Upgrade to remove ads
Terms in this set (79)
Explain the objective of the OK Steer Feedout program and why producers should participate in it
It is an information feedback program for Oklahoma rancher for performance and carcass merit
-benchmark the genetic merit of your calf crop for carcass value traits
-determine the feedlot performance potential of your calves
-evaluate steer genetics following standard ranch management systems
If FI at finish (slaughter) is within ______ of mean FI for the whole feeding period then the feed department has done a good job managing FI for that one of cattle
Explain 2 mechanisms that are thought to be involved in the decreased feed intake of feedlot cattle toward the end of the feeding period
-decreased abdominal capacity
-decrease in the sensitivity of adipocytes to insulin as an animal "fattens", and therefore, decreased removal of glucose from blood
List the primary goal of slick bunk management with regard to how feedlot cattle are fed
maintain higher feed intakes or perhaps the SAME intake but with greater ease and precision feeding
In no more than two sentences define residue feed intake
the difference between an animal's actual feed intake and the amount of feed an animal is expected to eat based its size and growth rate
What is the single largest contributor to "feedlot cost of gain"?
Feed cost is typically ____ to ____% of total host go gain
Two of the input variables that are used in calculating "Feedlot Cost of Gain" are ______ and ______
Defined by Dr. Bob Lake, as a combination of management factors involved in ______________
producing maximum cattle performance WITH minimum digestive problems
What is the rationale for measuring residual feed intake for replacement heifers
selection for improves RFI will result in improvements in feed conversion ration without affecting growth rate and mature size
Define "Value Added Program"
-a program that helps benefit both producers and buyers.
-producers have increased access to value added marketing opportunities by improving the quality of their cattle; cattle will more than likely sell for a premium
-buyers are ensured that the cattle they buy have been through pre and post weaning management practices; vaccinations, castration, dehorning, deworming
List 4 major categories of Value Added Programs for beef cattle
1. Age and Source Verification
2. Genetic Verification
3. Production System Verification
4. Health Management Verification
List one primary difference between natural vs organic beef
-natural beef can receive implants as long as its not within 100 days of slaughter
-organic beef can never receive growth-promoting hormones; also is more certified
List one of two major issues the Beef Quality Assurance Program is addressing with producers in 2016
How much $/hd would it take to offset the increase of cost of production for natural beef compared to conventional>
The Oklahoma Beef Network (OQBN) is committed to (a)_____ and (b)_______
a. increasing producers' access to value added marketing opportunities
b. improving the quality of beef produced in Oklahoma
Define "withdrawal period"
the time in which the dose of a drug results in no toxic effects in the animals test
PI-BVD fatality and performance losses
Fatality: 5.26 $/hd
Performance: 88.36 $/hd
Define Bovine Respiratory Disease (BRD)
stressed cattle with weakened resistance become susceptible to respiratory tract viruses (IBR,BVDV, PI-3,BRSV) that leave the respiratory tract vulnerable to secondary bacterial infections
What are the primary etiologic factors? These are also the 4 viral vaccinations given to shipped/stressed cattle
-IBR: Infectious Bovine Rhinotracheitis
-BVDV: Bovine Respiratory Syncytial Virus
-PI-3: ParaInfluenza 3
-BRSV: Bovine Viral Diarrhea Virus
What are the secondary bacterial infections?
List 3 methods for determining effective antibiotics for treatment of BRD
-clinical evaluation and response: examination, experience, records, pulls or relapse rate (1x,2x,3x)
-laboratory samples: culture, sensitivity
-analysis of treatment records- antemortem samples, postmortem samples, affect results of previous treatments
Describe high-risked cattle, exposed
*Origin or background of cattle
-sale barns, put-together, commingled
*Arrival time till sickness
-can be sick upon arrival or with a couple days
-response to treatment may be less than desirable
Describe high risk, non-exposed cattle
*Origin or background of cattle
-"ranch raised",+/- weaning, not vaccinated, little to no
*Arrival time till sickness
-5-7 days till visual morbidity
-response depends upon challenge dose of disease
agent, virulence of the disease agent, individuals
Describe low-risk cattle
*Origin or background of cattle
-preconditioned cattle (castrated, dehorned, vaccinated for respiratory disease, weaned >45 days, bunk broke)
*Arrival time till sickness
-7-10 days till visual morbidity
-response is favorable due too health program already administered
What are the 4 clinical signs of BRD?
1. D = Depression
2. A = Appetite
3. R = Respiratory signs
4. T = Temperature
What are 4 treatment goals for treating cattle with BRD?
