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Creating a Successful Stocker Cattle Business Plan

Welcome to our blog post on creating a successful stocker cattle business plan. If you are interested in starting your own stocker cattle business or looking to improve your existing one, having a well-crafted business plan is essential. A stocker cattle business involves purchasing young cattle, known as stockers, and raising them for a period of time before selling them to feedlots or finishing operations.

In this blog post, we will explore the key elements of a stocker cattle business plan, including the executive summary, company description, market analysis, organization and management, services or products, marketing and sales strategy, funding request, and financial projections.

Understanding the stocker cattle business is crucial before diving into the planning process. We will discuss what a stocker cattle business is, how it works, and the key players in the industry. This knowledge will help you lay a strong foundation for your business plan.

Analyzing the market is another important aspect of creating a successful stocker cattle business plan. We will guide you through identifying your target market, understanding market trends, and analyzing your competition. These steps will enable you to make informed decisions and position your business for success.

Developing your strategy is the next crucial step in the planning process. We will delve into creating a marketing and sales strategy, outlining your operations, and defining your financial strategy. These components will provide a roadmap for achieving your business goals.

Lastly, we will explore how to implement and manage your plan effectively. We will discuss executing your business plan, monitoring and adapting it as needed, maintaining financial records, and managing risks. These practices will help you stay on track and navigate the challenges that may arise.

Whether you are a beginner in the stocker cattle industry or an experienced rancher, this blog post aims to provide you with valuable insights and practical tips for creating a successful stocker cattle business plan. So, let’s dive in and take your stocker cattle business to new heights!

Understanding the Stocker Cattle Business

The stocker cattle business is a unique sector within the livestock industry that involves the purchase and raising of young cattle, known as stockers, before they are sold to feedlots or finishing operations. Understanding the dynamics of the stocker cattle business is essential for creating a successful business plan. In this section, we will explore what a stocker cattle business entails, how it operates, and the key players involved.

What is a Stocker Cattle Business?

A stocker cattle business focuses on purchasing young cattle, typically weaned calves, and raising them until they reach a desirable weight or condition for further production. This is usually done on pasture or grazing land, where the cattle have access to forage and open space to roam. Stocker operations play a crucial role in the beef supply chain, as they bridge the gap between cow-calf producers and feedlot operators.

How the Stocker Cattle Business Works

The stocker cattle business operates by purchasing cattle from cow-calf producers or livestock auctions and providing them with care, nutrition, and a suitable environment for growth. Stockers are typically kept for a specific period, often several months, during which they gain weight and develop muscle. The goal is to improve the cattle’s condition and value before selling them to feedlots or finishing operations.

Stocker operations require expertise in cattle management, including health care, nutrition, grazing management, and facility maintenance. It is essential to closely monitor the cattle’s health and growth, as well as provide them with proper vaccinations, deworming, and veterinary care as needed.

Key Players in the Stocker Cattle Industry

Several key players are involved in the stocker cattle industry, each playing a vital role in the overall supply chain. These include:

Cattle Producers : These include cow-calf producers who raise and breed cattle, as well as backgrounding operations that focus on raising young cattle until they are ready for stocker operations.

Stocker Operators : These are the businesses or individuals who purchase stockers and manage their growth and development on pasture or grazing land. They play a crucial role in preparing the cattle for further production.

Feedlots or Finishing Operations : Once the stockers reach a desired weight or condition, they are sold to feedlots or finishing operations. These facilities focus on feeding the cattle a high-energy diet to further enhance their growth and marbling before they are ready for slaughter.

Livestock Auctions : These marketplaces facilitate the buying and selling of cattle, including stockers. Auctions provide a platform for producers to sell their cattle and for stocker operators to purchase new stockers for their operations.

Understanding the roles and interactions between these key players is essential for developing a successful stocker cattle business plan. By recognizing the dynamics of the stocker cattle business, you can make informed decisions and create a plan that aligns with industry practices and trends.

Elements of a Stocker Cattle Business Plan

A well-crafted stocker cattle business plan consists of several key elements that provide a comprehensive overview of your business and guide your operations. In this section, we will discuss each of these elements in detail to help you create a successful stocker cattle business plan.

Executive Summary

The executive summary is a concise overview of your stocker cattle business plan. It provides a snapshot of your business, highlighting its key features, objectives, and strategies. This section should capture the reader’s attention and provide a clear understanding of your business’s purpose and potential.

Company Description

The company description section outlines the details of your stocker cattle business, including its legal structure, location, history, and mission statement. It provides a comprehensive overview of your business, allowing readers to understand its background, values, and unique selling proposition.

