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Bill Helming to Speak at Grassfed Exchange

CATEGORY: Announcements | Permalink | Posted on: May 23rd, 2013

The 2013 Grass Fed Exchange Conference, to be held in Bismarck, ND on August 20-22, will feature Bill Helming as one of our keynote speakers.  Bill has been forecasting U.S. and global macroeconomic trends for more than 40 years and is highly respected in the agricultural industry.  He was the first Chief Economist for the National Cattlemen’s Beef Association (NCBA) and the Founder and General Manager of “CattleFax”, a highly respected national database, market outlook, and research analysis organization.  Bill is now the Principle of Bill Helming Consulting Services, and as a farm and livestock economist, produces quarterly Ag Sector outlook reports titled, “As I See It”.    Bill recently authored a book on the U.S. economy titled, “What Goes Up Eventually Comes Down”. 

This week I sat down with Bill and talked with him about the current status of the U.S. Beef industry, developing economic trends, and his planned presentation at the Grass Fed Exchange Conference.  He shared some excerpts from his analysis of the protein sector, pointing out some basic beef fundamentals.  Bill stated that from the 1970’s to 2012, per capita beef consumption has declined almost 33% or 28 pounds per person.  According to his statistics, “If we look at 1970, ground beef made up 40% of all beef consumed.  In 2012, ground beef made up 58% of all beef consumed in the U.S.  That is a 45% increase in ground beef consumption by the consumer.  As a comparison, per capita chicken consumption has increased more than 126% over the same time period with each person consuming 45 pounds more chicken annually.  Chicken and ground beef are the only two proteins that have per capita increases over that time period.”  He went on to say that the primary reason consumers are purchasing more ground beef is because of price or affordability. 

Currently, 25% of all ground beef consumed in the U.S. comes from cull cows and bulls, 15% from imported trim, and the remaining 60% from fed cattle.  Bill stated that, “…the U.S. Beef Industry is a one trick pony and needs to do a much better job of paying attention to what consumers want”.  He said that the industry needs to be at least a “three trick pony”, developing distinct production and finishing models that more accurately reflect and meet consumer demand.  This would involve moving the industry in three or more directions.  The first would be moving the status quo feedlot industry towards exclusive production of high quality beef centered on the primal market.  Secondly, to take advantage of the fact that current feedlot capacity is averaging 60-65%, feeders could start finishing some cattle on high roughage rations using predominantly silages, Dried Distillers Grains (DDGs), Triticale, and similar feedstuffs, to a relatively lean endpoint and target the ground beef market with this lower cost product.  Third, producers could finish cattle exclusively on forages and stored forages to produce a 100% grass fed beef that targets both the consumer looking for a “differentiated beef product” and the consumer looking for affordable lean ground beef. 

Bill also said that the current USDA Beef Quality Grading system is severely outdated and has led our industry down the wrong path.  He said, “The current grading system has set the tone and rules for every animal going through the system and we need to let the market determine what type of beef we need to produce instead of blindly conforming to some artificial system”.  He went on to say that he will present the details of his “three trick pony” beef industry model at the upcoming Grass Fed Exchange Conference. 

I asked Bill about trends in cattle size and efficiency and he stated that the industry is still fixated on cattle that are predominantly frame score 6.0 or larger.  He stated that, “Today, 90% of all cattle going through the feedlot are a frame score of 6.0 or greater and have average Dry Matter (DM) conversions of 8.5 pounds of feed consumed per every 1.0 pound of gain.  However, for the 10% of cattle that are frame score 5.0 or less, Dry Matter conversions are averaging 5.0 pounds of feed consumed to 1.0 pound of gain”.  Bill pointed out that this one simple change in cattle selection could significantly lower the beef industry costs of gain (COG) and total cost of production (COP).  He said that, “Beef producers are famous for locking themselves into high costs of production and I will be quoting Kit Pharo often in my presentation”. 

In summary, I asked Bill why someone should attend the 2013 Grass Fed Exchange Annual Conference?  He stated that, “If you are in the beef production business and are interested in the future of that business, this will be a great opportunity to learn how the industry can move forward and how you can be not only a survivor, but a winner in the new, evolving beef industry”.  He cautioned that, “If the current industry stays on its course of one size fits all and one superhighway, and continues to ignore the consumer and their purchasing power, then the beef industry could go the way the lamb industry did years ago”. 

To hear more from Bill Helming, register for the 2013 Grass Fed Exchange Conference in Bismarck, ND on August 20-22 at www.grassfedexchange.com.  We will see you there! 


Mimic The Bison: Create a River of Cattle

CATEGORY: Announcements | Permalink | Posted on: May 23rd, 2013

Texas ranchers Emry Birdwell and Deborah Clark are pushing the limits when it comes to stocking capacity for their native rangeland. But the payoff is hard to question. Not only are they producing more pounds of beef per acre, but when weather cooperates, they are also covering bare spots in rangeland with grass.

The Birdwell and Clark Ranch is an all-steer operation. The couple start buying cattle late in summer, looking for calves that average 400 pounds. As they move into the fall months, they shift to 500-pound calves and then to 600-pounders in the spring. An order buyer works for them at the auction barns, purchasing grade Number 1 1/2 cattle that these ranchers can upgrade to a lower Number 1. If rainfall and grass allow, most will be grown out to around 800 pounds by the time they are sold in midsummer.

PLAN THE ROTATION

The husband/wife team bought and began breaking their Clay County ranch into small pastures for rotational grazing in 2004. They gradually divided 12,500 acres into 125 permanent paddocks with 12 1/2-gauge, high-tensile electric fencing. They further split paddocks using electrified polywire. The more paddocks, the longer the rest period each has after it has been grazed. Depending on the year, a paddock may rest 60 to 120 days before it is grazed again.

