KRIRM 2024 Fall Newsletter by king-ranch-institute

FFrom the Director

Dr. Rick Machen Executive Director; Robert J. Kleberg, Jr. and Helen C. Kleberg Endowed Chair

Sustaining Business in a Rapidly Changing Beef Industry

all is an exciting time of year – much welcomed cooler weather is just around the corner, hay season is coming to a close, fall cattle works will soon commence, and students are returning to campus.

We welcome incoming KRIRM students Mason Dahl, Carson King, and Ben Wurz. You will learn about them later in this issue. When you next attend a KRIRM or ranching industry event, take the opportunity to visit with them and the cohort that will be graduating in May of 2025 (Nate Edwards, Seb Killpack, and Paul Quin).

Speaking of our students… the TAMUK H.R. Smith Ranch continues to afford real-world learning opportunities. In early September, they were involved in fall work at the ranch, weaning calves and preg checking cows via ultrasound. The two management teams (three students per team) reported their progress on developing a calf marketing plan/contract and alternatives for managing open cows. The calf marketing team met with prospective buyers to negotiate a contract. The cow management team will deploy their model to identify the most economically beneficial management option for the open cows. If you are interested, stop by; they would be happy to discuss the projects with you.

These are interesting times for the beef industry. The US beef cow herd is the smallest it has been since 1962. Weekly market cow and bull harvest numbers continue to shrink while consumer demand for beef, be it steaks or hamburgers, remains strong. According to supply and demand theory, when demand remains constant or strengthens while supply shrinks, prices rise. Record-high feeder and fed cattle prices and rising replacement female prices are the result.

However, record-high prices do not necessitate record profits. Sharp rises in production costs have consumed an appreciable amount of the increased revenue. Media discussions blame the higher cost of living on rising food prices and often single out beef as a contributing culprit. If beef industry profits were record-high, the US cowherd would be expanding again, feedyard pens would not be vacant, and packers would not be reducing daily harvests and leaving shackles unoccupied.

Several years ago, CattleFax CEO Randy Blach told a group of beef producers, “Never again will the pace of change be this slow.” Technology is hastening the pace for production agriculture; we have more real time reliable information with which to make and deploy management decisions than ever before. Producing food and fiber is a rapidly changing business. As the pace of business quickens, exposures will surface with less time to react. Identifying and preparing for risks will be essential for sustaining the business.

Continued on page 6

700 University Blvd., MSC 137 Kingsville, TX 78363

361-593-5401

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krirm@tamuk.edu

krirm.tamuk.edu

Rick Machen, PhD, Executive Director; Robert J. Kleberg, Jr. and Helen C. Kleberg Endowed Chair Emily Stribling, Editor

MANAGEMENT COUNCIL

Chair: John Alexander, Jr., King Ranch, Inc.

James Clement, III, Beggs Cattle Company

Caroline Alexander Forgason, Robert J. Kleberg, Jr. & Helen C. Kleberg Foundation

Heath Grigg, King Ranch, Inc.

Jeff Hildebrand, Hilcorp Energy Company

Rick Machen, PhD, King Ranch® Institute for Ranch Management

Jim McAdams, McAdams Cattle Co.

Bob McCan, McFaddin Enterprises

Shad Nelson, PhD, Texas A&M University-Kingsville

Clint Richardson, Ag Reserves

Jason Van Tassell, Wilson Cattle Co.

Neal Wilkins, PhD, East Foundation

the Cover

Fall 2024, Volume 20, Issue 1

2 | Sustaining Business in a Rapidly Changing Beef Industry Updates for KRIRM and the beef industry ‒ preparing for risks will be essential for sustaining the business.

4 | New Students Investing in the Future of Their Careers KRIRM Class of 2026 begin their graduate school journey.

7 | Education & Innovation

The hidden costs of deferred maintenance.

10 | Sustaining Smaller Ranch Businesses

Do not equate “small” with insignificant or unimportant. Sustaining the business requires keeping up with the changing times.

13 | 21st Annual HOLT CAT® Symposium on Excellence in Ranch Management ‒Reducing Exposure in a Rapidly Changing Business

The 2024 Symposium will be delivered in-person and online.

14 | Rancher Learning Opportunities 2025 KRIRM Event Schedule

Our Mission

Sustaining our ranching heritage through education, innovation, and outreach.

Our Vision In this Issue

We are determined to educate leaders who will make a positive difference in ranching and ensure that our hard-earned heritage is not lost.

