Herdquitter Blog

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.

 No matter where I go, I hear people say, “You can’t do that here,” in reference to many of the management concepts we share in our presentations, our newsletters and our PCC Updates.   In most cases, there are people within 100 miles of them doing exactly what they say cannot be done.   Most of the “can’t do that here” people are slowly but surely going broke as the cost of inputs continues to increase.

 Henry Ford once said, “Whether you think you can or whether you think you can’t – you are right.”   This is as true today as it ever was.   For the most part, we are limited only by what we think we can and cannot do.   The “can-do” people will always have a competitive advantage over the “can’t do that here” people.   Those who believe something cannot be done are often pushed aside by those who are already doing it.

While most people work for their money, the most successful people make their money work for them.   Likewise, while most cattlemen work for their cows, the most successful cattlemen make their cows work for them.   Who is working for who on your farm or ranch?

 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, you will ALWAYS be working for your cows.

If success was easy, everyone would be remarkably successful.   Unfortunately, very few people can be classified as remarkably successful.   Success, however, does appear to be easy for some people.   If you look closer, you will discover those people are very driven and focused.   They make things happen.   They see opportunities most people miss.   They are not afraid to step outside their comfort zone.   They are not afraid to try what others say cannot be done.

We still believe there will be more opportunities for you and your family operation to advance in the next ten years than there have been in the last 30 years – but only if you are able to break away from the status quo, herd-mentality way of thinking.   The future belongs to those who are able to think for themselves.   The future belongs to those who can successfully transition to a low-input (high-profit) program with efficient, low-maintenance cows.   If you have not already made this transition, NOW is the best time to get started.   Why wait?

 Everyone has some unique competitive advantages based on their location, their personality, their experiences, their acquaintances, etc., etc.   Most producers, however, never take the time to identify their competitive advantages because they are afraid to leave the so-called “comfort” of the status quo herd.   They fail to realize they must be different to rise above the herd.   The first step to becoming extraordinary is to stop being ordinary.   Don’t be afraid to dream.   Dream BIG while you are at it!

It seems as though most cow-calf producers are always looking for ways to increase weaning weights.   They can accomplish their goal by using large-framed, high-growth bulls, feeding expensive supplements, implanting calves and by using wormers and other toxic chemicals.  Of course, the companies that market these products claim they will increase both pounds and profit.   While these products may increase calf weights, they don’t necessarily increase profits. 

 The example below illustrates that not all pounds produced are created equal and that the value of gain is often much lower than we think. 

 Valentine Livestock Auction – November 21, 2019

 472# @ $180.18 = $850.45 per head

 572# @ $161.55 = $924.07 per head

Value of Gain = $924.07 – $850.45 = $73.62 or $0.74 per pound.

 Most producers believe the value of the added weight is the price received per pound.   As you can see, that is not the case.   The value of the additional 100 pounds in the example above is only $0.74 per pound.   

 Unfortunately, most producers underestimate the cost associated with achieving the additional calf weight and overestimate the value of the additional gain.   Increased expenses, reduced stocking rates, additional labor and increased overheads are usually associated with these practices.

 Producers must understand the cost associated with the additional weight gain in relation to the value of gain in order to maximize profitability.   A large-framed, high-growth, high-maintenance cowherd that produces large calves can be great for bragging rights but terrible for profits. 

Most Americans will be getting together with family and friends tomorrow to celebrate Thanksgiving Day.   Perhaps the following Old Testament verses will help prepare us for this special day.

 When you have eaten and are satisfied, praise the Lord your God for the good land he has given you.   Be careful that you do not forget the Lord…   Otherwise, when you eat and are satisfied, when you build fine houses and settle down, and when your herds and flocks grow large and your silver and gold increase and all you have is multiplied, then your heart will become proud and you will forget the Lord your God…   (Deuteronomy 8:10-14)

No matter who you are or what you have been through, I’m sure you have much to be thankful for.   We all do.   Most of us have so much to be thankful for it’s difficult to know where to begin.   After a while we tend to take our blessings for granted.   Worse yet, we often deceive ourselves into thinking that we are responsible for all that we have.   I encourage you to take time to consider your many blessings this Thanksgiving, and don’t forget to give credit where credit is due.