Kansas steer futurities: an economic analysis of retained Kansas steer futurities: an economic analysis of retained ownership and a summary of cattle performance from 1974-1988 ownership and a summary of cattle performance from 1974-1988

The performance, carcass characteristics, and economic data from over 6,200 steers entered in Kansas Steer Futurities from 1974 through 1988 were summarized to evaluate production trends and profitability. The steers' delivery weights, final weights, and frame scores increased over the 14-year period, while daily gain was essentially unchanged. The quality grade, fat thickness, and yield grade all decreased slightly. Ribeye area increased slightly, but ribeye area per unit of carcass remained constant over the years. Based on the delivery weight of the steers, price, normal production relationships, and estimated production costs, we estimate that net returns over cash costs for the cow/calf phase have averaged $5.97 per cow unit from 1974 through 1988, with losses in 7 of those years. Correspondingly, steers


Introduction
The Kansas Steer Futurity program was developed in 1974 to provide producers with performance and carcass information on their cattle.The economic results were provided as secondary information; however, it soon became obvious that accelerated feeding had significant profit potential.The original analysis of the futurities' performance and economic data was conducted by Lambert and co-workers in 1984 (Cattlemen's Day Rep. of Progress 448).The current summary was conducted to update this information and determine if earlier trends in performance, carcass characteristics, and returns had persisted.

Experimental Procedures
Although procedures at the 70 futurities involving over 6,200 cattle in 14 locations were not totally standardized, in general, lots of five spring born calves were delivered to the feedlot in late November or early December.After a warm-up period of approximately 21 days, the calves were placed on the final finishing ration until slaughter in May or early June.In most futurities, the calves were all fed in one pen.
The cattle were slaughtered in groups either when they reached 0.4 in. of backfat, when they approached 1400 lb, or when it was time to close out the pen.Thus, although 0.4 in. of fat was the goal, some cattle were slaughtered based on other practical considerations.
The economic analysis from 1974-1983 was taken from the work of Lambert and co-workers (1984 Cattlemen's Day) with slight modification.The costs for the cow/calf phase were based on data from the Kansas Farm Management Association and costs for the feedlot phase were based on actual costs incurred in the futurities.Market value of the calves at delivery was based on Kansas City market quotes for the delivery months.
For the analysis of breed type and frame score, individual feed consumption was based on National Research Council formulas for feed intake, which take into account average body weight maintained and rate of gain.For that part of the analysis, average prices and costs for the period of 1983-1988 were used, which resulted in higher profit levels than were obtained over the entire 14-year period.
For the analysis by breed, the cattle were grouped according to the U.S. Additionally, cattle with Brahman breeding, which included Santa Gertrudis, Brangus, Beefmaster, and Brahman crosses, were grouped together.Longhorn crosses also were considered a separate category.To make breed and frame score comparisons, differences related to test location and year were eliminated statistically.

Results
Performance of the steers by year is shown in Table 1, and the carcass characteristics are shown in Table 2.Over the 14 years of the futurities, arrival weight, final weight and frame score increased, while daily gain was essentially unchanged.Fat thickness at slaughter tended to decrease, which lowered numerical yield grades and quality grades slightly.Ribeye area increased but not when expressed on a per unit carcass weight basis.
Table 3 shows the economic data for the cow/calf phase from 1974-1988, indicating that this phase was profitable in only 7 of the 14 years, with an average return of $5.97 per head.Furthermore, returns were extremely variable, with a low of $-106.79 and a high of $115.80 per head.Table 4 shows the economic analysis for the feedlot phase during this same period, indicating that this phase was profitable in all but 4 years, with an average return of $44.43.Finishing returns also exhibited a great deal of variability over the 14 years.
The performance by breed type is shown in Table 5.The most profitable breed groups were those that combined high growth rate with the ability to reach the choice grade at fat thicknesses of 0.4 in.or less.
The performance by frame score group is shown in Table 6.Starting weight and carcass weight increased with frame score, whereas average daily gain plateaued at frame score 6. Fat thickness, quality grade, and yield grade decreased as frame score increased.Profitability increased up to frame score 3 and then leveled off.Thus, a wide range of cattle types was equally profitable under the accelerated feeding program used in the futurities.

Table 2 . Carcass Characteristics of Futurity Steers by Year
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Table 3 . Economic Data of Cow/Calf Phase during 14 Annual Futurities
Interest charges assumed 60 percent debt on operating expenses and livestock.Interest on breeding stock was calculated on the estimated cow's value + 16 percent of replacement heifer value + 4 percent of estimated bull value.Costs did not include a change for operator labor, depreciation on buildings and equipment, or a return on the 40 percent investment equity.Returns were based on a 92 percent calf crop.Therefore, sales included 46 percent of a steer calf; a calculated at market rates with pasture charged at typical rental rates.

Table 5 . Performance, Carcass Characteristics and Profitability of Breed Groups in Kansas Steer Futurities from 1974-1988
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Table 6 . Performance, Carcass Characteristics and Profitability of Frame Score Groups in Kansas Steer Futurities from 1974-1988.
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