Market Analysis

The market analysis section is a critical component of your stocker cattle business plan. It focuses on researching and understanding the market in which your business will operate. This includes identifying your target market, analyzing market trends, and assessing the demand for stocker cattle in your region. Additionally, you should conduct a thorough analysis of your competition to identify their strengths, weaknesses, and market share.

Organization and Management

In this section, you will outline the organization and management structure of your stocker cattle business. This includes providing details about the key personnel, their roles and responsibilities, and their relevant experience in the livestock industry. Additionally, you should discuss any partnerships or collaborations that contribute to the success of your business.

Services or Products

Here, you will describe the services or products your stocker cattle business offers. This includes detailing the types of stocker cattle you will raise, the specific breeds or genetics you will focus on, and any additional services you may provide, such as herd health management or genetic selection. Clearly defining your offerings will help potential investors or partners understand the value your business brings to the market.

Marketing and Sales Strategy

The marketing and sales strategy section outlines how you plan to promote and sell your stocker cattle. This includes identifying your target customers, developing a branding strategy, and outlining your marketing channels, such as online platforms, auctions, or direct sales. Additionally, you should discuss your pricing strategy and any unique selling points that differentiate your business from competitors.

Funding Request

If you are seeking financial support for your stocker cattle business, the funding request section outlines your capital requirements and how the funds will be utilized. This includes detailing the amount of funding needed, its purpose (such as purchasing cattle, infrastructure development, or marketing efforts), and a timeline for when the funds will be required.

Financial Projections

In this section, you will provide financial projections for your stocker cattle business. This includes forecasting your revenue, expenses, and profitability over a specified period, typically three to five years. Additionally, you should include a break-even analysis, cash flow projections, and a balance sheet to demonstrate the financial feasibility and potential return on investment for your business.

By incorporating these key elements into your stocker cattle business plan, you will create a comprehensive and compelling document that outlines your vision, strategies, and financial projections. This will not only guide your operations but also attract potential investors or lenders who can provide the necessary capital to help your stocker cattle business thrive.

Analyzing the Market

Analyzing the market is a crucial step in creating a successful stocker cattle business plan. This section focuses on understanding the market dynamics, identifying your target market, analyzing market trends, and assessing your competition. By conducting comprehensive market research, you will gain valuable insights that will inform your business strategies and help you position your stocker cattle business effectively.

Identifying Your Target Market

The first step in analyzing the market is identifying your target market. This involves determining the specific segment of the livestock industry that you will cater to with your stocker cattle business. Consider factors such as geographical location, customer preferences, and market demand when defining your target market. For example, you may focus on supplying stocker cattle to local feedlots, organic beef producers, or premium market segments.

Understanding Market Trends

To effectively position your stocker cattle business, it is essential to stay up-to-date with market trends. Research and monitor industry reports, trade publications, and market data to identify current and emerging trends that may impact your business. This includes factors such as changes in consumer preferences, market demand for specific types or breeds of cattle, and shifts in industry regulations or policies. Understanding these trends will help you make informed decisions and adapt your strategies accordingly.

Analyzing Your Competition

A thorough analysis of your competition is vital in assessing the market landscape and identifying your unique selling points. Identify and evaluate other stocker cattle businesses that are operating in your target market. Analyze their strengths, weaknesses, market share, pricing strategies, and customer base. This analysis will help you identify gaps in the market that you can capitalize on, as well as differentiate your business from competitors.

Market Demand and Supply

Assessing the demand and supply dynamics of the market is crucial for your stocker cattle business. Determine the current and projected demand for stocker cattle in your target market, considering factors such as population growth, consumer preferences, and economic conditions. Additionally, evaluate the supply side by assessing the availability of stocker cattle from cow-calf producers, auction markets, or other sources. Understanding these dynamics will enable you to make informed decisions regarding your production levels, pricing strategies, and market positioning.

Market Risks and Opportunities

Identify and assess the potential risks and opportunities within the market. This includes factors such as disease outbreaks, climate-related risks, regulatory changes, and fluctuations in feed costs or commodity prices. By understanding these risks and opportunities, you can develop strategies to mitigate risks and capitalize on favorable market conditions.

By thoroughly analyzing the market, identifying your target market, understanding market trends, assessing your competition, and evaluating market demand and supply dynamics, you will gain valuable insights that will inform your stocker cattle business strategies. This analysis will help you make informed decisions, minimize risks, and maximize the potential for success in the market.

Developing Your Strategy

Developing a comprehensive strategy is crucial for the success of your stocker cattle business. This section will guide you through the process of creating a solid strategy that encompasses your marketing and sales approach, operational considerations, and financial planning.

