Herdquitter Blog

Life is like riding a roller coaster.   It has its ups and downs.   For most of us, life is exciting and thrilling.   It is seldom dull and boring.   Life is what we make it.

In the last two months, however, the roller coaster has been picking up speed.   While this is terrifying to some, it is exhilarating to others.   Life is what we make it.   While some see nothing but problems, others see opportunities.   If you have been watching the news with the proper attitude, you have seen several examples of this in all walks of life.

While many businesses are closing their doors, others are taking advantage of the situation – in a good way.  When this coronavirus event is behind us, they will be in a better position than they were three months ago.   Life is what we make it.   There have always been more opportunities to advance during tough times than during good times.       

Those of us in agriculture are the least affected by this coronavirus outbreak.   Social distancing has always been a way of life for us.   We have no reason to close our businesses.   For the most part, it is business as usual for us.   While a few may be hiding in the corner of their bedroom, the rest of us are making plans for a better future.   Life is what we make it.

When this so-called “pandemic” is over, some producers will continue to be slowly going out of business.   Others, on the other hand, will be better off than they were prior to this so-called “pandemic.”   What’s the difference?   Life is what we make it.   Pharo Cattle Company is here to encourage you and to help you make the best of a bad situation.

People hate change!   Nowhere is this more prevalent than in agriculture.   It seems to take years for people in agriculture to make simple changes – even though they know the change will be for their own good.   I must confess that I too am reluctant to change.   I may not hate change as much as most people, but it still makes me uncomfortable.

I read a neat little Seth Godin book entitled Tribes.   In this book, Seth spends a considerable amount of time discussing the status quo and its fear of change.   He believes change is inevitable.   I don’t think anyone can argue with that.   Change is a normal and necessary part of life and business – and the sooner we embrace it, the better off we will be.   

Seth says, “By the time you realize your corner of the world is ready for change, it’s almost always too late.   It’s definitely not too early.”   Mr. Godin goes on to say, “There may be a small price to pay for being too early, but there will be a huge penalty for being too late.”   This concept was discussed in depth in the leadoff article of our Winter 2020 Newsletter.   The Early Adaptors will always be very successful, while the Laggards will continue to fall by the wayside.   Which are you?

News, around the world, has been focused on the latest coronavirus (COVID-19) outbreak.   Therefore, we thought we should share some of our thoughts from a little different perspective.   Although serious in nature, I think we can agree the mainstream media has blown this thing way out of proportion.   Unfortunately, the reason for some of this seems to be political in nature.        

I must admit, though, that I had some concerns about my recent trip to Australia via LAX in Los Angeles.   I did not wear a mask – but I did follow standard protocol to avoid contracting an infectious disease.   Along with taking vitamins C and D, I was careful about what I touched and I washed my hands frequently.   They say the incubation period for COVID-19 is five to 12 days.   One week from today will mark the twelfth day since my return to the US.   Stay tuned.

The end is in sight.   It looks as though new cases of COVID-19 have peaked in China and are now decreasing – following the classic bell curve.   Recoveries continue to increase.   The same thing will eventually take place in other parts of the world.   COVID-19, like all flu bugs, likes cold weather.   Therefore, as the weather warms up in the northern hemisphere, we should see fewer and fewer new cases.

I have been a little surprised at the effect COVID-19 has had on worldwide markets.   This, I think, is partially the result of the news being sensationalized and politicized by the mainstream media.   Understandably, it is also the result of a decrease in travel and other activities.   The fact that most of the world relies on parts and/or products that are “Made in China” is another reason the markets are hurting.   There is a lesson to be learned here.   We should never allow our wellbeing to be dependent on things (or countries) that are totally out of our control.  

As you have probably noticed… cattle prices have been indirectly affected by COVID-19.   Right or wrong, they seem to be responding to the uncertainty of the stock markets.   Had it not been for the coronavirus outbreak, I’m pretty sure we would be seeing higher and higher cattle prices.   Once the dust settles, this setback in cattle prices will soon pass.   Beef exports for 2020 are expected to be at record-high levels.   Beef supply has peaked and will soon be decreasing – while domestic demand for beef remains strong.   A decrease in supply combined with an increase in demand will always create higher prices.    

