UW helps sponsor workshops assisting producers response to drought, cattle cycle

Wyoming

Helping livestock and forage producers beef up their response to swings in herd size caused by drought and the cattle cycle are goals of workshops in March at Torrington and Cokeville.

"Drought Recovery and Risk Planning for Livestock Producers" workshops will help provide producers risk-management tools and develop financial management strategies.

The workshops are sponsored by the University of Wyoming, North Dakota State University, Montana State University, South Dakota State University, the National Crop Insurance Services (NCIS), and the U.S. Department of Agriculture's Risk Management Agency.

"Cattle producers have experienced strong prices in the last few years due to short beef supplies and strong consumer demand," said Duane Griffith, Montana State University Cooperative Extension Service (CES) economist and one of the presenters. "Now, when the drought may be easing, ranchers are wondering about increasing herd sizes even though there is still uncertainty about whether the drought is really over, and future feed resources."

Registration begins at 8:30 a.m., and the workshops are 9 a.m. to 4 p.m. The March 6 Torrington workshop is in the Brand Room at the Goshen County Fairgrounds. Contact person is Goshen County University of Wyoming CES educator Wayne Tatman, 307-532-2436.

The March 14 Cokeville workshop is at the Cokeville Town Hall. Contact people are Uinta County CES educator Bridger Feuz, 307-783-0570, and Lincoln County CES educator Hudson Hill, 307-885-3132.

Economists will discuss the status of the cattle cycle and the alternatives for producers it presents. Speaking will be Harlan Hughes, professor emeritus and livestock economist, and Professor Cole Gustafson, North Dakota State University Department of Agribusiness and Economics; Griffith; and Laurence Crane, providing education and training with the NCIS.

Global livestock information and U.S. policy information will also be presented. New insurance tools will be reviewed, including livestock risk protection, livestock gross margin insurance, and crop insurance plans for forage and pasture.

Herd expansion now comes at the cost of paying high prices for breeding animals or forgoing sales of high-priced heifer calves.

"Expansion now with expensive animals may also mean selling calves at relatively low prices after the cattle cycle peaks and starts back down," said Griffith. "An alternative is reducing or maintaining a drought-reduced herd size or selling high-valued breeding stock now and increasing herd size again before the next upswing in the cattle cycle. These are the kinds of difficult questions we'll be talking about during the workshop."

Workshop topics include:

--An overview of the cattle cycle;

--Implications of alternative consumer demand scenarios;

--Formation of short- and long-term herd management strategies;

--The economic and financial impact of alternative production plans;

--Strategies for managing herd size during different parts of the cattle cycle;

--Economics of buying feed vs. herd reduction;

--Rebuilding the forage base or herd;

--Managing risk during the rebuilding process;

--An overview of crop insurance and risk management;

--Livestock risk protection and livestock gross margin;

--Group risk plan and group risk income protection;

--Crop insurance plans for forage, pasture, and rangeland;

--New marketing opportunities;

--Overview of financial management;

--Using individualized records for analysis and planning;

--Sources of financial information;

--Modifying financial plans as conditions change;

Date: 2/22/06