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Drought tools

Turkey Track Bar

Well-known member
Thought these two articles might help those dealing with drought a little, especially those dealing with drought for the first time in a long time. We try to always be ready for drought, but our fire wiped out our "contingency plans!"

Cheers---

TTB :wink:

From Greg Lardy's, NDSU Extension Beef Cattle Specialist, newsletter, Ranch Talk

Ranch Management During Drought
Dr. Greg Lardy, Extension Beef Cattle Specialist
Department of Animal and Range Sciences, NDSU
As this issue of the Ranch Hand is being assembled, much of the area has had abnormally dry conditions.

Hopefully, you’re receiving some rainfall, but in many cases, it will be too little too late. This article is designed to help you sort through the difficult decisions regarding drought and ranch management.

Data collected at the USDA Fort Keogh Range Research Station, Miles City, Montana, yielded several interesting facts regarding precipitation and forage production:
1) Precipitation in any given month is not necessarily indicative of the next month's precipitation.
2) If spring precipitation is below normal, total annual precipitation tends to be below normal.
3) Precipitation in April and May is the primary factor affecting forage production.
4) By July 1, grass production will reach 79 percent completion in two of three years; and in
19 of 20 years, grass production will be at least 65 percent completed by July 1.

Much of the northern Plains depends largely on spring precipitation as the driving force for forage production. Consequently, you may be able to manage your cattle and rangeland based on the amount of spring precipitation received and knowledge of forage production by July 1. If spring precipitation and forage growth on July 1 is below normal, you are likely going to have lower than average forage production for the entire year.

History shows that drought is common in the Great Plains. There are no simple drought management solutions; however, planning and implementing appropriate strategies now can have a positive effect on both short- and long-term health and condition of your native rangeland, as well as economics of your ranching operation. If you adopt a wait and see attitude you may find that those decisions have already been made for you.

Short-Term Decisions – The basic health needs of the rangeland and cow herd are simple. Rangeland should not be overgrazed or overstocked during drought. Failure to meet the nutritional needs of your cow herd results in lowered productivity, impaired reproduction, and ultimately, lowered net income. If you have rangeland that has reduced productivity and lowered forage production, it simply cannot run the same number of cattle as it could if forage production were normal or near-normal. To meet the needs of the cow herd under these conditions you need to reduce stock density, and/or provide supplemental feed. Depending on the severity of the drought, both of these options may be necessary.

Reducing Stocking Rate – This can be accomplished a number of different ways. Some ideas to consider are: 1) sell yearlings or place them in a feedlot, 2) cull less productive pairs, 3) move cattle to other pastures, and 4) weaning early.

If you have yearlings or stocker cattle, a simple drought management solution is to use yearlings as a forage management tool. During wet years, yearlings are utilized to consume excess forage, but during drought years when forage production is lower than expected, they are sold or placed in a feedlot. This system frees up pasture for the cow herd and keeps genetic and selection programs within the cow herd intact.

Culling less productive pairs is another alternative to reduce stocking rate. In order to do this effectively, good production records are needed to select culling candidates. In all likelihood, you have cows targeted for fall culling due to age, temperament, or general lack of social graces. These cows are good candidates to leave the ranch during a drought. Severe or long-lasting drought may necessitate deeper culling than desired. Moving cattle to rented pastures outside the drought area is another option. This alternative may look attractive initially, but be careful. Thought must be given to the economic and management ramifications of moving cattle to pastures in another state or region. Be sure to factor in transportation costs as you evaluate this option. Selecting a good business partner you trust to provide adequate care for the grazing pairs is the key to making this system work.

Early weaning is a very effective management tool, especially for two- and three-year-old cows. Lactating cows typically consume an additional 0.4 to 0.6 percent of body weight more forage (DM basis) than dry cows. By the time a calf weighs 400 to 500 pounds it is consuming 1.8 to 2.0 percent of body weight in forage (DM basis). Weaning calves early can significantly improve your late season forage situation. Weaning can be done as early as two months of age but generally results are better if you wait until calves are at least three months old. Be sure to discuss an early weaning vaccination program with your veterinarian.