If you are a cow-calf producer, there is a valuable take-home lesson hidden in this discussion on the latest coronavirus outbreak.   That lesson is that cattle prices can be negatively affected by many outside factors and events that we have absolutely no control over.   Some of these effects are temporary, while others can last a long time.   The only producers who can weather these storms are those who have very low production costs, as well as very low breakeven prices.  

 Because most PCC customers have been focused on increasing production per acre (profit) instead of on increasing production per cow (bragging rights), they have a breakeven price on the calves they produce that is less than half that of their neighbors.   No matter how low calf prices go, they will continue to be profitable.   I urge you to take this lesson to heart and start building a program that does not depend on high calf prices to be profitable.

There are a few bull marketers who are trying to mimic what Pharo Cattle Company says and does.   We have no problem with that – but we encourage buyers to beware.   I’m sure these bull marketers do some things right – but no one even comes close to doing all the things Pharo Cattle Company does right.

 We have been selling bulls for 30 years… and counting.   We have helped thousands of cow-calf producers put more fun and profit into their business.   That has always been the driving force behind our business and lives.   We encourage you to use the following Check List when you want to compare other bull programs to ours.

 Does Your Seedstock Producer…

•  Treat his cows tougher than you treat your cows?
• Refuse to make an excuse for a cow or give her a second chance?
• Develop bulls slowly and naturally on forages – with nothing but starch-free supplements?
• Evaluate and score bulls for disposition?
• Evaluate and score bulls for hair coat and fly resistance?
• Evaluate and score bulls for feet and leg conformation?
• Evaluate and score bulls for preputial prolapse problems?
• Evaluate and score bulls for fleshing ability, thickness, muscling, masculinity and overall rating?
• Evaluate and score bulls for grass efficiency, maintenance requirements and longevity?
• Provide an udder score for the bulls he sells?
• Provide a One-Year Guarantee on the bulls he sells?
• Guarantee bulls for calving ease?
• Guarantee bulls to be free from genetic defects?
• Provide ultrasound data on the bulls he sells for carcass traits?
• Obtain a DNA profile on every bull he sells to increase the accuracy of the information he uses and shares?
• Control internal and external parasites with genetics – instead of toxic chemicals?
• Invite customers and non-customers to participate in bull evaluation days?
• Provide a Quick Sort program that takes all the guesswork out of sorting bulls that meet your specific needs?
• Bring in world-renown experts in profitable, sustainable and regenerative agriculture for five pre-sale meetings every year?
• Use an honest, low-pressure Cowboy Auction to sell bulls?
• Deliver bulls to over 60 delivery points across the nation?
• Provide a one-of-a-kind online discussion group with many world-renowned experts for their customers?

 Everything we do we do with the good of our customers in mind.   Most bull marketers would never even consider doing most of the 22 things listed above.   We continue to be different for all the right reasons!

I recently received a call from a consultant who claimed to be working with several cow-calf producers in the southeast.  This consultant was interested in helping his clients become profitable and wanted to know if Pharo Cattle Company could help.

 I was surprised when this so-called “consultant” spent so much time explaining the importance of “topping the market” at local sale barns.  He also placed emphasis on cattle with larger frames and higher growth.   I began to wonder if he was consulting for feedyards or for cow-calf producers.  It seemed as though he thought the price received at the local sale barn would determine the profitability of his clients.

 Throughout the conversation… I couldn’t help but think of the graph shown below.  For the past 30+ years, cow-calf producers have been chasing bragging rights and top-dollar bids at the local sale barns.  That focus has resulted in producers topping the market – and losing money.

In last week’s PCC Update, Tim Goodnight said, “Without discounting the importance of body condition at calving, I think it is important to understand that the plane of gain an animal is experiencing is equally – if not more important.   Research shows that thin cows coming out of winter experiencing a positive plane of gain into the calving season will have a higher conception rate than fat cows that are experiencing a negative plane of gain because they were fed and pampered through the winter.”

