INTRODUCTION...1. MANAGEMENT...2 Managing new arrivals Promoting eating and drinking in new arrivals

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2 CONTENTS INTRODUCTION...1 MANAGEMENT...2 Managing new arrivals Promoting eating and drinking in new arrivals HEALTH...6 Managing all cattle types What kind of cattle do you have? Managing low risk cattle Managing high risk cattle Treating sick calves NUTRITION...16 Balancing the preconditioning ration Feeding forages Delivering plentiful, clean water Planning average daily gain Determining the feeding period Hand feeding versus full feeding RISK MANAGEMENT TOOLS...22 MARKETING...23 Maximize market value

3 INTRODUCTION Effective preconditioning programs increase the value of weaned calves through good nutrition, sound animal health, and common sense management practices. Today, beef producers are gleaning more money from their calves by taking steps to improve their performance in the feedlot. Terms such as backgrounding and preconditioning are generally associated with adding value to calves in the post-weaning phase. If calves are weaned off farms in the Southeast and transported directly to growing yard or feedlot operations, they experience huge changes in environment, diet, social structure, and exposure to disease. Without preparation, these changes can be overwhelming, placing a great deal of stress on the calves. This stress often translates into increased incidence of disease, decreased weight gain, poor feed conversion, and high mortality rates. The objectives of a preconditioning program are to seize the opportunity for rapid, efficient weight gain in the post-weaning phase and to prepare calves for the next step in the beef production chain. The feedlot industry places a value on calves that are acclimated to the conditions that will be found in the feedlot, and producers have the opportunity to realize a premium for these preconditioned calves. Preconditioning programs can really pay! 1

4 MANAGEMENT Value is added when calves are managed together long enough to establish a common background, properly immunized, and preconditioned to the feedlot environment. One of the overall objectives of a preconditioning program is to prepare calves for entry into a growing yard or feedlot. The program usually consists of weaning, vaccinating, deworming, and performing other management practices at least 45 days before calves enter the feedlot. Acclimating calves to drink city water from a tank and eat a mixed ration from a feed bunk also aids in the transition to the feedlot. The concept of backgrounding follows an age-old mantra of livestock production and animal husbandry: Manage like kinds together. Cattle of the same age, sex, size, breed composition, and common background are much easier to manage than those that have less commonality. Purchasing a group of cattle of unknown origin and giving them a common background for at least 45 days adds to their value by making them easier to manage for the next phase in the production chain. Backgrounding and Preconditioning = Added Value 2

5 Since like kinds are easier to manage, feedlots generally prefer purchasing calves in trailer load lots usually consisting of 48,000 to 50,000 pounds. Producers often earn a premium price when marketing preconditioned calves in load lots versus selling them individually. Cow/calf producers have the option of weaning their own calves and preconditioning them, no matter what size the group. Research has shown that several weaning management styles can minimize the stress of weaning. Methods such as fence line weaning or using weaning devices on calves prior to separation from their mothers might be considered. Paying special attention to nutrition and overall environment helps ensure success with a new group of beef calves. Managing new arrivals Weaning, transportation, commingling, and relocation are the most stressful and trying events in a beef calf s life. Fright, dehydration, fatigue, exposure to disease, and a longer-than-normal time between feedings are common outcomes of the weaning process. As calves change ownership through public auctions or are weaned on-farm, producers are presented with a challenge and a great opportunity to markedly influence a calf s future. First, it s important to remember that newly arrived or freshly weaned calves: Are in unfamiliar surroundings Don t know location of feed, water, and shade May or may not know how to eat from bunk May or may not be accustomed to processed feedstuffs (maybe only grass and milk) Are unaccustomed to city water sources or tanks Have no established social structure or pecking order 3