Investing in the Future of

New Students Their Careers

By Emily Stribling

At the King Ranch® Institute for Ranch Management (KRIRM), we teach experienced ranchers to become progressive leaders and exceptional managers. Three new graduate students – Mason Dahl, Carson King and Ben Wurz – join the ranch management master’s program this fall and begin their journey toward advancing their careers in the ranching industry. They look forward to gaining insight into the business-side of ranching while learning from hands-on experiences and leaders within the industry.

MASON DAHL

Dahl is a proud, seventh-generation American cattleman. He was born into the ranching lifestyle; “My dad did turn-around business for ranching and developed a three-year, three-phase program to accomplish that. As a result, my childhood and teenage years were spent in various parts of Idaho, Nevada, Montana, Utah and Oregon.” From a young age he was exposed to different operation styles across the cattle industry. “I really loved the big country that I experienced during this time as well as the traditions that I got to learn,” expressed Dahl. One of his favorite learning experiences was growing and managing his personal cattle herd from a single bred heifer purchased at the age of nine to a 75-pair operation by the time he graduated college.

Dahl attended a semester at Colorado State University studying animal science before serving a mission for The Church of Jesus Christ of Latter-day Saints in Romania. Upon his return he was working for a ranch in Southern Idaho that was part of a vertically-integrated branded beef program. When COVID-19 hit he began noticing a serious shortage at the meat counter as well as inflated prices. “The shortage didn’t make sense because we had the supply,” states Dahl. He and his brothers decided to form ILS Meats as a solution to sell and distribute beef at a fair price throughout the community. “These opportunities and

experiences have taught me a lot, chiefly honesty and integrity,” reflects Dahl. With a newfound interest in strategic management and realworld experience, he returned to college in 2020 at Brigham Young University, graduating from their Marriott School of Business’ Strategic Management program in 2023. Upon graduation, Dahl began working at a startup packing plant, Intermountain Packing LLC, as the Business Operations Manager.

Dahl hopes to marry his strategic management background with his passion for ranching at KRIRM.

While Dahl enjoyed the projects and consulting experiences he had in business school, he longed to focus on the agriculture and beef industry as opposed to tech and finance. “While working at a summer internship with alumnus Jason Van Tassel [’12], I realized that I could marry those two loves at the King Ranch® Institute for Ranch Management.” He has since relocated to Kingsville, TX with his wife Sierra and over the next two years he hopes to apply the strategic management and business practices he has already learned to ranch management. “I have seen a lot of the industry, but want to go deeper and understand the implications of structured problem solving and how it applies to each segment of the industry,” states Dahl. His long-term goal is to manage large ranches while helping develop cattle and equine programs to diversify and increase profits with hopes of eventually consulting for other ranches as well.

CARSON KING

Raised in Dillon, Montana on a cow-calf stocker operation, King has been involved in ranching his entire life. Every summer he and his brothers worked on the ranch alongside their father. “The ranch facilitated a place to learn and grow in an environment that was challenging. As the ranch strived for perfection in a sustainable way, we were able to be observers and participants in a very productive system,” recalls King.

King and his wife Shiley enjoy being on the ranch as a family with their two children Quincy (3) and Carter (1).

King graduated from Brigham Young University-Idaho in 2021 with a degree in Agricultural Economics. While attending college he had the opportunity to intern for Deseret Cattle and Citrus (DCC) in Florida where he returned to after graduation as a full-time employee in their leadership program.

“I learned the power of different leadership styles, how to live in a budget, manage a crew, manage grazing, and the value of economic diversity,” states King. Since the start of his time at DCC in 2021, he managed the day-to-day production side of three different units of the ranch; a commercial cow-calf unit, a heifer development unit and the grow yard. Each unit allowed him the opportunity to manage a variety of full-time employees, day workers, and interns while also gaining exposure to different sectors of the industry.

King was interested in pursuing his masters at KRIRM even before starting his college career. In 2017, alumnus Hank Willemsma [’18] became manager of the Matador Ranch, a neighboring ranch to where King was raised. “After learning about his story and how he was propelled in his career by the Institute, I was intrigued and tried to create my own path to KRIRM.”

KRIRM alumni often talk of the expansive professional network they gain as a student. During his time at the Institute, King strives to continue that experience, “I would like to create a network of good people that I can look up to and council with when problems arise in my future career.” With business acumen in mind, he also hopes to develop the analytical skills necessary to

WHAT CHALLENGES DO YOU SEE IN THE FUTURE?

