahoma
State University
Roger Sahs
Extension Assistant, Oklahoma State University
Larry Falconer
Professor,Texas AgriLife Extension Service




Minimum temperature: -31 °F, Nowata, 2/10/11
Number of days with temperature 100 °F or higher:
101 days, Grandfield
Warmest summer(June-August): 86.9
°F, Statewide average



24-hour snowfall: 27 inches, Spavinaw, 11 PM , 2/8/11 to
11 PM 2/9/11
Wind gust: 151 mph, El Reno, 5/24/11
Hail stone diameter: 6.0 inches, 2 miles north of Gotebo,
5/23/11
 Lowest annual total precipitation: 6.2 inches, Hooker






2011producer meetings
◦ Drought management strategies
◦ Decision support tools
Evaluation of drought impact
Extension educator training

Reinvesting in the beef industry
Lender workshops
2012 producer meetings







Numerous meetings around the state….
Feeding/hay strategies
Pasture management
Hay issues: nitrates, prussic acid and aflatoxin
Livestock water quality
Culling strategies
Potential economic outcomes associated with choices, including tax repercussions



IFMAPS (Intensive Financial Management and
Planning Support)
Beefextension.com, Cow/calf, Calculators
◦ Early weaning decision aid
◦ Repurchase decision tool
◦ Sell cows now or later
◦ Cow bid price estimate calculator
◦ Enterprise budget software







Cost per day if I keep the cow
Current sale value of the cow
How long will the difficult environmental conditions last
Cost of replacement in the future
Time value of money
Tax issues

Jan 2012
May 2012
Aug. 2012
Days till repurchase
150
270
370
Cost per Day to Maintain Cow ($)
$2.50
$3.00
$3.50
$395
$716
$985
$470
$851
$1,170
$544
$987
$1,355
Assumes 5% time value of money
Example: Your maintenance cost per day is $3 and you think May 1 is a reasonable repurchase target date. If you think the sell –buyback spread will be less than $851, you should sell and buyback.

Commodity
Crops (grains, hay, soybeans, cotton)
Specialty crops
Horticultural crops
Total crops
Acreage loss of approx. 100%
Reduced calf value
Lost pasture production
Reduced winter stocker/forage
Additional feed costs
Total livestock loss
Estimated total head sold
Loss Estimate
$904,954,000
$ 11,156,000
$ 81,836,000
$997,947,000
Corn, soybeans, grain sorghum, alfalfa, other hay
$135,000,000
$153,200,000
$88,000,000
$291,300,000
$667,600,000
250,000 – 300,000






Eastern and Western OK
Market outlook
Reinvesting in the beef herd
◦ Rebuild slowly using stockers
◦ Rebuild fast buying cow/calf pairs
◦ Rebuild with leased cows
Risk management tools
Farm transition program options






6 sessions around the state addressing:
Market outlook
Reinvesting in the beef industry
Risk management tools
Farm Service Agency guaranteed loan options
Bank examiner perspective





Market outlook
Reinvesting in the beef industry
Tax choices
Pasture recovery management

Net Present Value of the Investment
Cow/calf Purchase
Price
Cow Operating Cost per
Year
$550 $600 $650
$1,750 $688 $332 ($19)
$2,000 $428 $67 ($284)
$2,250 $152 ($199) ($550) www.beefextension.com
under Cow-calf, Calculators, Cow
Bid Price Estimate Calculator





SAEA symposia may lead to Choices article
◦ Choicesmagazine.org
Work on NCFMEC livestock leasing publication
Work on additional software tools
◦ Forage
More producer meetings…
◦ Livestock leasing
◦ Quicken for farm financial records
◦ Farm transitions