Tim chose to write about this because he wanted to refute what a couple of PCC customers had said about body condition in a recent PCC Discussion thread.   I’m glad he did.   I would like to add a few more thoughts to this discussion.   It has been many years since I wrote or said anything about what I refer to as the “diet factor.”   Some of you will have no trouble relating to what I am saying.

What happens to most people when they go on a diet and successfully lose weight?   They gain the weight back.   In 2007, I went through a 10-day cleanse and fast, followed by a low-carb diet.   It didn’t take long to lose 20 pounds.   I felt good – and looked better than I had for 20 years.   I had to buy Wranglers with a smaller waist size.   Even though I maintained a low-carb diet, I put the weight back on.

Back in the Cave Man days, it was important for us to maintain good body condition – the more the better.   Our survival depended on it.   Thin, hard-keeping people didn’t last long.   Consequently, our body recognizes a loss in body condition – and will do its best to restore it.   As a result, we become extremely feed efficient.   We make the most of every calorie we ingest.   Fat that took years to store up in the first place can be restored in a fraction of the time once it has been lost.   That’s the diet factor.

The same is true for cows.   Cows that live off the fat on their back during the winter months will quickly regain the lost condition once they have ample forage resources.   I have heard of cows gaining well over four pounds per day on nothing but spring grass.   When that is happening prior to calving, conception rates will be very high.   In contrast, cows that are being fed and pampered during the winter months may lose body condition when turned out on grass.   Their conception rates will suffer.

You cannot take advantage of the diet factor, however, if you are not calving in sync with nature and/or with your forage resources.   Nor can you take advantage of the diet factor if you have high-maintenance cows that were bred and selected to increase production per cow (bragging rights).   Unfortunately, nearly all of today’s cow-calf producers have the wrong kind of cows because they continue to be focused on the wrong thing.   Until they start focusing on increasing production per acre (profit), they will continue to have the wrong kind of cows.

I have come to the conclusion that most of today’s cow-calf producers pay too much attention to faulty science – and not enough attention to nature.   In spite of what you have been led to believe, nature’s way is still the best way.   In nature, the wild ruminants store up energy in the form of fat during the growing season – and rely on that fat to get them through the winter.   Prior to giving birth to their young, they are rapidly replacing the body fat they lost.   Nature’s way is not only the best way.   It is also the most profitable and most enjoyable way.

The first step most cow-calf producers need to take to double their profits will not cost them a dime and it will not require any physical labor.   It will require nothing more than a change in thinking.   Producers must STOP focusing on pounds and profit per animal – and START focusing on pounds and profit per acre.

Contrary to popular opinion, trying to increase pounds per animal (bragging rights) will always have a negative effect on net profits.   We must focus on increasing pounds per acre – instead of pounds per animal.   Because the status quo beef industry has been so focused on the wrong thing for so long, this change in thinking is much easier said than done.   Several PCC customers are still struggling with it.

 You will never be all you can be as a cow-calf producer until you can make this change in thinking.   Not surprisingly, those who have made this change in thinking wonder why it took so long.   That is the way it is when making a paradigm shift.   Everything else will start falling into place once you have successfully completed the First Step of the Ten Steps to Double Your Profits.

 How can you identify the most efficient and most profitable cows in a cowherd?   The answer is so simple most people miss it.   The most efficient and profitable cows in an unpampered cowherd will always be the oldest cows.   These are cows that have done everything right without missing for at least twelve years.  

 NOTE: When I say “unpampered ranch,” I am referring to a ranch that requires their cows to graze year-round with little or no hay or other supplements.   They must also require their cows to wean a calf every year – no excuses and no second chances.

Unpampered, teenage cows have addressed all of the issues relative to fertility, maintenance requirements, size, production, structural soundness, mothering ability and disposition.   These are time-proven cows that can seldom be improved upon.   My long-time friend Jim Sanders, with Texas A&M, once said, “One way to define longevity is simply a lack of problems.”   I couldn’t agree more!

