When a dry spell arrives, producers scramble to make the best decisions for grazing pastures, buying hay and caring for livestock. Running stockers as a drought safety valve could be a smart idea.
Stocker cattle require new skills
Dale Smith and Jay O’Brien manage ranches in the Texas Panhandle, Colorado and Oregon, often running a combination of stockers and cow-calf herds as a drought management plan. Smith works with ranchers who may not have the expertise, desire or financing to own stocker cattle. He provides animals to these operators on a custom grazing basis.
“We turn out stockers with the rancher for a time, taking advantage of any excess forage production,” Smith explains. “We also have the safety valve to ship calves earlier if needed. It provides clients extra income, allowing them to destock quickly [during drought].”
Stockers are almost always available and are easier to sell than cow-calf pairs. There is a ready market for stocker cattle at auctions or feedyards.
“Reducing the cow herd depends on your forage inventory and carrying capacity,” Smith observes. “I suggest ranchers conduct a forage inventory at the end of the growing season, typically October or November. Once they determine how much forage is available, calculate the amount needed for the cow-calf herd, then give them a safety margin. Suppose excess forage is carried over from the previous growing season, and you feel optimistic about the upcoming growing season. In that case, it’s a great opportunity to take in stocker cattle from someone like us.”
Smith says ranchers must have a specific skill set to buy stocker cattle, straighten them out, get them healthy and have them in good condition to gain before marketing them as a feeder steer. Custom grazing might be a good option if a producer lacks those skills. He might want to avoid buying cattle in the fall when health issues may occur. Operators can also buy stockers on April 1 and graze them for a period that fits a rancher’s particular environment.
“While there is uncertainty involved running stocker cattle, producers can eliminate some risk by working with someone like us who have cattle that are already straightened out, can be handled from horseback and on foot, and are in good condition to gain well starting on day one,” Smith concludes. “That eliminates many risks of buying in the fall, market uncertainties and health issues.”
Stockers on the Wine Glass Ranch in western Nebraska gain quickly on wheat, often leaving forage for cow-calf pairs or lighter-weight calves. Photo courtesy of Wine Glass Ranch.
Cowman vs. stocker producer mentality
Logan Pribbeno is a fifth-generation rancher who operates the Wine Glass Ranch, established in 1888 on western Nebraska’s High Plains. He runs stockers and a cow-calf operation utilizing a drought plan. “We vary what we stock based on weather and different value classes,” Pribbeno explains. “In 2022, we had the worst drought in 20 years. We saved some grass for our stockers and cow herd and found custom feedyards to take our steers. That freed up grass for our cows and remaining heifers we ran as stockers.”
Pribbeno is also a dryland farmer, and when his corn crop failed, the crop insurance company released that acreage so his animals could graze in mid-August. “A steer will put on pounds, which you can sell a month later,” Pribbeno reports. “A cow-calf pair may not bring a return.”
There are risks when running stockers. “Sometimes cows appreciate, sometimes fall calves appreciate,” Pribbeno explains. “A steer or stocker appreciates every year. Long-term cycles are at play [with a cow herd], whereas with a steer, it’s a margin enterprise. You add value to it, and 99 times out of a 100, you get paid to do it. It’s an appreciating asset.”
During dry spells, Pribbeno prefers to reduce his cow herd, running three stockers to one cow-calf pair. In 2022’s dry spell, he put stockers on feed, then wheat pasture. Pribbeno moved them off wheat to a feedyard, saving feed for his cow herd.
Pribbeno says it is challenging to be a good cowman and a good stocker operator because they have different philosophies. “A cowman is best served and has the best profits when he’s frugal, giving his cows the least care and attention as possible. In the cow world, cheaper is better. When you run stockers, you have to back away from that mentality. Steers need a lot of care, prime feed, and you need to invest money in them. They’ll pay you back. Heifers are a middle ground because they are hardier than steers and usually perform well.
“Stockers give you the ultimate flexibility for grazing and forage resource management,” Pribbeno concludes. “If you want to retain ownership when they move to the feedyard, you can. If you have any fluctuation in your seasonal forage, it’s the most manageable enterprise to run if you need to scale up or down quickly. It’s a good starting point for anyone who wants to get started in the beef industry.”
Pribbeno likes to run heifer stockers because they are hardier than steers and usually perform well. Photo courtesy of Wine Glass Ranch.
Watch drought monitors
Jim Gerrish, grazing land consultant and founder of American Grazing Lands Services LLC, recommends ranchers stay ahead of drought by regularly checking the USDA Drought Monitor. Updated every Thursday, this site gives a drought forecast to help producers make savvy decisions. States also have drought sites, such as the U.S. Drought Monitor in Nebraska.
“By reducing cow numbers and increasing yearling numbers, producers can significantly reduce winter feed demand,” Gerrish reports. “Following a growing-season drought, stockpiled forage is likely to be little to nonexistent, and hay is probably expensive. Reducing feed demand following a drought is just as important as reducing feed demand through the drought.”
Gerrish recommends producers avoid buying No. 1 black cattle because he feels they cannot add value to those animals. He urges ranchers to buy off-color, less desirable animals in smaller lots and amalgamate them into loads. This adds value and weight to the original purchase.
A cattle buyer is better off buying a set of cattle when the owner is there. The buyer can learn if the animals have had two rounds of vaccinations and deworming, which promotes their health and saves the buyer money. If the auctioneer does not know the history of a batch of cattle, Gerrish recommends the purchaser implement a receiving protocol.
If possible, custom graze stockers on a per-head per-day grazing contract rather than the rate of gain. The rate of gain custom grazing pays when there is an abundance of high-quality pasture or range. During a dry spell, it is unlikely operators will have access to high-quality forage in ample amounts.
Critical skills producers need when buying, caring for and selling stockers include being a shrewd seller and buyer of livestock. “Consider selling any purchased livestock within one week of purchase, based on a future delivery date and be conservative when setting that future date considering drought potential,” Gerrish advises. “Keep arriving stock healthy by moving them to a pasture as soon as possible. Utilize effective grazing management to capture as much value from limited pastures. During drought, short grazing periods and long recovery periods are essential.”
Gerrish reports that stocking 60% of the cow-calf herd in the Great Plains and Midwest is a good starting point when developing a drought plan. It provides a 40% buffer, and producers can run additional stockers during a rainy year. Different regions have different opportunities, including grazing skinny cull cows or male and female stocker cattle.
