- Author: Dan Macon
Last week, we kicked off our 11th annual Farm and Ranch Business Planning Short Course. Every Thursday night for the next six weeks, a group of local farmers and ranchers will come together to discuss and learn about operating an economically viable agricultural business. The class is intense - but very rewarding!
Several weeks into the course, we'll talk about purchasing equipment. For the farmers in the class, this discussion usually centers on tractors. This seems to be a “guy” thing – the male of our species can't conceive of a commercial farming enterprise without a tractor! For most small-scale foothill crop farms, however, a tractor shouldn't be the first capital expenditure. Things like deer fencing, irrigation systems and hand tools are far more critical to a small-scale vegetable grower – buying a tractor to cultivate an acre of crops just doesn't make economic sense.
Start-up livestock operations face similar decisions relative to capital expenditures. In many ways, squeeze chutes and corral panels (or tilt tables and sheep yards for new sheep producers) are similar to that shiny new tractor – there must be something enticing about shiny paint on steel equipment! Despite my own attraction to shiny things, our commercial sheep operation has always been under-capitalized. I've never had enough money all at once to go out and buy the breeding animals, fencing, equipment and tools I needed in one fell swoop. Consequently, I've been forced to prioritize my capital purchases. For livestock, at least, I think new (and established) producers should ask themselves three key questions regarding capital purchases:
- Will this purchase increase my production?
- Will this purchase reduce my overhead?
- Is there a less expensive alternative to accomplishing the same goal?
There are a variety of economic analysis tools we use in our Business Planning Short Course to help farm and ranch businesses answer these questions. One of the simplest tools is to calculate a simple payback period. If we know how much money the capital purchase will generate (or how much we'll save in time or other inputs), we can simply estimate the length of time it will take pay off the purchase.
While calculating a payback period is simple, it ignores additional returns (or savings) after the end of the payback period, as well as the impact of the investment on the timing of cash flows. Other analyses may be helpful in providing a more detailed evaluation of a capital purchase. These include:
- Simple Rate of Return: Calculated as the average annual net return divided by the initial cost. A purchase with a higher simple rate of return might make more sense than one with a lower rate.
- Net Present Value: Most of us intuitively know that we'd rather get a dollar today than wait for that same dollar next year. This is due largely to risk - inflation risk, risk that the dollar won't be available next year. Net present value analysis allows us to compare the potential income (or savings) from alternative capital purchases in today's dollars. This type of analysis takes into account the fact that different capital purchases may have different useful lives, costs of ownership (like maintenance) and salvage values. It also accounts for the timing of these savings or benefits - a purchase that generates more revenue or savings early in its useful life will have a greater net present value.
While I've been known to make impulsive purchases on occasion, these types of analyses have become an important part of my business planning tool box. For example, our homemade sheep corrals (which cost us less than $500 in materials) function just as well (and are nearly as portable) as a set of $15,000 Prattley sheep yards. In this case, we were able to find a less costly option that fulfilled our needs. Our payback period was less than a year. On the other hand, we may be better off purchasing a new ATV when our current bike finally wears out - we'll do a net present value analysis to compare our alternatives.
While this year's Farm and Ranch Business Planning Short Course is full, consider signing up next year! Based on feedback from previous students, it might be the best investment you can make in your business!
- Author: Dan Macon
Most ranchers track production – pounds of calves or lambs sold, seasonal gain on stocker cattle or feeder lambs, or pounds of wool shorn are all measures of ranch productivity. These are the benchmarks that we compare year-to-year – or across the fence with our neighbors! However, ranches produce more than just livestock – they provide wildlife and native plant habitats, water filtration, fuel reduction, and cultural landscapes. These “ecosystem services” are increasingly valued as important reasons to conserve working ranches.
What are Rangeland Ecosystem Services?
California rangelands are biologically and climatically diverse, and ranchers utilize a variety of public and private lands. Within Placer, Nevada, Sutter and Yuba Counties, working ranches often represent the “wide open spaces” and iconic oak woodlands of our foothill communities. They also provide migration corridors and other habitat values for wildlife. Well-managed grazing land in our 4-county region supports a wide variety of wildlife, including red-legged frogs, burrowing owls, and Swainson's hawks, to name a few. These lands also provide important habitat types, like vernal pools and blue oak woodlands. Yet despite these critical ecosystem services, rangelands have become highly fragmented - and increasing land values make it difficult for the next generation of ranchers to get started.
