FY04 - NDSU Extension Service
PROGRAM # 202 - COMPETITIVENESS AND PROFITABILITY OF ANIMAL SYSTEMS

Program Planning Team

Roger Haugen (chair), Kent Alderin, Vern Anderson,  Brad Brummond, Russ Danielson, John Dhuyvetter, Karlyle Erickson, Kurt Froelich, Warren Froelich, Paul Gjermundson, Randy Grueneich, Elroy Haadem, Jim Hennessy, Karl Hoppe, Craig Kleven, Greg Lardy, Lisa Lee, Charles Linderman, Lee Manske, Dwain Meyer, Mark Miller, Dale Naze, Harvey Peterson, Chip Poland, Kris Ringwall, Rick Schmidt, J.W. Schroeder, Kevin Sedivec, Charles Stoltenow, Bridget Johnson

Overall Situation 

Livestock farm income accounted for 18.8% of the total agricultural cash receipts, or $726.7 million, in North Dakota, for 2001. According to the North Dakota input/output model, the livestock sector has the highest multiplier coefficient (4.47). In other words, for every dollar spent in the livestock industry, an additional $3.47 is generated in gross business volume for the state's economy. While independent livestock enterprises exist in North Dakota, a large portion of farm operations are diversified and include both crops and livestock entities. The addition of livestock enterprises to an existing grain enterprise model shows an increase in returns on investment. Therefore, the addition of livestock enterprises to the existing operations may be needed to maintain the number and viability of existing farms in North Dakota. Educational programs that strengthen the various livestock industry segments are extremely beneficial to the economic well-being of local communities and to the state as well.
 
 

PROGRAM COMPONENT
EXPANDING LIVESTOCK INDUSTRIES IN NORTH DAKOTA

Key Theme(s):   Animal Production Efficiency,  Expanding Livestock Numbers, Adding Value to Livestock Products

Persons Responsible

Tim Petry (chair), Andy Swenson, J.W. Schroeder, Greg Lardy, Roger Haugen, Kris Ringwall, Vern Anderson, Karl Hoppe, Chip Poland, John Dhuyvetter, North Dakota Department of Agriculture Livestock/Dairy Development Coordinator- Bobbi Talmadge, NDAREC (Bill Patrie, Lori Capouch), Tom Risdal, and Jason Wirtz.

Situation

Agriculture-related employment and income are vital to the livelihood of North Dakota residents and to the economy of the state. Agriculture in North Dakota is a $3 billion a year industry. North Dakota livestock numbers have been steadily declining, most notably in dairy cattle and swine. And, even though approximately 1 million head of beef calves are born each year in North Dakota, only 500,000 are backgrounded and 60,000 fed to market weight in the state, despite available surplus feed grains and increased forages produced under irrigation. The state has an abundance of by-products from grain, oilseed, and root crop processing available for livestock feed. Rural North Dakota is constantly seeking viable economic development opportunities, of which livestock enterprises can offer many advantages. For example, North Dakota could become the supplier of quality dairy heifers at a time when there is a shortage of dairy replacement heifers nationwide.  In addition, North Dakota milk processing facilities have excess capacity to support more milk production. The pork processing industries in both North Dakota and Manitoba are currently importing hog carcasses in order to meet demands and are interested in working with producers to expand. There is interest in multi-species slaughter and processing including small community plants, a medium sized plant for both exotic (ratite, elk, goat, poultry, etc.) as well as traditional livestock. Niche market opportunities, such as all natural, organic, high selenium, religious and ethnic foods, are developing for meat and dairy products. An incubator kitchen facility for developing consumer friendly products would assist all species in market development.

Anticipated Measurable Outcomes (Objectives)

5-year goals

2-year goals

* 100,000 breeding ewes in ND.
* 1200 producers in ND.
* 75,000 lambs fed to finish in ND.
* Assist lamb growers to cooperatively market 12,000 lambs per year.