6 When receiving and starting feeder calves, success is measured by keeping sickness and death loss low and weight gains acceptable. Focus your attention on providing comfort and proper nutrition. ASK CO-OP Promoting eating and drinking in new arrivals Encourage calves to eat and drink soon after arrival and/or weaning. Place calves in small lots or shallow pens or install temporary fencing, so that calves are close to feed and water at all times. Take advantage of calf behavior. Newly weaned calves often bawl and walk the fence in search of their mothers. Place bunk feeders along fence lines to help calves stumble onto feed as they walk the fence. Top-dress processed feeds over high-quality hay to encourage calves to try a grain-based feed. Keep feeders clean by periodically removing any stale feedstuffs. Keep tanks and waterers clean and free of algae and/or waste feed. Calves that are offered water then fed later often drink more than if offerings are reversed. Allow water to trickle if possible, as calves can locate water audibly. Newly arrived calves may not eat at a normal level for the first few days. It is important to offer them an appropriate starter feed along with hay or other forage. Increased protein content is necessary along with a significant inclusion of by-pass protein. This helps overcome low feed intakes, protein deficits due to response to stress, and the fact that calves may not have eaten for a prolonged period. Receiving rations should appeal to the calf s senses, rumen, and tissues. In other words, these rations should be palatable, not cause digestive upset, and yet be nutrient dense enough to allow for tissue repletion and growth. 4

7 Sound animal health practices are also an important part of the arrival/weaning phase. Freshly weaned calves and calves of unknown origin need proper nutrition, identification, vaccinations, and deworming. See the Health section of this manual for more information. MORE INFORMATION Work with a Co-op professional to customize an identification, nutrition, vaccination, and deworming protocol for your preconditioning program. ASK CO-OP Starter Feeds Starting calves is as easy as A + B at Co-op. Co-op offers two pelleted starter feeds that provide the needed protein and medication to help combat stress-related diseases. Co-op High Stress Beef Starter A+B (#94250) Co-op Low Stress Beef Starter A+B (#94284) These feeds are palatable, pelleted, 15% crude protein, and medicated with Aureomycin and Bovatec to treat or control diseases during periods of stress. When fed as directed and presented appropriately, these feeds are readily accepted by freshly weaned calves. 5

8 HEALTH Calf health is an important animal performance measure determining profitability of feedlot cattle. Animal health practices for preconditioning calves are divided into management procedures and administration of products. While thought is given to the administration of animal health products, management concerns are often overlooked. However, both must be addressed adequately to benefit from an animal health program. Managing all cattle types Follow this checklist for general animal health management practices applicable to all cattle types in a preconditioning program. 3 Nutrition: Boost immunity through nutrition. Calves beginning a preconditioning program can be at high risk for respiratory disease, so a good, strong immune system is extremely important. Offering adequate nutrition promotes proper functioning of the immune system. Provide adequate protein, vitamins, and minerals. Adequate protein and energy levels are necessary for basic metabolic processes. Calves need adequate vitamins/minerals to properly process and respond to vaccines. Keep clean water available. Water should be free choice and of the highest quality possible. 6

9 3 Weaning: Weaning is very stressful for a calf, so every attempt should be made to alleviate stress when possible. See Management section of this manual for tips on feeding and watering calves during weaning. 3 Dehorning: All horned cattle should either be dehorned or tipped to prevent injury during transportation and handling. Sharp horns can even puncture the abdomens of other cattle, leading to cases of peritonitis or infection. 3 Castrating: While timing and castration techniques are highly debated in the stocker industry, the opinion that bull calves should be castrated is rarely questioned. If a banding procedure is used, an appropriate tetanus vaccination should be administered. 3 Suppressing BRD: Though they are not common, calves with persistently infected (PI) bovine viral diarrhea (BVD) pose a threat to herd health. A PI animal sheds vast amounts of BVD virus, which can cause a wide array of health problems within a herd or pen. Bovine respiratory disease (BRD) is one associated health problem that is a primary concern in a preconditioning program. Testing calves for PI BVD may be a good option for some preconditioning programs. 3 Maintain good handling facilities: Cattle handling facilities should be functional and strong enough to provide adequate restraint of cattle. This ensures the safety of both the cattle and the handler. Handling cattle roughly during processing is detrimental to the success of vaccines. If bruising occurs while working cattle, it can minimize or eliminate adequate immune response to vaccines. 3 Keep equipment clean: Equipment such as castration knives, implant guns, and needles should be impeccably clean. Note: Special attention should be paid to reusable syringes with regard to their cleaning. Harsh disinfectants 7

