How to Stay in the Beef Business
Don’t be afraid to take advantage of new opportunities to stay in the business.
by Kasey Brown, associate editor, Angus Journal
RAPID CITY, S.D. (Dec. 4, 2013) — Don’t be afraid to take advantage of opportunities, even if they may seem odd, Ross Nielsen, Neilson Ranch, Draper, S.D., told more than 500 attendees of the 23rd Range Beef Cow Symposium (RBCS) hosted in Rapid City, S.D., Dec. 3-5, 2013. After seeing his brother leave the beef industry and a brief hiatus himself, Nielsen learned to be innovative to stay in the business.
It is important to maximize profits, which sometimes includes controlling losses, said South Dakota rancher Ross Nielsen.
His grandfather and father each ranched, and Nielsen learned hard work and to not be afraid to make big decisions. His dad was one of the first to use Limousin semen, going to Canada to bring some back before it was available in the United States. However, when Nielsen got back into the beef business, they sold the Limousins and decided to try to make money wherever they could. They base their decisions on how it will affect the family and the workload.
They use Forest Service land and leased ground, which has benefits and challenges. A Forest Service official tried his hardest to get rid of grazing on Forest Service land, but Nielsen has tried to convince him that land must be managed to thrive. Both overuse and underuse can harm the land, and now the challenge is getting rid of non-native grasses from underuse.
It is important to maximize profits, which sometimes includes controlling losses, Nielsen said. For instance, he has a split fall- and spring-calving commercial herd. He enjoys the additional marketing opportunities, and having the ability to manage more cow-calf units. Though when feed costs for winter would have been too high, he adapted and sold his fall cows (and later bought them back) to reduce winter feed costs.
Because drought has been an issue the past several years, he has a liquidation plan. He can take open spring cows to market or convert them to fall-calving cows, depending on which would be more profitable at the time. He also looks for ways to keep the cow herd as cheaply as possible if forage isn’t available. He has drylotted cows before with corn and cheaper local byproducts.
He emphasized that it is important to exercise your mind daily, so you can see other opportunities when they arise. Watch the market and make as smart of choices as you can. “We’ve failed, but we learn from it and move forward,” he added.
It is also important to have your family and banker in line so they know what to expect. He concluded that there are many opportunities in agriculture and the beef industry if you take them.
Nielsen spoke Wednesday at RBCS XXIII. Visit the Newsroom at www.rangebeefcow.com/2013 to listen to his presentation.
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The RBCS is a biennial educational symposium offering practical production management information. It is sponsored by the Cooperative Extension Service and animal science departments of the University of Wyoming, South Dakota State University, Colorado State University and the University of Nebraska.
Comprehensive coverage of the symposium is available online at www.rangebeefcow.com. Compiled by the Angus Journal editorial team, the site is made possible through sponsorship of LiveAuctions.tv and the cooperation of the host committee.
Editor’s Note: This article was written under contract or by staff of the Angus Journal. To request reprint permission and guidelines, contact Shauna Rose Hermel, editor, at 816-383-5270.