5-year goals

* 125,000 breeding ewes in ND.
* 1300 producers in ND.
* 90,000 lambs fed to finish in ND.
* Assist lamb growers to cooperatively market 24,000 lambs per year.


Educational Program - Outputs
Evaluation Plan - Assessing Impacts

Livestock inventory numbers collected annually by the USDA National Agricultural Statistics Service (NASS) will be used to measure changes and trends.

The Value-Added Agriculture Impact Assessment Model, developed by the Department of Agribusiness and Applied Economics at NDSU, can be used to estimate the changes in gross business volume for all sectors of the state economy that arise from direct expenditures associated with livestock expansion ventures. Both primary and secondary benefits can be estimated and changes to state tax revenues measured.

PROGRAM COMPONENT
BEEF QUALITY ASSURANCE

Key Theme(s):   Animal Health, Animal Production Efficiency

Persons Responsible

Lisa Lee, Greg Lardy, and Charlie Stoltenow (co-chairs). Team members: Chip Poland, John Dhuyvetter, Karl Hoppe, Kris Ringwall, and local agents.

Situation

The beef industry in the United States is rapidly moving into a source-verified, branded beef market. According to industry sources, almost 50% of the beef marketed in the U.S. in 2010 will be from source verified herds. The development of alliances, closed cooperatives, and numerous other business structures will allow North Dakota producers to participate in these business arrangements. However, many of these programs will or do require formal certification in Beef Quality Assurance. Almost 1400 beef cattle producers were certified in the three years of Beef Quality Assurance (BQA) training certification meetings held in the state beginning in 1999. These producers market over 194,000 feeder cattle annually, representing approximately 20% of the state's cow herd.

Anticipated Measurable Outcomes (Objectives)

Educational Program Evaluation Plan

PROGRAM COMPONENT
EFFICIENT NUTRIENT UTILIZATION OF FORAGES

Key Theme(s):  Rangeland/Pasture Management

Persons Responsible

Kevin Sedivec and Greg Lardy (co-chairs). Team members: Chip Poland, John Dhuyvetter, Karl Hoppe, Brad Brummond, Karlyle Erickson, Kent Alderin, Lee Manske, and Russ Danielson.

Situation

Over 44% of North Dakota's land use is associated with rangeland, pasture land, and hayland in the state. Forages are an abundant and sustainable resource available to livestock producers, who rely heavily on their production as a primary feed source throughout the year. Furthermore, feed costs associated with maintaining beef cows average 66% of total cash costs of production. Therefore, proper nutrient management of grazed forages, implementation of an efficient grazing system (including timing of grazing), and stored winter forages along with supplemental feeds, can play a vital role in profitability of cow-calf producers in North Dakota. Beef producers currently face increasing beef prices due to the beef cattle price cycle, and low-cost producers will be better able to increase equity in their operations, during this period.

Anticipated Measurable Outcomes (Objectives)
SUMMER FORAGE NUTRIENT UTILIZATION

Adoption of cost-effective and conservation friendly summer grazing programs. Match forage availability, readiness, and quality with grazing animal and stage of reproduction\lactation. Develop and continue demonstration and research type trials on grazing management (grazing systems), permanent native and tame grass management, and integrated management of leafy spurge. Develop written and visual materials on rangeland management, integrated ranch management, and range pest management.
WINTER FORAGE NUTRIENT UTILIZATION
Reduce the cost of winter feeding by:
Educational Program 

SUMMER FORAGE NUTRIENT UTILIZATION

Include summer grazing programs, topics, and issues; cool-and warm-season grasses; and annual forage related topics at state and regional beef educational producer meetings. Continue demonstration projects in 1) Sheridan and McIntosh Counties on high-intensity/low frequency grazing systems on livestock production, wetland communities, and native rangeland; 2) Adams County and Pierre, SD, looking at domestic and tame cool-and warm-season grass production and quality; 3) Morton, Eddy, and Golden Valley Counties looking at multi-species grazing with sheep and cattle to improve native plant communities and livestock performance on leafy spurge infested lands; 4) Ekalaka, MT, looking at new potential herbicides to control leafy spurge; 5) Adams County and Lodgepole, SD looking at winter grazing impacts on plant growth and production; and 6) state wide CRP forage analysis and interpretation for feeding use.