Creating a Marketing and Sales Strategy

Your marketing and sales strategy outlines how you will promote and sell your stocker cattle to your target market. Consider the following aspects when developing your strategy:

Branding and positioning: Define your brand identity and how you want to position your stocker cattle business in the market. Determine what sets you apart from competitors and highlight your unique selling points.

Marketing channels: Identify the most effective marketing channels to reach your target market. This may include online platforms, livestock auctions, direct sales to feedlots or finishing operations, or partnerships with local suppliers.

Pricing strategy: Determine your pricing strategy based on market demand, production costs, and desired profitability. Consider factors such as feed costs, veterinary expenses, labor, and overhead costs when setting your prices.

Promotional activities: Plan and execute promotional activities to raise awareness about your stocker cattle business. This may include participating in industry events, advertising in relevant publications, or leveraging social media platforms to engage with potential customers.

Outlining Your Operations

In this section, you will outline the operational aspects of your stocker cattle business. Consider the following factors:

Facilities and equipment: Detail the facilities and equipment required to house and care for the stocker cattle. This includes grazing land, fencing, handling facilities, water sources, feeding equipment, and any other infrastructure necessary for their well-being.

Grazing management: Develop a grazing management plan that outlines how you will rotate the stocker cattle on the pasture to optimize forage utilization and prevent overgrazing. Consider factors such as stocking rates, grazing periods, and pasture rest intervals.

Health and nutrition: Describe your approach to maintaining the health and nutrition of the stocker cattle. This includes vaccination protocols, deworming procedures, nutritional requirements, and any other health management practices you will implement.

Animal welfare: Emphasize your commitment to animal welfare by outlining the measures you will take to ensure the well-being and comfort of the stocker cattle. This may include providing shelter, clean water, proper nutrition, and adequate veterinary care.

Defining Your Financial Strategy

Your financial strategy outlines how you will manage the financial aspects of your stocker cattle business. Consider the following elements:

Budgeting: Develop a comprehensive budget that includes all expenses related to purchasing and raising stocker cattle, facility maintenance, veterinary care, feed costs, marketing expenses, and administrative costs.

Cash flow management: Develop a cash flow management plan to ensure you have sufficient funds to cover ongoing expenses and capitalize on growth opportunities. This may involve securing lines of credit, managing payment terms with suppliers, and closely monitoring revenue and expenses.

Risk management: Identify potential financial risks and develop strategies to mitigate them. This may include purchasing appropriate insurance coverage, hedging against commodity price fluctuations, and having contingency plans for unexpected events.

Financial analysis: Regularly analyze your financial performance by reviewing key financial indicators such as profitability ratios, return on investment, and liquidity ratios. This analysis will help you make informed financial decisions and identify areas for improvement.

By developing a well-rounded strategy that encompasses your marketing and sales approach, operational considerations, and financial planning, you will lay a strong foundation for your stocker cattle business. This strategic approach will guide your day-to-day operations and position your business for long-term success in the market.

Implementing and Managing Your Plan

Implementing and managing your stocker cattle business plan is crucial for turning your strategies into actions and ensuring the success of your operations. This section will guide you through the key aspects of executing your plan, monitoring and adapting as needed, maintaining financial records, and managing risks.

Executing Your Business Plan

To effectively execute your business plan, consider the following steps:

Procuring stocker cattle: Purchase stocker cattle from reputable sources such as cow-calf producers or livestock auctions. Ensure that the cattle meet your desired criteria in terms of breed, genetics, health, and quality.

Facility setup: Prepare your facilities and equipment according to your operational plan. Ensure that the grazing land, fences, watering systems, feeding equipment, and handling facilities are in place and well-maintained.

Health and nutrition management: Implement your health and nutrition protocols to ensure the well-being of the stocker cattle. Develop a schedule for vaccinations, deworming, and veterinary care. Monitor their health closely and address any health issues promptly.

Grazing management: Follow your grazing management plan to rotate the stocker cattle on the pasture. Monitor forage availability, adjust stocking rates as needed, and ensure proper pasture rest periods to maintain optimal grazing conditions.

Monitoring and Adapting Your Plan

Continuous monitoring and adaptation are essential for the success of your stocker cattle business. Consider the following practices:

Regular assessment: Continuously evaluate the performance of your stocker cattle business by monitoring key metrics such as weight gain, feed conversion rates, health records, and market trends. Regularly assess the effectiveness of your marketing and sales strategies and make adjustments as needed.

Flexibility and adaptation: Be prepared to adapt your plan based on market conditions, customer feedback, and industry trends. Stay updated on changes in regulations, consumer preferences, and economic factors that may impact your business.

