Author: Chris Prevatt

In the areas of the Southern U.S. that received adequate rainfall this spring and summer, grazing warm-season annual forages have remained an economically viable option for many.

A warm-season annual forage mix was planted on April 20^th containing several species (Sorghum-Sudangrass, Pearl Millet, Forage Sorghum, Cowpeas, Sunn Hemp, etc.). It received 50 pounds of nitrogen (N) fertilizer in one application after planting. Stocker steers weighing 625 lbs. began grazing on June 5^th and are expected to graze for 120 days, finishing around October 5^th. During the growing season, forage quality was tested at 65% total digestible nutrients (TDN) and 15% crude protein (CP).

The following are our expectations for our warm-season annual forage mix:

1. Forage Production: 8,000 DM lbs./acre,
2. Level of Forage Utilization: 40%
3. Production Costs: $175/acre

The table below provides a detailed view of the variables and equations used to determine the total cost of growing and grazing a warm-season annual forage mix per dry matter ton consumed. The resulting total cost of growing and grazing warm-season annual forages was $109/DM ton consumed. 

It’s important when making the comparison to other feedstuffs, such as Soyhulls (77% TDN, 13% CP, $255/ton) or Corn Gluten (80% TDN, 22% CP, $260/ton) to factor in the cost to store, mix, and feed, as well as any waste that occurs.

For those that have the resources and management to grow and graze warm-season annual forages, I don’t think there are any readily available feedstuffs that can compete. Every ranch is different. Play with the numbers and see if grazing warm-season annual forages will work for your operation.

Prevatt, Chris. “Grazing Stocker Cattle on Warm-Season Annual Forages“. Southern Ag Today 2(34.2). August 16, 2022. Permalink

Each year there are opportunities for producers to market feeder cattle near the high-end of the year’s market. Cattle producers will likely be marketing cattle throughout 2022 at the highest prices since, at least, January 2016. While great news, we still need a marketing plan for feeder calves. One useful method is to compare the relationship between the futures price (CME Feeder Cattle Futures) with the current market price (CME Feeder Cattle Index Price). The difference between these two prices provides the market’s expectation of price movement in the short run and expectation of market highs.  Note, this was written just prior to the market fluctuations following the beginning of the Ukraine-Russia war.

Using the current CME Feeder Cattle Index price and the August 2022 Feeder Cattle Futures contract prices, as an example (Table 1.), Friday, February 18^th’s CME Feeder Cattle Index was $162.14 per cwt (Reporting Date: 02/17/2022) and the settlement price of the August 2022 Feeder Cattle Futures Price was $186.08 per cwt.  The market’s expectation is for Feeder Cattle prices to increase from $162.14 to $186.08 per cwt. The market is pricing in a $24 per cwt, $191 per head, and $11,968 per truckload increase between now and the expiration of the August futures contract. Of course, basis adjustments may need to be made for your individual situation.

The futures market expects feeder cattle prices to increase each month during 2022.  Over the last five years, market price highs have occurred during the second half of the year, and that is expected this year, as well.

Prevatt, Chris. “Marketing Feeder Cattle at 6-Year Price Highs“. Southern Ag Today 2(10.2). March 1, 2022. Permalink