Continue providing current and pertinent information of rangeland topics, grazing topics, feeding livestock, etc., in "The Ranch Hand." Conduct a four-day range youth camp to educate our youths on the use and importance of the range resource and range judging. Conduct a two-day state range judging contest for youth and adults. Conduct three to four 2- to 3-day winter range workshops for rangeland operators throughout the state. Complete a range management handbook for range managers and operators. 


WINTER FORAGE NUTRIENT UTILIZATION

Evaluation Plan

SUMMER FORAGE NUTRIENT UTILIZATION

Monitor the success of implementation of range improvement practices through surveying workshop participants in North Dakota. Conduct a survey for the effectiveness and usability of "The Ranch Hand."
WINTER FORAGE NUTRIENT UTILIZATION
Develop surveys to examine feeding practices in North Dakota beef cattle herds. These surveys would also determine producer needs in relation to feeding the cow herd. 

PROGRAM COMPONENT
REDUCING BEEF HERD WINTERING COSTS WITH STRAW-CHAFF-ALFALFA

Key Theme(s):  Animal Production Efficiency

Person Responsible

Tim Semler (chair).

Situation

Analysis of Integrated Resource Management records of cattle producers enrolled in the N.D. CHAPS system and N.D. Farm Business Management program shows the highest cost component of producing beef cattle in North Dakota is the winter feeding costs.  The average beef cattle producer winters the herd entirely on a forage diet that is predominantly hay.  A majority of the N.D. cattle operations are located in diversified farming regions.  One forage resource that is often overlooked in these regions is the straw and chaff residue that remains after cereal grain harvest is completed.  Supplies of cereal crop straw-chaff residue in these regions is enormous in any given year.  This residue, collected properly, can be a low-cost feed that will provide maintenance level nutrition for beef herd cows during the middle third of pregnancy.

Anticipated Measurable Outcomes (Objectives)

Educational Program  Evaluation Plan
Develop surveys to examine feeding practices in North Dakota beef cattle herds. These surveys would also determine producer needs in relation to feeding the cow herd. 


PROGRAM COMPONENT
POSTWEANING CALF FEEDING AND MANAGEMENT IN THE NORTHERN GREAT PLAINS

Key Theme(s): Animal Production Efficiency

Persons Responsible

Karl Hoppe (chair), John Dhuyvetter, Greg Lardy, Lisa Lee, Jim Hennessy, Tim Semler, Karlyle Erickson, Mark Miller, Kurt Froelich, Tom Hanson, Rick Schmidt, Ron Beneda, Chip Poland, Lee Manske, Charles Linderman.

Situation

Expanding cattle feeding opportunities in the northern Great Plains has been explored during the past decades. Recent information has indicated that relatively low feed prices as compared to other states can provide for competitive beef gains. Although cold and inclement weather will depress cattle gains and feed conversions, feeding cattle in North Dakota may be cost competitive. Methods for improving management, i.e. nutrition, marketing, genetics, finance, facilities, and waste management, need to be identified and information disseminated for both backgrounding and finishing systems for feeding cattle. Low cattle prices are forcing cattlemen to consider alternative markets. Cooperatives and other business structures may precipitate changes in the current feeding industry. A successful cattle feeding industry will benefit the state residents through increased economic activity, increased revenues and a source of quality meat protein for human diets.

Anticipated Measurable Outcomes (Objectives)

Educational Program Evaluation Plan


PROGRAM COMPONENT
MULTI- SPECIES PRODUCTION WITH SHEEP AS A DIVERSIFIED INCOME SOURCE

Key Theme(s): Biological Control, Adding Value to New and Old Agricultural Products

Persons Responsible

Roger Haugen (chair), Kevin Sedivec, Richard Schmidt, Kent Alderin, Tim Faller, Dan Nudell.