Payments for Ecosystem Services
Rangeland ecosystem services provide value beyond the market price of your livestock. How can you take advantage of these values?
- Conservation easements allow landowners to realize some of the capital value of their land without selling; rather, the landowner voluntarily exchanges future development rights for payment or tax reductions. As one example, the California Rangeland Trust focuses on funding conservation easements for ranchlands.
- Cost-share programs like the federal Environmental Quality Incentives Program and Conservation Stewardship Program fund on-ranch conservation practices. A local example is the Placer County Water Agency and Placer County Resource Conservation District, which offer cost-share funds for irrigation water conservation efforts.
- Certification and eco-labeling programs help consumers support ranchers directly – rewarding ecologically beneficial management. Despite the potential, many labeling and certification efforts are still under development.
Future Opportunities in our 4-County Region
Suburban growth and a rapidly changing environment in our region makes rangeland ecosystem services even more
For more reading: http://www.sciencedirect.com/science/article/pii/S0190052814500727
- Author: Dan Macon
Note: this is the second in a series of posts on nonlethal livestock protection tools. Click here to see the first in the series. Both posts are adapted from:
Macon, D.K, R.A. Baldwin, D.F. Lile, J. Stackhouse, C.K. Rivers, T. Saitone, T.K. Schohr, L.K. Snell, J. Harper, R. Ingram, K. Rodrigues, L. Macaulay, and L.M. Roche. IN PRESS. Livestock protection tools for California ranchers. Oakland: University of California Division of Agriculture and Natural Resources Publication 8598 (in press).
Livestock death loss to predators is typically much lower than loss from disease and natural causes (based on USDA data and my own surveys of California ranchers). Even so, predators can present significant localized challenges – and for many ranchers, a single loss to a predator may be one too many. As I mentioned in my previous post, indirect losses (mostly stress-induced production problems and added labor) may be more significant in economic terms than death losses (see Ramler et al. 2014).
For me, as a small-scale sheep producer, livestock protection tools are important for a number of reasons in addition to preventing death losses. Since we graze our sheep on rangelands and pastures that are 3-10 miles from our home, I can't watch them 24-7. Livestock protection tools can alter human behavior, alter livestock husbandry practices, alter predator behavior and/or provide disruptive or aversive stimuli to predators (Shivik 2004). As with any management tool, my selection of specific nonlethal tools depends on efficacy, cost-benefit considerations, public perceptions (including market forces that may increase demand for predator coexistence), and my own attitudes toward and confidence in the methods.
In this post, we'll examine several tools that have been suggested for use in wolf country. As with the tools I discussed last week (guardian animals and electric temporary electric fencing), the efficacy of these tools depends on a number of the factors outlined above.
Attractant Removal: Many predators are also opportunistic scavengers; therefore, a dead animal may attract predators into an area currently being grazed by livestock. Attractant removal involves the removal and disposal of dead livestock, as well as the removal of sick or injured livestock. These strategies can reduce attraction to areas used by livestock and may avoid giving predators a taste for livestock (Wilbanks 1995). Observational evidence in the northern Rocky Mountains and on the Modoc Plateau suggests wolves that are attracted to bone yards may be more likely to kill cattle or sheep in adjacent areas (T. Kaminski, pers. comm., 2016). Bone yards may also attract livestock guardian dogs away from the livestock they are protecting (N. East, pers. comm., 2016).
Anyone who's tried to dispose of the carcass of a 2000-pound bull that managed to die 15 miles from the nearest dirt road will know that this tool presents a number of logistical challenges. Many times, we don't find a carcass before it's discovered by scavengers. Even if we can get the carcass to the road, the cost of transport and disposal in a rendering facility may be cost prohibitive. Burying livestock carcasses is currently legally prohibited in California (Antonelli et al. 2016), as is the composting of mammalian flesh (CalRecycle 2017). In light of these challenges, ranchers might consider moving a carcass as far away from livestock as possible.