Performance analysis: Conduct regular financial analysis to assess the profitability and financial health of your stocker cattle business. Compare your actual financial performance against your projected financials and identify areas for improvement or cost-saving opportunities.

Maintaining Financial Records

Maintaining accurate and up-to-date financial records is crucial for the financial management of your stocker cattle business. Consider the following practices:

Bookkeeping: Implement a robust bookkeeping system to track all financial transactions related to your stocker cattle business. This includes purchases, sales, expenses, and income.

Recordkeeping: Keep detailed records of all financial documents, such as invoices, receipts, bank statements, and tax-related documents. Maintain a filing system that allows for easy retrieval and ensures compliance with financial reporting requirements.

Financial statements: Prepare regular financial statements, including income statements, balance sheets, and cash flow statements. These statements will provide a clear overview of your financial position and performance.

Managing Risks

Risk management is essential for mitigating potential threats to your stocker cattle business. Consider the following risk management practices:

Insurance coverage: Obtain appropriate insurance coverage to protect your stocker cattle, facilities, and equipment from potential risks such as disease outbreaks, natural disasters, or accidents.

Biosecurity measures: Implement biosecurity measures to prevent the spread of diseases among your stocker cattle. This may include quarantine protocols, vaccination programs, and proper sanitation practices.

Market volatility: Develop strategies to mitigate the impact of market volatility on your business. This may involve hedging against commodity price fluctuations, diversifying your customer base, or exploring alternative marketing channels.

Emergency preparedness: Have contingency plans in place to address unforeseen events or emergencies that may disrupt your operations. This includes having access to emergency veterinary services, backup power sources, and communication systems.

By effectively implementing and managing your stocker cattle business plan, you will be able to execute your strategies, monitor performance, maintain accurate financial records, and mitigate risks. These practices will contribute to the long-term success and sustainability of your stocker cattle business.

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Steers grazing grass as part of a stocker cattle management protocol.|  Download this photo.

K-state beef cattle experts discuss tips for raising stocker cattle, managing feed and health costs while optimizing marketing strategies are keys to success.

December 4, 2019

MANHATTAN, Kan. – Cow-calf producers, stocker operators and feedlot managers all have the same end goal in mind: raise high quality beef profitably. Experts at the Kansas State University Beef Cattle Institute say there are many ways that producers can do that successfully.

Stocker cattle are typically newly-weaned calves weighing between 300 and 800 pounds. They are often co-mingled with other calves and developed on a forage-based system with some feed supplementation before moving to the feedlots for finishing.

“Successful stocker operators do a good job of buying and selling the cattle, while keeping them healthy at an effective cost of gain,” said K-State veterinary medicine professor Bob Larson.

In respect to the markets, agricultural economist Dustin Pendell advises stocker operators to follow a buy low, sell high strategy. “There are a lot of considerations to include such as pricing inputs, output price and marketing strategies,” he said. “Producers need to have a risk management strategy when purchasing inputs and selling calves.”

Once the cattle arrive, identifying the appropriate feedstuffs is also going to be key to an operator’s success, according to Larson. “It is not just pricing feed on a per pound of feed basis, but looking at how much growth can come from that feed source.”

For some operations, it may be more cost effective to calculate a slower rate of gain by feeding a forage-based diet, and for others more feed supplementation may be needed to provide adequate nutrients for a faster gain.

K-State Research and Extension cow-calf specialist Bob Weaber also said there is another reason for supplementation. “Following a higher rate of gain may also allow operators to meet a marketing window due to the seasonality of feeder calves,” he said.

Along with market price considerations and feeding strategies, the experts agreed that it is vital to follow a health protocol for the calves.

“It is important to establish a logical plan of first and second treatments,” Larson said. “The veterinarian is going to help select an antibiotic that is a good match for the bacteria that is causing the disease.”

Another part of the plan is to outline treatment frequency, and establish a second protocol for those that don’t respond to the initial treatment.

Larson stressed the importance of sticking with the treatment plan. “This is a protocol. Treat every animal the same so we can evaluate if this protocol is working,” he said.

At a glance

Experts in K-State's Beef Cattle Institute offer strategies for maximizing stocker cattle performance.

Beef Cattle Institute podcast

Notable quote

“Successful stocker operators do a good job of buying and selling the cattle, while keeping them healthy, and growing them at an effective cost of gain.”