Each year we ask the incoming KRIRM students what challenges they see in the future of the livestock and ranching industries and if there are any solutions they would suggest?

“There is a lot of volatility and risk in the beef system. In order to overcome this, cattle producers need to diversify their income sources, as well as effectively manage herds and land to increase the efficiency on a per head basis. We have seen the needle moving in this direction over the years, but with more advanced technologies and innovations, we will be able to even more effectively leverage our standings in the markets. Additionally, there are a lot of opportunities for producers to market their cattle in unique ways.”

– Mason Dahl

“A challenge I see in the industry is the ability to work together as ranchers to pass and strike down legislation to protect this way of life. I would suggest continuing to support state and national cattlemen’s associations, as well as sharing a story of good stewardship with those we meet.”

– Carson King

“Some challenges I do not yet have a solution for include: loss of land and water to urban development, decrease in grazing on public lands/lack of support for existence of public lands and trying to keep up with ever-increasing input costs while producing a quality product.”

– Ben Wurz

New students (left to right): Mason Dahl, Carson King and Ben Wurz

generate concise and accurate reports of ranch progress as well as hone his ability to evaluate financials and implement changes that make the difference in being profitable.

When asked what his long-term goals are King states, “I would like to be in the ranching industry where I can be challenged doing what I love, while working with good people and raising my kids in a way that they can succeed. I feel the Institute will allow me to take my career, and ultimately my family, to a higher plane.”

King and his wife Shiley, who works for a marketing agency, have been married four years and enjoy riding and being on the ranch as a family. They have two children Quincy (3) and Carter (1).

BEN WURZ

Wurz grew up in Fort Collins, Colorado surrounded by agriculture but not directly involved in the industry. “I always have a hard time answering what made me interested in the cattle business,” states Wurz. “I often joke that it boils down to ‘I like cows.’” He decided to further lean into his interest earning a bachelor’s degree in Animal Science with a minor in Agricultural Economics at Colorado State University in 2014. However, it wasn’t until he began cowboying post-graduation on a range cow operation in Southeast Wyoming that he truly realized his desire to follow a career path in ranch management. “The ranch was very well-run and the manager has continued to be a mentor to me throughout my career,” reflects Wurz. From that experience he progressed on to a herdsman position on a registered Angus operation near Livermore, Colorado, a foreman for Lasater Beefmaster in Matheson, Colorado and finally a herdsman/ permit rider and later cowboss on a high-altitude cow-calf and

Sustaining Business in a Rapidly Changing Beef Industry Continued...

The theme for our annual Holt Cat® Symposium on Excellence in Ranch Management (November 7-8, 2024 on the Texas A&M – Kingsville campus) is Reducing Exposure in a Rapidly Changing Business. The agenda is included on page 13 of this newsletter. I encourage you to take a look at the discussion topics and the exceptional slate of speakers who have agreed to lead those discussions.

Finally, thank you to those of you who are participating in our Ranching Legacy Program. The generosity of these annual gifts directly support student learning opportunities. To learn more about the program, type KRIRM in the search engine of your choice, then click on the giving tab. https://krirm.tamuk.edu/giving

backgrounding operation in Monte Vista, Colorado where he worked since 2018.

Wurz strives to enhance his financial skills while extending his professional network at the Institute.

Wurz came across KRIRM while attending a National Cattlemen’s Beef Association convention during undergrad. “After watching some mentors get passed over for upper-level jobs as they aged, I decided the Institute would be a good longterm investment for my career,” he states. Over the next two years he hopes to become a more well-rounded manager enhancing his financial skills while also making the most of his experience learning from those around him and gaining an extended professional network. Long-term his goal is to be a working manager for an operation that allows him the ability to integrate his passion for breeding and genetics.

“As I’ve progressed in my career, I’ve realized that I would prefer to do any job from a horse and that I seem to be drawn to the mountains and the desert,” he states.

Wurz has relocated to Kingsville, TX with his partner Rebecca, a sixth-grade teacher.