10 such as chlorhexidine, bleach, alcohol, or hydrogen peroxide should not be used on reusable syringes as they can adhere to the O rings and denature future vaccines used in those syringes. Extremely hot water is the best way to clean reusable syringes. 3 Vaccinate correctly: All calf processing should follow Beef Quality Assurance (BQA) guidelines. Needles should be 18 gauge and no longer than an inch. If there is a choice, always administer vaccines subcutaneously. If a product must be given intramuscularly, the small triangle area in the neck should be used. This applies to both vaccines and antibiotics used in cattle. MORE INFORMATION For more information about the Beef Quality Assurance program, contact your local Extension office or Co-op. Health products Fly control: If cattle are being preconditioned during summer months, use appropriate methods to control all types of flies. ASK CO-OP Fly control Many options exist for effective fly control. Your local Co-op representative can help customize a successful fly control program to meet your needs. Dewormers: Cattle in preconditioning programs should be dewormed. The type of dewormer used and method of administration is a matter of producer preference. If deworming occurs before or during the summer months, using an endectocide 8

11 that provides some external parasite control should be considered. If cattle are going to be preconditioned longer than 90 days, a second deworming is strongly recommended, especially if cattle are kept in close confinement (as opposed to on pasture). Growth implants: Growth implants promote highly efficient growth. Personal preference and length of preconditioning program determine which implant should be used. Growth implants should not be used in heifers that might be used for replacement stock. Vaccines: The following vaccines are necessary for a preconditioning program. Timing, type of product, and boosters are discussed in the vaccination schedules in this section. Required IBR, BVD (Type I and II), BRSV, PI3 two doses with at least one being a modified live vaccine (MLV) Pasturella vaccine one dose Haemophilus somnus two doses 7-way clostridial number of doses depends on product Optional Pinkeye vaccine number of doses depends on product ASK CO-OP Why use modified live vaccines? Modified live vaccines provide quick, broad immunity and are excellent stimulators of cell-mediated immunity, the most helpful type of immunity for preventing disease. 9

12 What kind of cattle do you have? For certain issues, animal health practices will differ according to cattle type. Preconditioned cattle can be divided into low risk and high risk, and there are subtypes within each of these broad categories. Low risk cattle Low risk cattle are less likely to suffer from respiratory and other diseases. Their characteristics include: Usually bought directly from the farm of origin Not marketed through a public livestock auction Managed in small groups Have experienced minimal commingling Weaned and ready to eat out of a bunk Males are castrated High risk cattle High risk cattle are more likely to suffer from respiratory disease. In fact, most high risk cattle are already incubating respiratory disease when they are purchased and brought to the preconditioning location. Their characteristics include: Bought through public livestock auctions Excessively commingled Probably unweaned when marketed Highly stressed due to long waiting periods during marketing and transportation Unknown nutritional and health status Unaccustomed to eating out of a bunk Another factor that can make cattle high risk is long distance travel, especially if that travel is crowded and lasts for more than 12 hours. Cattle may be low risk in every other way, but if this kind of travel is part of the management of the animals they may fall into the high risk category. Managing low risk cattle Low risk cattle should be vaccinated depending on their weaning status. 10

