August, 12, 2010 - Ron Gill's views on heavy metal music and the chemistry of heavy metals isn't a matter of record, but his views on heavy metals as they related to ranching are. Gill believes that too many people in the cattle business die of "heavy metal disease."
Gill, a livestock specialist with Texas AgriLife Extension, believes that too many ranchers spend too much money buying too much heavy equipment -- this is what he calls the heavy metals disease.
"If we look at the people who are making a lot of money in the cattle business, they don't have a lot of metal lying around," he said at a Texas A&M Beef Cattle Short Course in College Station.
With the average profit margin for a commercial cow-calf operator at about $40 a head, the choice of where to spend money on the operation is critical, he said. Big livestock trailers, tractors, bulldozers and even pick-up trucks are some of the areas where cow-calf producers are inclined to spend more money than is warranted.
Large, gooseneck trailers are nice, he said, but may not be the best choice for a small cow-calf operator.
"At $40 a head profit for that calf, how many will it take to pay for that trailer," he said.
Plenty of people haul cattle for a living, Gill noted, and the local auction barn can usually recommend one. "I do think everybody needs some kind of trailer," he added. "If you've got a cow that's sick and you need to take her to the veterinarian, then it's good to have a trailer. Just don't go overboard."
Nor should the small cow-calf operator go overboard when buying a tractor. The big air-conditioned cab tractors turn out to be little more than "recreational hay balers," he said. He believes that a small tractor with no cab but with a front-end loader and a small shredder is a better economical choice.
Gill sees bulldozers as the most obvious symptom of heavy metals disease.
"You can justify buying a bulldozer all you want, but you can hire the work out a lot cheaper, especially if you're only using it once or twice a year."
As for things that the small producer should spend money on, Gill believes that good pens and chutes that are used to restrain the cattle are among the most critical because dilapidated pens and chutes can result in injuries. He recommends a simple pen made with portable panels that is inexpensive but functional.
"A simple working chute may be a head gate and some cattle panels," he said. "It doesn't have to be too elaborate if you are a small operator."
Squeeze chutes run from about $2,500 all the way up to $17,000, and producers should consider this purchase very carefully because safety as well as money is at issue here.
"It's important to remember your safety when working cattle, so find something good that fits your budget and will prevent you from getting hurt," he said.
In addition to managing a budget that doesn't include purchasing a lot of expensive equipment and vehicles, Gill said the small rancher can cut down on production costs by buying hay instead of producing it. A barn to house the hay is a good investment because the barn pays for itself with the amount of hay it protects from the weather.
Other suggestions from Gill include:
Avoid overstocking grazing land.
Develop and integrated system for total resource management, including wildlife.
Control the breeding season in order to market calves at a certain place and time.
Don't spend money to reduce federal taxes if the investments don't result in increased equity after taxes.
"It doesn't make sense to spend a dollar to save 30 cents," he said.
