Many producers have been asking, “Can I still feed steers and make money with $4.00/bushel corn?”

The answer is yes. Conservative economic projections show that even when corn is $4.00/bu. there is profit opportunity there. Consider this:

· At the time of this printing, Holstein cash price is around $0.78/lb. and February ’08 futures are around $0.85.

· Bull calf prices have dropped dramatically the last several months.

· Beef exports continue to increase as closer BSE monitoring is in effect and more countries lift trade restrictions. Domestic consumption also continues to increase.

· The United States produces the highest quality beef in the world. Plus by feeding Holstein steers on whole shell corn and Tend-R-Leen, our feed efficiency is among the best in the world.

Profit Strategy: Make sure to keep in mind to buy cattle you can make money with. Don’t pay too much for feeder cattle based on your farming operation. Run projections on the profitability of cattle prior to purchase to know what you can pay to get your desired profit. The best part of this is that it is different on every farm to allow you different opportunities than your neighbor.

Another comment often heard from producers is, “If I purchase less feed off farm and feed silage or hay, my feed costs will be lower.”

While it may seem like you are saving money by having a smaller off farm feed bill, you could well be sacrificing profit, money in your pocket, due to increased amount of feed required to finish a steer, decreased feed efficiency, increased days on feed, and reduced average daily gains. In addition, roughage fed cattle may grade lower than steers fed on a no-roughage diet, thereby reducing your income at the time of sale.

Profit Strategy: Compare the numbers for performance and profit of steers on a roughage ration versus Tend-R-Leen fed steers. These projections are based on cattle fed from 350 lbs. to 1227 lbs.

Tend-R-Leen ration Shelled corn, haylage,

protein ration

Shelled corn: $4.00/bu. Shelled corn: $4.00/bu.

Tend-R-Leen Finisher $480/ton Haylage: $45/ton

40% protein: $370/ton

ADG = 3.1 pounds ADG = 2.5 pounds

Days on feed = 272 days Days on feed = 352 days

(9.06 months) (11.73 months)

Market weight in 13 months Market weight in 15.73 mo.

Feed cost Feed cost

78.21 bu. corn = $312.84 84.2 bu. corn = $336.80

408.48 # TRL = $98.85 4000 # haylage = $90.00

352# 40% pro. = $65.12

Total = $411.69 Total = $491.92

Cost/pound of gain = $0.47 Cost/pound of gain = $0.56

Yield = 61% Yield = 58.5%

That’s a difference of $0.09 in cost per pound of gain. Feeding cattle from 350 lbs. to 1227 lbs. (877 lbs. of gain) would cost $78.93 less on the Tend-R-Leen program versus the roughage program!

That leads to the next question, “I can purchase a competitor’s concentrate cheaper. Why should I buy Tend-R-Leen?”

Is saving $50 or more per ton of concentrate worth it? The feeding rate of the lesser expensive product needs to be considered to determine the actual cost. Also, was the product researched and designed for the type of feeding you are doing? Or is it cheaper on face value but costs more in the end with increased feed per pound of gain, lowered average daily gain, health and digestive problems, and poor quality finished steers resulting in lower profit because of added costs?

We always get asked the same question -"Why does Tend-R-Leen^® cost more than the competitors?" The main reason is the addition of Sodium Diacetate to our Tend-R-Leen^® products. Sodium Diacetate supplies the acetic acid normally produced from digestion of roughage. This serves as a buffer, assuring more consistent intake and a healthier digestive tract. Sodium Diacetate also increases feed efficiency, requiring less corn to bring an animal to market. Sodium diacetate saves you about 6 bushels per steer and one ton of TRL feeds about 4 steers. That is 24 bushels per ton of Tend-R-Leen or $84. Another reason that

Tend-R-Leen may cost more than other proteins is because it also contains yeast and B vitamins. Most cheaper proteins do not include them. Because Tend-R-Leen has done the research on feeding no-roughage steers, we have accurate data documenting the performance of our program. Can competitive programs give you accurate numbers or any at all?

Tend-R-Leen^® products contain more natural protein than the competitors no-roughage program products. Currently Domain, Inc. utilizes only plant and vegetable protein sources to manufacture Tend-R-Leen^® products. Excluding the use of ruminant animal protein sources in our Tend-R-Leen^® products increases the cost but allows you, the producer, to certify your animals have not been fed any ruminant animal protein products with confidence.

If Tend-R-Leen^® costs $50/ton more than the competitor’s product with the same feeding rate, it only takes less than one additional ounce of gain to breakeven.

$50/ton - 4 steers/ton = $12.50/steer. If fed for 330 days that breaks down to 3.8 cents/day and, at 78 cents fat cattle price, .03 lbs more ADG will make up the difference. This is less than an ounce per day to have the satisfaction of knowing that you are feeding your steers the BEST and the original No-Roughage Program.

If you have a competitive product that has a 2 pound feeding rate and is boasting a $100/ton savings over Tend-R-Leen^®, you may need to look at the numbers more closely. At 2 lbs./hd/day, only 3 steers can be fed per ton versus Tend-R-Leen^®'s 4 steers per ton. When you break this down, the price ends up the same. But with Tend-R-Leen^®, you have the satisfaction of knowing your steers are getting the same high quality nutrition every time you feed.

The next time a competitor boasts of a price savings over Tend-R-Leen^®, you may want to compare all the facts such as: feeding recommendations, economic projections, rate of gain, feed efficiency or closeouts that are for operations that are similar to your own.

If you have access to the Internet, you can go to tendrleen.com and download our economic projection worksheet so you can determine your economic situation at any stage of raising steers.

And one final question you can ask yourself: What else can I do to combat high corn prices and still earn a profit?

Look closely at all aspects of your operation. Even small changes in your management practices can make a difference to your bottom line. Several key management practices include steer comfort, implants, vaccination and water. These all can affect performance and profitability in large ways.

· Improve steer comfort by keeping the animals clean, out of severe weather conditions, and having easy access to feed and water.

· Walk through pens or lots on a daily basis to monitor all cattle for injury or the start of illness. Make sure that all steers get up and move around the lot.

· The proper implant given at the right time can result in an extra 99 pounds of gain and can improve feed efficiency.

· A solid and thorough vaccination program helps to reduce disease incidence and keep cattle healthy. A Texas A & M study found that cattle on a thorough vaccination program resulted in $117 greater profit per head due to decreased medicine costs, better feed efficiency, and improved performance. One big vaccination that is over looked is Clostridal (7-Way) with many times a proper booster not being administered. The results can be bloating, reduced feed efficiency, or worse, sudden deaths. Death loss is exactly that - a loss - something that will never be regained. A good vaccination program will cost around $7 to $15 per steer. It only has to save one steer out of 50 head to pay for it self.

· Water is a key element to feeding cattle, do they have plenty and what is the quality? Location of water can be overlooked. How close and easy is it for your steers to eat and drink? The water source should be located close to the feed source to encourage consumption. If it is inconvenient for steers to walk across the lot to get a drink then back across the lot to eat again, they may eat & drink less.

To make a profit when feed prices are high you must learn to closely observe all parts of your operation.