-- Bob Larson, veterinarian, K-State Beef Cattle Institute

Bob Weaber 785-532-1460 [email protected]

Bob Larson 785-564-7457 [email protected]

Dustin Pendell 785-564-7458 [email protected]

Lisa Moser 785-532-2010 [email protected]

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• Updated: 9/20/23

Considerations for making a profit with stocker cattle

The cow-calf industry in this region provides an opportunity for stocker and backgrounding operations to co-exist. Tight margins place these enterprises at higher risk, and finding mechanisms to add value is essential.

Associate Extension Professor / University of Kentucky

Making a profit with low prices, 3 fencing considerations for making the move to fall calving, bonds ranch stakes a return on investment in stocker cattle.

Aggregation is likely the greatest opportunity for these enterprises to capture financial gains. Kentucky’s 1 million beef cows are spread out over some 38,000 beef operations. These figures reveal the average beef cow-calf operation manages slightly fewer than 30 cows.

The average weight spread of a calf crop will exceed 200 pounds between the lightest and heaviest calf, resulting in multiple lots at marketing based on weights, hide color and sex. It would not be uncommon for 28 calves to be separated into four or more marketing groups.

Arkansas and Wisconsin feeder cattle market studies reported 94 percent and 82 percent of feeder cattle lots contained five or fewer calves. Market research clearly demonstrates fewer calves in a group at marketing bring less price than larger, uniform groups that approach 50,000 pounds. As simple as it seems, the ability for stocker operations to sort cattle into more uniform type and weight marketing groups is a considerable value addition mechanism.

In a 2010 NAHMS survey, 60 percent of feeder calves marketed had not been weaned prior to marketing. A study of feeder cattle sold in Arkansas markets reported 14 percent of lots were bulls, and only 3.3 percent of all lots sold were preconditioned calves. Only 5 percent of lots marketed in a Wisconsin market dataset were announced as being weaned, illustrating a similar trend in the Midwest. Managing calves through the weaning phase is another area the stocker and backgrounding enterprises capture value.

There is great risk to lose money if calves are not managed properly leading to high morbidity and mortality. Thus, managers must be skillful at identifying sick calves and be knowledgeable on treatment regimes.

Purchasing bull calves has been an avenue many stocker and backgrounding programs have used to secure profit margins. Bulls typically sell for a discount in relation to steers, though this is not always the case. The discount offered for bulls is a result of reduced performance after castration compared to steers. Additionally, these calves tend to have greater morbidity and mortality rates compared to steers.

These factors are built into the price offered at purchase. However, following recovery from castration, these now-steers will perform well and be marketed having gained in value, bringing a steer price. This is a basic management value-capturing opportunity.

Some stocker operations also find value in heifer procurement. Due to lower performance and feed conversion rates, heifers are discounted compared to steers. Additionally, many stocker operators will purchase heifers for the opportunity to diversify marketing options in the future. A steer only has one market: the feedlot. A heifer could be developed into a replacement female or be marketed to a feedyard. During years of herd expansion, stocker operations may choose to develop and market replacement heifers, as they receive a greater value over a feeder heifer.

Last, upgrading can be a mechanism of capturing value. This relates to a USDA feeder calf grading system of muscling. The numeric system is 1 to 5, with heavy muscled calves receiving a 1 and very light-muscled, dairy-type calves receiving the higher values of 4 to 5. Light-muscled feeder calves receive a significant price discount due to the anticipated lower meat yield.

In many instances, the genetics are present for improved muscling but not expressed. Malnutrition often is the cause for lighter muscling. Following a period of increased nutritional plane, these feeder calves will increase in muscling score by a point, improving their market price.

Unweaned, lightweight calves are a higher risk category from a health perspective. Early detection of sickness is key. In many instances, bovine respiratory disease (BRD) is the major challenge operators must manage. However, this is a multi-faceted disease that includes viral and bacterial pathogens along with nutritional status. Many operations may observe treatment rates of 20 to 50 percent.

To manage health challenges, the manager will need to consult with their local veterinarian. In doing so, the veterinarian and producer can establish a valid patient-client relationship. This process should include development of preventative health protocols. These protocols will include vaccination products for respiratory disease, clostridial diseases, internal and external parasites, and other preventative health procedures.

Additionally, the development of treatment protocols for BRD, pinkeye, foot rot, bloat and other disorders should be established. The veterinarian is an often-overlooked tool for improving profits in a stocker enterprise.

Forage management

Likely the simplest forage management consideration to improve profitability of a stocker operation is to ensure adequate forage is available. Appropriate stocking rates will need to be managed to ensure forage doesn’t limit intake and, subsequently, performance. Stocking rate will vary depending on size of the animal, forage species production potential, soil fertility, soil moisture and other factors.

