Herdquitter Blog

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

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 (survival).   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 weights 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!   Contrary to what the mainstream beef industry continues to tell us, all attempts to increase production per cow, will have a negative effect on production and profit per acre.

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.

Last week, we discussed the year 2020 in our “Out with the Old” article.   Today, we are going to look ahead to the new year.   Some say the first day of the new year is no different from the last day of the previous year.   They may be right – but, in my mind, starting a new year allows me the opportunity to hit the refresh button on my life.   Therefore, I start every year with excitement and anticipation.  

As we say goodbye to one year and hello to the next, it is good to reflect on where we have been, where we are, and where we would like to be.   Is everything in your life exactly the way you would like it to be?   I can rightly say I am content and satisfied with things as they are.   However, that would be falsely admitting there is no room for improvement.   There is always room for improvement.

The year 2021 will come with its own set of challenges.   For example, we will still have to contend with Covid-19 and the effect it is having on the world around us.   Many of us are starting the new year smack-dab in the middle of a severe drought.   Cattle prices will most likely continue to be very volatile.   It won’t take much to create wide swings in cattle prices.

We need to focus on the things we have some control over to deal with the things we have no control over.   For example, we have no control over Covid-19, the weather and the markets – BUT we do have the ability to create a business that is resilient enough to survive whatever comes our way.   I know some think I sound like a broken record when I keep saying we must find ways to increase our production per acre while decreasing our cost of production – but that is exactly what we need to do!

As we enter the New Year… I encourage you to reflect on where you are and where you would like to be – and then I encourage you to make things happen!   Unfortunately, this will require change! You cannot continue doing things the way you have always done them and expect anything to change.   However, once you get over your reluctance to change, the sky and your imagination will be your only limitations.

The Sky is the Limit –

We believe the business of ranching can be much, much better than most people have been led to believe – but only for those who are not being restrained by outdated traditions and ways of thinking.   We see evidence of this all around us!   It is exciting to watch people do what their neighbors say cannot be done.   It is inspiring to watch ordinary people accomplish extraordinary things.  

We believe the sky is the limit for those who have enough courage to break away from the status quo, herd-mentality way of thinking.   The sky is the limit for those who are willing to think for themselves.   The sky is the limit for those who have an open mind.   The sky is the limit for those who are not afraid to step out of their comfort zone and change what needs to be changed.

The year 2020 will definitely be one to remember!   With the arrival of Rona (co-Rona-virus), life as we knew it was hijacked (unlawfully seized, appropriated, stolen, commandeered).   Although Rona was not the first influenza pandemic to hit the world, she was treated as the first and the worst.

Many people in politics and the news media did their best to take advantage of this crisis – and they succeeded.   It became okay to riot in the streets and destroy private and public property – but it was not okay to enjoy a meal out with your family.   Rather than allow people to use their own common sense, the government thought it best to enact unconstitutional laws to protect us from ourselves.

It is difficult to come up with exact figures – but I think it is safe to say Rona has put several million more people out of business and out of work than it put in the hospital.   The government’s response to the collapsed economy it created was to throw more and more money at it.   Where is all this money coming from?   The government has been broke and heavily in debt for several decades!   It has no money!

Those of us in agriculture and rural America were least affected by Rona.   We were not forced to close down our businesses.   Social distancing has always been a way of life for us.   Wearing a face mask is not necessary when you’re only around your family and your livestock.   Ironically, several ag producers were able to take advantage of Rona.   For example, those who sell food products, like beef, directly to the end consumer had a record year for sales and profit.   It’s interesting how some people are always able to make the best of a bad situation.

The year 2020 will be remembered as a good year for me and for Pharo Cattle Company.   I was unable to do a few things I wanted to do – like attend our Australia Bull Sale and the Professional Bull Riders (PBR) finals – but, all in all, we had a very good year.   We sold close to 500 bulls last spring – without having any actual sales.   Altogether, we sold over 1000 bulls to commercial cow-calf producers this year.   Best of all… we saw more cow-calf producers than ever before begin the transition from no-profit ranching to high-profit ranching.   This is beyond exciting!    

Because of the drought, we are relocating all of the mature cows at PCC Headquarters – with the exception of a few old teenage cows.   At this point, we hope to hold on to our bred heifers and heifer calves.   We are sending our cows to four different PCC cooperative herds – three in Nebraska and one in North Dakota.   These cows will be loaded on trucks tonight and tomorrow morning.

This brings back some memories of the first 12 years of the 21^st century – some good memories and some sad memories.   Relocating cows that were born and raised on the homeplace is somewhat akin to having a family member leave home for an extended period of time.   It can be emotional.   If you’re not careful, this kind of experience can bring about feelings of depression.   Many of our subscribers know what I’m talking about.

Good from Bad…   Several of our cooperative herds were started when we were forced to relocate cows.   In most cases, Pharo Cattle Company would take the top end of the bull calves and develop them for the next bull sale.   The future cooperative producer would take the top end of the heifer calves and created his own PCC cowherd.   Within a few years the cooperative producer had bulls of his own that could be sold in a PCC bull sale.

