Maddox, L. A. Jr.

Texas A&M University

MANAGEMENT CONTROLS 
FOR 
SMALL RANCHES 
I 
UNIT COSTS AND INCOME 
Per Cow and Per 100 Ib. Calf 
COW HERD 
Percent Calf Crop and Weaning Weight 
HERD BULLS 
Production and Quality Information 
INDIVIDUAL COW RECORDS 
Production and Profit Records 
THE RANCH-PRESENT AND FUTURE 
Production and Economic Levels and Ranch Goals 
Texas Agricuttural Extension Service The Texas ABM University System John E. Hutchison, Director College Station, Texas 
[Blank Page in Original Bulletin] 
MANAGEMENT CONTROLS 
FOR 
SMALL RANCHES 
L. A. MADDOX, JR.* 
The Texas cow and calf industry is unique in 
tiiat, in a period of big business, 11/2 million beef 
breeding cows are owned by more than 100,000 
producers in herds of less than 40 breeding cows 
each. These people usually own the land for some 
reason other than economic beef production. Beef 
cattle are raised because of the low labor 
requirement, and cattle offer a good method of 
marketing the forage produced on the land. The 
landowner may be a semi-retired farmer, a regularly 
employed individual who likes to live in the country, 
a person who wishes to pay for a small acreage of 
land as an investment or an individual who wants to 
live in the country after retirement. 
Most of these small ranchers wish to operate 
their cattle business as efficiently as possible. Pro- 
duction, quality and cost control records can be 
assembled to help make decisions more accu- 
rately. Some problems still require a cowman's 
"sixth sense" until better measures of productivity 
and quality control are developed. 
Many small cow-calf operators are looking for 
practical records and summaries that will help them 
'Extensioti beef cattle specialist, The Texas A&M University 
System. 
make decisions affecting the future of their opera- 
tion. Consider the following records and sum- 
maries. Not all of them are necessary for a particular 
ranch operation. Developing additional records and 
summaries may be of particular help to you. 
This system is possible when calves are sold 
individually at an auction market. The date, weight 
and selling price of the calf, when credited to its 
dam, can produce revealing records and  
summaries. 
Ranches Are Different 
Three important ingredients in a ranch opera- 
tion are (1) the ranch land, (2) the cows and bulls in 
the breeding herd and (3) the rancher controlling 
the land and cattle. The ranch, the breeding herd 
and the rancher are each truly unique. 
No other piece of real estate exists with exactly 
the same climatic conditions, soil type, soil condi- 
tions, native forage, undesirable range plants or 
ability to respond to pasture improvement or range 
management. 
The breeding herd has a special uniqueness 
because of the characteristics of the original cow 
herd, how and why cattle were culled, the method of 
selecting replacement heifers and the kind of herd 
bulls the rancher has used. 
The rancher's uniqueness exists because no 
one else has exactly the same education and ex- 
periences to use in making decisions. Each rancher 
has different goals for himself and his family. Each 
reacts differently to such things as the value of 
range and pasture improvement, reasons for selec- 
tion of breeds or crosses of cattle, amount of money 
to be invested in replacing bulls and methods of 
marketing the cattle produced on the ranch. 
Ranch Operation - Present and Future 
When a small rancher embarks on a continuing 
record of production and profit characteristics, the 
first step should document production and profit 
levels and set goals for a 5-year period. Form 
D-916a, Production and Profit Levels and Ranch 
Goals, provides an easy way to record production 
characteristics. This form provides space to record 
the number of (percentage when applicable) cows 
bred, calves born, calves weaned, average wean- 
ing weight and replacement of cows and bulls. To 
document the economic aspects of the operation, 
cost and income characteristics on a per cow and a 
per calf basis should be recorded along with the 
goals for these characteristics. 
Goals should reflect what appears to the cat- 
tleman to be the necessary changes in production 
and profit to establish a cattle operation which satis- 
fies his own preferences. A completed Form D-916a 
should give an accurate record of each year's activ- 
ity. Desirable changes in production or quality 
characteristics should reflect improvement in man- 
agement. Stable production levels in some areas 
indicate the need for management changes. The 
number and percentage of breeding animals that 
are replaced will indicate the possibility of genetic 
changes causing adjustments in production andlor 