Dilution of fescue infected with the wild-type endophyte is another management consideration. A simple recommended pasture renovation for diluting fescue is the interseeding of clover. Recent studies indicate the clover effects on animal performance may not be solely due to dilution but could also be related to other physiological responses.

As with many other agricultural enterprises, technology allows for the opportunity to improve profit margins. Examples include growth- promoting implants, ionophores, eartags that monitor temperature/movement, drones and other items. Growth-promoting implants and ionophores are likely the two most heavily researched technologies available. We are in an exciting time to see electronic technology developments for this industry.

Buy them right

I have often heard it said the money is made in the stocker enterprise at the time the cattle are purchased. Essentially, this refers to the industry being a thin-margin business. Using futures prices and input costs, one can work out a budget. This budget process will identify the purchase price to offer for calves. Strict adherence to the purchase price will increase the opportunity for making a profit.

I was once told by a farmer-feeder after mentioning breakeven prices on a set of feedlot steers, “I don’t do anything to break even. If I can’t make money doing it, why would I work so hard to make nothing?” This was early in my career but ingrained as a cornerstone. When working through budgets, include a realistic return per head.

ILLUSTRATION:  Illustration by Kristen Phillips.

Jeff Lehmkuhler

• Extension Beef Cattle Specialist
• University of Kentucky
• Email Jeff Lehmkuhler

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Starting Stockers: 101

A one-size-fits-all approach to managing stocker cattle at arrival is easier said than done. Yet remembering two animal husbandry basics go a long way in getting stockers through that critical acclimation period. 

According to Dr. Douglas Hilbig, a consulting veterinarian with Oklahoma Beef Consultants, nutrition and water are key tools for feedlot operators and backgrounders when starting cattle. He says simple diets — including good-quality, long-stem grass hay with starter ration — often work best for the first 21 to 30 days. 

“The faster we push them up front, the harder time we have getting those cattle to start,” Hilbig explains. “We need to remember the first 30 days we’re trying to teach them to eat. We want it to be nutritious, but we really don’t need a lot of excess calories in the feed yet.”

While providing water to newly arrived stocker cattle is a given, Hilbig says making sure it’s fresh and clean is also crucial because most cattle have never drunk from water tanks or automatic waterers. 

“Cattle understand the sound of water, and they know the smell of water,” Hilbig says. He adds that filling water sources while cattle are coming into a pen can be helpful in getting them to drink. 

Beyond the Bunk While getting newly arrived stocker cattle acclimated to their new environment starts with feed and water, the strategy doesn’t end there. 

Hilbig says keeping cattle comfortable and rested is vital for the first 24 to 48 hours after arrival. “Anything that makes the cattle more comfortable and can reduce stress, the better off we are,” he says. 

Another critical step in getting newly arrived stockers acclimated is to avoid commingling with other cattle. 

“Once you get a group of cattle in, try not to add on any other cattle for 30 days,” Hilbig says.

Then, it’s time to focus on developing a health regimen.

“We try not to overuse antibiotics, but we also need to discover or understand what our limitations are weather-wise or with current health and labor situations,” Hilbig says.

Mass treatment with antibiotics on arrival can sometimes be used, he adds, but in those instances the protocol is about helping troubleshoot weather, labor and health situations that are unavoidable.

Sudden, dramatic changes — in either weather or nutrition — can prompt a negative outcome in the cattle, Hilbig says. 

“If it’s the weather, we just have to anticipate we’re going to have some issues,” he says. “So, whenever we are about to see weather changes, we don’t want to make any major feed changes in either ingredients or in amount being fed.”

Hilbig points out that stocker cattle are not a single source animal. Thus, understanding that they represent multiple locations and backgrounds is key.

“We need to treat the whole to the least common denominator and catch everybody up,” Hilbig explains. “If we can do that, we can keep cattle healthy and wanting to eat and drink.”

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Give Stocker Beef Cattle a Chance

In part 1 2 of our “what’s your beef” series on raising cattle on small farms, we share how s tocker cattle can provide a quick, easy way to get into the beef industry without a huge investment .  .

If you are new to farming, or just want to take a break from the normal paradigm of raising beef cows and calving them out each year, then you might consider raising stocker cattle.  A class of cattle known as “stockers” utilize pasture to add weight inexpensively. These are generally young light weight calves born in the previous year, purchased in the spring of their second year, and that graze during the summer. They are then sold at the end of the grazing season to farmers or feedlots that finish them to market weight. Growing stocker cattle requires minimal investment in machinery and buildings compared to other types of beef cattle enterprises. This low barrier to entry provides an exciting opportunity for beginning farmers, whether they be new to agriculture or farmers interested in diversifying. Access to land which can be leased and capital to purchase cattle are the major requirements. New York State does have a fair amount of land that would lend itself very nicely to grazing stocker cattle. The one major requirement that you need is to have a good grazing infrastructure, consisting of good grass, watering systems, and fencing. You don’t even need to own your own land for this type of enterprise and can get into it very nicely with leased grazing lands.   