13 Preweaning: If calves are unweaned and the preconditioning process is beginning, vaccinate two to three weeks before weaning. Administer a killed 5-way viral vaccine (IBR, BVD I and II, BRSV, and PI3) and an initial dose of the 7-way clostridial and Haemophilus vaccines. This is also a good time to deworm, dehorn, and castrate, if needed. Weaning: At weaning (approximately two to three weeks after initial vaccinations), calves should receive a MLV 5-way viral along with boosters of 7-way clostridial and Haemophilus vaccines. Also, administer a modern Pasturella vaccine. Weaned: A similar protocol as outlined above can be used with few changes for calves already weaned at the beginning of the preconditioning process. The Pasturella vaccine should be moved to the first dose and MLV should be considered for both doses of the 5-way viral combination. Perform deworming, dehorning, and castration at receiving. 11

14 Low Risk Cattle Vaccination Schedule Unweaned Calves Timing Preweaning Preweaning, Weaning Preweaning, Weaning Weaning Weaning Vaccine Killed 5-way viral (IBR, BVD I and II, BRSV, and PI3) 7-way clostridial Haemophilus somnus MLV 5-way viral Pasturella vaccine Weaned Calves Timing At arrival + booster At arrival + booster At arrival + booster At arrival Vaccine MLV 5-way viral 7-way clostridial Haemophilus somnus Pasturella vaccine 12

15 Managing high risk cattle The majority of cattle received into preconditioning programs are considered high risk. If cattle fall into the high risk category, they are all treated similarly regardless of the reason they are in this category. The goal is to minimize any further stress for these calves. To minimize stress for newly arrived calves: Allow them to rest for several hours, but process within 24 hours of receiving. Offer free choice, clean water. Have water trickling audibly to help cattle find it, especially if the enclosure is large. Provide high-quality, palatable hay. Process high risk cattle within 24 hours of receiving. Several management practices differ when processing high risk cattle as compared to low risk cattle. Deworming should occur with the initial dose of vaccines. Dehorning and castration should be performed when giving the booster dose, which allows calves to recover from the stress of marketing, travel, and feed deprivation. Since clostridial vaccines tend to stress calves more than other vaccines, it is recommended to use a one-dose clostridial product and wait until the second working to administer. Modified live vaccines for respiratory viral diseases should be used for both doses since the stress of high risk cattle makes them prime candidates for respiratory disease. Because Pasturella is one of the main causes of bacterial pneumonia in stocker cattle, this vaccine should be given with the initial set of injections. Most high risk cattle are already incubating respiratory disease upon arrival. Consequently, vaccination programs do very little to reduce the initial wave of respiratory disease since onset occurs before the immune system has the opportunity to respond to the vaccines. 13

16 High risk cattle may be given metaphylactic, or preventative, antibiotics to prevent or lessen the severity of respiratory disease. There are several antibiotics that are labeled for this use. They can be given orally in feed, systemically, or both. There are many things to consider for high risk receiving rations that are covered in the Nutrition section of this manual. High Risk Cattle Vaccination Schedule Timing At arrival + booster At arrival + booster At arrival Booster (single dose product) Vaccine MLV 5-way viral Haemophilus somnus vaccine Pasturella vaccine 7-way clostridial vaccine Treating sick calves Despite the best preventative programs, beef producers are plagued with bovine respiratory disease (BRD) in both low risk and high risk cattle. BRD is the single most important health problem during the preconditioning process. Death loss is considered acceptable by the industry when held to 2% or less. The animal health program, calf comfort, facilities, and management are influential in minimizing death loss. BRD is the single most important health problem during the preconditioning process. Symptoms: Sick calves will often exhibit depression and anorexia as early symptoms of BRD. More obvious symptoms of BRD are 14

