Rabobank Releases Report Exploring Cow Confinement and Semi-Confinement
Producer expansion plans face challenges as U.S. grazing acres decline.
SAINT LOUIS, Mo. (Feb. 2, 2015) — Cattle producers across the United States are heeding economic indications to rebuild and expand their herds, but a 32-million-acre decline in pasture availability over the last 10 years is hindering expansion and causing producers to weigh options that require less land, according to a new report from the Rabobank Food & Agribusiness (FAR) Research and Advisory group. The report, “Outside In: Confined Cow-Calf Production as a Viable Model for Rebuilding the U.S. Cow Herd Numbers” finds that more innovation is paramount to the growth of the U.S. cattle sector.
“The U.S. cow herd must grow if the industry is going to preserve existing infrastructure and regain lost market share,” says report author and Rabobank Food & Agribusiness Research and Advisory Group Senior Analyst Don Close. “In order to for that growth to occur, the beef and cattle community must address main expansion constraints: high capital barriers, declining availability of grazable acres, and aging producers. In many parts of the country, incorporating systems for confined calf production is an important stop to overcoming these constraints.”
Close notes confined cow-calf production is an avenue to enable young producers entry into the industry. It is also a means in which land-locked corn belt row crop producers can expand their revenue stream, allowing young family members to return to the farm.
The report finds that confined production systems present an alternative that replaces high capital requirements with intensified management and labor. The report’s economic evaluation shows that two systems — confined calf production in excess feedyard space and in confinement buildings that are typically built in the Corn Belt — are very competitive compared to conventional production models.
“While the primary method of U.S. calf production will remain the traditional cow-calf grazing model, the benefits of confined and semi-confined programs — primarily increased efficiency from the cow herd and healthier animals — makes them a truly viable and valuable option,” notes Close. “The ability to adjust the nutritional needs of the cow to the pregnancy/post-calving stage, and the ability to sort cows and adjust feed requirements based on their body condition scores isn’t an option with open grazing.”
To request a copy of the report and for media inquiries, contact Sarah Kolell, Rabo AgriFinance, at 816-516-7984; Lynne Burns, Rabobank International, at 212-808-2581; or Jessup Wiley, Rabobank, N.A., at 559-447-7946.
About Rabo AgriFinance: As a leading financial services provider for agricultural producers and agribusinesses in the United States, Rabo AgriFinance adds value using industry expertise, client-focused solutions, and by creating long-term business relationships. Rabo AgriFinance offers a comprehensive portfolio of services that gives producers the right products to prepare for, and take advantage of, market opportunities. Rabo AgriFinance representatives offer a wide array of financial services and knowledge to help customers realize their ambitions. This comprehensive suite of services includes loans, insurance, input finance and effective risk management products. Rabo AgriFinance is a division of Rabobank, the premier bank to the global agriculture industry and one of the world’s largest and safest banks.
About Rabobank, N.A.: Rabobank, N.A. is a California community bank and a leading provider of agricultural financing and full-service banking products to California consumers, businesses and the agriculture industry. With nearly 120 retail branches, we serve the needs of communities from Redding to the Imperial Valley through a regional structure that promotes local decision-making and active community involvement by our employees.
Rabobank, N.A. is a division of the Rabobank Group, the premier lender to the global food and agricultural industry and a financial services leader providing commercial, retail and agricultural finance solutions in 48 countries around the world. From its century-old roots in the Netherlands, Rabobank has grown into one of the world’s largest and safest banks. www.rabobankamerica.com.
About Rabobank International Food & Agribusiness Research and Advisory (FAR): The Rabobank International Food & Agribusiness Research and Advisory (FAR) group is a global team of more than 80 analysts who monitor and evaluate global market events that affect agriculture worldwide. This international team works to collect key insights into commodity markets; conduct in-depth analysis of the factors that drive sector success (or failure); and examine the megatrends that ultimately influence clients’ business strategy. These analysts are internationally respected experts in sectors from protein to produce, inputs to oilseeds, and their knowledge is shared with Rabobank customers.
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