Our annual Holt Cat® Symposium on Excellence in Ranch Management will be held November 7-8, 2024; Reducing Exposure in a Rapidly Changing Business

Education & Innovation

The Hidden Costs of Deferred Maintenance

By Dave Delaney

There are few industries that compare to agriculture from the standpoint of being at financial risk to two major factors over which we have no control, weather and markets, but that can most often affect our profitability. From the rancher’s perspective, especially cow-calf operators, these factors can be particularly acute. Unlike the other segments within the beef industry, and as relatively high fixed cost operators, there are only a few instances where overall margins such as replacement heifer or bull purchase costs, can be significantly lowered by the cost of replacement livestock such as stockers or feeders. While diversification can help maintain the financial sustainability of our ranch, we are driven by economics to maximize efficiency and production within our livestock operations, while still sustainably stewarding our natural resources. Only in the direst situations, such as drought or Black Swan type events, are we not rewarded by sustainably maximizing our animal units.

While recent markets, and those in the immediate future, have and may give us some breathing room to “catch up” on some much-needed repairs and infrastructure capital needs, we must remain ever cognizant that the lowest unit cost of production operators are most often also the most profitable. We must remember that record prices have also been accompanied by record inflation, and that it is as important now as it ever has been to be cognizant of wisely managing our resources.

Deferred maintenance/repair is most often penny wise and dollar foolish, as it can have very long-term costly results.

Most profitable operators take pride in managing their costs effectively. In addition, they try to maintain a “culture of excellence,” visible by both outsiders and employees, by keeping their ranches in a reasonable state of repair. This level is often determined by not only basic operational needs, but also the desires of ownership. Despite this, for profit ranch managers need to make wise decisions as to where and how their available capital is invested.

While successful ranch management is as much an art as it is science, too often we adjust to short term economic circumstances by putting off decisions on the things that are most under our control. While capital improvements are often delayed, whether wisely or otherwise, this article will mainly focus on the costs of deferred maintenance. To a large extent, this could be expanded to include repairs as well. Examples might include wells, pipelines, roofing, chutes, etc..

The consequences of delaying maintenance or repairs has been discussed or thought about by most ranchers many times in the past, but those of us at KRIRM thought a short discussion would be valuable in heightening awareness. Many studies in other industries have shown that in the most serious cases, overall long-time costs can be increased by 10 to 30-fold. All of us know the primary needs, and the infrastructure that drives profitability, of our own operations. The prioritization of what we “most need to do” vs. “what we want to get done” should be addressed by allocating money and labor to the extent feasible to continue an efficient, high-quality operation.

Deferred maintenance/repair is most often penny wise and dollar foolish, as it can have very long-term costly results.

EFFECTS OF DEFERRED MAINTENANCE:

Risk to employee and livestock health and wellbeing.

Liability ‒ both internal and external.

Compromised or shortened longevity/effectiveness of assets, repairs become replacement.

Higher ongoing maintenance and repair costs in the future caused by cutting corners.

Reduced production of both livestock and employees.

Low employee morale, likely increased turnover.

Total and devastating system failures in the most severe instances that cannot be immediately rectified.

Management that focuses more on crisis management than production and efficiency.

Devaluation of the property.

A needed change in culture that is difficult to turn around.

Ownership dissatisfaction with management (w/o assigning blame) due to failure to achieve mission and goals.

Increased costs and loss of revenues both short and long-term.

I am sure all of you reading this article can relate to some extent to specific examples of the items listed above. However, whether managed on site by ownership, or by a professional manager, there needs to be constant communication between the parties as to primary objectives and the likely sources of the greatest and most impactful risks to the operation. While time will not allow me to deep dive into specific examples, both ownership and management can guard against these risks by implementing practices detailed in the paragraph below.

Regular written maintenance schedules of all rolling stock and equipment should be kept. Many software programs are available which allow ownership and management to keep up with this, but simple spreadsheets can also accomplish what is needed if performed diligently. Annual or biannual reviews (at a minimum) of these records should be done, as should inspections of all facilities. For example, although not exhaustive, a minimum should include housing, barns, working pens, fences, gates, water wells (windmill, solar, electrical), pipelines, etc. A copy of the inspections and maintenance schedules should be kept both electronically and, in the shop or barn where it is readily available to all employees. In addition, a simple white or chalk board in areas where employees gather can communicate these priorities. In addition to maintenance schedules, there should be a policy whereby any facility or equipment which is going to be used near-term should be inspected prior to use. Example: although it has been a few

months since they’ve been used, have working pens and chutes been inspected and prepared for the marking and branding scheduled for next week? In many cases a simple chalkboard in the saddle barn or shop can keep everyone focused as to the tasks on hand.