17 coughing, nasal discharge, and labored breathing. Detection: Checking stocker cattle several times daily, especially at feeding time, is extremely important in the battle against BRD. Astute cattlemen can often detect sick cattle before the anorexia and depression are obvious. Lowered ears, listlessness, isolation, and inattentiveness to surroundings are signs the calf may be in the early stages of BRD. Treatment: Once sick cattle are identified, they should be pulled away from the main group and taken to a separate area for treatment. Initiate antibiotic therapy as recommended by your veterinarian. It is helpful, though not mandatory, to have culture/sensitivity data from previous cases of BRD to help determine which course of antibiotic action is best. When treating sick cattle, it is best to keep these cattle in a hospital setting where they can be monitored more closely. Retreatment may be necessary. Consult your veterinarian about whether a new antibiotic is necessary or a second dose of the first one should be used. Know the treatment intervals of individual drugs so that a new drug is not initiated too soon. Ancillary medical therapy is often necessary to speed recovery of the sick calf. Treatments such as anti-inflammatory drugs and appetite stimulants should be used judiciously under the supervision and recommendation of a veterinarian. ASK CO-OP Managing the hospital pen A well-managed hospital pen is imperative for sick cattle to get well and return to their home pen as soon as possible. Sick cattle need to be isolated, and fence line contact with healthy cattle should be avoided. The hospital should not be overcrowded and should be comfortable. It should be well drained and as free of mud as possible. 15

18 NUTRITION The profitability of a preconditioning program can hinge on an effective nutrition program that promotes efficient feed conversion and calf weight gains. Nutrition for beef cattle is always centered around the rumen. The rumen environment is critical to efficient nutrient digestion and utilization. Producers must provide feeds that meet the animal s nutritional requirements and provide them in a manner that maintains favorable rumen conditions. Some considerations when designing and implementing nutrition programs include: Feed long-stemmed fiber to stimulate the rumen wall so that it functions properly. Supply adequate fiber by feeding hay, pasture, silage, cottonseed hulls, or other stored forage. Both the calf and its rumen bugs have nutritional requirements, and both must be considered. In the presence of adequate dietary protein and minerals, the rumen bug population is increased and becomes more healthy, vibrant, and able to glean nutrients from feedstuffs. ASK CO-OP What s a rumen bug? Cattle have a four-chambered digestive tract with the largest chamber being the rumen, for which ruminant animals are named. The rumen serves as a large mixing vat for ingested feedstuffs. It is filled with trillions of microorganisms such as bacteria, protozoa, and fungi that attach to ingested particles and ferment them into energy that fuels a calf s body processes. The microorganisms are often called rumen bugs and perform many beneficial functions, such as creating high-quality microbial protein and synthesizing B-complex vitamins. 16

19 When more bugs are present, feedstuffs are broken down more rapidly and rate of passage may increase. Therefore, a calf can ingest more feed and higher daily weight gains become possible. Rumen bugs digest fiber (hay, pasture, silage) or starches and sugars (corn, wheat, milo, hominy, candy waste, bakery waste) but the same bugs usually don t digest both. To get the most from feedstuffs, it is best to feed a forage-based diet supplemented with ingredients that provide energy from soluble fiber, such as wheat middlings, soyhulls, corn gluten feed, and citrus pulp, or provide a largely starchbased diet such as a corn-based feedlot ration. Too much grain fed at once or any abrupt changes to the diet can result in a digestive disorder known as rumen acidosis. When a calf experiences acidosis, it may go off feed and often performance will suffer. Balancing the preconditioning ration Successful nutrition programs provide the calf with required protein, energy, vitamins, and minerals to perform at the desired level. They also promote rumen health and minimize digestive upsets. In general, the higher the desired level of performance, the higher the nutritional requirements. A typical preconditioning ration should have the following characteristics on an as-fed basis: Crude Protein 12-16% Crude Fiber 8-30% Total Digestible Nutrients 62-75% Calcium 0.8-2% Salt 0.5% Copper 20 ppm Manganese 40 ppm Zinc 60 ppm Selenium 0.3 ppm Vitamin A 2,000 IU/lb Vitamin E IU/lb An adequate amount of long-stemmed fiber 17