These small calves will make ideal stocker cattle for the following year. Rich Taber / CCE Chenango

“The deal”, in a nutshell, is as follows. Come springtime, you go to livestock auctions and buy calves that were weaned the previous fall, bring them home, and graze them into the fall of their second year. If going to auction barns does not suit you, you can contact an order buyer who attends lots of sales and commission them to procure calves for you. Then you sell them and hopefully make some profit. There are several advantages to this business model:    

• You don’t need expensive buildings to house the animals, as this occurs during the warmer months of the year. Little to no cover is needed as the animals are in your possession spring through the fall, avoiding the harsh winter months. 
• You don’t need a lot of expensive purchased or self-made hay, as the animals will be grazing for most of their time with you. Pastures, while not free, are indeed a lower input type of enterprise. You will need a little bit of stored hay or baleage to tide you over during dry spells.  
• You don’t need to overwinter a bunch of hungry brood cows, thus negating most of the hay requirement. You also avoid the daily requirement of feeding and tending to those cows. You don’t need to fight with an unhappy tractor that might not want to start all that well in the cold weather either. You can avoid howling winds, deep snow, ice, and frozen extremities!
• You don’t need much of any farm equipment to raise these kinds of cattle; maybe a smaller tractor and brush hog to keep pasture paddocks trimmed would suffice. 

Like any animal enterprise, you will need to bring your “A Game”  with respect to health management and vaccination protocols. You do not want to be purchasing a bunch of calves from different sources and then dump them all together at one time; this is a recipe for disaster. You should consult with a veterinarian ahead of time about the best vaccination schedule. You will need to have a handling facility on the property; stocker calves can be wild and feisty and a squeeze chute is of paramount importance in handling these animals. Some vets will refuse to come to your farm if there’s no way to safely handle the animals. It can be downright dangerous trying to do management protocols on these animals if they are not restrained correctly.   

Stocker cattle grazing during the warmer months of the year on rough land. Rich Taber / CCE Chenango

Another consideration is training new animals to your electric fences. New animals might just sail through your existing fences if you bring them home and unload them without proper fence training. You may need to house them in a barnyard with stout perimeter fences as an “insurance policy”. Then you set up electrified hot wires a few inches out from your permanent fences. It won’t take too long to get the animals to get shocked and trained to the hot wires.    

As far as grazing goes, you would follow all of the principles of rotational grazing that any other class of grazing animal takes. You are trying to get the animals to gain weight on grass; daily weight gains can range from 1.w to 1.8 pounds per day. You need to have high quality grasses and that the animals move thought different paddocks every 3 to 5 days. You will need a good salt and mineral mix available to the calves as well      

  Stocker cattle can be an excellent enterprise to “get your feet wet” so to speak, and to see if you like raising cattle. Give them a try!  

Source for more Info:    

An excellent document providing information on stocker cattle is the “Stocker and Backgrounding Self Assessment” available from the Beef Quality Assurance Program. This can be found at: http://www.nybpa.org/assurance.html and www.bqa.org/Media/BQA/Docs/stocker_assessment.pdf  

This is the twelfth installment in our ongoing series of beef management articles for the new and small-scale farmer. Previous versions may be seen in the archives of the Small Farm Quarterly at https://smallfarms.cornell.edu/quarterly/archive/ .  

• Climate and Grazing
• Silvopasture
• Water quality
• Beef Cattle
• Dairy Cattle
• Ecosystem Services
• Leasing Pasture
• Transferring the Farm
• Consider This
• Notes From Kathy
• The Funnies
• A Grazier’s Bookshelf
• Trusted Resources

Over the past few months I’ve written several articles about why I made the switch from a cow calf operation to stockers and backgrounding . I’ve been able to improve my pastures, stop making hay all summer, and I can even have time off. And, at least in my area, stockers provide a lot more opportunities to make a profit than cows do. Today I want to focus on the facilities needed for this kind of operation.

It is critical to have the proper facilities in place before buying any cattle. A receiving lot/corral, and well-fenced pastures, all with good water sources, will increase your chances of keeping calves healthy.

Receiving Lot/Corral

Newly purchased calves are prone to wandering around and checking out their new surroundings for at least the first couple of days after arriving at their new home, especially if they haven’t been weaned.  For this reason, a receiving lot with a strong fence around it is a necessity. Woven wire or board fences are ideal for this area, but six or seven strands of high tensile or barbed wire will work if woven wire is not feasible.

