Iowa Beef Center 2014 Feedlot Operator SurveyIowa Beef Center 2014 Feedlot Operator Survey 3 Table of Contents Introduction 4 Participating Feedlot Operators by District 4 Survey Response

Iowa Beef Center 2014 Feedlot Operator Survey

•SurveyconductedbytheIowaBeefCenter.

•Sampledesign,questionnairedesign,anddatacollectionin collaborationwithUSDA’sNationalAgriculturalStatisticsService UpperMidwestRegionalOffice.

•DatacollectedFebruary25throughJune13,2014.

IBC102October2014

2IowaBeefCenter2014FeedlotOperatorSurvey

PreparedbyLeeSchulz,assistantprofessorandextensionlivestockeconomist,departmentofeconomics,IowaStateUniversity.

CoverphotobyDeniseSchwab,beefprogramspecialist,IowaStateUniversityExtensionandOutreach.Photoonpage3byBethDoran,beefprogramspecialist,IowaStateUniversityExtensionandOutreach.

Copyright2014bytheIowaBeefCenter,Ames,Iowa,(515)294-2333,beefcenter@iastate.edu.Allrightsreserved.Informationinthisbookletmaybequoted,paraphrased,orreproducedfornon-commercialpurposes,providedthatthiscopyrightnoticeappearsonallsuchcopies.

Objective Thestudywasconductedtoidentifygrowthopportuni-tiesandchallengesinbeefcattleproductioninIowa.

Methodology Mailsurveywithphonefollow-up. Sample framework OnFebruary25,2014,USDA’sNationalAgriculturalStatisticsServiceUpperMidwestRegionalOfficemailedcoverlettersandquestionnairesto1,010Iowafeedlotoperators.Allknownoperationswithacapacityof1,000ormoreheadofcattleonfeedweresampled.Astratifiedsimplerandomsamplewasappliedtooperationswith100-999capacityofcattleonfeed. Response motivation Toencouragepromptresponseandincreasetheresponserateoverall,thefollowingsurveyresearchtechniqueswereused:

• TheIowaBeefCenterandUSDA’sNational AgriculturalStatisticsServicelogoswereusedon thestationeryitemstotiethestudyefforttothe IowaBeefCenterandUSDA’sNationalAgricultural StatisticsService.

• Apostage-paidbusinessreplyenvelope wasincluded.

• AreminderpostcardwassentonMarch11,2014, topromptresponse.

• Afollow-upmailingwassenttonon-respondents onMarch25,2014.

• Arandomsampleofnon-respondentsreceiveda telephonesurveyfromApril15,2014toApril30, 2014.Stratawiththelowestresponseweretargeted.

Sample Statistics Totalmailing 1,010 ReturnsbyU.S.PostalService 12 Effective mailing 998 Incompletesurveys 46 Completedsurveys 200 Effective response rate 20.0%

AcknowledgementsThisprojectwasacoordinatedeffortbetweenIowaStateUniversity,theIowaBeefCenter,andUSDA’sNationalAgriculturalStatisticsServiceUpperMidwestRegionalOffice.

We’dliketothanktheIowaBeefCenterfacultyandstafffortheireffortsingeneratingthesurvey.Theirhardworkanddedicationwereinvaluable.We’dalsoliketothankthepersonnelatUSDA’sNationalAgriculturalStatisticsServiceUpperMidwestRegionalOfficefortheireffortsindistributingandcollectingthesurvey.

Allparticipantsaretobecommended,particularlytheIowafeedlotoperatorswhosevoluntaryeffortsmadetheIowaBeefCenter2014FeedlotOperatorSurveypossible.