 In my opinion… cow longevity is the most important maternal trait.   Therefore, it should be measured and selected for.   Many years ago, Pharo Cattle Company created a formula based on all of the cows in a bull’s 4-generation pedigree to calculate a longevity score for the bulls we sell.   Scores range from 1 to 5 stars, with 5 being the very best.    Since this score is affected most by the age of the bull’s dam, we admit there are potential problems with our formula.

For example. it’s fairly common for bulls out of young cows to have a below average score for longevity, because we do not know if his dam will still be around ten years from now, or not.   However, there are many instances where a bull out of a young cow has an above average score for longevity.   This happens because the rest of his pedigree is loaded with old cows.   I like to select for bulls with a high score for longevity – but I will show some leniency toward bulls out of young cows.

 Another way to sort for cow longevity is to use our unique Quick Sort program – and sort for a cow age of three or four.   Our low-input program can be very hard on young cows.   We treat our first-calf heifers just like the older cows.   We do not provide any special care for our young cows.   If a cow has successfully weaned two or three calves in consecutive years, she will most likely still be around as a teenager.  

We just finished evaluating bulls in Texas, Missouri and Colorado in preparation for our spring bull sales.   We had many visitors attend all of our bull workdays.   This was the first time for some.   Others have attended our bull workdays every year for several years.   Everyone was very impressed with the overall quality of our Solar Bulls.   I guarantee you won’t find bulls like this anywhere else.

 Over the years, there has been very little change to the top end of our bulls.   That’s the way it should be.   Unlike other seedstock programs, we do NOT chase after more and more and more of anything.   We know what optimum is – and that is what we strive for.   Although there is little difference between the top-sort bulls of today and the top-sort bulls of five years ago, there are five times more top-sort bulls today than there were five years ago.

 There has, however, been a very dramatic change to the bottom end of our bulls.   That is how it should be.   Through focused and diligent breeding and culling, the bottom end continues to get better and better – thus moving closer and closer to optimum at the top end.   Some of the 3-star rated bulls in this sale would have been 4-star rated bulls just five years ago.   The 3-star rated bulls five years ago would not be good enough to make it into our 2019 bull sales.

 We have reached the point that there really is no bottom end to our bulls.   Even with a limited budget, you should be able to purchase some very good PCC Solar Bulls – the type that will increase pounds and profit per acre – even with lower calf prices.   Our PCC Solar Bulls will breed more cows for more years than bulls coming out of other programs.   No matter what your budget is, you can expect to get MORE than your money’s worth when purchasing a PCC Solar Bull – and they come with a One-Year Guarantee!

 If you would like to receive a catalog for our three Spring Bull Sales, call us at 800-311-0995 or send your request to Tammy@PharoCattle.com.   Our 8^th Annual Missouri Bull Sale is scheduled for April 2^nd in Springfield, Missouri.   Our 4^th Annual Texas Bull Sale is scheduled for April 6^th in the town of West, Texas.   Our 30^th Annual Colorado Bull Sale is scheduled for April 20^th in Burlington, Colorado.   All three sales will be covered in the same catalog.

 Following last week’s PCC Update, we received several questions about late weaning and why we choose to leave calves on their mothers over the winter. 

 For starters, it’s natural.   In nature, there is no herdsman to wean the offspring.   In fact, when a doe gives birth to a fawn, there is often a yearling not far away.   Along with mimicking nature, running one herd requires less time, labor and money.   Late weaning will allow the calves to learn what to eat, what not to eat, where to find water and how to survive harsh winters.   Late weaning will also allow the calf’s rumen to fully develop.   This increased rumen development will result in increased feed efficiency leading to better body condition and improved fertility. 

 Dr. Anibal Pordomingo, from Argentina, has research showing that the average cow digests only 50% of what she ingests.   He suggests that leaving calves on their dams until 10 months of age can results in a 15 to 20% increase in rumen efficiency.   This increase in rumen efficiency would allow a cow to digest 65-70% of what she eats. 

