“Grazing Education Program
Increases Livestock
Producer Profitability”
Wesley Tucker
Agriculture Business Specialist
Bolivar, MO
Tucker Farms
Tunas, MO
Heather & Jordan
Tucker Farms
MU Extension since 2001
My job is to help you make more
money
The MO Grazing School Program



Started in 1990 by
Jim Gerrish, Ron
Morrow, and Maurice
Davis
3 day long intensive
forage management
education
Original partners:




MU-FSRC
MU Extension
USDA-NRCS
MFGC/GLCI
Linneus Grazing Schools…

2975 people from 40 states & 10
foreign countries have attended Linneus
Grazing Schools

Started regional grazing schools
throughout the state in 1995
Regional Schools…

Developed a CD for use by grazing
school instructors

From 1995 – present over 13200 people
have attended 480 regional grazing
schools



2012 – 28 grazing
schools with 750
participants
2013 – 26 grazing
schools with 558
participants
Grazing schools
using similar
format now taught
in several states
Why am I at a WIA conference
talking about grazing schools?
“Weaning Time –
To Sell or Not to Sell”
Wesley Tucker
Agriculture Business Specialist
Monthly Average Steer Prices,
Oklahoma City, 2003-2012
150
140
400-500 lb
500-600 lb
600-700 lb
700-800 lb
800-900 lb
1200-1400
120
110
100
Dec
Nov
Oct
Sep
Aug
Jul
Jun
May
Apr
Mar
Feb
90
Jan
$/cwt
130
Average Value of 100 Pounds of Gain on Feeder Steers, 2003-12
Starting Weight, lbs
Start
350
450
550
Starting Weight, lbs
Start
350
450
550
Month --dollars/cwt of gain--
Month --dollars/cwt of gain--
Jan
Jul
129.12 118.41
109.33
97.70 84.48 91.80
Feb 114.11 100.66
89.76
Aug 79.47 66.39 73.93
Mar 105.68
79.61
67.44
Sep
Apr
88.14
69.52
64.38
Oct 111.30 79.84 76.90
May
68.28
63.62
66.28
Nov 109.05 80.64 72.84
Jun
81.53
67.95
78.80
Dec 116.67 108.13
96.75
Avg 99.94
80.45
98.23 78.67 77.15
83.16
Average Value of Gain-Steers,
Oklahoma City, 2003-2012
140
120
350#
450#
550#
650#
750#
850#
80
60
40
Dec
Nov
Oct
Sep
Aug
Jul
Jun
May
Apr
Mar
Feb
20
Jan
$/cwt
100
Value of 100# of Gain: 2000-10
Joplin, MO
Value of 100# of Gain: 2000-10
Value of 100# of Gain: 2000-10
Exogenous Variables
External Factors
Risk Management
Forward Contracting
 Futures
 (LRP) Livestock Risk Protection
Insurance

Reasons to Wean
Is the market offering value gain and
can I control price risk?
 Can I add weight cheaper than the
market?
 Can I add value and capture it?

Livestock Risk Management
Conference – Pre 2001

3 days of training – Dr. Ron Plain
 Futures
 Options
 Contracts

Cut 50₵/cwt
What do you think the
average cow-calf producer
makes per cow per year?
•
•
Breakeven
• Good Years – 2013 & 2014
• Bad Years – 2011 & 2012
But what is “average”?
• Are you HOT or COLD?
High vs. Low Profit Cow-Calf Producers
(SPA Data IA: 1995-2000)
Return & Cost Factors
High 1/4 Average Low 1/4
Financial return to
capital, labor & mgmt.
Per cow
$127.69
-$9.90
-$144.84
Total financial cost per
cow
$230.11
$362.87
$461.96
Total financial cost per
cwt. produced
$47.32
$72.23
$108.04
More SPA Data
• IA & IL study to determine what
separated producers
• 1996-1999
• Herd size: 20 to 373 cows
Variables In The Equation
• Cost Variables
• Feed Cost
• Operating Cost
• Depreciation Cost
• Capital Charge
• Hired Labor
• Family Labor
• Production Variables
• Calf Weight
• Calf Price
• Cull Weight
• Cull Price
• Weaning Percentage
• Calving Distribution
• Other Variables
• Herd Size
• Investment
Source: 2001 Beef Research Report – Iowa State University
Grazing Schools
Agronomist
 Livestock Specialist
 Ag Business Specialist
 How does it impact the bottom line?

What Drives Profit?
 “Management”
Control Feed Costs
 Stock for Winter not Spring
 Nutrient Recycling & Management
 Extending the Grazing Season &
Utilization
 Forage Supply Drives Marketing

28%
3%
% Change In Profitability
22%
Contact Information
Wesley Tucker
(417) 326-4916
tuckerw@missouri.edu