quality. 
Genetic changes in most herds are slow, but in 
one-bull operations it is possible to change 50 per- 
cent of the genetic material of the calf production 
when herd bulls are changed. 
Individual Cow Records I 
Small cow and calf operators can determine 
the good and bad characteristics of their operat~on 
by keeping individual cow records. The basic prin- 
ciple of this program is a financial accounting for 
each cow at the time her calf is weaned. The basic 
management practices involved are: identification 
of the cow and her calf, identification of the auction 
sales information with the proper calf and an actual 
or estimated cost per cow. Form D-916b, Individua; 
Cow- Produc tion and Profit Record, p rovi des space 
to record: 
Cow Numbers - Individual identification of 
cows is necessary. Producers should use individual 
numbers placed on the animal with a fire brand. 
freeze brand, ear tag, neck chain or neck band. A 
few small producers with 15 or 20 cows may have 
them all named and be able to operate without cow I 
numbers, but this is not recommended. I 
Calf numbers - Each calf should be identified 
individually and with its mother. Small operatorscan 
do this with few labor costs by using metal or plastic 1 
ear tags during the first 10 days of the calf's l ~ f e  I 
I 
Sire - There is a place on Form D-916b to I 
identify the sire of each calf. The practice of sire 
identification is most important when bulls of differ- 
ent breeds or crosses are used. This information is 
less important for small herds having more than one 
purebred bull. 
Date of birth - To establish calving intervals, 
the date of birth should be recorded. Estimates of 
dates of birth, accurate within a week or 10-days, 
i 
are sufficient for this kind of record system. 
Date of sale - This information is readily availa- 
ble and is important since the accounting for acow 
is from one weaned calf to another. 
Months between sales - This is another way to 
determine cost per cow. It also emphasizes the 
additional costs of long calving intervals. Time 
should be calculated in months or months and a 
half. Further division would not be too meaningful. 
Sale number - Auction sale number is neces- 
sary to identify the weight and selling price of the 
calf with its dam. 
Sale price per cwt.-Sale price can be used as 
an indication of quality if you can observe a 
representative sample of cattle selling thar day. In 
this record, it serves as a method of determining 
total income. I 
Sale weight - This is a way for small operators 
to secure a weaning weight without owning a set of 
scales and going to additional expense in working 
cattle. Sale weight is the second factor in determin- 
ing total income. 
Total sale price - This figure makes this record 
program possible since only small ranchers obtain 
such an accurate figure of each cow's contribution 
to total income. 
Cow cost - COW costs should be as accurate 
and realistic as possible. Usually, these costs will be 
determined on an annual basis. They can be trans- 
formed into a workable per-month cost by'dividing 
the annual cost by 12. This is important to em- 
phasize regularity of calving. Cow costs should rep- 
resent the total cost (monthly cost x months) from 
the time the last calf was weaned. 
Profit - By subtracting cow costs from total sale 
price, the profit figure is available. This figure may 
indicate need for changes in management and can 
be used to compare one cow with another. 
Herd Bulls 
The idea of improving productivity and quality 
within a cov\/ herd by introducing superior genetic 
material through the sire is sound. In one year, the 
bull contributes half of the genetic material of the 
calves produced. The problem to the cattleman has 
been, "What is a good bull and how can one be 
recognized?" Research on procedures to measure 
production and quality characteristics started at 
Miles City, Montana in 1936. The first real'attempt to 
develop testing procedures for use on a national 
basis resulted in the formation of the Performance 
Registry International in 1955. Refinement of testing 
procedures and record programs developed by 
breed associations makes it possible to buy bulls 
with performance and/or production information. 
T;lis helps a cattleman to reliably predict a bull's 
breeding value on many production and quality 
characteristics. 
Information on young bulls, outlined in Form 
D-916c, Production and Quality Informa tion, pro- 
vides for an average 205-day weaning weight and 
an average weaning weight ratio of all bulls pur- 
chased within a given year. A registered breeder 
with a reasonable production testing program 
would also be able to furnish yearling weights and 