Fladry or Turbo Fladry: Believe it nor not, flapping flags hung at the right height can deter wolves. Fladry is a series of cloth or plastic flags attached to a rope or wire that creates a novel visual stimulus wolves find uniquely frightening (Bangs et al. 2006). Over time, wolves may become habituated to fladry, willingly crossing fladry barriers to kill livestock (Musiani et al. 2003). This study also found that fladry may push wolves to neighboring ranches or unprotected pastures. Turbo fladry (electrified poly-wire with flags, powered by a standard electric fence energizer) may be as much as 2 to 10 times more effective than non-electrified barriers (Lance et al. 2010). I would think that fladry may be a useful tool in smaller-scale pasture settings (e.g., heifer calving pastures or sheep bedding grounds). Fladry may not be an effective deterrent for predators other than wolves (Davidson-Nelson and Gehring 2010), although one study has suggested fladry may deter coyotes as well (Young et al. 2015a). If you want to try turbo fladry, USDA Wildlife Services has several miles of it available to loan to ranchers – call the Wildlife Services state office at (916) 979-2675 for more information.
Night Penning: Night penning is exactly what it sounds like – it involves bringing livestock into a secure pen at night. Night penning (and to a lesser extent, simply night gathering) sheep can be effective in reducing wolf predation, especially when used in conjunction with livestock guardian dogs and/or human presence (Espuno et al. 2004). While night penning can provide protection during vulnerable periods, it comes at the cost of additional labor and facility construction and maintenance (Wilbanks 1995). In my experience, night penning works with small groups of animals (for 4-H or FFA projects, for example); it simply isn't practical in extensive operations.
Alarms/Scare Devices: Some predators seem to be afraid of novel stimuli. Strobe lights, propane cannons, and siren devices (including radio- and motion-activated guard devices) may temporarily displace or confuse predators (Bangs et al. 2006). Early research into battery-operated strobe or siren devices in fenced-pasture sheep operations across the western United States found that these devices deterred coyotes for up to 91 days and reduced lamb losses an estimated 44 to 95% (Linhart 1984; Linhart et al. 1992). However, habituation can be a problem if these devices are randomly—rather than behaviorally—activated (Shivik and Martin 2001). On the other hand, preliminary research at the University of California Hopland Research and Extension Center (Mendocino County) indicated mixed results with a new type of strobe light that emits random patterns of flashing light (trademarked as FoxLights). While initial results suggest FoxLights may be effective in deterring fox predation, the data collected so far do not support hypotheses of reduced livestock predation by coyotes, black bears, or mountain lions (McInturff et al. 2016).
In my next post, I'll discuss research and personal experience regarding the effectiveness of human presence (herders or range riders), as well as the importance of adapting these strategies to changing conditions. I hope others will share their experiences with these tools, as well!
Be sure to check out the Livestock-Predator Information Hub at http://rangelands.ucdavis.edu/predator-hub/!
- Author: Dan Macon
Date(s) & Time Location |
Topic(s) and Activities |
January 18, 2018 6:30 p.m. – 8:30 p.m. UCCE – Auburn Cost: $5/person |
Sheep Management Basics This classroom session will include presentations and discussion on general sheep husbandry, production calendars, general nutrition, reproductive management, and economic analysis. Register at: http://ucanr.edu/sheepmgmtbasics2018 |
January 20, 2018 8:30 a.m. – 12:30 p.m. Flying Mule Farm – Auburn Cost: $5/person |
Preparing Ewes for Lambing This hands-on workshop will include information about vaccination programs, ewe management (including ultrasound pregnancy detection), ewe nutrition, and other general husbandry topics. Rain or shine! Register at: http://ucanr.edu/preparingewesforlambing2018 |
March 3, 2018 8:30 a.m. – 12:30 p.m. Flying Mule Farm – Auburn Cost: $5/person |
Pasture Lambing School This hands-on workshop will cover pasture lambing management, including ewe and lamb nutrition, lambing problems, record-keeping, and predator protection. Come prepared to handle and process new lambs! Rain or shine! Register at: http://ucanr.edu/pasturelambingschool2018 |
May 2018 (exact date to be determined) 8:00 a.m. – 3 p.m. Flying Mule Farm – Auburn Cost: $5/person |
Wool Handling and Shearing Management Learn how to set up and manage a small- to medium-sized shearing facility for small flocks. Participants will learn about sheep handling, shearing preparation, wool handling, and wool marketing. (Note: this is not a shearing school). Register at: http://ucanr.edu/woolhandling2018 |
August 30, 2018 8:30 a.m. – 11:30 a.m. Flying Mule Farm – Auburn Cost: $5/person |
Preparing Ewes for Breeding This hands-on workshop will include instruction on body condition scoring, discussion of breeding systems, sheep stockmanship, ewe nutrition, and parasite control techniques. Register at: http://ucanr.edu/preparingewesforbreeding2018 |
September 14-15, 2018 8 a.m. – 5 p.m. Auburn/Grass Valley Cost: $200/person |
Small Ruminant Grazing School This 2-day course will provide participants with hands-on understanding of all aspects of managed grazing with small ruminants. Topics will include grazing planning, grazing behavior, fencing, predator protection, small ruminant nutrition, stockmanship and husbandry practices, and economics. Registration includes lunch and dinner on Friday and breakfast/lunch on Saturday. Register at: http://ucanr.edu/smallruminantgrazingschool2018 |
- Author: Dan Macon
Legal restrictions and public perception regarding lethal predator control make nonlethal livestock protection tools critical for ranchers and small-scale livestock owners alike. Equally as important, many producers (myself included) emphasize co-existence – part of what I enjoy about grazing sheep in our foothill rangelands is the opportunity to be around wildlife. For those of us who cannot be with our livestock around the clock (that would include most of us, I presume!), these tools can also offer peace of mind.