 Several producers are having great success wintering calves on the cow and weaning at 10 months of age.   Below is a list of the reported benefits observed:

• 16% less fed feed in winter
• 5-10% increase in average body weight following winter
• 5-10% increase in fertility/conception rate
• Grassfed cattle finished in 22 months vs 27 months

 In addition to the results listed above, I believe producers will see improvements in herd health.  The immune system is developed and maintained in the gut.   If the increased efficiency in the rumen leads to greater mineral uptake, then it is reasonable to believe herd health will improve.

 I am fully aware status quo producers will scoff at the idea of wintering calves on the cow.   Most will say it can’t be done.   With mainstream genetics, they are 100% correct!   Tall, lean, high-maintenance cows, will quickly fall apart without expensive supplementation.   It is amazing what can be done with the right genetics!

 When purchasing bulls, the most important factor to consider is the program behind the bulls.   Bulls that were produced in a program that aligns with your long-term goals are worth a whole lot more than bulls coming out of a program that does not align with your long-term goals.   This is so obvious it should go without saying.

 However, I have visited with hundreds of cow-calf producers who say they want to produce efficient, 1100 to 1200-pound cows that can wean 50% of their own weight for many years without being pampered – only to find out they have been buying bulls that were produced by 1400 to 2000-pound cows that must be pampered to stay in production.

 It’s unfortunate, but most bull programs do not align with any commercial cow-calf operations.   Most bull programs are high-input operations with big, inefficient cows that require extra feed and extra care.   These programs continue to be focused on increasing pounds per animal (bragging rights) – instead of on increasing pounds per acre (profit).

 You need to decide where you want to take your program – and then you need to purchase bulls that will take you there.   It is not complicated!   Be careful, though, that you do not allow your judgement to be swayed by the wrong things.   Pretty is as pretty does – and the proof is in the pudding!

 The following is a portion of a letter to the editor I found in a popular beef magazine a couple of years ago.   It is in reference to getting young cows bred back with their second and third calves.   I think it speaks volumes about what has been going on with most cow-calf producers.

 “Even though I feed the best alfalfa hay and supplement with molasses tubs, I can’t keep enough condition on them to breed back.  The heifers with the biggest calves as two-year-olds will almost always be among those that are open the next year.   Any ideas?   I’ve been doing this since I was 16, and I‘m 78 now.”   ~ Frustrated in Idaho

 Einstein once said the definition of insanity is doing the same thing over and over again – expecting different results.   Most cow-calf producers are very good at treating the symptoms while totally ignoring the problem.   The symptom in this case is young cows that are too thin to breed back with their second and third calves.

 The problem in this case is 40+ years of selecting for more and more frame, growth and milk, which is exactly what most producers have been doing – and continue to do.   In their attempt to increase production per cow (bragging rights), they are producing cows with maintenance requirements that are too high to fit any environment – outside of a feedlot.

 This rancher has been treating the symptom of his problem by feeding more and more expensive hay and supplements.   Treating the symptoms will NEVER solve any problem.   It will just keep you busy, frustrated and broke.   Since this rancher has been in the cow-calf business for 62 years, I’m sure he can remember a time when he could get his young cows to breed back without feeding any expensive hay or supplements.

The solution in this case is simple!   This rancher needs to produce cows that fit his environment – instead of artificially changing the environment to fit his cows.   To do this, he needs to purchase bulls with extremely low maintenance requirements.   Pharo Cattle Company has spent the last 30+ years producing ultra-low-maintenance cattle that can increase pounds and profit per acre in every environment they have been placed in.

When we finished working bulls on Monday, I took a couple of customers from New Brunswick on a ranch tour (they traveled 2,200 miles to participate in our Bull Workdays).   While in the pasture, I took the picture above to accompany this article.   This is a coming-three-year-old with her first calf.   This calf was born in May of 2019 when the cow was two years old.    The calf will not be weaned until March of 2020 when it is 10 months old.   We deliberately push our young cows to the limit – and expect them to breed back in a 45-day breeding season.   Most of them do!