DanielLoyDirectorofIowaBeefCenterIowaStateUniversity

IowaBeefCenter2014FeedlotOperatorSurvey3

Table of ContentsIntroduction 4

ParticipatingFeedlotOperatorsbyDistrict 4

Survey Response

A.CattleOperationInformation 5

B. Production,Management,andMarketingInformation 17

C. CropFarmingInformation 22

D.ManureManagementandApplicationInformation 24

E. FarmTransitionInformation 31

F. OperatorInformation 34

2014 Feedlot Operator Survey


Wright

Worth

Woodbury

WinneshiekWinnebago

Webster

Wayne

WashingtonWarren

Wapello

Van Buren

Union

Taylor

TamaStory

Sioux

ShelbySco�

Sac

Ringgold

Poweshiek

Po�awa�amie

Polk

PocahontasPlymouth

Palo Alto

Page

Osceola

O'Brien

Musca�ne

Montgomery Monroe

Monona

Mitchell

Mills

Marshall

Marion MahaskaMadison

Lyon

Lucas

Louisa

Linn

Lee

Kossuth

Keokuk

Jones

Johnson

Jefferson

Jasper

Jackson

Iowa

Ida

Humboldt

Howard

Henry

Harrison

Hardin

Hancock

Hamilton

Guthrie

Grundy

Greene

Fremont

Franklin

Floyd

Faye�e

Emmet

Dubuque

Dickinson

Des Moines

Delaware

Decatur Davis

Dallas

Crawford

Clinton

Clayton

Clay

Clarke

Chickasaw

Cherokee

Cerro Gordo

Cedar

Cass

Carroll

Calhoun

ButlerBuena Vista

Buchanan

Bremer

Boone

Black Hawk

Benton

Audubon

Appanoose

Allamakee

Adams

Adair

District 1 District 2 District 3



IntroductionTheIowaBeefCenteratIowaStateUniversityinAmes,Iowa,servesastheuniversity’sextensionprogramtocattleproducers.Ourdedicatedgroupoffacultyandstaffworktogethertodevelopanddeliverthelatestinresearch-basedinformationtoimprovetheprofitabilityandvitalityofIowa’sbeefindustry.WestrivetobetheNo.1source“Forallthingsbeef.”

TheIowaBeefCenter2014FeedlotOperatorSurveytakesanin-depthlookatIowafeedlotoperationsregardingtheircurrentoperation,plansforthefuture,andwhattheysawasthegreatestopportunitiesandobstaclesforthestate’scattlesector.Thegoalofthesurveyistobetterunderstand:

• Whatmanagementandmarketingpracticesarecurrentlyusedbyoperators?

• Whatarethehighestprioritiesforresearch,extensioneducation,andpolicyrelatedtotheir cattleoperation?

Inmeetingthisgoal,amuchricherunderstandingofkeyfactorsinfluencingprofitableandsustainablegrowthoftheindustryaswellasadditionalindustryresourceneedswasidentifiedandwillbehighlightedaspartoftheIowaBeefCenter’sactiveprogrammingeffort.

ThefollowingtablessummarizetheIowaBeefCenter2014FeedlotOperatorSurvey.

Number Reporting

Percent Reporting

District 1 54 27.0%

District 2 13 6.5%

District 3 27 13.5%

District 4 30 15.0%

District 5 24 12.0%

District 6 23 11.5%

District 7 16 8.0%

District 8 2 1.0%

District 9 10 5.0%

Unknown 1 0.5%

Total 200 100.0%

Participating Feedlot Operators by District


A. Cattle Operation Information

A. Cattle Operation InformationA1. How many head of finished cattle did your operation market in 2013?

Number Reporting Mean

Head 200 1626.3

Number Reporting

Percent Reporting

0 head 0 0.0%1 to 99 head 37 18.5%100 to 199 head 20 10.0%200 to 499 head 33 16.5%500 to 999 head 25 12.5%1,000 or more head 85 42.5%Total 200 100.0%

A2. Please indicate the percentage of your 2013 finished cattle that were marketed in the following months:


January 185 7.3February 185 6.4March 185 6.7April 185 8.7May 185 5.5June 185 8.2July 185 8.2August 185 9.6September 185 10.2October 185 11.1November 185 9.1December 185 9.0

January February March AprilNumber

ReportingPercent

ReportingNumber

ReportingPercent

ReportingNumber

ReportingPercent

ReportingNumber

ReportingPercent

Reporting0 percent 105 56.8% 101 54.6% 102 55.1% 94 50.8%1 to 19 percent 57 30.8% 63 34.1% 59 31.9% 63 34.1%20 to 39 percent 18 9.7% 17 9.2% 21 11.4% 18 9.7%40 to 59 percent 1 0.5% 4 2.2% 2 1.1% 7 3.8%60 to 79 percent 2 1.1% 0 0.0% 1 0.5% 1 0.5%80 or more percent 2 1.1% 0 0.0% 0 0.0% 2 1.1%Total 185 100.0% 185 100.0% 185 100.0% 185 100.0%