20 Feeding forages Forages may provide the nutritional base for many preconditioning programs, so it s essential that the feed quality consistently matches calves nutritional needs. Forage quality varies with species, season of the year, fertilization program, and rainfall. The nutritional value of growing forages for preconditioning calves is constantly changing. Thus, sampling and subsequent testing to determine nutritional content becomes necessary. Forage sampling and testing are necessary to assure that forage quality meets nutritional requirements for preconditioning calves. Producers must identify or design supplementation programs that bridge the gap between the nutrients provided by forages and those required by growing calves. There are times of the year when growing forages will contribute greatly to the nutritional requirements of calves. Unfortunately, forages probably can t provide adequate nutrition to produce high rates of weight gain without supplementation. To assure that the nutritional needs of your cattle are met during grazing, forage test to determine your nutritional base. Then, use available resources to fulfill the nutritional requirements of your calves. ASK CO-OP Testing forages A basic forage test that defines crude protein, fiber, and estimated energy value usually as total digestible nutrients is relatively inexpensive and may be facilitated through the Co-op, the local Extension office, or another resource. More sophisticated tests to determine the concentration of vitamins, minerals, nitrates, and even certain toxins exist, generally at more expense to the producer. 18

21 Delivering plentiful, clean water Water is by far the most essential nutrient for all livestock. Water delivery and availability is an important consideration for calves in a preconditioning program. Provide a continuous supply of fresh, clean water and adequate trough space to assure that performance and productivity of calves do not suffer. Too often, calves have inadequate trough space, no water to drink, or are forced to drink from less-than-desirable sources. Growing calves will drink from 6 to 14 gallons of water daily. Many factors influence calves water intake, including stage of production, environmental temperature, salt consumption, and moisture content of their total ration. For example, a calf consuming a high concentrate diet during the summer will likely drink more water than when consuming lush, spring pasture. In general, growing calves will drink from 6 to 14 gallons of water daily. Decreased dry matter intake, increased susceptibility to disease, and a general lack of thrift are among the symptoms of inadequate water intake. Planning average daily gain When budgeting and planning for preconditioning a group of calves, it is imperative to have a reasonable estimate of average daily gain, death loss, and feed intake. Average daily gain is affected by many genetic and environmental factors. Genetics, nutrition, comfort, management, stress, and animal health all play a role in performance. In general, average daily weight gains can range from 1 to 2 pounds for calves on forage only. Healthy calves with superior genetics for growth that are fed abundant amounts of a high-energy, fortified ration can add up to 4 pounds daily. 19

22 When budgeting for feed resources, a rule of thumb is that growing beef calves will consume about 2.5 to 2.8% of their body weight as dry matter. Since calves grow, this is a moving target. Calves that are unhealthy, genetically inferior, uncomfortable, or stressed may not perform up to expectations regardless of the feeding program. Feeding calves for more than 45 days post-weaning can offer economic weight gains. Determining the feeding period Typical preconditioning periods range from a 30-day straightening-out program to a grazing period of 180 days or more. Calves are subjected to the rigors of weaning, sorting, and hauling early in the preconditioning process. This may hamper weight gains in the first weeks as nutrients are being used to fight disease, reduce stress, and recover. Average daily gains may be only 1 to 2 pounds for the first few weeks and can improve dramatically with time. 20

23 As calves recover from the weaning process and adapt to their new environment, they are better able to convert feed and forage to beef. Also, as calves get larger, they are able to eat more and subsequently gain more weight. Feeding calves for more than 45 days post-weaning often offers producers the opportunity to capture some economic weight gains. Hand feeding versus full feeding Though more labor-intensive, hand feeding calves may provide an economic advantage over full feeding in terms of cost per pound of gain. In a hand-fed situation, producers can offer a specific amount of feed, forcing calves to consume pasture or hay as the remainder of their diet. Since pasture is often less expensive per ton of dry matter than feed, this may help lower the cost of gain. When cattle are full fed, they often ingest more energy and protein than they are genetically capable of processing into beef, so efficiency suffers. Calves that are full fed often get fleshy and may be discounted by buyers. ASK CO-OP Confused about what to feed your calves? From complete feeds to supplements to minerals, Co-op has what you need for your preconditioning program. For assistance in planning your feeding program, talk with a Co-op Feed and Animal Health Specialist. 21