ratios if young bulls are purchased at 12 or more 
months of age. A few of the more progressive 
registered breeders will be able to provide feedlot 
and carcass data on half sibs (calves sired by the 
same bull). Performance information on individual 
bulls plus feedlot and carcass data on half brothers 
would be helpful. A 205-day weaning weight and a 
yearling weight should be considered minimum 
essential information. Bulls may be purchased at a 
younger age when 205-day weights and ratios plus 
feedlot and carcass information on half brothers are 
available. This would reduce the extra cost of 
feeding the young bull and the possibility of 
damage to breeding ability because of overfeeding. 
Cow Herd 
A cow that fails to calve every year is unprofita- 
ble. A heavy calf produced one year does not com- 
pensate for failure to calve the preceding year. The 
most important record for the cow and calf man is 
the reproductive performance of the breeding herd. 
The second most important record is weaning 
weight information. These and the other records 
yield herd averages. This information is obtained 
from Form D-916b. 
Average percent calf crop should be calcu- 
lated each year and should be basedon the number 
of cows exposed to bulls divided by the number of 
calves born. Percent calf crop calculated in this 
manner furnishes information that relates directly to 
reproduction and leaves out calf losses, a problem 
which requires different act ions for solutions. Aver- 
age percent calf crop should be plotted on Form 
D-916d, Percent Calf Crop and Weaning Weights. 
Weaning weights of calves should serve as 
indicators related to management practices and 
production efficiency. An ideal weaning weight 
cannot be established for all producers. How close 
the average weaning weight approaches your goal 
is important, provided your goal is economically 
sound. A continuing study of price changes in rela- 
tion to weight changes must be made. 
Data from these records help determine prob- 
lems related to animal health, genetics, nutrition 
and/or management. 
Unit Cost and Income 
To be useful for making ranch management 
decisions, records must be more detailed than usu- 
ally shown in total ranch costs and income. Costs 
and income per cow, along with costs and selling 
price per 100 pounds of calf weaned, give the 
rancher an opportunity for a different kind of study of 
total ranch operation. In studying production effi- 
ciency of a breeding herd, one may want to rule out 
the use of income from culled cows and bulls since 
their relationship is indirect. Some ranchers who 
have cost-per-cow information make errors in 
decisions when comparing the cost of the cow to the 
selling price of the calf. This relationship would be 
accurate only if one had a 100 percent calf crop. 
The section of Form D-91 6e, Cost and lncome 
Per Cow and Per 100 Ibs. Calf, that deals with cost 
and income per cow should show two meaningful 
figures that can be compared on the same form. The 
comparison of these figures should serve as an 
excellent indicator of production efficiency. 
The record section on cost and selling price per 
100 pounds of weaned calf can be used to make 
direct comparisons between cost of production and 
selling price per 100 pounds of weaned calf. The 
best measure of overall efficiency, other than per- 
cent return to total capital investment, is probably 
the difference in these figures. 
If production cost per 100-pound weaned calf 
is disappointing when compared to the selling price 
per 100-pound weaned calf, a study should begin. 
Look for changes in breeding, pasture, market~ng, 
animal health and supplemental feeding programs 
that would increase profit. 
Conclusion 
Production, quality and cost controls are.more 
complicated when working with biological material: 
and processes than they are with non-biologic,i 
ones. Problems with any controls are increased fora 
ranch operation because of dependence upon 
elements of nature that regulate the food supply, the 
environment and the animals' health. Production 
management systems on small ranches can be im- 
proved continually. Systems suggested here offera 
beginning. 
The development of cost records and sum- 
maries will indicate characteristics of a small ranch 
operation and trends of certain measurable traits 
over a period of years. 
Production, quality and cost controls in a mod- 
ern ranch operation require planned observations 
and measurements, designs based on up-to-daie 
principles and concepts of animal science, plant 
science and management. 
Data and remarks shown on each sample form 
are only examples and are not intended to relate to 
each other. 