There were a few years it was so dry in eastern Colorado we didn’t have enough grass to develop our sale bulls.   This forced us to put them on irrigated circles of Bermuda grass in southwest Kansas.   You do what you have to do.   Those were tough years for us!   Even so, Pharo Cattle Company grew more during those tough times than we ever did during the good times.   You gotta make lemonade out of the lemons life hands you!

Not always easy…   Sometimes, however, it isn’t easy to make the lemonade.   More than once, our cow relocations did not work out.   The remaining cows would have to be relocated again or returned home.   Earlier this week, I looked back at a 2006 PCC Update.   In it, I jokingly said, “Some of my cows have traveled more miles and visited more states than most of my neighbors.”   Still true!

Helen Keller once said, “A bend in the road is not the end of the road… unless you fail to make the turn.”   That is a very simple, yet profound, statement!   It applies to all people in all walks of life.   It has application for me – and it has application for you!

What word can we use to define a “bend in the road”?   The first word that comes to my mind is “change.”   Change is a normal part of life.   It is also a normal part of business.   Nothing stays the same.   The present is different from the past and the future will be different from the present.

The sooner we make the turn in the road, the better off we will be.   Unfortunately, most people hate change.   Some hate change so much they resign themselves to being content with where they are.   At that moment, their life is no longer enjoyable – and/or they start going out of business.

I encourage you to think about where your life and/or your business is going.   Have you missed a few turns in the road?   Are you as healthy and as happy as you would like to be?   Is your business as successful as it should be?

What changes do you need to make?   Once you identify the changes you need to make, MAKE THEM!   Do it NOW!   Procrastination is NOT your friend!   Once you get back on the road, continue to watch ahead for future bends in the road.   When you come to a bend in the road, make the proper adjustments – and Keep On Truckin’!      

Since most of our subscribers are cow-calf producers… I want to get a little more specific (and personal) with this discussion.   Are you expanding your cow/calf business and/or building wealth – or are you just getting by?   If you’re not expanding your business and/or building wealth, you probably failed to make a turn or two.

The beef industry is not the same today as it was 50 years ago.   Much has changed – and yet nearly all of today’s cow-calf producers operate as though nothing has changed.   It’s no wonder so many are struggling to make a decent living.   They forget how much things have changed in the last 50 years.

Fifty years ago… land could be purchased or leased for one-tenth what it costs today.   That’s a BIG DEAL – especially for those who did not inherit a family farm or ranch!   Fifty years ago, you could purchase a new pickup for less than $5000.   Gasoline could be purchased for 25 cents per gallon.   In the last 50 years, the cost of inputs has risen four times faster than cattle prices.   If you think this trend will not continue, then you better think again.

If you are a cow-calf producer… your survival is dependent upon your ability to change with the times.   It’s not too late for most producers to make the necessary changes – but time is of the essence.   If you have not already done so, NOW is time to Change Horses – and NOW is the time to get started on the Ten Steps to Double Your Profits.

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 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 that is focused on increasing pounds per acre (profit) – instead of on increasing pounds per cow (bragging rights).

Everyone has some unique competitive advantages based on their location, their personality, their experiences, their acquaintances, etc., etc.   Most producers, however, will 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!

A positive attitude is contagious.   A negative attitude is even more contagious.   Unfortunately, it is extremely rare to find a positive message in agriculture.   You won’t find it at the local sale barn or at the local coffee shop or at the local bank.   You won’t find it in most ag publications and organizations.   Most farmers and ranchers are struggling just to break even.

Misery loves company.   Instead of looking for a positive and encouraging message, many farmers and ranchers will gravitate toward others who are struggling to break even.   Birds of a feather flock together.   If you ever find yourself surrounded by people with a negative attitude, GET OUT IMMEDIATELY!   You need to find a different flock of birds to hang out with.

Pharo Cattle Company knows ranching can be very profitable, enjoyable and sustainable.   Our message has always been very positive.   Many of our customers are two to five times more profitable than all of their neighbors.   They know there will be more opportunities to advance in the next ten years than there have been for several decades.   Success, however, will be dependent upon associating with the right people and the right organizations.

What makes it possible for so many PCC customers to be two to five times more profitable than all of their neighbors?   They produce more for less!   In other words, they produce more pounds per acre than all of their neighbors – and their cost of production is less than all of their neighbors.

With the right size and type of momma cows, most of today’s cow-calf producers have the potential to increase their stocking rate by at least 30%.   Because smaller cows can wean a higher percent of their own weight than bigger cows, they will always produce more total pounds (pounds per acre).

I know many PCC customers who have increased pounds per acre by another 50 to over 200 percent simply by implementing more intensive grazing practices.   That’s HUGE!   Proper grazing management allows you to make the most of every ray of sunshine and drop of rain that falls on the land you control.

Many PCC customers have a cost of production that is half the national average.   That means their breakeven point is half the national average – which can increase profit per calf by a whopping $300 to $400.   WOW!   If you can increase pounds per acre by 30 to 200 percent and if you can reduce your cost of production by 30 to 50 percent, you will be among the most profitable cow-calf producers in the world.

