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Previous issues of the BEEF Cattle letter

Issue # 514

November 29, 2006

Forage Focus: Stockpiled Fescue Decisions - Rory Lewandowski, Extension Educator Athens County

One of the messages typically communicated to livestock producers at grazing schools and at some grazing council meetings is the effectiveness of stockpiled fescue in reducing winter stored feed costs. There are several reasons that tall fescue becomes the forage of choice in stockpiled situations. First, unlike legumes and even other grasses, it is able to retain relatively high quality throughout the winter period and even into early spring before new growth. Work done in Ohio, Virginia and Missouri all demonstrate that stockpiled fescue will average around 11% Crude Protein (CP) and 60% TDN through February before beginning to decline in March, if nitrogen was applied sometime in the mid to late August period. Second, tall fescue generally retains its dry matter accumulation over the winter period. This feature combined with its ability to retain quality provides the producer with a wide window for winter grazing. Finally, even with the trampling that can occur in stockpiled situations, fescue recovers and is productive the next grazing season.

One important question that beef producers should be asking regarding stockpiled fescue is; when should stockpiled fescue be utilized? If fescue was last grazed, clipped, or harvested for hay in early August and has been stockpiling since that point, a considerable amount of plant material will have accumulated by the time we start to get some frosts in mid to late October. Work done in Ohio suggests that if stockpiling was started in early August with 50 units of nitrogen applied around mid-August, and assuming normal precipitation, it is not unreasonable to accumulate more than a ton and a half of dry matter, in fact, 3500 to3700 pounds/acre could be available. Even without nitrogen fertilization a ton or slightly more dry matter could have accumulated. Most cattlemen I have talked with regarding stockpiled fescue say they like to wait until after a couple of hard frosts before turning cattle in to the fescue because cattle will graze it better. Here is where we need to explore a little more the timing of stockpiled fescue use.

Much of the tall fescue in our area is infected with an endophyte, a fungus that produces a toxic substance known as ergovaline. The endophyte and ergovaline are responsible for the reduced palatability of fescue during the summer months. The fescue toxicosis associated with ergovaline is responsible for elevated body temperatures, restricted blood flow to extremities and poor animal performance. It has been generally assumed that ergovaline doesn't pose a problem in stockpiled fescue, in part because the ergovaline seems to concentrate in seed heads and stockpiled fescue is vegetative. Yet, the fact that cattle don't really eat stockpiled fescue well until after a couple of hard frosts suggest there are still concentrations of ergovaline present in infected fescue that reduce palatability until after frost. An article published in the Journal of Crop Science, volume 43 in 2003 examined ergovaline levels in stockpiled fescue over two winter seasons in Missouri. Previous research had suggested that ergovaline concentrations of 150 parts per billion (ppb) and higher were associated with symptoms of fescue toxicosis during winter months. This study found that there was a rapid loss of ergovaline after mid-December. In the two years of the study ergovaline levels fell below the 150 ppb level by early January in one of the years and by early February in the other year. Researchers suggested that the rate of ergovaline decrease may be related to temperature and rainfall levels. The year in which ergovaline levels declined the slowest was a warm, dry fall and winter as compared to the year when levels declined quicker. Colder temperatures may be associated with less growth allowing for earlier decomposition of ergovaline and it is thought that ergovaline also may be leached out of the plant with rainfall. The conclusion of the article was that since stockpiled fescue retains dry matter and quality throughout the winter, the best use of infected stockpiled fescue was during the late winter period.

Regardless of when the cattleman decides to allow cattle to graze stockpiled fescue, how the cattle are allowed to graze will determine how efficiently the grass is used. Cattle turned into a large area with unrestricted access to stockpiled fescue are likely to waste 60 to 70 percent of the forage due to trampling and manure deposition. In other words only 30 to 40% of the stockpiled forage is actually eaten. Grazing studies have shown that by restricting access to no more than a 3 day of forage, utilization can increase to about 60%. I've talked to some producers who manage even more intensely, restricting access to a one-day supply and they have bumped utilization up to around 80% or better.

