Note: This site is for reviewing legacy plan of work data from 2007-2011. If you are looking for the current plan of work interface, visit pow.nmsu.edu.

Profitable Livestock Production

Plan Goal

Improve the profitability of livestock production by enhancing decision-making skills of livestock owners and managers.

Situation Statement

Livestock production in New Mexico is only marginally profitable. Livestock producers and rural economies recognize the impact of livestock production on the state’s economy. In 2004, livestock and livestock products accounted for 75 percent of all New Mexico farm and ranch receipts and totaled over 1.6 billion dollars. Beef cattle and calves (one million head) and sheep (160,000 head) are major farm and ranch livestock contributors to the economy. A stocker-yearling grazing cattle industry of approximately 300,000 head exists primarily in the northeastern quarter of the state. There were an estimated 150,000 cattle fed for slaughter in the state in 2004. Based on data generated from 52 cow-calf operations in New Mexico evaluated through the Standardized Performance Analysis (SPA) program over the last 10 years, the average return on investment for cow-calf enterprises is only 1.8%. Sheep production in New Mexico, and other sectors of the beef industry have been only marginally profitable during this time period as well. If the profitability of cattle and sheep production in New Mexico does not improve, the long-term sustainability of ranching in the state is jeopardized. Educational programs like the Cattle Growers’ Short Course, Southwest Beef Symposium, SPA, Cattlemen’s College, Ranch to Rail, Beef Quality Assurance, and other events have been used as avenues for the Cooperative Extension Service to better equip livestock producers with management and marketing knowledge. Additionally, numerous resources have been published to provide producers information on livestock issues and management. In order for producers to improve profitability of cattle and sheep enterprises, they must increase revenue at a greater rate than costs increase, or they must decrease costs while maintaining revenue. If Extension related efforts are successful during this program of work, livestock producers will become more profitable.

Target Audience and Actions

The target audience is composed of approximately 8000 beef and 800 sheep producing operations among all geographical and cultural sectors of New Mexico, plus county Extension personnel, government officials, and allied industry employees that service livestock producers. In order to service the educational needs of these communities of livestock producers, county, statewide, and regional educational efforts will be conducted. Statewide and regional programs will include the Cattle Grower’s Short Course, Southwest Beef Symposium, Cattlemen’s College, and Cow-calf Standardized Performance Analysis program. Additionally, management recommendations will be incorporated into Extension publications, event proceedings, and popular press.

Short-Term Objectives

Increase awareness of novel management practices and knowledge of current issues by 20% for 10% of New Mexico livestock producers through educational programs and direct communications.

Increase the number of producers using technology by 15 to evaluate production and financial aspects of cow-calf enterprises through participation in SPA workshops.

Seventy-five percent of attendees surveyed at the Southwest Beef Symposium, Cattle Grower’s Short Course, and SPA workshops will perceive the monetary value of education gained exceeds the cost of attendance.

Medium-Term Objectives

Improve decision-making skills of 500 livestock producers and county Extension agents through educational programs and seminars such that they are more confident in livestock management.

State cow-calf operations (10) will improve profitability by following management recommendations made at Standardized Performance Analysis workshops.

Long-Term Objectives

Improve profitability of cattle and sheep enterprises by lowering production costs and/or increasing gross revenue.

Improve knowledge level of county Extension agents regarding management of sheep and beef cattle through in-service trainings.

Evaluation Plan

Maintaining a communication log to document producer acknowledgement of improved management practices.

Measure the increase in the number of producers using SPA technology during this plan of work.

Evaluate financial and production performance trends of cow-calf operations participating for more than three years in the SPA program.

An exit survey for educational programs will be devised to capture producer perception of both the monetary value of information and improvement in decision-making skills.

Measure knowledge change utilizing pre- and post-training tests for agents attending in-service training.