At a low in the cattle cycle, Five Rivers Cattle Feeding is betting on heifer development. By opening select yards to replacement heifers, the company aims to fill pens while helping producers develop more females.
The January Cattle on Feed report released last week included the quarterly inventory of steers and heifers in feedlots. Heifers as a percentage of feedlot inventories increased to 38.7%, the highest level in the last year.
Derrell Peel, Extension livestock marketing specialist from Oklahoma State University, says heifers continue to make up an above average share of total cattle on feed and suggest limited heifer retention thus far. USDA will release the cattle report on Jan. 30 and provide data on cattle inventories, including the inventory of replacement heifers.
“Low culling rates have allowed producers to sell more heifers in the last three years, but additional heifer retention is needed going forward just to maintain the productivity of the current low cow inventory,” Peel says.
As producers consider consider cow herd expansion, key expenses to consider are the cost of buying versus the price of developing their own replacements. Lingering drought continues to limit forage availability in key regions while high interest rates and the substantial capital required to develop or purchase bred females further suppresses expansion. Many producers also remain wary of a repeat of the post-2014 market correction, adding a layer of caution. Other key concerns for producers considering heifer retention and development are facilities and labor.
To help producers with the facilities, feed and management details and to fill open pen space, Five Rivers Cattle Feeding is offering a heifer development program. Kim Rounds, Five Rivers manager talent acquisition, says the program grew out of both market conditions and industry stewardship — a way to help rebuild the cow herd.
“We are at an all-time cattle cycle low, and so we have the pen space right now,” Rounds explains. “We’re like a hotel. We operate best when full. The more cattle we have in pens, the better, and there aren’t cattle to be bought right now.”
“We obviously want the cow herd to grow, so incentivizing, encouraging, finding ways for people to retain more heifers is going to be better for our industry in the long term,” she adds.
Five Rivers has 13 locations in six states. They are offering the heifer development program at three locations: Gilcrest Feeders, LaSalle, Colo.; Grant County Feeders, Ulysses, Kan.; and Coronado Feeders, Dalhart, Texas.
What Services Are Provided?
Rounds says Five Rivers development program will include:
- Customized nutrition plans developed by nutritionist to hit optimal body condition score for breeding.
- Professional cattle handling by staff who are BQA trained and certified.
- Health and growth monitoring, including valuable data to help set up heifers for a lifetime of productivity.
The program can be as simple or as full-service as the customer wants.
She explains optional services include:
- Medicine and chute fees at cost
- DNA collection
- Facility use for synchronization, artificial insemination and ultrasound
- EID placement
- Buy back option for heifers that don’t meet replacement standards
- Options for cows and feeder steers
At this time, Five Rivers will not offer artificial insemination services, they will provide the facilities where producers can synchronize and breed.
Pen sizes are flexible.
“We have smaller pens — 50 to 100 head,” Rounds says. “Or we can obviously take up to thousands, depending on how you want to have them sorted out and what groups you want them in.”
Other Program Benefits
Rounds says another objective of the program is building long-term relationships.
“If you’ve ever had an interest in retaining ownership of feeder steers, I think this is a really safe way to get a taste of what that looks like,” she explains.
If there are heifers in the development program that don’t meet the producer’s performance or breed, Five Rivers will buy them.
“If you decide I don’t want to keep them, I didn’t like their performance, we will buy them back and put them on feed as feeders,” Rounds says.
She acknowledges the emotional and financial leap producers make when they hand cattle over to someone else to manage.
“That’s your livelihood that you have in somebody else’s hands, but our teams are amazing, and they’re super specialized,” she notes, explaining Five Rivers has dedicated staff for pen riding, feed delivery, facility maintenance and to support animal health and nutrition.
What Are Some Key Questions About the Program?
Rounds says there has been two key questions from producers interested in the service.
“I think the biggest concern is that we’re going to get them over fat and mess up breeding,” she says.
She counters these concerns emphasizing their specialized nutrition expertise and cost competitiveness.
“We have two phenomenal nutritionists, and they understand the requirements for a feeder steer getting fat and a heifer going back to breeding are going to be very different, so they’re going to custom build a ration for the heifers,” she explains. “The next is cost, and we’re pretty competitive on yardage. And if you are going to have to feed cows over the winter anyway, it’s going to be really good.”
To learn more about the program, call 970-408-0174 or visit fiveriverscattle.com.
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