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A g r i c ~ ~ l t ~ ~ r c ~  r.ool)c.r;lting. Distril)r~tetl in ti~rtht~r;ulce of'the Acts of'collgress of \lay 8, 1914, ;is amencltltl. ; u ~ l  Jllne 30, I9 14. 
10  \I-7- 7.1 


English

Management Controls for Small Ranches.

Texas A&amp;M Repository

MANAGEMENT CONTROLS FOR SMALL RANCHES I UNIT COSTS AND INCOME Per Cow and Per 100 Ib. Calf COW HERD Percent Calf Crop and Weaning Weight HERD BULLS Production and Quality Information INDIVIDUAL COW RECORDS Production and Profit Records THE RANCH-PRESENT AND FUTURE Production and Economic Levels and Ranch Goals Texas Agricuttural Extension Service The Texas ABM University System John E. Hutchison, Director College Station, Texas [Blank Page in Original Bulletin] MANAGEMENT CONTROLS FOR SMALL RANCHES L. A. MADDOX, JR.* The Texas cow and calf industry is unique in tiiat, in a period of big business, 11/2 million beef breeding cows are owned by more than 100,000 producers in herds of less than 40 breeding cows each. These people usually own the land for some reason other than economic beef production. Beef cattle are raised because of the low labor requirement, and cattle offer a good method of marketing the forage produced on the land. The landowner may be a semi-retired farmer, a regularly employed individual who likes to live in the country, a person who wishes to pay for a small acreage of land as an investment or an individual who wants to live in the country after retirement. Most of these small ranchers wish to operate their cattle business as efficiently as possible. Pro- duction, quality and cost control records can be assembled to help make decisions more accu- rately. Some problems still require a cowman's "sixth sense" until better measures of productivity and quality control are developed. Many small cow-calf operators are looking for practical records and summaries that will help them 'Extensioti beef cattle specialist, The Texas A&M University System. make decisions affecting the future of their opera- tion. Consider the following records and sum- maries. Not all of them are necessary for a particular ranch operation. Developing additional records and summaries may be of particular help to you. This system is possible when calves are sold individually at an auction market. The date, weight and selling price of the calf, when credited to its dam, can produce revealing records and  summaries. Ranches Are Different Three important ingredients in a ranch opera- tion are (1) the ranch land, (2) the cows and bulls in the breeding herd and (3) the rancher controlling the land and cattle. The ranch, the breeding herd and the rancher are each truly unique. No other piece of real estate exists with exactly the same climatic conditions, soil type, soil condi- tions, native forage, undesirable range plants or ability to respond to pasture improvement or range management. The breeding herd has a special uniqueness because of the characteristics of the original cow herd, how and why cattle were culled, the method of selecting replacement heifers and the kind of herd bulls the rancher has used. The rancher's uniqueness exists because no one else has exactly the same education and ex- periences to use in making decisions. Each rancher has different goals for himself and his family. Each reacts differently to such things as the value of range and pasture improvement, reasons for selec- tion of breeds or crosses of cattle, amount of money to be invested in replacing bulls and methods of marketing the cattle produced on the ranch. Ranch Operation - Present and Future When a small rancher embarks on a continuing record of production and profit characteristics, the first step should document production and profit levels and set goals for a 5-year period. Form D-916a, Production and Profit Levels and Ranch Goals, provides an easy way to record production characteristics. This form provides space to record the number of (percentage when applicable) cows bred, calves born, calves weaned, average wean- ing weight and replacement of cows and bulls. To document the economic aspects of the operation, cost and income characteristics on a per cow and a per calf basis should be recorded along with the goals for these characteristics. Goals should reflect what appears to the cat- tleman to be the necessary changes in production and profit to establish a cattle operation which satis- fies his own preferences. A completed Form D-916a should give an accurate record of each year's activ- ity. Desirable changes in production or quality characteristics should reflect improvement in man- agement. Stable production levels in some areas indicate the need for management changes. The number and percentage of breeding animals that are replaced will indicate the possibility of genetic changes causing adjustments in production andlor quality. Genetic changes in most herds are slow, but in one-bull operations it is possible to change 50 per- cent of the genetic material of the calf production when herd bulls are changed. Individual Cow