Situation 

Livestock producers have the potential to optimize resource utilization by inclusion of a sheep enterprise. Opportunities in leafy spurge control with sheep and multi-species grazing are all potentials for adding sheep as an additional farm income source. Utilization of crop aftermaths, availability of unused farmstead buildings, and family labor also add to the possibility of incorporating sheep on a farm to help stabilize the total farm income. The formation of a lamb cooperative to develop niche markets for natural and premium lamb opens up more marketing possibilities for North Dakota producers.

Anticipated Measurable Outcomes (Objectives)

Educational Program Evaluation Plan 

Survey those attending schools, tours, and educational programs before the events and after to see knowledge gained and practices changed or added to on their farm or ranch. In particular, note the number of farms or ranches incorporating multi specie grazing. Note changes in the number of sheep producers as well as the number of sheep in the state. Note the development and size of niche markets for North Dakota lambs.
 
 

PROGRAM COMPONENT
MANAGEMENT PRACTICES AND QUALITY ASSURANCE FOR PROFITABLE DAIRYING

Key Theme(s):  Animal Production Efficiency

Persons Responsible

J.W. Schroeder (chair), Dwight Aakre, Charles Linderman, Jackie Buckley, Bill Klein, Lisa Lee,  D.W. Meyer, Mike Rose, Bruce Seelig, Charlie Stoltenow, Bill Coleman, Jason Wirtz - NDDA - DP3 Coordinator, Wayne Carlson, NDDA - Director of Dairy Services, T. Risdal, John Johnson, Ron Willardsen and M. Bredwick - ND3P.

Situation

North Dakota has ample feedstuffs, available co-products, an affordable land base, and an infrastructure with excess milk processing capacity to support dairy expansion.  Because of dairying's value-added potential, other Ag-related industries are taking an active interest in dairy expansion.  However, existing family-owned dairy operations have steadily declined in numbers, driven by attrition from an aging population, a demand for an improved lifestyle, and the financially staggering capital requirement modernization.  As a result the number of dairy farms declining to 440 operations (NDDA, July, 2003) and animal numbers have dropped to 37,000 cows (NDASS, 2003).  While the rank of the state's dairy industry is second only to beef production, all livestock now represents 18% of the receipts of our $650 million ag industry.  Dairying remains one of the most complicated and demanding livestock enterprises. To stay competitive, existing dairy farm families need to integrate production and management technology, while implementing competitive marketing techniques. Successful adaptation of modern technologies can enhance milk yield, composition, quality, and its economic value, while protecting our environment and natural resources.

Anticipated Measurable Outcomes (Objectives)

Educational Program

Program Delivery

Provide up-to-date technology through highly visible education outlets: Educational Materials Specific Training Evaluation Plan
PROGRAM COMPONENT
ENHANCING SWINE PRODUCTION

Key Theme(s): Animal Production Efficiency

Persons Responsible

(chair), John Dhuyvetter, Brian Zimprich

Situation

Swine production in the U.S. has changed due to many factors, including economics of scale, regulatory additions, marketing agreements and/or contracts, early weaning for disease control, and specialized multiple site operations. The changes that are evolving within the swine industry have caused apprehension on the part of potential hog producers. North Dakota producers need to be aware of the economic advantages of home-grown (North Dakota) grains and that hog production costs are lower in this state than in most other states.

Large size units have some inherent overhead that causes inefficiencies in pork production. North Dakota producers need to understand the basic economics of pork production and learn that genetic and nutrition opportunities are available to all sizes of operations. Marketing is perhaps the most complicated part of swine production and producers may need to work more cooperatively with specific packers to insure the highest return for their pigs. 

North Dakota producers have a tremendous advantage in marketing their hogs. A slaughter facility in the state allows market access not available in other states. Cooperative efforts between producers and Cloverdale Foods, Inc., is essential for future growth of hog production in North Dakota.

Anticipated Measurable Outcomes (Objectives)

Educational Program Evaluation Plan