To get a better idea of what grazing management can do in regards to utilization consider the following example. Let's assume I have 50 cows that average 1100 pounds and that I have 20 acres of stockpiled fescue that has accumulated about 12 inches of growth. Using the table found on the pasture stick I acquired at a grazing school, I find that for my 90% or greater cover tall fescue field, I can expect at least 300 pounds of dry matter per inch of height. My total dry matter accumulation is 12 inches x 300 lbs/inch = 3600 lbs of dry matter. I'll assume that my cattle will leave about a 2-inch residue, so I have 10 inches x 300 lbs/inch or 3000 lbs of dry matter per acre available to graze. My 1100 lb cows will eat about 2.5% of their body weight each day in dry matter or 27.5 lbs (1100 x .025) each day. That means my herd of 50 cows will eat 1375 lbs of dry matter each day. If I give them access to the entire 20 acres at one time I can expect on average about 35% utilization, the rest of the forage is wasted. I have 20 acres x 3000 lbs of dry matter/acre x .35 (utilization rate) =21,000 lbs of forage dry matter that will be eaten. At 1375 lbs of dry matter per day, I will have between 15 and 16 days of grazing for my 50-cow herd on these 20 acres. Now, if I apply some grazing management and restrict access to what will be eaten in 3 days, waste will be less and more forage will be eaten. Assuming forage utilization is increased to 60%, I will have 20 x 3000 x .60 = 36,000 lbs of forage dry matter eaten on 20 acres. This will provide my 50 cows with between 26 and 27 days of grazing. Actual results may show a few days more or a few days less of actual grazing, but these types of calculations will help the producer plan and make decisions.

Stockpiled fescue can provide cattlemen with a window of opportunity to help reduce winter-feed costs. Deciding upon when to use stockpiled fescue and restricting access to improve utilization are other management decisions that must be considered by the cattleman. Cows in late gestation and 1st calf heifers may require additional supplementation, depending upon the quality of the stockpiled fescue and when it is grazed.

The recently created Ohio Heifer Development Program is now accepting heifer consignments. This program is being provided by The Ohio State University Extension Beef Team and the Ohio Cattlemen's Association, with support from the Southern Ohio Agricultural & Community Development Foundation. Consignment forms can be found online under this link in PDF form or a WORD DOC. Forms or additional information is also at www.ohiocattle.org, or by calling OCA at 614.873.6736.

Heifer Development programs can offer numerous benefits to producers. The upcoming Ohio Heifer Development Program can provide a potential solution to the challenge of raising replacement heifers from both an economical and management standpoint. This program allows producers to bring their replacement heifers to a central location to be developed. Producers will retain ownership in the heifers and pay a daily fee that covers the cost of feed, medicine, reproductive associated costs and labor. Heifers will be provided proper nutrition to meet their growth requirements.

It is critical to have heifers through their first estrous cycle prior to the breeding season. This is highly correlated to having the heifers reach proper weight ranges. Ideally, heifers should be fed to reach approximately 60-65 percent of their mature body weight at breeding time.

Heifers in the program will be artificially bred to bulls with proven genetics, focusing on calving ease and balanced traits. Once confirmed pregnant, heifers will be available for pickup. Ultimately, this program will be a hands-on educational tool as well as a vehicle to help create a statewide heifer development program patterned after other successful state programs.

If you would like to consign your replacement females, complete the consignment form linked above and return to Bill Doig, OSUE/OCA Beef Program Specialist, 10600 US Highway 42, Marysville, Ohio, 43040. Those with additional questions or comments may call 614.873.6736. Also, more details of the program can also be found at www.ohiocattle.org. Consignment deadline for the program will be Friday, January 5, 2007.

The Ohio Cattlemen's Association is an affiliate of the National Cattlemen's Beef Association and is the state's spokesperson and issues manager for all segments of the beef cattle industry including cattle breeders, producers, and feeders. It is the grass roots policy development organization for the beef business. Through the Ohio Cattlemen's Association, cattle producers work to create a positive business environment, while providing consumers with a safe and wholesome product.

Feeder Cattle Markets Skittish - Derrell S. Peel, Oklahoma State University Extension Livestock Marketing Specialist

Some would say that skittish is a bit of an understatement given the slide in feeder cattle markets recently. Most Feeder futures contracts have decreased $15 to $18/cwt since mid-September. Certainly there some good reasons for feeder markets to be a bit touchy but also there are several reasons why the current slide will not go on much longer and may, in fact, correct a bit in the coming weeks.

The newest and biggest monkey on the market's back is, of course, corn prices, which have jumped up sharper and faster than expected. Corn prices have increased roughly $1/bu in the last month. Huge expectations about ethanol demand in the future coupled with slight reductions in the corn crop estimate have trimmed the projected ending corn stocks level for 2006/2007 to 935 million bushels; a level that makes the corn market begin to seriously ration corn with higher prices. USDA raised their projected annual average corn price by $0.40/bu in the most recent estimates to $2.80 - $3.20/bu for the 2006/2007 crop year.