Any ongoing program is doomed to failure if it is not thoroughly understood and communicated to ALL employees. In addition, responsibilities and accountability should be clearly stated in the job description or by whatever means the ranch deems necessary. While experienced managers know this intuitively, the old “trust but verify” doctrine of Ronald Reagan holds true in this instance. To ownership we would say, some maintenance/repair expenses should be held sacrosanct once budgeted, and some allowances should be made for those unforeseen and not budgeted. These “unforeseen” circumstances (which are significant not merely wear and tear) should be researched by management as to cause and communicated to ownership. This, in itself, can be a fruitful exercise for many reasons.

Too often budgeting becomes merely a historical exercise based on what it cost last year and what is a reasonable escalator? Good inventories of equipment, rolling stock, facilities, etc. (together with inspections) can help point out issues needing to be addressed. The accuracy of budgets, at least on the expense side, should grow with experience, and good budgeting should become more accurate with time. Ownership, if other than management, without micromanaging, should set some budget variances which are acceptable by category. Also, it is often helpful to conduct semi-annual budget analyses and forecasts midyear to help reduce (notice we didn’t say eliminate) surprises and build trust amongst the stakeholders. Although unfortunate, recognize that budgeting for these unforeseen circumstances is difficult, but necessary. Some historical review as to where you’ve failed to properly budget in the past can be useful here, as well as cognizance of the state and age of the current equipment and facilities.

While not explicitly addressed in this article, brush management and pasture maintenance or other fertilization and/or herbicide treatments can be very crucial to long-term financial success, and protection of the initial or ongoing investment in the ranch. To the extent these practices contribute to the overall operation, they need to be viewed as a “resource right” and inviolable if possible. Furthermore, regardless of mission and goals one of the mistakes we have often seen is “overinvestment” in depreciable assets for reasons other than “what we need” to get the job done. The only compromise ownership should make in initial cost should be making sure the materials used will cost effectively promote

reduction in maintenance and repairs, and/or the longevity of the asset. Appropriate repairs and investments suitable to the environment in which you operate can also play a key role in reducing maintenance costs as well. For example, you probably shouldn’t build pipe pens next to a saltwater inlet, or neglect to put in disc lines around your pens or fences when wildfires or prescribed burns are experienced on a regular basis. Can pipelines be used in lieu of additional water pumping facilities based on output and costs? Frequently people budget for additional capital assets, but don’t budget for the appropriate accompanying increases in repairs and maintenance that are incurred over time.

In closing, it is difficult to set priorities for all ranches given their individuality. However, you do know your highest risks. Generally, these might include electrical and plumbing (including livestock watering) facilities, boundary fences, rolling stock and equipment, gates and security, and other infrastructure or grazing assets. If this article has stimulated you to think of how to prioritize and account for the protection of these assets and prevent catastrophic failures, we feel it has served its purpose!

Regular written maintenance schedules of all rolling stock and equipment should be kept including working pens, fences, gates, water wells, etc.

SUPPORT KING RANCH® INSTITUTE FOR RANCH MANAGEMENT, BECOME

Ranching Legacy Member

By Anne Brady Thurwalker

As a Ranching Legacy Member, you are investing in ranching education and supporting students who are pursuing careers in a field that is crucial for the future of agriculture, natural resources, and land management. Ranching is not just about raising livestock; it's a complex balance that requires a systems thinking approach to environmental stewardship, animal welfare, and economic viability. By partnering with KRIRM through financial support of our program, you are helping to equip the next generation with the knowledge and skills needed to develop solutions to the challenges facing our industry. This investment ensures that innovative practices and cutting-edge techniques are preserving vital rural landscapes and promoting the ranching way of life.

A TO LEARN MORE ABOUT BECOMING A RANCHING LEGACY MEMBER, SCAN THE QR CODE OR VISIT: KRIRM.TAMUK.EDU/GIVING/

THE RANCHING LEGACY PROGRAM SUPPORTS:

The KRIRM Fund for Student Success Innovative Research and Real-World Solutions

Continuing Education in Ranch Management through KRIRM Lectureships and Symposiums World-Class Faculty

RANCHING LEGACY

GIVING LEVELS:

$10,000 – Leader

$5,000 – Partner

$1,000 – Advocate

Sustaining Smaller Ranch Businesses

By Rick Machen, PhD

Historically, the content of this newsletter has been directed toward owners and managers of the larger, most complex ranching businesses. A review of newsletter subscribers and our outreach education participants indicates we also serve an appreciable number of smaller ranch business owners.