Over the next several months, my Ranching in the Sierra Foothills blog will highlight information from a forthcoming UC publication on livestock protection tools. These blog posts, which reflect both research-based knowledge and real-world experience, are intended to help ranchers and small-scale livestock owners evaluate the types of tools that may fit their site-specific needs. In this post, I'll briefly describe two of the tools that we use in our pasture-based sheep operation near Auburn.
Livestock Guardian Animals: Dogs, donkeys, and llamas are the most commonly used guardian animals. Research (and
Temporary Electric Fencing: Fences can either be physical barriers (like field fencing) or psychological barriers (like electric fencing). In my experiences, few (if any) fences are 100 percent effective. An adult coyote can squeeze through a 4”x6” opening; a mountain lion can scale a 6-foot fence. In our sheep operation, we've had good success using 42” electro-net fencing. These fences, which come in 164-foot sections, feature electrified horizontal poly wires and plastic stays between posts. We use battery powered fence energizers, and I should note that these electro-nets take significantly more power than smooth-wire electric fences (I like to have at least 0.25 joules per net – in other words, a 3-joule energizer is needed to power 12 sections of fence). Research in Montana suggests that electro-net can significantly reduce coyote intrusion into paddocks (Matchett et al. 2013). While I've seen a coyote jump my electro-net fencing while I was building a paddock, I've never observed a coyote inside a paddock once it was electrified (in more than a dozen years of using electro-net fencing extensively).
Obviously, these (and other) livestock protection tools have costs associated with them. Ranchers – and small-scale livestock owners – must compare the costs of these tools with the protection benefits. Costs are easy to tally; benefits are more challenging – after all, how can I measure the number of livestock NOT killed by predators. That said, site- and operation-specific combinations of these tools seem to prevent direct losses, and may reduce indirect impacts in some production systems as well (Stone et al. 2017).
In my next post, I'll discuss several more livestock protection tools, including attractant removal, night penning and alarm/scare devices. I hope other producers will share their experiences with livestock protection tools, as well! In the meantime, be sure to check out the Livestock-Predator Information Hub at http://rangelands.ucdavis.edu/predator-hub/.
References
Andelt WF. (2004). Use of livestock guarding dogs for reducing predation on domestic sheep. Wildlife Society Bulletin. 20:55-62.
Breck S. (2004). Minimizing carnivore-livestock conflict: the importance and process of research in the search for coexistence. In N Fascione A Delach ME Smith (Eds.), People and Predators: From Conflict to Coexistence. (13-27). Washington, DC: Island Press.
Gehring T et al. (2010a). Utility of livestock-protection dogs for deterring wildlife from cattle farmers. USDA National Wildlife Research Center – Staff Publications. Paper 1344. (Available at http://digitalcommons.unl.edu/cgi/viewcontent.cgi?article=2342&context=icwdm_usdanwrc).
Matchett MR Breck SW and Callon J. (2013). Efficacy of electronet fencing for excluding coyotes: a case study for enhancing production of black-footed ferrets. USDA National Wildlife Research Center – Staff Publications. Paper 1522.
Ramler J et al. (2014). Crying wolf? A spatial analysis of wolf location and depredations on calf weight. American Journal of Agricultural Economics. 96(3):631-656.
Stone SA et al. (2017). Adaptive use of nonlethal strategies for minimizing wolf-sheep conflict in Idaho. Journal of Mammalogy. 98(1):33-44.