Cows must fit their environment to stay in production.   Common sense tells us it is much easier, as well as much more profitable, to change the cow to fit the environment than it is to artificially change the environment to fit the cow.

 Your environment can only support so much size, growth and milk.   Once you go beyond that point, you will have to reduce stocking rates and/or use expensive inputs to artificially change the environment.   That may have worked when calf prices were ridiculously high a few years ago – but it won’t work now.

 It doesn’t take a genius to see that nearly all purebred operations have spent the last 50 years focused on maximizing production per cow (bragging rights) – instead of production per acre (profit).   As a result, they have big (5 to 7-frame), high-milking cows that no longer fit any real-world ranch environment.   The trouble with big, high-milking cows is they require a tremendous amount of feed just to meet their maintenance requirements.   Maintenance requirements must be met before any weight gain or reproduction can take place.

 Ironically, the beef industry reached the point where there has been no significant increase in weaning weight many years ago.   The cows keep getting bigger and bigger, but weaning weights have leveled off.   The only way to make those big, high-maintenance cows produce bigger calves is to pour the feed to them.   That is a surefire recipe for failure!   As you attempt to increase production per cow, your production and profit per acre will decrease.   Is that what you want?

 Pharo Cattle Company has spent the last 30+ years producing low-maintenance cattle that can increase pounds and profit per acre in every environment they have been placed.   We have cooperative herds from Minnesota to hot, humid fescue country in Missouri and Mississippi and all the way to the high-plains desert.   We also have cooperative herds from the southern plains of Texas all the way to the northern plains of Montana and North Dakota.   We have sold bulls into 44 of the 50 states – including Hawaii.   We have also sold bulls to customers in Canada, Mexico and Australia.

A cow ought to be supporting the ranch – instead of being supported by the ranch!   Who is working for who?   The only cows that can effectively support the ranch are moderate-sized, low-maintenance cows that fit their environment.   The only way to produce cows that fit their environment is to use bulls that were produced by moderate-sized, low-maintenance cows that fit their environment.   Like begets like!   As long as you continue to use bulls that were produced by high-maintenance, 5 to 7-frame cows that must be pampered to stay in production, you will NEVER produce cows that fit your environment.

If you are a cow-calf producer, I encourage you to be honest with yourself when you answer the following two questions.   Were you profitable in 2019?   If you were profitable, would you be able to prosper with that level of profitability year after year after year?   According to what I have read and heard, very few cow-calf producers showed much profit in 2019.   Most did good just to break even.   Many did not break even.

Contrary to popular opinion, there are many cow-calf producers who were very profitable in 2019.   While most of their neighbors were whining, complaining and blaming, these producers continued to make the necessary changes in their operation to keep up with the future.   They know nothing stays the same.   The present is different from the past and the future will be different from the present.

As we said in last week’s PCC Update, much has changed in the last 50 years – and yet nearly all of today’s cow-calf producers operate as though nothing has changed.   Fifty years ago, you could purchase a new pickup for less than $5000.   You could purchase gasoline for $0.35 per gallon.   Land could be purchased or leased for one-tenth what it costs today.   In the last 50 years, the cost of inputs has risen at least four times faster than cattle prices.

If you are a cow-calf producer, your survival will be dependent upon your ability to adapt and change.   The sooner you change, the better.   The most profitable and successful cow-calf producers started to make the necessary changes 10 to 20 years ago.   As time goes on, more and more producers are making these changes.   There have always been huge benefits to being early to make necessary changes.   There will always be consequences for being late.

Be honest with yourself…   Do you need to make some changes in your operation?   If you were not satisfied with the profits you made last year, you need to start making some changes.   The recurring theme in our Winter 2020 Newsletter is the need to change with the times.   The leadoff article demonstrates how change is accepted and adopted by different groups of people.   Which one are you?   Be honest with yourself.