Size is relative, so a definition of “small” is warranted here. For the purpose of this article, small beef cattle operations are defined as those maintaining an annual cowherd inventory of less than 100 head.

According to the most recent USDA Census of Agriculture (2022), 89% of Texas’ cow/calf operations had 100 head or less and 86% of Texas’ farms have fewer than 500 acres (Figure 1).

Do not equate “small” with insignificant or unimportant. Every domestic agricultural producer contributes to the safest, most wholesome food supply in the world. Further, many of the smaller ranches are located in close proximity to municipalities and as such represent the first line of defense against development and urbanization. In addition, their animal and natural resource management practices

are more exposed to and under greater scrutiny than larger, more remote ranches are subject to.

Environmental stewardship is Job One. Regardless of ranch business size, managers are called to first be stewards of the resources entrusted to them. Stewardship of natural resources; soil, water, plants, and animals (both native and introduced), is a responsibility, not an elective. If managers neglect to care

Figure 1. Texas beef cowherd demographics (2022 USDA Census)

for the resources, the ultimate losses are topsoil and water infiltration, degradation of the plant community and the demise of the animals dependent thereon.

As stewards of ranges and pastures, stockmen manage the quality and quantity of water infiltrating aquifers and impact runoff. As municipal populations continue to grow, water quality and availability will become all the more important.

Economy of scale escapes small producers. Beef producers’ most formidable competitor is not an ocean away, across a national border or producing another species of livestock. They are the beef producer just across the fence. Cost of production and net income per acre are the primary evaluation metrics – if competitors can consistently and profitably produce beef for less than your unit cost of production, they enjoy greater sustainability.

Beef producers’ most formidable competitor is the producer across the fence. Cost of production and net income per acre are the primary evaluation metrics –if competitors can consistently and profitably produce beef for less than your unit cost of production, they enjoy greater sustainability.

Fixed costs, including equipment, labor, infrastructure, depreciation, and ad valorem taxes, typically account for two thirds of annual cow cost. Fixed cost per cow is inversely related to cow inventory.

Purchasing in bulk or large quantities offers discounted pricing. Cost per unit (pharmaceuticals, ear tags, supplemental feed, hay, etc) is lower for larger operators. Equipment required for handling bulk supplements, commodities or large bales of hay can be cost prohibitive for profit-minded small producers. Cooperation among small producers affords the opportunity to realize large producer pricing.

Small producers (less than 100 cows) typically cannot assemble a load lot (48,000 pounds) of like weight and quality weaned calves, even if they mix steers and heifers. As a result, they find it difficult to individually take advantage of forward contracting, direct or video marketing. Comingled feeder calf sales are available as is the opportunity to sort similar calves into uniform lots and thereby take advantage of marketing calves in groups.

Diversification is key to success. Diversification offers the opportunity to reduce fixed cost per cow. Off-ranch employment by one or more family members reduces the financial burden on livestock enterprises. Multi-species grazing is an age-old livestock enterprise diversification practice. Ecotourism, hunting and fishing, renewable energy, and carbon sequestration

are potential diversification opportunities.

A preventative herd health plan is essential. Nowhere is the old saying “An ounce of prevention is worth a pound of cure.” truer than with regard to animal health management. The professional counsel of a veterinarian when developing a preventative herd health plan is a worthwhile investment.

The significance/relevance of a preventative herd health plan is largely a function of potential health risks. Risk or exposure differs across operations and can differ over time. Vaccinating calves against the clostridial complex is a universal recommendation. It is in the owner’s best interest to identify all cattle as a means of establishing ownership and deterring theft.

Reproductive performance drives profitability. Reproductive performance is calculated by dividing the number of calves weaned by the number of cows exposed to a bull.

Of the factors affecting profitability in a cow/calf enterprise (production costs, weaning weight, shrink, market price, etc.), reproductive performance is traditionally the single most important. Consider Table 1 and note that as production costs rise, reproductive performance becomes all the more influential.

Hay economics. In the southern great plains, hay is a replacement for forage rooted in the pasture and is fed for one of two reasons: a) the producer cost-effectively grew more grass in the spring/summer/early fall than a sustainable [annually] number of cattle could efficiently harvest or; b) the natural (forage) resource is overstocked.

Hay is expensive, whether raised or purchased. Hay growers continually consider the tradeoffs between tonnage (number

Hay is expensive, whether raised or purchased. When purchasing grass hay, consider bale weight and potential waste for their impact on profitability.

