Cost of production.  Often the focus is on outputs and market prices.  For example, calf weaning weight and the price/lb the calf brought at the market.  While those outputs are important and determine the gross income, that is not the whole story.  Remember: Net profit (or loss) = Gross income – expenses.  What did it cost you to produce that calf?  When Tom Field from the National Cattlemen’s Beef Association spoke at the Beef School this past February, his presentation included a slide that said that 80% of the profit equation is driven by costs or expenses.  Identifying where the highest costs of production are in the beef enterprise and then taking steps to lower those costs of production can make a big impact on economic viability in times of low market prices.

Reproductive performance.  Are your cows producing a calf every year?  Is your bull in shape and ready to breed during the breeding season?  Are you meeting the nutritional needs of the cow that will allow her to breed in a timely manner and produce a healthy calf?  Are you managing replacement heifers to provide for their extra growth requirement and that will allow them to become a productive member of your cow herd? 

Genetics.  Do you have the right genetics for your management system?   Do you regularly supplement grain to keep cows in good body condition? Are you willing to supplement grain to meet nutritional requirements?  Do you want cows that thrive on pasture with no regular grain supplementation?

Pasture management.  One way of lowering production costs is by making increased use of pastures to meet the nutritional needs of the cow herd.  Reducing winter feeding of hay by grazing stockpiled forages can significantly lower the cost of over wintering a cow.  Can you improve your pasture management? 

Understand the “big picture”.  At the beef school this past February, many of the speakers talked about global trends, grain markets, ethanol, and consolidation of the beef packer industry.  While many of those things may seem far removed from you cow/calf operation, they do impact the greater beef industry.  All of these factors interact and often combine in a way that will ultimately affect how beef will be produced and marketed on your farm. 

Marketing.  The market is changing and the small producer’s ability to adapt and incorporate various marketing strategies into his/her production system is another key to staying economically viable.  I have more to say about this in an article in this newsletter.