24 RISK MANAGEMENT TOOLS To manage the risk associated with preconditioning, certain options should be considered. Profitability of preconditioning cattle can be affected by a number of factors. Co-op offers these tools that can alleviate a portion of the risk: Forward purchasing allows a producer to lock in the price of feed needed for a group of cattle. Forward purchase agreements are for a stated quantity of feed for a fixed period of time. Prices are quoted daily and based on the forward prices of ingredients. Livestock Risk Protection Insurance (LRP) is similar to crop insurance in that it establishes a minimum price for cattle. LRP provides protection against declining livestock prices if they fall below the selected coverage price. LRP is similar to a put option, but may be viewed more favorably by lenders. This protection is available to producers in Tennessee and all surrounding states. Policies cover a stated number of cattle at a target weight and price for a given feeding period. The price at which the cattle are eventually sold does not affect the loss payment. Financing options are also available through Co-op Financial Services. Feed and animal health inputs for a group of cattle may be financed with no interest and no payments until the cattle are sold. MORE INFORMATION Contact your Co-op Feed and Animal Health Specialist. 22

25 MARKETING The final step in achieving preconditioning profitability is effective marketing. A sound marketing program is essential to realizing the true value of a preconditioning program. The type of marketing program selected depends on your relationship with the marketing agency, your cash flow needs, and the amount of risk you are willing to accept. Remember: To capture full values for preconditioned cattle, they should be sold in load or near-load groups. The following methods are typically available for producers: Weekly Public Auctions This is a marketing outlet for all types of cattle and livestock. Most animals are sold on an individual basis with groupings upon request by the seller. Payment for cattle is made by a bonded livestock marketing agency. Special Graded and Grouped Auctions Auctions are held on a seasonal or regularly scheduled basis. Cattle are graded by an independent third party (State Department of Agriculture) or the marketing agency and sold in groups uniform in sex, weight, grade, and breed/color. Payment for cattle is made by a bonded livestock marketing agency. Video Auctions Cattle are described and usually video recorded by the livestock marketing agency but remain on the farm until sold. Cattle are generally delivered within 10 days with payment made by a bonded livestock marketing agency. Cattle are typically sold in full-load (48,000 to 50,000 pounds) and half-load lots. 23

26 Private Treaty Cattle are sold on the farm direct from producer to buyer on a private treaty basis. Payment for cattle typically comes from a private entity. Retained Ownership The owner places cattle in a backgrounding program and/or feedlot for weight gain until slaughter. In addition to animal health and feed costs, the owner pays a negotiated fee for yardage to the backgrounder and/or feedlot. It is possible to get an advance payment (loan) on partial value of the cattle when placed. This is deducted from the final payment when the cattle are slaughtered. MORE INFORMATION Contact your local livestock market operator, Extension office, or State Department of Agriculture. 24

27 Maximize market value These factors may influence the market price of your preconditioned calves: Packaging. Sell cattle in uniform (sex, weight, grade, and breed/color) groups of 48,000 to 50,000-pound (truckload) quantity. Records. Be prepared to provide proper documentation of birth dates, vaccinations, treatments, and overall management to a potential buyer. Inquire about the required records before selecting a marketing method. Genetics. An effective crossbreeding program gives one the opportunity to realize the benefits of heterosis. Age and source verification. This requires identification and birth records. This could allow for participation in additional domestic and international marketing opportunities. ASK CO-OP Where do I go from here? Experts at Tennessee Farmers Cooperative have developed an analysis tool to assist producers in further considering cattle preconditioning for their operation. For a free analysis of your situation, contact your Co-op Feed and Animal Health Specialist. 25

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