The business of ranching is rapidly changing. Sustaining the business requires keeping up with the changing times. Choose and support an agriculture industry organization that: represents your interests and keeps you informed.

of bales) and quality (digestibility and nutrient content). Hay baled to sell often has lower bale weights and lower nutrient content than hay harvested by the person who will ultimately feed it. When purchasing grass hay, consider these variables:

Bale weight – At the very least, hay buyers should require an accurate average bale weight. An illustration of the relationship between bale weight and cost per ton of hay is shown in Table 2.

Potential waste – Unprotected loose (lacking density) bales stored outside in poorly drained areas may contain 30% or more waste (the outer eight inches of a five-foot diameter bale is 25% of the bale’s content). Mature sudangrass hay containing large stems and seed heads, baled grain sorghum stubble, or baled corn stalks will also have appreciable wastage.

Lifelong learning. The business of ranching is rapidly changing. Public policy, weather, markets, production costs, animal health regulations, environmental concerns, land fragmentation and urban sprawl are dynamic factors that shape and impact the ranching business. Sustaining the business requires keeping up with the changing times.

Be a part of something larger. Choose and support (both physically and financially) an agriculture industry organization that: represents your interests at the state and national levels; keeps you informed of changes with potential to impact your operation; facilitates interaction with other ranch businesses; calls attention to opportunities for enhancing production efficiency, lowering cost of production, adding value or improving marketability and; offers relevant goods and services that might be either unavailable or unaffordable for individuals.

The contribution of smaller ranch businesses to the sustainability of the beef and affiliated industries is greatly appreciated. Thank you.

Average weanng weight, 500 lb.

*UCOP – Unit cost of production

** # calves weaned / # cows exposed for breeding

***Market price required to cover production cost

Table 2. Relationship between bale weight and cost per ton of hay

Bale Weight, lb.

Table 1. Relationship between reproductive performance and weaned calf unit cost of production

Reducing Exposure in a Rapidly Changing Business

November 7-8, 2024 || Kingsville, Texas & Online

Symposium Agenda:

THURSDAY, NOVEMBER 7, 2024 FRIDAY, NOVEMBER 8, 2024

11:00 AM Registration & Trade Show

1:00 PM Welcome & Introductions

1:15 PM Exposure Comes from Every Direction; Aaron Berger, Beef Extension Educator, Nebraska Extension

1:45 PM Erosion of Natural Resources

Jeff Goodwin, PhD, Director, Center for Grazinglands and Ranch Management; Texas A&M University

2:30 PM Break & Trade Show

3:00 PM Labor Limitations; Diane Charlton, PhD, Associate Professor, Montana State University

3:45 PM People and Infrastructure Require Management; Phil George, PhD, Production Director Beef & Lamb Operations, Miratorg Agribusiness Holding

4:30 PM Speaker Panel Discussion

5:00 PM Adjourn

5:30 PM Social Hour at Caesar Kleberg Wildlife Research Center

6:30 PM Prime Rib Dinner

7:30 PM Recognition and Texas Farm Credit Certificate Awards

7:00 AM Coffee & Trade Show

8:00 AM Beef – The Big Picture; Walt Keeling, Vice President of Risk Management, Cobalt Cattle Company

8:45 AM Managing Price Risk: Stories of Success… and Shortfalls; Ron Rowan, Retired Director of Risk Management, Beef Northwest Feeders 9:30 AM Break & Trade Show 10:00 AM Diversification is Essential; Darren Bevans, General Manager, Deseret Ranches of Alberta 10:45 AM The Endless Pursuit To Strengthen Beef’s Reputation; Molly McAdams, PhD, Executive Vice President, Texas Beef Council 11:15 AM Speaker Panel Discussion 11:45 PM So Where from Here?; Aaron Berger, Beef Extension Educator, Nebraska Extension 12:00 PM Lunch 1:00 PM King Ranch Tour 4:30 PM Adjourn

As the pace of the beef business quickens, exposures will appear with less time to react. Identifying and preparing for risks will be essential for sustaining the business. Speakers will cover topics ranging from natural resource and labor management to managing price risk and diversification as we take a look at the bigger picture of the beef industry.