Records I Small cow and calf operators can determine the good and bad characteristics of their operat~on by keeping individual cow records. The basic prin- ciple of this program is a financial accounting for each cow at the time her calf is weaned. The basic management practices involved are: identification of the cow and her calf, identification of the auction sales information with the proper calf and an actual or estimated cost per cow. Form D-916b, Individua; Cow- Produc tion and Profit Record, p rovi des space to record: Cow Numbers - Individual identification of cows is necessary. Producers should use individual numbers placed on the animal with a fire brand. freeze brand, ear tag, neck chain or neck band. A few small producers with 15 or 20 cows may have them all named and be able to operate without cow I numbers, but this is not recommended. I Calf numbers - Each calf should be identified individually and with its mother. Small operatorscan do this with few labor costs by using metal or plastic 1 ear tags during the first 10 days of the calf's l ~ f e  I I Sire - There is a place on Form D-916b to I identify the sire of each calf. The practice of sire identification is most important when bulls of differ- ent breeds or crosses are used. This information is less important for small herds having more than one purebred bull. Date of birth - To establish calving intervals, the date of birth should be recorded. Estimates of dates of birth, accurate within a week or 10-days, i are sufficient for this kind of record system. Date of sale - This information is readily availa- ble and is important since the accounting for acow is from one weaned calf to another. Months between sales - This is another way to determine cost per cow. It also emphasizes the additional costs of long calving intervals. Time should be calculated in months or months and a half. Further division would not be too meaningful. Sale number - Auction sale number is neces- sary to identify the weight and selling price of the calf with its dam. Sale price per cwt.-Sale price can be used as an indication of quality if you can observe a representative sample of cattle selling thar day. In this record, it serves as a method of determining total income. I Sale weight - This is a way for small operators to secure a weaning weight without owning a set of scales and going to additional expense in working cattle. Sale weight is the second factor in determin- ing total income. Total sale price - This figure makes this record program possible since only small ranchers obtain such an accurate figure of each cow's contribution to total income. Cow cost - COW costs should be as accurate and realistic as possible. Usually, these costs will be determined on an annual basis. They can be trans- formed into a workable per-month cost by'dividing the annual cost by 12. This is important to em- phasize regularity of calving. Cow costs should rep- resent the total cost (monthly cost x months) from the time the last calf was weaned. Profit - By subtracting cow costs from total sale price, the profit figure is available. This figure may indicate need for changes in management and can be used to compare one cow with another. Herd Bulls The idea of improving productivity and quality within a cov\/ herd by introducing superior genetic material through the sire is sound. In one year, the bull contributes half of the genetic material of the calves produced. The problem to the cattleman has been, "What is a good bull and how can one be recognized?" Research on procedures to measure production and quality characteristics started at Miles City, Montana in 1936. The first real'attempt to develop testing procedures for use on a national basis resulted in the formation of the Performance Registry International in 1955. Refinement of testing procedures and record programs developed by breed associations makes it possible to buy bulls with performance and/or production information. T;lis helps a cattleman to reliably predict a bull's breeding value on many production and quality characteristics. Information on young bulls, outlined in Form D-916c, Production and Quality Informa tion, pro- vides for an average 205-day weaning weight and an average weaning weight ratio of all bulls pur- chased within a given year. A registered breeder with a reasonable production testing program would also be able to furnish yearling weights and ratios if young bulls are purchased at 12 or more months of age. A few of the more progressive registered breeders will be able to provide feedlot and carcass data on half sibs (calves sired by the same bull). Performance information on individual bulls plus feedlot and carcass data on half brothers would be helpful. A 205-day weaning weight and a yearling weight should be considered minimum essential information. Bulls may be purchased at a younger age when 205-day weights and ratios plus feedlot and carcass information on half brothers are available. This would reduce the extra cost of feeding the young bull and the possibility of damage to breeding