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Issue # 595

July 9, 2008

Forage Focus: Oats, planted late, perhaps our most dependable forage?!?! - Stan Smith, PA, Fairfield County OSU Extension

With six years of experience under our belts planting oats after wheat with the intent of creating as much high quality forage as possible, it's apparent there is not a better alternative double crop for a producer who feeds ruminant livestock. Since 2002, when local growers have planted oats in July or early August, we have consistently experienced production of 3 to 6 tons of dry matter with 15+/-% protein.

To put this into perspective, the average production of perennial mixed hay in Ohio is LESS THAN 3 TONS per acre! Without including land or harvest costs, those 3-6 tons of oat forage can come at a TOTAL COST of less than $55 per ton even at today's fertilizer prices.

Suffice to say, oats planted after July 1 when the days are growing shorter are not the same oats you used to help your Grandpa plant in March! Even though we are using the same varieties of oats one might plant in early spring for the purpose of harvesting grain, when planted in the summer, oats consistently become a nutrient dense, highly vegetative forage. These late planted oats, especially those planted beyond late July, will remain in the vegetative state until a significant freeze stops them in late November or December, while seldom making a seed head. If they do, the seed hulls are typically empty with no grain.

As you consider your options to replace the forage production lost from thin stands or by converting old hay stands into a corn crop this year, consider what we've learned over the past six years about growing oats for forage

* When planted in late summer, oat variety appears to have little impact on forage yields. In fact, we've used bin run seed, certified seed, treated seed, U.S. grown feed oats and Canadian feed oats and found essentially no difference in the resulting forage production.

* Oats are a "scavenger" for nutrients and require little additional fertilizer. We've applied 18 to 50 units of supplemental nitrogen to July and early August planted oats and experienced similar yields with each rate. While each ton of oats that are removed from the field will take ~14 pounds of phosphorus and ~ 50 pounds of K with it, we have not seen a yield boost when these nutrients were applied at planting.

* No-tilled seeding rates of from 80 pounds to 100 pounds of oats have resulted in optimum forage yields.

* Oats planted into dust, or into significant soil moisture have both yielded comparably. In fact, oats planted in July/August seem to tolerate dry weather very well. Despite last summer's extreme temperatures and drought conditions, oat forage yielded an average of 3 tons of dry matter per acre around Ohio.

* Depending on precipitation and planting date, 65 to 90 days of growth are sufficient to optimize yields and maintain quality.

* While strip grazing is the most efficient method of harvest, baling dry hay or creating ensilage have also been successful.

* When strip grazing or mechanical harvest is delayed, the quality of oat forage is maintained well into winter. On March 11, 2003, we found that August of 2002 planted oats which were still being strip grazed had 11.12% protein. A nearby fescue field that was also being grazed had 8.19% protein on the same day.

* While not experiencing the high yields described earlier, oats have been flown into standing corn and soybean fields in August and September and resulted in yields of from 500 up to 3200 pounds of dry matter per acre without the benefit of any supplemental nitrogen. Seeding rates for aerial seedings have been typically boosted to 120 pounds per acre. Despite this, total costs for the seed and the aerial application will still be less than $40 per acre. An additional benefit to interseeding oats into standing corn is the high quality (protein) oats will help make the corn residue more palatable when strip grazing harvested corn fields.

* Based on last summer's experience, it appears that oats planted in early August yield just as well as those planted in July, and also maintain higher quality. Delaying planting until late July or early August not only allows ample time for the harvest of straw, but also a timely application of manure.

With many small grain fields presently being harvested, plus the opportunity to fly oats into standing row crops, or plant early harvested silage fields, cattlemen still have excellent opportunities to create high quality forages that may be mechanically harvested or grazed well into winter and even next spring.

If you've yet to attend any of our field days to see for yourself the results of summer seeded oats, this web link has photos and data of several of the past years' attempts at the alternatives described above: http://fairfield.osu.edu/ag/graze/wntrgraz.htm . Also, watch for details here on the Fairfield County Oat Forage Field Day coming later this summer.