Supplementation –
Providing supplemental feed is another short-term option for dealing with drought. In most situations, herbage production is reduced on drought affected pastures. Consequently, some sort of forage substitute must be provided to maintain performance and health of grazing animals. Byproducts such as wheat midds, dried distillers grains, corn gluten feed, soybean hulls, and barley malt sprouts are among the feedstuffs available. Cereal grains such as corn, barley, or oats may also be used. Limit supplemental grain to less than 0.4 percent of body weight in most situations, since excess starch can depress fiber digestibility in forages. Providing supplemental hay or other forages may be considered, but is typically not cost effective. Consider putting the cow herd in drylot in lieu of feeding hay or other roughage on pasture. Creep feeding may also be used to provide supplemental nutrients to the calf. Creep feeds typically replace forage in the diet of the grazing calf. Consequently, using creep feeds can free up forage for the cow herd. However, unless pastures are severely overstocked, do not expect improvements in cow condition with creep feeding. In addition, calf milk intake does not typically decrease when creep feeds are offered, so the lactation demand is still placed on the cow when creep feeds are offered.

When drought is severe, drylot feeding of byproducts, cereal grains, or other high concentrate feedstuffs may be warranted. This requires careful management, but provides an alternative to high-priced forages. In most cases, grains are cheaper per unit of energy than forages, making them attractive alternatives when forage prices are high.

The good news is that many byproducts are reasonably priced right now and discounts may be negotiated for larger quantities. This makes them price competitively with drought stressed pasture, especially considering that calf prices are quite high.

Long-Term Management – Successfully managing a ranching operation in the northern Great Plains requires dealing with dry conditions sooner or later and any long-term management plan should include strategies for dealing with drought. Culling the cow herd and early weaning calves are difficult decisions to make and implement.

Though there are no easy answers to the tough questions during drought, effective planning and management decisions can keep your operation sustainable and profitable in the long run.
 

Turkey Track Bar

Well-known member
Article #2, from Tim Petry, NDSU Livestock Economist...

Forced Sales of Livestock Due to Drought Have Tax Implications

Dry weather conditions in parts of the northern Plains during the
last several years and continuing this year have caused forced
liquidation of breeding livestock and early sales of market
livestock.

Livestock producers who have been forced to sell livestock or are
considering selling because of abnormally dry conditions may
receive special consideration for federal income tax reporting
purposes, says Tim Petry, North Dakota State University Extension
Service livestock marketing economist.

"Furthermore, a number of tax law changes important to livestock
producers became effective through the American Jobs Creation Act
(HR 4520) in October 2004," Petry says.

Income tax reporting for forced sales of livestock because of
drought or other weather-related conditions may be handled in two
different ways, according to Internal Revenue Service guidelines.

The first provision applies to all types of livestock and allows
postponement for reporting income from forced sales for a year.

"For example, the normal business practice for a cattle producer
may be to background calves after fall weaning and market them
the next February," Petry says. "If, due to drought conditions
and lack of feed supplies, the calves are marketed at weaning in
October, the income may be postponed until the next year. Only
sales in excess of normal (normal is usually defined as the
number sold in each of the last three years) qualify for the
deferral."

The drought must have caused an area to be designated as eligible
for assistance by the federal government. However, the livestock
does not have to be raised or sold in the exact designated
area, such as a particular county, but only nearby.

The other IRS provision applies to the forced sale of draft,
breeding and dairy animals, but excludes poultry. If these
animals are sold due to a drought, the sale may be treated as an
involuntary conversion.

"Producers can choose to postpone reporting the capital gain from
forced sales as long as similar animals are repurchased in the
future," Petry says. "For example, a sheep producer normally
markets 25 cull ewes a year, but in a drought year is forced to
sell 50 head. Only the additional 25 head that will be replaced
later are eligible for the involuntary conversion."

Two important provisions were included in the 2004 revised tax
law. First, the replacement period has been extended from two to
four years and is retroactive back to the 2002 tax year.

Second, if it is "not practical" for the producer to reinvest in
the same class of livestock, other property (except real
property) used for farming or ranching qualifies as replacement
property.

"The IRS tax code is complex, so livestock producers considering
marketing livestock at abnormal times due to dry conditions
should consult with their tax adviser," Petry says. "Other tax
management tools, such as income averaging, also should be
considered."

###

NDSU Agriculture Communication

Source: Tim Petry, (701) 231-7469, [email protected]
Editor: Rich Mattern, (701) 231-6136, [email protected]
 

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