1. decrease death loss
2. decrease severity of clinical signs
3. improve performance
4. improve animal welfare
List the order of antibiotics presently used and briefly discuss the criteria used in making the decision to change from one antibiotic to another at OSU Sparks Beef Research center
1st Pull: Micotil @ 1.5 mL/100 lbs, SQ, rectal temp of 104F<, re-evaluate in 120 hrs (5 days)
2nd Pull: Advocin @ 2.0 mL/100lbs, SQ, morbidity score still moderate (1 or 2), 104F<, re-evaluate in 96 hrs (4 days)
3rd Pull "last chance": Excede @ 1.5 mL/100 lbs, SQ in ear or base of ear, 104F<
List the 3 components (key instructions) of the BRD treatment protocol used at Sparks
1. specific criteria for pulling/treating cattle are specified
2. drug to be used in treatment, dosage, and route of administration is specified
3. timeline for further (next) treatment is specified
List the 4 basic tenants of successful treatment programs for BRD
1. Start treatment early: have procedure for treating sick cattle, never assume an untreated calf will get better the next day
2. Keep animal on treatment long enough
3. Use effective antibiotics that are administered properly and in proper dosage
4. Keep individual cattle records
Define Metaphylaxis relative to the treatment of cattle for BRD
a treatment given to animals experiencing any level of a viral or bacterial disease before clinical signs appear
Discuss the criteria that is useful for determining whether to use Metaphylaxis on a particular group of cattle
30-50% or greater of a load is expected to break with clinical respiratory disease and when mortality will be greater than 2% or greater
Advantages of Metaphylaxis
-chances of "missed pulls" are decreased
Disadvantage of Metaphylaxis
-difficult to justify cost without improved performance
-inexperience or personnel shortages
List the 4 primary sources of revenue for cattle in feedyards
1. Ration markup (0-100%)
2. Yardage (0-100)
3. Feed inventory gains and losses
4. Veterinary products markup
List and briefly discuss 3 reasons for "growing" cattle in feedyards
1. Reduce cost of gain: (NEg) and ($/cwt)
2. Alter the outcome: increase carcass weight and increase value
3. Improve well being: decrease bloat, decrease founder, decrease death loss
4. Delay marketing
List 4 reasons that carcass weights of fed steers have increase linearly over the years
1. Improved genetic capability
2. More aggressive implant programs
3. Use of beta-adrenergic agonists
4. Economics favor feeding longer, instead of selling or replacing
Selling cattle live table
Point of scale: feedyard scale
Freight paid by: Packer
Packer risk: yield, carcass value, trim, injury
Feedyard risk: none after cattle are weighed
Payment: immediate, whole
Selling cattle on "formula or grid" table
Point of scale: hot scale at packing plant
Freight paid by: feeder
Packer risk: none
Feedyard risk: yield, carcass value, trim, injury
Payment: partial upfront with "settle up"
List and briefly discuss the primary reasons (potential benefits) of sorting feedlot cattle
-Increase group value through individual value
-Increase carcass net return: minimize discounts and achieve premiums
-Improve industry wide product profile: NBQA priorities (carcass weight, quality, and uniformity)
Explain the large divergence in profitability ($/hd) as DOF are increased from 0 to 30 for cattle that are sold on "live" vs carcass basic
-The longer the DOF, the longer the feedyard has the cattle in there hands the greater the risk of owning those cattle becomes while also driving up costs.
-The packer with benefit economically with longer DOF and the feedyard
List and briefly discuss 3 factors that will play a major role or increase an importance in the feedlot industry in the years ahead
1. Beef demand: U.S. and global
2. Intense competition: feeder cattle
3. Demand for technology
What should be the primary determinate of when cattle moved from a starting diet to the finishing diet?
Today, about what percentage of fed cattle are sold in the "cash" market?
What is the primary determinant of fed cattle carcass value?
As a rule-of-thumb, carcass rate of gain should be about what percentage of live weight rate of gain by finishing cattle?
Feedyards create revenue of about how much (cents/head/day)?
50 to 60 cents
What is the recommended pen space for feedlot cattle? Should pen space be on the higher or lower end during winter?
-175 to 250 sq/ft
What is the recommended bunk space per head?
Water tank space should be a minimum of what per head?
-6 to 24 inches/head
-1 to 3 inches/head
Feed intake of feedlot cattle is greatest during what season of the year?
less chance that cattle are effected by heat or cold stress
For the period of 2009-2014, average "in-weights" of cattle entering have?
For the period of 2009-2014, DOF for feedlot cattle have?
