Backgrounding Calves

Backgrounding Calves on Pasture:
Opportunity to Explore
Backgrounding
defined
Backgrounding is the growing of steers or
heifers from weaning until they enter the
feedlot for finishing . . .
650 800 pounds
Kind of cattle to buy
Considerable flexibility with respect to

weight of cattle bought and sold, feed
resources used, and rate of gain achieved
Cattle weighing from 250 650 lbs. or
heavier can be backgrounded
Purchase weights of 350 550 lbs. most
popular for steer calves
Heifers tend to weigh 30 50 lbs. less at
similar age
Kind of cattle to buy

Light weight heifer calves usually bought
cheaper than steer calves, but will sell for
less than steers as 600 700 lb feeders
Heifers tend to gain 5 10% slower and
about 5% less efficiently than steers
Dont be overly influenced by breed (I.e.
more difference within than between
breeds for performance traits)
Holsteins will do just fine; crosses popular
in Corn Belt
Production Systems
Typical backgrounding system:
Buy 400 450 lb. calves in fall, winter on stored feed,
graze spring fall . . .
Sell 650 800 lbs
Daily rates of gain will vary from 1-1.5 lbs.
Buy 350 400 lb. calves in spring . . .
Graze spring fall . . .
Sell 700+ lbs. in late fall
Skills to develop for

backgrounding
Cattle buying and selling skills
Skill in diagnosing and treating sick animals
Pasture management skill
Beef steer/corn price rations = Price per cwt.

of choice slaughter steers divided by per
bushel corn price (Example: $70 2= $35)
Accurate indicator of cost of feedlot gain in
relation to beef cattle prices
Leads and causes shifts in relative profitability of

backgrounding vs. cow-calf production
Decreases in ratio favor cow-calf production;
increases in ratio favor backgrounding
Ratio of 750 lb. Yearling to 425 lb.

calf price ratio
Average of 89% fairly typical
Decline to 80% clearly favors cow-calf production
Increase to 100% clearly favors backgrounding
Cattle buying and

selling skills
Get historical data

and outlook
(e.g. Equity and Cattle
Fax)
Oklahoma City Feeder Steers

No. 1 Medium 400 500 Pounds
Year
Jan
Feb
Mar
Apr
May
June
July
Aug
Sep
Oct
Nov
Dec
Average
1981
78.78
77.31
78.04
80.42
73.45
70.08
66.53
68.80
70.58
69.71
70.07
66.00
72.48
1982
63.91
65.05
69.71
73.00
73.80
71.10
69.84
71.12
69.51
65.40
65.00
69.29
68.89
1983
72.28
75.24
78.43
76.96
77.99
74.17
69.07
68.07
67.74
67.95
71.41
68.87
72.35
1984
70.09
72.49
72.20
73.28
71.16
67.30
66.90
68.46
67.90
66.89
69.05
70.88
69.72
1985
74.76
76.16
77.70
79.72
77.77
73.24
71.12
73.06
69.48
71.61
73.24
69.41
73.94
1986
71.59
73.34
72.97
71.99
70.00
67.50
69.91
72.71
75.57
71.94
72.27
72.18
71.83
1987
75.01
79.19
80.30
83.97
85.96
86.44
90.14
93.58
98.63
93.38
95.05
95.69
88.11
1988
96.96
104.42
101.70
105.03
102.33
93.98
95.89
99.74
97.75
100.55
102.05
101.64
100.17

No. 1 Medium 400 500 Pounds continued . . .
Average
Year
Jan
Feb
Mar
Apr
May
June
July
Aug
Sep
Oct
Nov
Dec
1989
104.30
106.35
107.50
101.94
96.12
105.35
103.70
103.82
100.42
100.71
102.03
99.77
102.67
1990
101.23
105.13
105.89
111.35
109.74
106.14
106.03
110.42
106.41
104.25
108.96
112.33
107.32
1991
112.25
118.44
117.58
120.38
117.80
117.99
113.10
106.46
106.32
104.63
101.67
98.13
111.23
1992
96.11
104.49
106.72
102.20
98.84
99.45
99.69
102.86
100.08
96.00
99.92
97.70
100.34
1993
104.50
106.23
108.42
111.72
109.83
109.05
107.31
106.15
105.38
103.54
101.59
103.36
106.42
1994
102.44
105.46
108.60
107.61
100.46
92.48
95.13
93.55
88.66
87.50
91.18
93.00
97.17
1995
95.18
94.62
92.14
89.23
83.50
80.83
75.48
74.95
70.42
65.33
66.88
68.46
79.75
1996
66.27
66.28
65.26
62.30
58.64
61.83
62.75
58.87
67.44
66.65
70.00
71.29
64.80

