3 Considerations for Retained Ownership

Farm Journal logo

Cow-calf producers have a number of factors to consider when weighing the decision of retained ownership.

Here are three tips to keep in mind when it comes to retaining ownership:

1. Feedlot Relationships

The key word in looking for a feedlot to partner with is “relationship” says Josh Maples, assistant professor of agriculture economics at Mississippi State University. “The first thing that I talk to a producer about whenever we’re talking about retained ownership is trying to build a relationship with a feeder.” A cow-calf producer needs to do their homework prior to entering discussions with a feedlot and also talk to other people who have done business with a feeder they are considering. “That relationship to me is one of the most important things, and just making sure you feel comfortable with where you’re sending your cattle.”

 

2. Don’t Get Complacent

Marketing decisions shouldn’t be made just because that is how you’ve always done it. “I think it’s always worthwhile to assess decisions because the circumstances are changing in these markets,” says John Nalivka, president of Sterling Marketing. A producer who may traditionally retain ownership might want to reevaluate things if the cattle market is taking a dive during a particular year. The same applies to someone who markets calves after weaning and the market is rallying.

 

3. Capture Value for Your Cattle

For producers who don’t have cattle that can be marketed through branded beef or natural programs there isn’t much potential for profitability with retained ownership, says Derrell Peel, Oklahoma State University Extension economist. “But if you can identify and tap into one of these value added programs, then certainly feeding out quality cattle can work.” Peel adds that the cattle market tends to shoot for average and cattle producers can get rewarded aiming for the top. “Sometimes the only way to capture the value of the cattle you have in their potential is to realize that potential yourself by feeding them out.”

 

Latest News

Biden Administration Restores Wildlife Protections
Biden Administration Restores Wildlife Protections

The U.S. Fish and Wildlife Service plans to reinstate rules protecting endangered plants and animals, action that would reverse changes made during the Trump Administration that weakened the Endangered Species Act.

Across Breed EPD Adjustment Factors
Across Breed EPD Adjustment Factors

EPDs from multiple breeds can be compared by adding/subtracting the appropriate adjustment factors to the EPDs resulting from the most recent genetic evaluations for each of 18 breeds.

APHIS Now Thinks Wild Birds Are to Blame for Highly Pathogenic Avian Influenza's Arrival on Four U.S. Dairies
APHIS Now Thinks Wild Birds Are to Blame for Highly Pathogenic Avian Influenza's Arrival on Four U.S. Dairies

The livestock industry continues to grapple with the first confirmed cases of HPAI in cattle, while federal and state agencies continue to assure consumers there's no concern about the safety of the U.S. milk supply.

Skills Survey Reveals U.S. Agriculture & Food Industry Workforce Needs and Gaps
Skills Survey Reveals U.S. Agriculture & Food Industry Workforce Needs and Gaps

U.S. employers report challenges in finding suitable job candidates with work-ready skills to fill open roles in ag. The AgCareers.com U.S. Skills Survey offers insights, data and trends to address skill development.

USDA Authorizes CRP Graze and Hay Donations to Wildfire Victims
USDA Authorizes CRP Graze and Hay Donations to Wildfire Victims

Conservation Reserve Program (CRP) participants can donate emergency grazing authority to ranchers in Nebraska, Oklahoma and Texas impacted by recent wildfires.

New Guide Helps Producers Maximize Values of Cull Cows
New Guide Helps Producers Maximize Values of Cull Cows

A new resource developed by the National Cattlemen’s Beef Association and CattleFax helps cattle producers maximize profitability from their culling decisions.