For the period of 2009-2014, "out-weights" (slaughter weights) of feedlot cattle have?
Define Futures Markets
markets in which prices are established for commodities committed for delivery at sometime in the future.
Define a hedge "Hedging"
a market risk strategy whereby a producer takes opposite positions in two markets.
Define long futures position
a long futures position is an initial buy position that represents an obligation to ACCEPT delivery of the standardized commodity.
Define short futures position
a short futures position is an initial sell position that represents an obligations to MAKE delivery of the standardized commodity.
Define Basis (cash-futures)
a hedger adjusts the quoted futures prices by the estimated basis to get an expected hedged price or localized futures prices.
Basis = Cash Market Price - Futures Market Price
Factors that influence 'basis"
basis is smaller as weights increase (feeder cattle), quality decreases, and is smaller for heifers as compared to steers.
-time of delivery
Examples of Basis Contracts
- Stronger basis: if the cash market increases relative to the market, then the basis is said to have strengthened or gotten stronger (more positive or less negative) (Benefits short hedgers)
- Weaker basis: if the cash market decreases relative to the futures market price, the the basis has weakened or gotten weaker (more negative or less positive) (benefits long hedgers)
Live Cattle futures contract specifications
the seller of the Live Cattle futures contracts makes the final decision regarding the actual quantity and quality that will ultimately be delivered, but it must be within the standards authorized by the Exchange.
Feeder Cattle contract specifications
-contracts that are cash (or "financially") settled contracts
-all outstanding contracts contracts that remain open after the last day of trading will be automatically closed out at a price set equal to the CME Feeder Cattle Index on the last trading day
Concept of Short Futures Hedge
the concept of a short futures hedge is to use futures contract to manage the risk of FALLING prices in the hedger's local cash market at some point in the future
-Price risk management for livestock sellers
Concept of Long Futures Hedge
the concept of a long futures hedge is to use a futures contract to manage the risk of RISING prices in the hedger's local cash market at some point in the future
-Price risk management for livestock buyers
What is the purpose of delivery on "Live" cattle futures?
the primary purpose of a contract is price risk management and not delivery of the actual or physical commodity on the futures contract.
-also, it is the possibility of physical delivery that causes the cash and the futures markets to converge at contract expiration
Define commodity option market
a market in which producers may purchase the RIGHT BUT NOT THE OBLIGATION to buy or sell a commodity futures market contract at a specific price before a specific time expires
Define put option
A "put" option gives the buyer the right to sell (go "short") a futures contract at a pre-determined price on or before an expiration date.
Define call option
A "call" option gives the buyer the right to buy (go "long") a futures contract at a pre-determined price on or before an expiration date.
Define intrinsic value
If an option is currently profitable to exercise, it is said to have intrinsic value.
Factors that determine the "Premium" (cost) of an Option
1. Strike price relative to the underlying futures price
2. Time remaining until expiration
3. Market volatility
What are the Alternatives Once You Have Purchased an Option?
1. Sell the option back if it has value.
-Typically, you would sell the option prior to or at expiration and receive the current premium value.
-Prior to expiration, the premium value could be higher or lower than the original purchase price, depending on how the underlying futures price has changed.
"Short" hedge using put options
Exercise the option (only if to your advantage). You would do this if you wanted to take a short futures position if you had bought a put, or a long futures position if you had bought a call
The right, but not the obligation, to buy or sell something at a specific price ("strike price") on or before a certain expiration date.
-options that have intrinsic value
-a call option is in-the-money when the strike price is below the current futures price (strike price less than futures price)
-a put option is in-the-money when the strike price is above the current underlying price (strike price greater than futures price)
-options whose strike price is identical or close to the underlying futures price
-applies to both calls and puts
-options that have no immediate value
-a call option is out-the-money when the strike price is above the current underlying futures (strike price greater than future price)
-a put option is out-the-money when the strike price is below the current underlying futures (strike price less than futures price)
Rolling a Put option
When you decide to roll, you've changed your outlook on the underlying stock and fear that your short options are going to be assigned. The objective is to put off assignment, or even avoid it altogether.
Establishing a Market Window or "Fence" Strategy
The window strategy involves simultaneously buying a put option and selling a call option.
Time Value = Option Premium - Intrinsic Value
YOU MIGHT ALSO LIKE...
Options (Ch 20)
AGEC 3373 Exam 3
Chapter 1 Business Finance 4195
Try 2_CFA Institute_Derivatives
OTHER SETS BY THIS CREATOR
BIOC 5930 Exam 2
BIOC 5930 Exam 1
ANSI 3443 Hormones and Black Box