Along with skyrocketing corn prices, it is the fall of the year, a time for seasonal weakness in feeder cattle prices and this is currently coupled with large feedlot inventories and weak fed cattle prices. Additionally, the drought in the Southern Plains has resulted in generally poor wheat pasture conditions and little demand for winter stockers. The result is weak demand across the board for light and heavy feeder cattle.

So what can change to make it better? First, the fall run of feeder cattle is almost over and the smaller than usual fall run of feeders will be followed by even less feeder cattle to be marketed this winter and spring. There are few cattle on wheat pasture this winter and will be even fewer grazing wheat out next spring, given current wheat prices. Secondly, feedlots will begin to work through the current bulge of inventories in the next couple of months. Regardless of the level of marketings, there is no doubt that October placements were small and will be followed by reduced November placements as well. Feedlot inventories should tighten up considerably by the end of the year and feedlots will again be looking for cattle to feed.

Finally, what about feed prices? Feed prices will be higher in 2007 and feeder cattle prices will be somewhat lower than expected just a few weeks ago. However, corn prices will not continue increasing like they have recently and some of the expectations for the future will be tempered by reality. It will take another crop year to begin to see how crop markets across the board react to the new ethanol demand for corn. Moreover, some of the new corn demand for ethanol may not happen exactly like it is currently perceived. The infrastructure is not in place to facilitate the level of growth now projected. There are already indications of bottlenecks in ethanol plant design and construction. It will likely take longer than expected for some of the new plants to come on line. Transportation issues will be more important as the truck and rail systems deal with unusual product flows and the unique challenges of transporting (not to mention storing) by-product feeds and ethanol.

The drought has kept cyclical expansion to a minimum. Little or no herd expansion in 2006 means that feeder cattle supplies in 2007 will remain tight, especially if drought conditions improve and heifer retention picks up speed next year. Feeder cattle markets are still fundamentally firm. Nevertheless, feed prices loom large on the feeder cattle market radar screen. It may be a bumpy ride and seat belts should be securely fastened but I don't believe feeder markets are falling out of the sky; just hitting some stronger than unexpected turbulence.

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

LIVE CATTLE in Chicago (CME) closed lower on Monday amid surging grain markets and concerns over large meat supplies. The DEC'06LC at $86.625/cwt, down $1.025/cwt. The FEB'07LC closed down $0.725/cwt at $89.625/cwt. Both contracts finished about $1/cwt higher than two weeks ago at this time. Short-run weight gains for cattle on feed will most likely be good until hard weather pulls in. Technical signs of declining 4-day moving averages and the 14-day RSI across most all live cattle and feeder futures dragged on prices. December liquidation also pressured the market lower as traders trimmed positions in the December contract. Additional pressure was provided by funds rolling out of long December positions into the next month. USDA reported the 5-area weekly weighted cash cattle prices at $87-$87.50/cwt, up $1/cwt from last week but off $3/cwt from this time last year. One floor source stated they believe that prices will slip a bit more as larger fed cattle make slaughter. USDA pegged the choice beef cutout at $142.66/cwt, up $0.51/cwt. According to HedgersEdge.com, the average beef plant margin on Monday was estimated at -$17.65/head, down $6.21/head from Friday but up $4.60/head from early last week. Cash sellers are encouraged to keep marketings current pushing them off feeding floors as soon as they are ready. It may be wise to protect a portion of 4th quarter '06 and 1st quarter '07 marketings. Corn users should consider hedging corn inputs at this time.

FEEDER CATTLE at the CME closed down on Monday with the JAN'07FC contract finishing at $97.625/cwt, off $0.875/cwt but about $2.00/cwt higher than two weeks ago at this time. The same high-cost grain markets and surging meat supplies worrying live cattle troubled feeders. Downturns in the 4-day moving average and the RSI across contracts also weighed on prices. The discount of futures to the CME Feeder Cattle index provided little or no support with the CME Feeder Cattle Index for Nov. 23 closing at $100.19/cwt, down $0.26/cwt from last Wednesday's highest point since November 10. Cash sellers are still encouraged to consider protecting a portion of 4th quarter '06 and 1st quarter '07 marketings at this point. Corn users should consider hedging corn inputs at this time.

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.

All educational programs conducted by Ohio State University Extension are available to clientele on a nondiscriminatory basis without regard to race, color, creed, religion, sexual orientation, national origin, gender, age, disability or Vietnam-era veteran status. Keith L. Smith, Associate Vice President for Ag. Admin. and Director, OSU Extension. TDD No. 800-589-8292 (Ohio only) or 614-292-1868

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