Livestock Options for Small Acreage Landowners

2020 New Landowners Program

Joe C. PaschalLivestock Specialist

Texas A&M AgriLife ExtensionCorpus Christi, Texasj-paschal@tamu.edu

Consider• Purpose of enterprise

– Tax exemption– Additional income– Income expense

• Size of resource• Productivity of land• Facilities• Expertise

– Current– Needed– Available

• Financial resources• Budget/returns• Livestock species/breed

Purpose of the Enterprise• Tax Exemption

– Land resource must be large enough to support 5 animal units (AU)

– An AU is the equivalent of a 1000-lb cow and her calf

– Based on amount of grass consumed in a year

– Solely for exemption purpose isn’t a good reason

– Might consider leasing to an ag producer

• Added Income– Market, expertise,

availability, resources (physical and financial) must be considered

• Tax Expense– Initially perhaps but not a

desirable or sustainable long-term plan

– Check with your tax advisor

Size of the Land Resource• One AU will consume 9600

lbs. of grass annually (9.6 round bales)

• One acre of native grass in South Central Texas will produce about 4500 lbs. of grass (introduced grasses will double that if taken care of –even more with fertilizer and weed control)

• Stocking rate (SR) – number of acres allotted to an AU

• Carrying capacity (CC) –number of AU on the land

• Maintaining good range grasses requires that 50% of the grass NOT be grazed and likely an additional 25% will be lost to insects, rodents, fecal material and trampling

• One acre of native grass will support 1/8 AU – 8.5 acres per AU (SR)– 85 acres will run 10 head (CC)

• One acre of introduced grass will support ¼ AU– 4.25 acres per AU (SR)– 42.5 acres will run 10 head (CC)

websoilsurvey.nrcs.usda.gov

Productivity of the Land websoilsurvey.nrcs.usda.gov

Determining Carrying CapacityNo. AU/Year

Native Forage Production/Acre/Year

Soil Class Acres Normal Wet Dry

18 1.4 3925 5425 2450

19 14.9 3860 5325 2395

25 0 4250 5100 2550

31 0.5 5510 6950 3960

32 18.3 5780 7235 4150

48 18.1 4250 5100 2550

Total Forage (lbs.) 248,463 313,023 163,196

Grazeable (lbs.) 124,232 156,512 81,598

No. AU/Year 12.9 16.3 8.5

Animal Unit Equivalents (AUE)by Kind and Class

Beef Cattle AUE Sheep AUE

1000 lb. Cow w/ calf 1.0 130 lb. Ewe .20

1000 lb. Dry cow .77 75 lb. Lamb .12

600 – 900 lb. Heifer .60 - .80 175 lb. Ram (Buck) .25

1,500 lb. Bull 1.2 – 1.4 Goats

70 lb. Nanny .17

Equines 35 Lb. Weaned kid .10

800 lb. Horse .75 125 lb. Billy .25

1000 lb. Horse 1.0 Deer

1100 lb. Horse 1.25 Whitetail deer .17

Mule deer .25

Existing Facilities• Evaluate existing

facilities and equipment and realistically determine their condition and need repair or replacement

• Determine what facilities and equipment will need to be added

• Hire, lease, or borrow equipment rather than own

• Fences– Perimeter fence

• Five strand barbed wire or net fence

– Interior or cross fences• Four strand or electric

• Well and water trough(s)• “Catch” or working

corrals, pens, chute, etc.• Feed bunks, hay rings• Truck, tractor, trailer• Hay and equipment barn

Current Expertise• Inventory your skills

– Pasture management (grazing, weed control, fertilization, replanting)

– Marketing for purchase of initial herd or flock and selling produce –what is your market?

– General management: reproduction, nutrition, health, handling, marketing, etc.

Available Expertise• County Extension Agent

– Good livestock and forage backgrounds

– Educational programs and materials

– Access to additional “expert” advice

• Veterinarian– Herd health prevention

and treatment, reproductive work, biosecurity

• National Resources Conservation Service (NRCS)– Fencing, water, forage,

grazing management

• Livestock Market, Commission Co., Auction Barn Owner/Mngr.– Good source of marketing

information– Source of day workers– Cattle transport

Financial Resources• Depending on the

existence and condition– Barbed wire fencing $3k

per mile $6k net wire– Water source(s) ???– Pens and corrals $10k– Squeeze chute $5k– Barn $10k– Tractor $25k – Trailer $5k– Feed troughs and hay

rings $100 each

• Cattle– Purebred cattle $2-4k/hd– Breeding cattle $1-2k/hd– Heifers $750-1500/hd– Stocker steers $500/hd