21st Annual HOLT CAT® Symposium on Excellence in Ranch Management

Photo Courtesy of East Foundation

RANCHER LEARNING OPPORTUNITIES

The KRIRM lectureship series offers between 4 and 8 lectureships per year and are designed to teach current and dynamic topics in the ranch management industry. Our lectureships apply to a range of people and organizations related to agriculture, from university faculty and students from all disciplines, to stakeholders in the ranching community.

Lectureship courses are offered online and in-person in Kingsville, Texas, and other locations across the U.S.

To view this year’s event schedule and to register for events, please scan the QR code or visit: krirm.tamuk.edu/outreach

TEXAS FARM CREDIT CERTIFICATE REQUIREMENTS

With a generous donation in 2008 from Texas Farm Credit, the Texas Farm Credit Certificate in Advanced Ranch Management was established for ranchers and landowners wishing to complete multiple rancher learning events. This certificate prepares stakeholders to deal with complex issues in today’s ever-changing ranching industry. The lectureships are designed for anyone directly or indirectly involved in the ranching industry. Our goal is to educate ranch managers, as well as educators, ag loan officers, accountants, landowners, extension service employees, consultants, and professionals with NRCS, BLM, and others.

Qualification for this certificate requires*:

Four KRIRM Lectureships

Two annual KRIRM HOLT CAT® Symposia on Excellence in Ranch Management

*within a three-year period

2025 Rancher Learning Opportunities

All 2025 events will be simultaneously delivered in-person and online.

Managing the Cow-Calf Business Lectureship

January 16-17, 2025

Kingsville, TX & Online || $300

Instructors: Rick Machen, PhD, Tylor Braden, John Hutcheson, PhD

Managerial decisions in the cow-calf business that involve number gathering and crunching can be overwhelming. This lectureship provides fundamental skills used by successful ranch managers. You will learn by working through scenarios that include budgeting, determining stocking rate, and marketing calves to managing labor, depreciation, and purchased feed cost.

Managing the Wildlife Enterprise

August 21-22, 2025

Kingsville, TX & Online || $300

Lead Instructor: Abe Woodard, PhD

Whether it’s a for-profit business or a recreational opportunity for family, friends, and guests, the wildlife enterprise requires management. Facets that warrant attention include: habitat, wildlife, employees, infrastructure, financials, and guest expectations. Managing the diversity, quantity, and quality of wildlife will be left to the biologists. The focus of this new lectureship is managing the business aspects of a wildlife enterprise, because sooner or later, the money always matters.

B.K. “Kley” Johnson Lectureship on Brush Management

September 12-13, 2025

Kingsville, TX & Online || $300

Lead Instructor: Jeff Goodwin, PhD

Species such as mesquite, huisache, juniper, prickly pear, and others compete for soil nutrients and compromise the growth of higher succession forages preferred by wild and domestic herbivores. Brush management is never a one-and-done event, but rather an on-going, never-ending process. Here’s an opportunity to learn the full complement of management tools and see firsthand the results of their application. The event is approved by the Texas Department of Agriculture for 10 Pesticide Applicator CEUs.

New Event for 2025

Managing the Wildlife Enterprise

Continuing Education in Ranch Management

2025 Event Schedule || Events Available in Person & Online!

Successful Operations RequireWorld-Class Training for Ranch Employees

It is more crucial than ever that ranch employees have the tools they need for successful ranching operations. Our unique approach to continued education in ranch management means we provide multiple opportunities throughout the year for hands-on, applied learning that fits into a professional schedule and covers a wide-range of industry specific topics.

Managing the Cow-Calf Business Lectureship

January 16-17, 2025 || Kingsville, TX & Online

Gus T. Canales Lectureship on Prescribed Burning March 17-20, 2025 || Kingsville, TX & Online

W.B. “Dub” Yarborough Lectureship on Real Estate Law April 25-26, 2025 || Kingsville, TX & Online

Richard Mifflin Kleberg, Jr. Family Lectureship on Equine Management

May 19-21, 2025 || Kingsville, TX & Online

Managing the Wildlife Enterprise August 21-22, 2025 || Kingsville, TX & Online

B.K. “Kley” Johnson Lectureship on Brush Management September 12-13, 2025 || Kingsville, TX & Online

HOLT CAT® Symposium on Excellence in Ranch Management November 6-7, 2025 || Kingsville, TX & Online

Connect with us online for the latest news and updates on the KRIRM program!

King Ranch® Institute for Ranch Management || Kingsville, TX || krirm.tamuk.edu || 361-593-5401

events count toward the TFC Certificate in Advanced Ranch Management