BISMARCK, N.D. -Cattle ranches and ranches in North Dakota have struggled to make ends meet for years.
“It's been a long, hard few years,” said Kyle Olson, an instructor with the North Dakota Farm Management Education Program. Olson is based at Bismarck State College. For most of its seventy participants, beef cattle are central. Manufacturers use cash accounting for taxes, but the program analyzes their books on an "accrual basis," which includes the current values of all inventory.
Olson looks back on 2015, when registered beef cattle posted healthy profits in terms of net return on heifers bred. That year, producers received $279 per capita, while revenues have averaged less than $59 per capita since 2019.
Net income in 2020 was $33 per share. cow, and that's after including $113 per per capita in accumulated federal payments to offset the marketing effects of trade retaliation, drought-related livestock feeding programs and COVID-19 compensation. Without these payments, producers would have lost $80 per unit population on average. The 2021 report is not yet available, but will be published this spring.
Olson said that with an average of $100 profit per cow, a herd of 100 cows yields only $10,000 in net profit. “It takes a pretty big crowd to make it work for you,” he said.
Learn more about the impact of livestock profitability issues on producers and the agricultural sector
Especially "terrible" was the price of slaughter cows that were not bred. It was about 60 cents per pound, which works out to about $780. A farmed cow would fetch $1,300 to $1,500 per head. cow.
Profitability varies considerably among individual producers, but Olson said the general picture is that average per capita profit should be between $175 and $200 per capita cow; the majority of producers don't make enough money.
Sometimes surviving is as simple as taking a shower during a drought or selling on the right day.
Feeder steers in the 500 to 600 pound range have seen a price increase. The heifers did not do so well. Producers who have cut back on staff "have money in their pockets, but they won't make a lot of money," he said. To get back into the game, they must spend money to rebuild the herd with insecure pastures and high feed prices.
Finished cattle prices have increased by about 30%, but the price of feed and raw materials has increased by 50%.
“Suddenly there's not much margin left,” he said. The trend is to take cattle to feed rather than the other way around, perhaps maintaining their weight with a slow gain of, say, 1.5 pounds of gain per day, compared to a maximum of 4 pounds with aggressive market feeding.
Tim Petry, a livestock marketing economist at North Dakota State University, said cow herd reductions in North Dakota, South Dakota and Minnesota in 2019, 2020 and 2021 indicate a shorter supply and a harbinger of higher prices.
Looking ahead to next fall and several years ahead, Petry sees potentially better returns as a result of the livestock reduction. Prices started to rise in October. Petry agreed that drought and other federal payments helped, but did not make people healthy
“The most they could have received in North Dakota in the driest areas was about $75 per cow,” he said.
Mikkel Pates is an agricultural journalist who produces print, online and TV stories for Agweek magazine and Agweek TV.
FAQs
Stress induced by handling agitates and excites animals, which increases body temperature and heart rate, raises corticoid levels, such as adrenaline in their blood, and reduces immune functions, leaving the animal more susceptible to diseases.
What are the disadvantages of stress on animal prior to slaughter? ›
Long-term preslaughter stress, such as fighting, cold weather, fasting and transit, which occurs 12 to 48 hours prior to slaughter depletes muscle glycogen, resulting in meat which has a higher pH, darker color, and is drier.
What are the 5 factors that impact livestock well being on farms today? ›
The most important issues are identified as climate change, availability and cost of key resources, social licence, antibiotics and disease, long-distance transport and biodiversity loss.
What kind of farm makes the most money? ›
Corn, soybeans account for more than half of the 2022 U.S. crop cash receipts. Crop cash receipts totaled $278.2 billion in calendar year 2022. Receipts from corn and soybeans accounted for $148.5 billion (53.4 percent) of the total.
What is the easiest livestock to raise? ›
One of the most common and easiest farm animals to raise for profit all around the world are chickens,because these animals are a great source of eggs and meat. They also are considered to be one of the cheapest farm animals to raise because they require very little to no maintenance.
How much do animals reduce stress? ›
Reduce stress.
Research has shown that simply petting a dog lowers the stress hormone cortisol , while the social interaction between people and their dogs actually increases levels of the feel-good hormone oxytocin (the same hormone that bonds mothers to babies).
How to reduce stress in livestock? ›
Keeping cows in the shade as much as possible helps to reduce heat stress. Ventilation is also essential to minimizing heat stress; tunnel ventilation and cross ventilation are particularly useful (Armstrong, 2023). Farmers can also utilize fans in the barn to increase air circulation.
Why is stress bad for animals? ›
While these responses are adaptive, overexposure to stress can cause physiological problems, such as weight loss, changes to the immune system and decreased reproductive capacity.
Do animals suffer when killed for meat? ›
The principle of humane slaughter is to ensure that an animal cannot feel pain or experience suffering when he or she is killed. For this reason, it is the law that farmed animals in the UK are effectively restrained and stunned before they are killed, or else stunned and killed at the same time.
Do animals feel fear before slaughter? ›
The animals generally arrive at slaughterhouses in a weakened physical and psychological state. They are hungry, exhausted, and often confused and frightened. When they get to the slaughterhouse, there are other factors that can add to their distress and pain such as slippery floors.
Long-term stress impacts the meat quality as well. The persistent high acidity caused by long-term cattle stress will begin breaking the meat down. The meat becomes dark, soft, mushy, and sticky (very similar to being bruised) and will have a limited shelf life.
What is the biggest issue facing the livestock industry today? ›
Producers say Labor Management is Their Biggest Issue
Aside from feed and milk prices, Hagevoort says labor is a producer's biggest issue.
What is the biggest problem with cattle farming? ›
Soil degradation. Livestock farming is one of the main contributors to soil erosion around the world. Turning forests into pasture and overgrazing, or using marginal lands to grow feed, can lead to extreme loss of topsoil and organic matter that may take decades or centuries to replace.
What are the problems with raising livestock? ›
As the manure decomposes it releases emissions including methane, ammonia, and carbon dioxide which further contribute to climate change. On top of all of this, livestock emit methane (burps) during digestion and further emissions are released during the processing and transportation of the animals.
What livestock can you raise on 5 acres? ›
5 acres: If you have 5 acres, you most likely can accommodate horses, sheep, goats or some exotic animals, but you will have to supplement feed and provide facilities like shelter, feed storage and manure disposal areas.
What breed of cattle brings the most money? ›
What breed of cattle is most profitable? Angus: This is the most popular breed of beef cattle. Their meat quality is excellent and they provide 50 percent of their weight in the meat. Highland Cattle: Though they are not as popular as they once were, they are still in demand by people who know love their meat.
What types of animals are best for a self-sufficient farm? ›
Geese are one of the top producers on a homestead, laying up to 50 eggs each year and producing both meat and down feathers. They're also great guard animals; no stranger will get close to your house unheard! A single goose can be raised with your chickens or ducks for predator defense.