In spring and early summer 2012, at the high point of grass growth and cattle numbers on the ranch, they gradually accumulated and then rotated a single herd of nearly 5,300 stocker steers through these parcels. These weren’t weekly, or even daily, rotations, but two or three times a day. When it became obvious the drought would continue, they began selling steers. All of them were off the property by July 20 to prevent damage to the range.

STAY FLEXIBLE

“In past years, some of our lighter cattle went into fall,” Birdwell said. “The trick is to not get locked into one set program. When the grass gets better, we start adding cattle. When it gets worse, we take cattle out. We look at all variables. It’s been dry, and apparently it’s going to stay that way from what the long-term forecasters say. In 2012, we started buying earlier. We’ll probably stop carrying these cattle so long and stockpile more grass in late summer.”

Under normal conditions, the cattle eat and move, eat and move, eat and move — depositing their manure and churning the soil surface with their hooves. This mimics the way bison grazed on this native tall-grass prairie in days gone by. Little and big bluestems, Indiangrass, sideoats grama, switchgrass and other warm-season grasses, along with a little winter grass, are improved when encouraged by rains. But unfortunately, that wasn’t the case through 2011 and 2012.

OPEN THE FLOODGATES

Their grazing system requires Birdwell, Clark, or an employee to arrive at a pasture about 7 a.m. every day. The cattle are usually waiting at an electrified wire gap separating the paddock they just grazed from the one they are about to enter. The gap is opened and a river of cattle comes streaming through en masse, hungry for new grass. Like clockwork, the same scene greets the ranchers at noon and then again at 5 or 6 in the evening.

Some experts say this bison-like movement may be just what this native range needs. There is short-duration grazing and concentrated hoof action, followed by a very long rest period until the next grazing. This is the type of natural movement that evolved under range conditions, and it’s still viable today.

Until the dryness of early 2011 settled in and became a historic withering drought, large bare spots on the range had begun to fill in with grass. When encouraged by rainfall, Birdwell pushed pounds of beef produced per acre to more than twice the average for this area.

“We’re producing 120 to 125 pounds per acre, and normal for Clay County is no more than 50 pounds,” Birdwell said. “Whether it rains or not, our pounds per acre have improved. Our best year ever for gain was 2012.”

The rancher doesn’t feed any hay, although he does feed a 20% protein corn gluten cube as a supplement all year. How much of the supplement he uses is determined by the quality of grass.

WORK ON WATER

All pastures are fenced into cells connecting at a hub, with a pond or lake at the center as a water source.

“When we first got here, we added 14 tanks [ponds] and cleaned out a lot of other ones,” Birdwell said. “Now we’re setting up a pipeline system to pump water where we don’t have any.

“There are no wells here,” he added. “All the water comes from runoff into lakes and tanks, and the more grass you grow, the less runoff you have. Now we can pump water to lakes and tanks that are dry. In this kind of system, you run out of water before you run out of grass.”

In fall 2012, the couple bought steers to take advantage of fall-planted wheat fields they leased from other ranchers and farmers. But continuing drought nixed most of the wheat. They were only able to place 1,000 head on the fields and waited till early winter. Meanwhile, they had 3,400 stockers on stockpiled native grasses. Plans are to hold off on any more cattle until weather patterns improve.

“It’s going to have to rain,” Birdwell said. “With our moisture situation, I can’t see adding more.”

If grazing systems were compared to sports, the one in place at Birdwell and Clark Ranch would be an Olympic-level contender.

“It is the top of the chart,” said Kent Ferguson, Natural Resources Conservation Service Texas state rangeland management specialist. “This system will deliver results in all aspects, provided you keep your head in the game and do not stay too long with too many head. Not everybody can do what is happening on this ranch because not everybody has the skill and desire to make it happen.”

Original PROGRESSIVE FARMER article


Premier Iowa Hay Grower Discovers Soil Health with No-Till Alfalfa

CATEGORY: Announcements | Permalink | Posted on: May 20th, 2013

Adair County farmer Dennis Lundy began no-tilling alfalfa hay for the first time five years ago to prevent soil erosion on his rolling, highly erosive Shelby soils. Now, he is not only reducing soil erosion but also improving his soil health and achieving better alfalfa stands.

Lundy, who farms north of Fontanelle, is considered one of the premier hay growers in western Iowa. He grows about 1,300 alfalfa acres per year, and rotates another 500 acres of corn, soybeans and winter wheat into his system. He markets hay primarily to dairy producers across the Midwest, but also supplies beef feedlot producers closer to home.



Even though alfalfa takes a lot more management than corn and soybeans, Lundy says it has been more profitable for him throughout the years. “Once you get started with alfalfa, success is measured by how you do your job. It’s not like the Board of Trade is determining your price,” he said. “If I do a good job managing the alfalfa, I’ll get a good price for it.”

Lundy has no-tilled all of his corn and soybeans for nearly 30 years, but until five years ago he felt it necessary to till the soil before seeding alfalfa. “It just dawned on me that we had the perfect seedbed before we ever took the tillage tool to the soil, and then we just messed it up,” said Lundy. “We’ve had better stands of alfalfa since we started no-tilling than we ever did before.”

By managing crop residue and eliminating soil disturbing activities, farmers often benefit from better plant growth, reduced soil erosion, increased profit margins, and even better wildlife habitat. “I realized I wasn’t going to get the full benefits of no-till until I went completely no-till with alfalfa,” said Lundy.