ability because of overfeeding. Cow Herd A cow that fails to calve every year is unprofita- ble. A heavy calf produced one year does not com- pensate for failure to calve the preceding year. The most important record for the cow and calf man is the reproductive performance of the breeding herd. The second most important record is weaning weight information. These and the other records yield herd averages. This information is obtained from Form D-916b. Average percent calf crop should be calcu- lated each year and should be basedon the number of cows exposed to bulls divided by the number of calves born. Percent calf crop calculated in this manner furnishes information that relates directly to reproduction and leaves out calf losses, a problem which requires different act ions for solutions. Aver- age percent calf crop should be plotted on Form D-916d, Percent Calf Crop and Weaning Weights. Weaning weights of calves should serve as indicators related to management practices and production efficiency. An ideal weaning weight cannot be established for all producers. How close the average weaning weight approaches your goal is important, provided your goal is economically sound. A continuing study of price changes in rela- tion to weight changes must be made. Data from these records help determine prob- lems related to animal health, genetics, nutrition and/or management. Unit Cost and Income To be useful for making ranch management decisions, records must be more detailed than usu- ally shown in total ranch costs and income. Costs and income per cow, along with costs and selling price per 100 pounds of calf weaned, give the rancher an opportunity for a different kind of study of total ranch operation. In studying production effi- ciency of a breeding herd, one may want to rule out the use of income from culled cows and bulls since their relationship is indirect. Some ranchers who have cost-per-cow information make errors in decisions when comparing the cost of the cow to the selling price of the calf. This relationship would be accurate only if one had a 100 percent calf crop. The section of Form D-91 6e, Cost and lncome Per Cow and Per 100 Ibs. Calf, that deals with cost and income per cow should show two meaningful figures that can be compared on the same form. The comparison of these figures should serve as an excellent indicator of production efficiency. The record section on cost and selling price per 100 pounds of weaned calf can be used to make direct comparisons between cost of production and selling price per 100 pounds of weaned calf. The best measure of overall efficiency, other than per- cent return to total capital investment, is probably the difference in these figures. If production cost per 100-pound weaned calf is disappointing when compared to the selling price per 100-pound weaned calf, a study should begin. Look for changes in breeding, pasture, market~ng, animal health and supplemental feeding programs that would increase profit. Conclusion Production, quality and cost controls are.more complicated when working with biological material: and processes than they are with non-biologic,i ones. Problems with any controls are increased fora ranch operation because of dependence upon elements of nature that regulate the food supply, the environment and the animals' health. Production management systems on small ranches can be im- proved continually. Systems suggested here offera beginning. The development of cost records and sum- maries will indicate characteristics of a small ranch operation and trends of certain measurable traits over a period of years. Production, quality and cost controls in a mod- ern ranch operation require planned observations and measurements, designs based on up-to-daie principles and concepts of animal science, plant science and management. Data and remarks shown on each sample form are only examples and are not intended to relate to each other. oll C 0 . - + 0 3 u 9 a I cn 0 cn 'C a LZ 5 a, G Q, . - L [1. 0 . - - - a, b Q, L 5 0000 0 0 0 0 0 0 000 0 0 C??gs 8 8 28 2, 9 982 0 50 * - 0 b a3 b a m* 8 00 CV CV C": 7 7 * z CV 0 €B i PaueaM 4le3 d ~03 lad ~UJO~IJ( PUE js03 'ql 00 1 /a3!Jd ~U!II~S pue Is03 - -- - - - . - - - - - - - --. -.  - -. - - -  - - -  - -- - -  - - - - . - . - Coopwati\ .r Estc-~lsion Iffork i l l  A g r - i c ~ ~ l t ~ ~ r e  an(] lfomc. Economics, The TC-GIS A&\! LTlli\'el.sit!. S\.stelll ;111(1 t11cb ITllite(l St;~fch\ I)( A g r i c ~ ~ l t ~ ~ r c ~  r.ool)c.r;lting. Distril)r~tetl in ti~rtht~r;ulce of'the Acts of'collgress of \lay 8, 1914, ;is amencltltl. ; u ~ l  Jllne 30, I9 14. 10  \I-7- 7.1 

https://oaktrust.library.tamu.edu/bitstream/1969.1/93162/13/Bull1143a.pdf

Management Controls for Small Ranches.

Abstract

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Full text

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Texas A&M University

Texas A&M Repository

Management Controls for Small Ranches.

Abstract

Similar works

Full text

Available Versions

Texas A&M University

Texas A&amp;M Repository

Texas A&M Repository