Month: November 2022

Applying the Concept of Relative Age Effect to Our Calf Crop

– Pedro L. P. Fontes, Ph.D. Assistant Professor and Extension Specialist

Simple concept: the earlier they’re born the more pay weight there will be.

The Relative Age Effect is a term commonly used to describe how child athletes born early in the academic year tend to perform at a higher level than those born later. For example, softball athletes born between May and August are 40% more likely to play college softball compared with players born between September and December. Similarly, hockey players born between May and August are 56% more likely to play in college compared with athletes born between September and December. This disadvantage can likely be explained by the fact that those who are older are typically more physically, emotionally, or cognitively developed than those that are younger.

Interestingly, similar differences are observed when we evaluate performance records of our calf crops. Steer calves that are born in the beginning of the calving season have more time to gain weight between calving and weaning compared with steers born later in the calving season. Consequently, these steers are heavier at weaning compared with their counterparts. Research from the University of Nebraska indicates that steers born in the first 21 days of the calving season were 32 pounds heavier than those born in the . . .

Continue reading Applying the Concept of Relative Age Effect to Our Calf Crop

Consider Pasture, Rangeland, and Forage Insurance as a Risk Management Tool

– Dr. Kenny Burdine, Extension Professor, Livestock Marketing, University of Kentucky

The most recent drought monitor, released on October 27th, shows the majority of the United States dealing with drought or abnormally dry conditions. While I hope some of those regions received some much needed rain recently, I do think this presents an opportunity to discuss Pasture, Rangeland, and Forage (PRF) Insurance. PRF insurance provides an opportunity for producers to purchase rainfall coverage for perennial forages used for pasture and / or hay production. James provided an introduction to PRF insurance in the April 11 and May 2 newsletters. Since James went through PRF insurance in detail back in the spring, I am just going to focus on three reminders for producers as they consider PRF insurance for the upcoming year.

PRF is a Single-Peril Index Insurance Product
Producers first need to understand that indemnities from PRF are not based on rainfall at their farm, but rather on actual and historical rainfall for a 0.25 degree latitude by 0.25 degree longitude grid, where their farm is located. Daily rainfall for each grid is collected through NOAA weather stations and Continue reading Consider Pasture, Rangeland, and Forage Insurance as a Risk Management Tool →

Value of Gain on Winter Backgrounded Cattle

– Elliott Dennis, Assistant Professor & Extension Livestock Economist, Department of Agricultural Economics, University of Nebraska – Lincoln

Cumulative national feeder and stocker cattle receipts are slightly lagging both 2021 and the 5-year average (2017-2021) at 12,098,700 head through Oct 21. In 2022, more of the receipts are coming from cattle weighing less than 600 lbs. and heifers – both signals that the drought in various parts of the United States is affecting feeder and stocker cattle being sold.

Cow-calf producers who still have calves are in the process of deciding whether to sell or retain weaned calves. This decision must consider both the cost to put on the additional weight (total amount, quality, cost of feed resources, etc.) and the expected price received when cattle are sold at higher weights (at current and future basis-adjusted prices). The difference between these two is profit but only on the additional weight gained. Positive values indicate that profits could be made by retaining feeder cattle this fall.

Survey work from the University of Nebraska – Lincoln shows that producers can use a combination of price risk management and different lengths in their production system as a hedge against adverse price movements. Putting on weight during the winter and selling in March-April or selling in the Continue reading Value of Gain on Winter Backgrounded Cattle →