Getting Cows Bred in July and August - Dr. Les Anderson, Beef Extension Specialist, University of Kentucky

One of the most challenging aspects of spring calving is trying to determine when to calve to maximize reproductive rate. Reproductive efficiency in a cow herd is most accurately measured by the term "percent calf crop weaned" which is calculated by dividing the number of calves weaned by the number of cows that were in the cow herd when the breeding season began the previous year. The two factors that affect the ability of a cow to wean a calf is pregnancy rate and calf death loss.

Most spring-calving herds begin calving sometime in February or March and end sometime in May or June. Calving in February and March can be challenging because both of these months are typically wet and/or cold. Wet/cold environments result in higher calf death loss; calf death losses average 5-7% for most spring calving herds. One method to reduce calf death loss is to calve when the weather is more accommodating. For example, death loss is much lower (1-2%) for cows that calve in the fall (September and October). One might think that calving in April and May could be a better option; the weather is certainly warmer and calf death loss will likely be lower. To calve in April and May, the breeding season would be start June 23rd and would last through the month of August. Unfortunately, breeding cattle during this time results in lower pregnancy rates and would put most beef cattle producers out of business.

Data from the University of Kentucky Research Center at Princeton demonstrate the impact of breeding season on reproductive rate. In this trial, cows were exposed to a 45-day natural service breeding season. The breeding seasons were early (4/21-6/5), typical (5/21-7/6), or late (6/19-8/4). Pregnancy rates declined dramatically in cows that were bred later in the summer. Pregnancy rates were 89% for cows bred early, 78% for cows bred during the typical time, and only 59% for cows bred to calve later (April/May). Therefore, in Kentucky, cows that are bred to calve later in the spring will likely have lower calf death loss but considerably fewer of the cows will actually get pregnant. Why is pregnancy rate so low for cows in July and August?

The main factor that reduces pregnancy rates in our state, and others in the fescue belt, is heat stress. Heat stress occurs when the body temperature is elevated for more than two degrees above normal for more than 48 consecutive hours. Heat stress reduces pregnancy rates by increasing embryonic mortality. Developing embryos/pregnancies can be lost at two different periods of pregnancy; before Day 7 (loss of the developing embryo) and from Day 25-45 (early fetal loss). Cows that experience embryonic loss in the first week of pregnancy are repeat-breeders; they come back into heat 20-21 days after service. Cows that experience fetal loss from Day 25-45 are normally those cows that conceived early in the breeding season (end of May) but were exposed to extreme heat stress 25-45 days later. Data from trials at the University of Kentucky illustrate that fetal death loss ranges from 5-25% depending upon the level of heat stress. Cows that experience fetal death loss are typically open at the end of the breeding season.

The heat stress problems in our state are the result of consumption of endophyte-infected fescue. Endophyte is a fungus that grows in fescue and it produces chemical compounds that reduce the ability of a cow to dissipate heat. These chemicals redirect blood flow in an animal's body such that the blood supply pools in the interior regions of the body. Normally in the summer an animals blood supply flows more to the exterior of the body so that it can be cooled. The redirection of the blood flow reduces the ability of an animal to cool itself during the night and results in tremendous heat stress on the body and lower pregnancy rates.

How can we reduce the impact of heat stress? The first logical approach would be to limit the access of your cows to endophyte-infected fescue during the heat stress months (mid-June thru August). Grazing options include warm season grasses, endophyte-free fescue, predominately legume pastures, and/or sorgum sudan grass. Cows could graze endophyte-infected pastures until late-May to mid-June while the summer grazing pastures grow. Cows could then be turned out on the "summer pastures" until the end of the breeding season. If non-endophyte pastures are not feasible, then diluting the fescue with legumes and/or other feedstuffs will help reduce the impact of the heat stress. One supplemental feed that appears to reduce the effects of heat stress is fat. Research at the University of Kentucky has demonstrated that feeding cows high fat diets while grazing highly infected endophyte fescue during the breeding season can help reduce heat stress and improve pregnancy rates. In these trials, cows were fed either a commercial fat supplement free choice or whole soybeans (3 lbs/hd/day) during the breeding season (6/5-8/15). Fat supplementation increased hair shedding, reduced cow body temperature, and improve pregnancy rates from 56% to 78%.