No. 1 Medium 400 500 Pounds continued . . .
Average
Jan
Feb
Mar
Apr
May
June
July
Aug
Sep
Oct
Nov
Dec
1997
79.27
86.17
93.12
93.35
95.71
99.54
98.52
100.48
97.75
96.10
94.92
94.04
94.08
1998
96.14
97.49
101.36
102.59
102.78
85.76
78.15
78.95
77.70
82.33
88.95
87.50
89.98
1999
92.20
94.89
95.17
95.66
90.82
96.53
98.80
95.78
97.72
94.94
102.09
107.27
96.82
2000
110.65
111.12
117.57
111.14
107.57
108.58
113.90
109.75
104.46
108.34
110.27
109.97
110.28
20
year
average
88.20
90.99
92.52 92.69 90.21 88.37 87.60
87.88 87.00 85.89 87.83 87.84
88.92
Year
Cattle buying and

selling skills
Use enterprise budget projections
Logical approach to determining enterprise

profitability
Grazing cost included with all other feed
expenses
Short
run:
Receipts greater than variable expenses

(cattle and feed and livestock expense)
Long
run:
Receipts greater than variable expenses

and fixed expenses (depreciation,
repairs, taxes, interest, insurance on
buildings, equipment, livestock)
Dairy Steer Calves:

350 700 lbs. on pasture
5 6 months
5/1/2001 Budget Estimates*

Cattle
Costs
Feed
Costs
Livestock
Costs
Receipts
Returns Over
Variable Costs
$371/HD
$36/HD
$30/Hd
$539/HD
$102/HD
* Reference BCM-11, Enterprise Budget 5/1/01 for details
Skill in diagnosing and

treating sick animals
Watch for these warning signs!
Rough hair coat

Weight loss
Ears drooping
Weak, listless
Eyes, nose-mucous discharge
Skill in diagnosing and

treating sick animals
Establish a program with your veterinarian
for new arrivals (health check, deworming
program, etc.)
Ideally, review health program with

seller of weaned calves
Health Program Basics

Respiratory
Deworming
Fly control
Implants
Bloat prevention (>50% legume)
Trace mineral salt free choice
Skills
Intensive rotational
grazing
(i.e. rotational grazing with a

high level of management; more
pastures; short grazing periods;
long rest periods; and high
stocking rates).
Network with other

producers
Bought, managed, and sold right,

backgrounding calves on pasture
offers another enterprise option
deserving attention.

Backgrounding Calves

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Backgrounding Calves

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Backgrounding Calves on Pasture:

Kind of cattle to buy

Considerable flexibility with respect to

Kind of cattle to buy

Skills to develop for

Beef steer/corn price rations = Price per cwt.

Leads and causes shifts in relative profitability of

Ratio of 750 lb. Yearling to 425 lb.

Cattle buying and

Get historical data

Oklahoma City Feeder Steers

Oklahoma City Feeder Steers

Oklahoma City Feeder Steers

92.52 92.69 90.21 88.37 87.60

87.88 87.00 85.89 87.83 87.84

Cattle buying and

Use enterprise budget projections

Logical approach to determining enterprise

Receipts greater than variable expenses

Receipts greater than variable expenses

Dairy Steer Calves:

5/1/2001 Budget Estimates*

* Reference BCM-11, Enterprise Budget 5/1/01 for details

Skill in diagnosing and

Rough hair coat

Skill in diagnosing and

Ideally, review health program with

Health Program Basics

(i.e. rotational grazing with a

Network with other

Bought, managed, and sold right,

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