When it comes to happiness and success, nothing is more important than attitude.   I love to spend time with positive and optimistic people because their attitude is contagious.   Unfortunately, negative and pessimistic attitudes are also quite contagious.

In most places, the cost to buy or lease land is unbelievably high – and it seems to be going up all the time.   Never before has it been so important to maximize production per acre.   Unfortunately, most cow-calf producers remain focused on increasing production per animal (bragging rights).   They continue to purchase bulls that were bred to increase production per animal.   As they increase production per animal, their profit continues to fall.

We have proof that most cow-calf producers have the ability to double their profits on a sustainable basis – if they desire to do so.   This, however, will never take place until they STOP focusing on the wrong thing.   You must STOP focusing on pounds per animal (bragging rights) – and START focusing on pounds per acre (profit).   Once you get good at maximizing your production per acre, you will be able to pay more for land than anyone else in your area.   Ask your banker if he thinks you should focus on bragging rights or on profit.

Is there such a thing as a cow for all seasons or a cow for all environments?   Based on my 35 years of experience, I say, “Yes, there is a cow size and type that works best in all seasons, as well as in nearly all environments.”   I realize this goes against popular opinion – but so be it.

Some will say, “Since I live in a better environment, I should be able to have large, heavy-milking cows.”   I don’t see what difference that makes.   I could run 1800-pound Holstein cows on the desert of eastern Colorado – but I wouldn’t be able to run very many.  

No matter how good or how bad your environment is, you can run a higher number of moderate-sized, low-maintenance cows on the exact same forage resources.   Compared to the status quo (high-maintenance) cows, the smaller cows will ALWAYS produce MORE TOTAL POUNDS that are worth MORE PER POUND.   If you are concerned about PROFIT, this is a no-brainer!

For three decades… our cattle have been bred and selected to do the most for the least – in many different environments.   We have cooperative herds from the winter wonderland of Minnesota all the way to the sweltering gulf-coast states of Alabama and Mississippi.   We have cooperative herds from hot, humid fescue country in Missouri to the high-plains desert of Western Kansas and Eastern Colorado.   We have cooperative herds on high-elevation, mountain ranches in Colorado and Wyoming.   We also have cooperative herds from the southern plains of Texas all the way to the northern plains of Nebraska, North Dakota and Montana.

We develop our bulls slowly and naturally on grass in four different states – soon to be five.   We have sold bulls into 45 of the 50 states – including Hawaii.   We have also sold bulls to customers in Canada, Mexico and Australia.   Our bulls have been used AI in six foreign countries on four different continents.   Our cattle have proven they will work very well in every environment we have put them in.

We have NEVER found an environment where our low-maintenance cows cannot produce MORE POUNDS and MORE PROFIT per acre than the status quo, high-maintenance cows most cow-calf producers have.   As the cost of inputs continues to increase, you will eventually be forced to produce low-maintenance cows – or to get out of the business.   Why not get a head start on everyone else?   High-maintenance cattle will eventually go the way of the dinosaurs.

Most cow-calf producers know their cows are too big, hard-keeping and high-maintenance – but they are unsure of the easiest and best way to change their cowherd.   Some want to sell their entire herd and buy back the right kind of cows.   That, however, is much easier said than done.   It’s not easy to find moderate-sized, easy-fleshing, low-maintenance cows – and if you do find them, they probably won’t be for sale.

We think the easiest way to change your cowherd is to start with your replacement heifers.   Purchase ultra-low-maintenance, calving-ease bulls that are the right size and type to use on your heifers.   Only keep replacement females out of those bulls.   After two years, move those bulls to your cowherd and buy another set of bulls for your heifers.   At the same time, we suggest you work hard at culling your taller, hard-keeping cows.   You will be amazed… it won’t take long to completely change your entire cowherd.   Now you are producing what everyone else is looking for.

For over 50 years, the beef industry has been single-mindedly focused on increasing pounds per animal (bragging rights) – when it should have been focused on increasing pounds per acre (profit).   There is a BIG difference!   Trying to increase pounds per animal will always have a negative effect on your net profits.   Bragging rights may be fun, but you cannot purchase anything with them.

I know from personal experience, this will be the toughest paradigm shift you will ever have to make.   The sooner you make it, however, the sooner you will be able to start generating some real profit and wealth.   This is by far the biggest difference between high-profit producers and average producers.   Ask your wife if she thinks you should focus on increasing bragging rights or on increasing profit.

In preparation for our bull sales, we visit with hundreds of PCC customers every spring and every fall.   Most have used their PCC Solar Bulls for more years than they ever thought possible.   Many bulls are still working at eight, nine and ten years of age.   Several customers tell us their PCC Solar Bulls successfully cover 60 to 80 cows and/or heifers per year after their first breeding season.

What’s a bull worth that can breed twice as many cows for twice as many years as an average bull?   He is worth a whole lot more than you will ever have to pay for him.   PCC Solar Bulls will give you MUCH MORE than your money’s worth!   With our One-Year Guarantee, you are guaranteed to get much more than your money’s worth!   How much longer can you afford not to use PCC Solar Bulls?