The decision of when to concentrate your calving in the spring is tough. Life is easier if your cows could calve later but fewer of them will calve. With little doubt, calving earlier will increase pregnancy rates but will also likely increase calf death loss. Economically, 5-7% death loss is more financially sound than only 60-70% pregnancy rates. Use of alternative summer grazing systems to reduce the effects of endophyte-infected fescue is a logical but sometimes difficult solution. Feeding cows fat supplements will help but perhaps the best solution is to completely change your breeding and calving season. Cows that calve in the fall have lower calf death loss, higher pregnancy rates, and shorter calving seasons than cows that calve in the spring.

2008 Beef Enterprise Budgets Available at Farm Management Website - Brian Freytag, OSU Extension Intern, AEDE Undergraduate, Barry Ward, Leader, Production Business Management, OSU Extension, Department of Agricultural, Environmental and Development Economics

Last month, we brought you news of the 2008 Enterprise Budgets, and now, for the first time since 2002, we are happy to report the availability of the 2008 Beef Enterprise Budgets. Authors of this budget include Steve Boyles (Extension Beef Specialist), David Dugan (Extension Educator., ANR, Brown County), Jeff Fisher (Pike County), John Grimes (Highland County), and Stan Smith (Extension P.A., Fairfield County), Barry Ward (Leader, Production Business Management) and Brian Freytag (OSU Extension Intern, AEDE Undergrad).

As with all of the newest budgets provided by the OSU Extension, the 2008 Beef Budgets are in more detail, as well as being more graphically appealing and user-friendly, allowing users of the Excel format to insert their own production numbers to get a customized report of their returns. The Beef budgets also sport the new color coded cells that indicate what is required of the user for any particular calculation.

These budgets include:

* Slaughter Steer - Days on Feed: 232 & Days on Feed: 250

* Slaughter Yearling Steer - Days on Feed: 182 & Days on Feed: 190

* Slaughter Heifer - Days on Feed 220

The reason for the separate Days on Feed (DOF) is to show a different feeding plan. For example, the 232 DOF Slaughter Steer is fed on corn, soybean meal, mineral, and corn silage; whereas, the 250 DOF are fed on corn, Dried Distillers Grain, mineral, and hay.

While things are looking good for the crop industry, the rising prices of commodity feedstuffs are leading to trouble for the beef industry. The feeding program you select will greatly influence your profitability in the upcoming months.

For options concerning your beef production, you can check out the Beef team website at http://beef.osu.edu or contact your local Extension representatives. The entire set of Beef Enterprise Budgets in Excel and PDF formats can be accessed at: http://aede.osu.edu/Programs/FarmManagement/Budgets/beef2008

Who Can Afford Corn? Almost No One, Purdue Economist Says - Purdue University Extension

Inexpensive and abundant corn helped move the ethanol industry onto the alternative fuels fast lane. With corn prices now at record highs, demand outpacing supply and crop losses inevitable with the Midwest floods, ethanol production could soon be stalled, a Purdue University Extension agricultural economist said.

As corn prices continue climbing, fewer ethanol producers can afford the feedstock, said Chris Hurt. In turn, domestic livestock producers and foreign buyers are finding it more difficult either to pay the high prices or obtain the grain they need, he said.

"The ethanol industry is struggling to pay for corn that has reached the $7 a bushel level," Hurt said. "So the ethanol industry may also experience losses and might not be able to bid the price. That will depend on what oil prices and, therefore, ethanol prices, are.

"Everybody is trying to evaluate how many bushels of corn we have lost because of weather-related damage, what the implications are for prices and who can pay these high prices.

The answer today is that hardly anyone can pay these kinds of prices and still have positive margins."

Before planting even started this spring, prospects dimmed for a corn crop approaching the 2007 record of 13.1 billion bushels. In March the U.S. Department of Agriculture projected farmers would plant 86 million acres of corn nationwide - an 8 percent decrease from this past year. Following a wet early spring that delayed planting in some states and then this month's devastating floods, the USDA adjusted its harvest estimate to 76 million acres and production to 11.7 billion bushels.

