The Source
Making the best of a tough situation.
My summer vacation this year was quite an experience. I joined several young Boy Scouts on the ultimate outdoor challenge: 10 days at Philmont Scout Ranch in New Mexico. Equipped with only what we could carry on our backs, we adventured through nearly 75 miles of wilderness. It was an incredible learning opportunity for the boys and for me.
We learned to rely on each other, stay focused and adapt to our surroundings. Sometimes it was frustrating to leave behind our daily routines — running water, air conditioning and a nice steak dinner. You come to appreciate being able to adjust and make the best of a situation.
Make the best of it — sounds similar to what's been going on in the cattle business lately.
The worst drought in decades is affecting the entire agriculture industry, and it will continue to affect us for years to come. Many ranchers are already being forced to sell their calves earlier than planned, and others will sell both cows and calves. It's not a situation anyone wants to be faced with, but we have to deal with the reality.
So what does this all mean for the AngusSource® program?
AngusSource effects
It's no surprise that hay and corn prices will continue upward. To make up for it, producers need to get the most out of every calf sold. Exploring all options is key to adapting to this difficult marketplace. We believe that AngusSource is a viable opportunity.
Here's some proof. Results for the second quarter of the Premium Value Challenge were recently calculated from data submitted April through June 2012. Six winners — representing Missouri, California, Nebraska, Idaho, Kansas and Oklahoma — rose to the top.
Impressive premiums of $15.48-$28.50 per hundredweight (cwt.) were gained on the 500-weight calves, and premiums of $5 to $19.50 per cwt. were gained on the 600-700-weight calves. The marketing venue was split 50/50, with half selling through video auction and half at their local sale barn.
Gottswiller Farms, Clarksdale, Mo., sold calves at the Saint Joseph Livestock Auction, and they brought $19.50 more per cwt. than other calves sold that day, according to CattleFax data. Thirty-two head weighed 620 pounds (lb.), so they received an additional $3,868.80. This is the third year Gottswiller Farms has enrolled in AngusSource.
Joseph Anderjaska, Hays Center, Neb., sold his calves on Superior Video Auction. The 100-head lot of steers weighed 525 lb., and CattleFax data say they realized a premium of $28.50 on the day they were sold. The added advantage for Anderjaska was $14,962.50. This is his sixth year enrolling in the AngusSource program.
Those are significant returns, especially when the only cost to participate is $50 per group of calves, plus the cost of tags. Both Anderjaska and Gottswiller choose the visual tag option that costs $1 per enrolled calf.
Results for you
Understandably, AngusSource cannot guarantee these types of results for every producer, but we can collect data and information for those success stories and pass those on to you. The more you work with our team and improve your own cow herd records, the better the program can serve you.
It's simple. We know your time is a valuable commodity. To qualify for AngusSource, calves must be enrolled by the ranch of origin, have known group age (first-born calf, at minimum) and be sired by a properly transferred and registered Angus bull.
To get started, visit www.angussource.com.
Read the producer participant manual, program requirements and participation requirements.
Complete the producer participant enrollment form and producer participant agreement and return them to AngusSource via mail or fax, along with copies of your original calving records for the group of calves you want to enroll.
Complete your AngusSource training and enrollment via phone. Additional management questions will be asked and, in certain cases, an on-site visit may be required.
If you only want to age- and source-verify calves, without the Angus-sired component, a second-tier program called Gateway is a cost-effective option. More information can be found on our website.
The next couple of months, even years, are going to be tough for cattlemen. Be creative and find new ways to manage your herds; do not be afraid to try something new and seek out advice. It may be difficult to change your routine, but it can be worthwhile. Let us share with you how AngusSource can potentially add value to your bottom line.
You just might be our next Premium Value Challenge winner.
Editor's Note: Ginette Kurtz is quality manager of AngusSource for the American Angus Association.
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