Jerry M. Hawkes

Brangus Cow–Calf Performance Under Two Stocking Levels on Chihuahuan Desert Rangeland

Abstract Cow–calf productivity on 2 lightly (25%–30% use) and 2 conservatively grazed pastures (35%–40% use) were evaluated over a 5-year-period (1997 to 2001) in the Chihuahuan Desert of south-central New Mexico. Spring calving Brangus cows were randomly assigned to study pastures in January of each year. Experimental pastures were similar in area (1 098 ± 69 ha, mean ± SE) with similar terrain and distance to water. Use of primary forage species averaged 28.8% ± 4.3% in lightly stocked pastures and 41.8% ± 4.4% on conservatively grazed pastures. Perennial grass standing crop (168.8 ± 86 vs. 173.6 ± 58.3 kg·ha−1) and adjusted 205-day calf weaning weights (279.1 ± 7.5 vs. 270.7 ± 7.8 kg) did not differ among lightly and conservatively grazed pastures. Cow body condition scores in autumn, winter, and spring were similar among grazing levels as were autumn and winter body weights. However, cow body weights tended to be heavier (P < 0.10) in lightly grazed pastures relative to conservatively grazed pastures (524 vs. 502 ± 9.7 kg) in spring. Lightly grazed pastures yielded greater (P < 0.05) kg of calf weaned·ha−1 and calf crop percent than conservatively grazed pastures in 1998 due to destocking of conservatively grazed pastures during that years drought. Conversely, pregnancy percent tended to be greater (P < 0.1) in conservatively relative to lightly grazed pastures (92.6% vs. 87.7%); however, this advantage is explained by herd management as cows in the conservatively grazed pastures were removed during drought of 1998, avoiding exposure to the drought stress experienced by cows in the lightly grazed pastures. Nonetheless, pregnancy percents from both grazing treatments would be acceptable for most range beef production systems. Results suggest that consistently applying light grazing use of forage is a practical approach for Chihuahuan Desert cow–calf operations to avoid herd liquidation during short term drought.

Western Ranching, Trade Policies, and Peak Oil

Skyrocketing trade deficits coupled with depletion of oil and natural gas reserves could make rangeland livestock production essential to food security in the United States. DOI:10.2458/azu_rangelands_v29i5_holechek

A sporting alternative.

Sport cattle may help cattle growers round up their profits. DOI:10.2458/azu_rangelands_v28i6_hawkes

Feature ArticlesA Sporting Alternative: Sport cattle may help cattle growers round up their profits.

Sport cattle may help cattle growers round up their profits. DOI:10.2458/azu_rangelands_v28i6_hawkes

A Sporting Alternative: Sport cattle may help cattle growers round up their profits.

Sport cattle may help cattle growers round up their profits. DOI:10.2458/azu_rangelands_v28i6_hawkes

Can Ranch Owners Include the Ranch in an Investment Portfolio

roduction agriculture is a capital-intensive venture that bears many elements of uncertainty. Producers must tolerate a substantial amount of risk and combat many challenges within their preferred livelihood. Many ranchers are constrained by limited income and free cash flow, although some have built equity with the appreciation of land values. Land is an inflation hedge and builds wealth over the lifetime of the landowner. However, that wealth accumulation cannot be spent without selling the land itself. Some successful producers, especially those who inherit land or otherwise do not have to repay land notes, may expand their operations or consider strategies to diversify and protect their interests and lifestyle. If ranchers are able to generate investable funds, what options exist for them? Historically, agricultural producers have not considered diversification in the same manner as a typical financial investor. Diversification may be defined as spreading risk among many assets to offset changes in markets that will not likely react similarly to economic or financial news and phenomena (Brigham and Ehrhardt 2002). Ranchers often look at diversification as changing their calf retention system, rotational system, livestock breeds, or even purchasing another ranch several miles away for geographic diversification. None of these actions fits the definition of diversification from a purely financial perspective; some may even increase risk. Producers are still subject to the same uncontrollable market forces and weather conditions if they expand within the same class of livestock or within the same general geographic area. Expanding geographically may spread fixed costs over more acres or sections and generate larger gross returns. However, expanding may lead to inefficiencies in labor and managerial resources, increase mileage on equipment, and ultimately increase fixed costs. Expansion may increase rather than reduce risk. So how should a rancher truly diversify? Ranches can be thought of as assets within an overall portfolio; ranchers should also give attention to the concept of diversification in their operations and consider diversification approaches beyond the ranching enterprise itself. This paper will not propose that producers sell the ranch and invest the proceeds entirely in the stock market or any other investment market. Rather, ranchers should consider opportunities to increase overall portfolio value by investing a portion of operating profit in financial assets (such as corporate stocks or mutual funds) to diversify. Diversifying in this manner may provide a ranch owner/investor with greater returns on investment opposed to production agriculture alone. This might allow a rancher to continue with his or her chosen lifestyle in the agricultural environment and to maintain control of the primary real asset, which is the ranch.