Using a similar 1993 Midwest flood as a model, Hurt estimated U.S. corn production could drop below 11 billion bushels this year. That's not nearly enough corn to go around, he said.

For starters, the U.S. ethanol industry needs 4 billion bushels of corn this year - or 1 billion bushels more than 2007 - to meet anticipated production, Hurt said. Also, livestock producers used 6.15 billion bushels and foreign buyers 2.45 billion bushels of U.S. corn in 2007, and both could buy at least that much corn this year if it were available and more favorably priced, Hurt said.

Usage will have to come down, likely in the livestock and foreign sectors, Hurt said.

"The USDA has said that if the ethanol industry gets 1 billion more bushels of corn it means that the domestic livestock industry will have to cut back 16 percent in feeding corn," he said.

"And then our foreign buyers will have to cut back 18 percent."

Adding to the supply shortage and, ultimately, higher corn prices is the ongoing devaluation of the U.S. dollar.

"Another important part in who is going to be able to pay the price for corn is the exchange rate of the dollar," Hurt said. "When their currencies are strong, the foreign sector's currency goes a long way in the United States. If we should see our dollar weaken more, the foreign buyer is going to be able to stay in and pay these prices. That says that the domestic livestock feeder might have to bear even more of the consequences."

Corn growers came into the 2008 crop year needing to produce a bumper crop to satisfy the burgeoning grain demand. Those plans likely were drowned out by floods in much of the Corn Belt.

In four of the hardest hit corn-producing states - Illinois, Indiana, Iowa and Missouri - nearly 50 percent of the corn crop was rated fair to very poor as of Sunday (June 22), according to the USDA's National Agricultural Statistics Service.

With millions of farm acres damaged by high water, the losses to Midwest farmers stand to reach into the hundreds of millions of dollars, Hurt said.

"This crop in particular for our farm producers is the most valuable crop they have ever raised," he said. "Not only is it a valuable crop, they have the most invested in this crop of any crop they have ever raised. So if they are losing that crop, it is going to be the biggest dollar loss that we have ever experienced on a per-acre basis."

Weekly Roberts Agricultural Commodity Market Report - Mike Roberts, Commodity Marketing Agent, Virginia Tech

LIVE CATTLE futures on the Chicago Mercantile Exchange (CME) closed down Monday. The AUG'08LC contract closed at $102.300/cwt, off $1.500cwt but $1.700/cwt higher than last Monday's close. OCT'08LC futures were down $1.8505/cwt at $109.675/cwt but $6.250/cwt higher than a week ago. Profit taking by funds, lower grain and soybeans, lower crude oil, and a stronger U.S. dollar weighed on prices. However, higher cash cattle were supportive. USDA's 5-area price for Monday, July 7 was $101.18/cwt - $101.39/cwt; between $3-$3.50/cwt higher than a week ago. Packer demand was supportive as USDA put the choice boxed beef cutout at $172.42/cwt, up $0.84/cwt. According to HedgersEdge.com on Monday, the average packer margin was estimated at a positive $80.45/head based on an average buy of $98.960/cwt vs. a breakeven of $105.220/cwt. The Nebraska beef expansion of its voluntary beef recall of over 5 mi pounds of ground beef is expected to have a negative impact on prices. Cash sellers should consider selling cattle as soon as they are ready.

FEEDER CATTLE at the CME closed moderately lower on Monday. AUG'08FC futures were off $0.550/cwt at $111.025/cwt; up $0.030/cwt from last Monday. The SEPT'08 contract finished the day at $112.725/cwt, off $0.475/cwt and $0.825/cwt lower than a week ago. Feeders, influenced by live cattle, gave up gains made early on. October/September and September/August spreading took place on the day. Cash feeders were steady to $1/cwt higher last Friday in Oklahoma City. The latest CME Feeder Cattle index for July 2 was placed at $109.100/cwt, up $0.23/cwt. It is a good idea to keep feeder pricing current.

Visit the OSU Beef Team calendar of meetings and upcoming events

BEEF Cattle is a weekly publication of Ohio State University Extension in Fairfield County and the OSU Beef Team. Contributors include members of the Beef Team and other beef cattle specialists and economists from across the U.S.

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