Damona DoyeSarkeys Distinguished Professor and Regents Professor, Oklahoma State University

Roger SahsExtension Assistant, Oklahoma State University

Larry FalconerProfessor,Texas AgriLife Extension Service

Minimum temperature: -31°F, Nowata, 2/10/11 Number of days with temperature 100°F or higher:

101 days, Grandfield Warmest summer(June-August): 86.9°F, Statewide

average 24-hour snowfall: 27 inches, Spavinaw, 11 PM , 2/8/11

to 11 PM 2/9/11 Wind gust: 151 mph, El Reno, 5/24/11 Hail stone diameter: 6.0 inches, 2 miles north of Gotebo,

5/23/11 Lowest annual total precipitation: 6.2 inches, Hooker

2011producer meetings◦ Drought management strategies◦ Decision support tools

Evaluation of drought impact Extension educator training

Reinvesting in the beef industry Lender workshops 2012 producer meetings

Numerous meetings around the state…. Feeding/hay strategies Pasture management Hay issues: nitrates, prussic acid and

aflatoxin Livestock water quality Culling strategies Potential economic outcomes associated

with choices, including tax repercussions

IFMAPS (Intensive Financial Management and Planning Support)

Beefextension.com, Cow/calf, Calculators◦ Early weaning decision aid◦ Repurchase decision tool◦ Sell cows now or later◦ Cow bid price estimate calculator◦ Enterprise budget software

Factors to consider: Cost per day if I keep the cow Current sale value of the cow How long will the difficult environmental

conditions last Cost of replacement in the future Time value of money Tax issues

Cost per Day to Maintain Cow ($)

Days till repurchase

$2.50 $3.00 $3.50

Jan 2012 150 $395 $470 $544

May 2012 270 $716 $851 $987

Aug. 2012 370 $985 $1,170 $1,355

Assumes 5% time value of money

Example: Your maintenance cost per day is $3 and you think May 1 is a reasonable repurchase target date. If you think the sell–buyback spread will be less than $851, you should sell and buyback.

Commodity Loss Estimate

Crops (grains, hay, soybeans, cotton)

$904,954,000

Specialty crops $ 11,156,000

Horticultural crops $ 81,836,000

Total crops $997,947,000

Acreage loss of approx. 100% Corn, soybeans, grain sorghum, alfalfa, other hay

Reduced calf value $135,000,000

Lost pasture production $153,200,000

Reduced winter stocker/forage $88,000,000

Additional feed costs $291,300,000

Total livestock loss $667,600,000

Estimated total head sold 250,000 – 300,000

Eastern and Western OK Market outlook Reinvesting in the beef herd

◦ Rebuild slowly using stockers◦ Rebuild fast buying cow/calf pairs◦ Rebuild with leased cows

Risk management tools Farm transition program options

6 sessions around the state addressing: Market outlook Reinvesting in the beef industry Risk management tools Farm Service Agency guaranteed loan

options Bank examiner perspective

Market outlook Reinvesting in the beef industry Tax choices Pasture recovery management

Net Present Value of the Investment

Cow Operating Cost per Year

Cow/calf Purchase Price

$550 $600 $650

$1,750 $688 $332 ($19)

$2,000 $428 $67 ($284)

$2,250 $152 ($199) ($550)

www.beefextension.com under Cow-calf, Calculators, Cow Bid Price Estimate Calculator

SAEA symposia may lead to Choices article◦ Choicesmagazine.org

Work on NCFMEC livestock leasing publication

Work on additional software tools◦ Forage

More producer meetings…◦ Livestock leasing◦ Quicken for farm financial records◦ Farm transitions