A receiving lot does not need to be large. In fact, if it is too big it can allow the calves too much room to walk around. Your goal should be to get the calves to stop walking and bawling, and to start eating and drinking as soon as you can after they arrive.

My set up is a corral built onto an old barn, with a small grass holding lot beside it. The holding lot goes out to a small pasture that is about 2 acres in size. I usually unload new purchases into this holding lot. They will walk around the fence, and usually touch the electric wire pretty soon after arriving. Because the board fence provides a physical barrier behind the wire, they turn away from the wire instead of attempting to go through it.

I have feed and water troughs positioned perpendicular to the fence line so that calves will find them easily as they walk around the perimeter of the lot. I keep hay rings on gravel pads in the center of the pens. Unless it is extremely wet and muddy, this lot will hold 20-30 head fairly comfortably for one to three days. After the calves have settled down and I give them their first round of vaccines, they go out into the two acre paddock, where they are kept for a couple of weeks to observe for illness

Speaking of mud, do yourself a favor early on and find a spot that is well drained, sloped, or on top of a hill to build your corrals and facilities on. In addition, this area should be accessible to trucks and trailers in all weather conditions if possible. Trying to start calves in an area that is knee deep in mud is stressful on the cattle and hard on the handlers.

Working Facilities

My corral consists of two long rectangular pens outside, and a long alleyway under a lean to off the barn, with a working chute separating the alley way from the middle pen. I have gates in the alley way that I can shut to make additional sorting pens, and to make crowding into the chute easier. I like narrow long pens more than big square ones. It makes gathering and sorting much easier and allows one skilled handler to work the cattle because they don’t have room to run around the handler or bunch up and go in a circle.

A working facility does not need to be fancy or expensive to work. In fact, some of the poorest functioning facilities I have ever seen have been some of the most expensive and elaborate. If you are starting from scratch, do some research, look at facilities other people have built, and make notes of what works and what doesn’t. If you own a piece of land or have a long term lease, go ahead and invest in building a permanent, well designed facility, no matter what kind of livestock you plan to have. For a property that you may not be on long term, a set of portable panels can be used and then taken with you if you leave. Used materials, such as highway guardrail, oilfield pipe, telephone poles, railroad ties and many others can be used. These are typically very affordable and will last a long time.

Squeeze Chute

You will need a way to restrain calves in order to vaccinate, tag, deworm, castrate, and doctor. If you are going to handle more than 15 or 20 head of cattle on a regular basis, I think a squeeze chute is a worthwhile investment. It offers much more access to all parts of the animal and makes handling much safer for man and beast. A good quality squeeze chute can be purchased new for $3000-$6000, depending on the brand. It should last at least 20 years if taken care of.

If that sounds like a lot of money, consider what a trip to the emergency room costs, even with good insurance. I know several people who have hurt themselves badly enough to need to go to the ER when castrating bulls without adequate restraint.  A squeeze chute may not eliminate these risks entirely, but it does significantly reduce them. Handling facilities are a worthwhile investment for any livestock operation, and the more you plan to use them the more you can afford to spend on them.

Electric Fence Training is Critical

I have heard many people say that an entire farm needs to be fenced with woven wire to contain stocker calves. This may be true if you plan to just dump them off the trailer right after buying and give them access to the whole farm. However, if you train them to an electric wire and keep them in a good holding lot until they are weaned, electric fencing works well for stockers and allows for easier pasture subdivision.

I prefer at least four strands of high tensile wire for perimeter fences. For permanent interior fencing, I like at least two strands of wire. I have had calves jump over or go under just one strand of wire. One strand of polywire is adequate for temporary fencing in situations such as strip grazing when the cattle are being moved frequently.

A receiving lot should have piped water to at least one water trough that can be cleaned in between groups of calves. It is helpful to have a water trough in a corral so that animals can get a drink if they are being worked on a hot day, or if you need to keep them shut up overnight. Ideally, water sources in pastures should be located as close to the center of the pasture as possible, so that cattle will graze more evenly around it. Always ask the question, “where are the animals going to get a drink?” when evaluating a site for a holding lot, corral, or pasture.

Take a Close Look at What You’ve Got

Many existing facilities can be used to handle stocker cattle, either as they are or with some light modification. Sometimes starting over from scratch is the best option. In any case, do some research and find out what you need, make a plan, and go from there. Don’t be afraid to ask experienced producers for help in designing a facility. Investing in facilities, fencing and water infrastructure upfront will provide a big pay off for many years to come.

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