• Sheep– Young bred ewes $150/hd– Ram $250-500/hd– Guard animal $500-750/hd

• Goats– Young bred nannies $125/hd– Buck $200-300/hd

Financial Planning Budgets• Crop and livestock budgets

– https://agecoext.tamu.edu/resources/crop-livestock-budgets/

• Cattle• Sheep• Goats• Hay

• Small ruminant budget– http://extension.msstate.edu/content/small-

ruminant-budget-excel-file

Angora Goats• Fiber producing goats

– Kid hair– Yearling– Adult

• Adapted to desert conditions

• Browsers• No local market for

animals, meat or hair

www.tsgra.com/http://www.aagba.org/angoragoat.comhttp://www.mohairusa.com/

Dairy Goatshttp://www.adga.org/

• Breedtypes– Toggenberg, Alpine, La mancha,

Nubian

• Adapted to tropical and subtropical environment

• Browsers – require high energy/protein for milk

• Milk and cheese production for local market

• Must be milked every day• Kid production• Possible local market for

youth projects

Meat-type Goats• Breedtypes

– Spanish– Boer– Mytonic– Kiko– Pygmy

• High quality and availabity• Adapted to tropical and

subtropical environment• Browsers not grazers• Fencing • Local market for youth

projects and meat

http://www.abga.org/ Boer Goatshttp://myotonicgoatregistry.net/ Mytonic Goatshttp://www.faintinggoat.com/ Mytonic Goats

Wool Sheephttp://www.sheepusa.org/

• Adapted for northern climates – shearing, parasites

• Classed by breed and wool type– Fine wool– Medium

• Prolific• Youth livestock projects • Grazers• No local meat market• Shearing required

Hair Sheep• Dorper, Pelibuey, St.

Croix, Katahadin, Black Belly, Corsican or Barbado

• Environmentally adapted to Texas

• No shearing required• High lamb production• Horn hunting• Market for colored hair• Market for meat• Grazers• Low numbers

Pros and Cons of Small Ruminants• Small mature size• Rapid growth rate• Fertility rate• Large population size• High carrying capacity• Low investment• Small facilities/easy adoption

of existing ones• Low maintenance• Parasites• Guard animals/Predators

• Marketing options (better for goats than sheep)

• Expert advice – Maryland Small Ruminant Page

• http://www.sheepandgoat.com/articles

CattleCow calf (purebred and commercial) and Stocker

Smaller Non-Traditional Cattle Breeds • Devon, Red Poll, Belted

Galloway, Dexter, etc.• There are also 26 breeds of

miniatures (not dwarfs)• Smaller in weight and size,

require less land or feed• Smaller carcasses and meat

cuts• Same requirements as larger

cattle, just less total required• Good for local/family

meat/dairy marketing

http://www.minicattle.com

Cow Calf Advantages and Disadvantages

• Advantages– Large supply– Easy entry/exit in market

(not for PB)– Expertise available

• Extension• Veterinarian

– Many marketing options (not for PB)

– Lifestyle– Prestige

• Disadvantages– Initial cost (even higher

for PB)– Carrying capacity low– Low reproductive/growth

rate– Semen source (bull or AI)– Corral, chute, fences,

barns, equipment, etc.– Annual cost – especially

feed (higher for PB)

Stocker (lightweight, weaned) CattleAdvantages• Usually good supply• Easy entry/exit in market• Expertise available• Require less time for

saleable product

Disadvantages• Competition from feed yards• Need good fences and pens• Access to equipment and

expertise (especially health)• Need to be grass managers

Grass Fed, Natural, Organic and Freezer Beef

• Grass fed – must have grass year long

• Natural – several programs

• Organic – rigid specifications

• Freezer beef –– Sell live– Sell meat – inspected

slaughter need permit

Final Thoughts• The most profitable enterprise for small landowners might be

small ruminants, meat goats or hair sheep of improved types, due to availability, access and marketability – however not everyone has the facilities or expertise to run them.

• Hair goats and wool sheep are niche market animals in South Central Texas unless the youth market is targeted.

• Parasites and predators are major problems for small ruminants.• Cow calf production offers a traditional means of land utilization

but requires more capital investment and land to be profitable.• Purebred cattle are not recommended as a beginning business

enterprise for smaller landowners.• Grazing lightweight stocker cattle (owned or grass leased)

provides can provide income under most conditions and can be used with either of the other options.