Financing Beef Cow Herd Building for Beginning Ranchers

Intensive capital requirements relative to cash flows available inhibit the entry of beginning producers into the cattle industry. Here, we propose and analyze a strategy for beginning ranchers to build a herd. Over a three-year cycle, new producers borrow cash needed to purchase 450- pound heifers in the first year, breed heifers, sell open heifers and bull calves, retain heifer replacements, rebreed the two- year-old cows, and eventually sell bred two-turning-three cows 27 months after the initial heifer purchase. The goal is to retain a group of debt-free heifers. Analyses conducted over 14 cycles of 27 months each across three cattle markets, Oklahoma, Nebraska, and North Dakota, indicate that this herd- building strategy appears to be financially feasible for new producers, in most cycles. Positive net cash flows occurred for producers in Oklahoma for 13 of 14 cycles, 11 of 14 cycles in North Dakota, and 10 of 14 cycles in Nebraska. Positive net returns were realized in at least 12 cycles in each location. Sensitivity analyses were conducted on revenues and costs to evaluate the robustness of the strategy

Economics of alternative insecticide treatments and pollinators in Winter canola

AbstractIn the US central and southern Great Plains, canola (Brassica napus) is a winter annual crop. It is pollinated by insects, particularly native bees and introduced honeybees (Apis mellifera Linnaeus, 1758). Canola is beset by many insect pests. Producers rely on insecticides to kill harmful insects, however, these chemicals can negatively impact pollinators. Our purpose is to provide an economic analysis comparing the positive effects of native bees and introduced honeybees in combination with the pest suppression effects of selective and broad-spectrum insecticides in Oklahoma canola production. We identify the breakeven yield necessary to support the conservation of pollinator habitat in or adjacent to canola fields. Using yields from field experiments, we found that an increase in yield ranging from 28.02 to 162.53 kg/ha from pollination justifies the conservation of pollinator habitat. The number of refuge acres and canola acres dictates the necessary yield increase. Our findings suggest that introducing honeybees for pollination of canola may not be an economically viable choice as pollination services are costly. We include analysis with the base rate of pollination service rate reduced to more closely examine this issue. The breakeven analysis with the reduced rate shows a range of 2.43 to 19.06 hectares of refuge area was needed. This analysis varies with annual crop returns and acres of canola planted. This study provides a deeper understanding of the costs and potential benefits associated with pollinator refuges and canola production and allows producers to make more informed decisions about wild pollinators and reliance on introduced honeybees