May June July AugustNumber

ReportingPercent

ReportingNumber

ReportingPercent

ReportingNumber

ReportingPercent

ReportingNumber

ReportingPercent

Reporting0 percent 114 61.6% 105 56.8% 110 59.5% 92 49.7%1 to 19 percent 50 27.0% 52 28.1% 43 23.2% 54 29.2%20 to 39 percent 17 9.2% 19 10.3% 20 10.8% 30 16.2%40 to 59 percent 4 2.2% 5 2.7% 7 3.8% 6 3.2%60 to 79 percent 0 0.0% 1 0.5% 4 2.2% 1 0.5%80 or more percent 0 0.0% 3 1.6% 1 0.5% 2 1.1%Total 185 100.0% 185 100.0% 185 100.0% 185 100.0%



A2. Please indicate the percentage of your 2013 finished cattle that were marketed in the following months. (continued)

September October November December

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting

0 percent 87 47.0% 82 44.3% 92 49.7% 95 51.4%1 to 19 percent 62 33.5% 62 33.5% 63 34.1% 62 33.5%20 to 39 percent 25 13.5% 23 12.4% 21 11.4% 19 10.3%40 to 59 percent 7 3.8% 15 8.1% 6 3.2% 5 2.7%60 to 79 percent 2 1.1% 2 1.1% 1 0.5% 1 0.5%80 or more percent 2 1.1% 1 0.5% 2 1.1% 3 1.6%Total 185 100.0% 185 100.0% 185 100.0% 185 100.0%

A3. What percentage of your finished cattle do you typically market with the following verified claims?


Age and source 105 33.7Certified organic 105 0.0Humanely raised 105 54.1Never fed beta-agonists 105 25.5Non-hormone treated (NHTC) 105 7.1Antibiotic free 105 15.9Naturally raised (no hormones and no antibiotics) 105 7.6

Other* 105 2.1

Age and source Certified organic Humanely raised Never fed beta agonists

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting


Non-hormone treated (NHTC)

Antibiotic free

Naturally raised (no hormones and

no antibiotics)Other*

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting


*Other: Omega enhanced (1) No answer provided (2)



A4. What percentage of your finished cattle do you typically market as:


Dressed, negotiated price 192 30.11Dressed, formula price 192 5.03Dressed, forward contract 192 2.76Grid (dressed, grade and yield) 192 4.93Live, formula price 192 6.73Live, forward contract 192 6.59Live, negotiated price (includes auctions) 192 42.80

Other* 192 1.04

Dressed, negotiated price

Dressed, formula price

Dressed, forward contract

Grid (dressed, grade and yield)

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting


Live, formula price

Live, forward contract

Live, negotiated price (includes auctions) Other*

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting


*Other: Custom feed, owner markets (2)



A5. What percentage of the following pricing methods do you use for the cattle you buy and sell annually?

Calves Number Reporting MeanSpot cash market 118 84.2Forward contracting or marketing agreement 118 10.2Futures market 118 3.9Options market 118 0.6Livestock Risk Protection (LRP) 118 0.0Livestock Gross Margin (LGM) 118 0.0Other* 118 0.0

Spot cash market

Forward contracting or marketing agreement

Futures market

Options market

Calves Number Reporting

Percent Reporting

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting


Livestock Risk

Protection (LRP)Livestock Gross Margin (LGM) Other*

Calves Number Reporting

Percent Reporting

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting

0 percent 117 99.2% 117 99.2% 117 99.2%1 to 19 percent 1 0.8% 1 0.8% 1 0.8%20 to 39 percent 0 0.0% 0 0.0% 0 0.0%40 to 59 percent 0 0.0% 0 0.0% 0 0.0%60 to 79 percent 0 0.0% 0 0.0% 0 0.0%80 or more percent 0 0.0% 0 0.0% 0 0.0%Total 118 100.0% 118 100.0% 118 100.0%

*Other: No answer provided (1)

Yearlings Number Reporting MeanSpot cash market 86 86.2Forward contracting or marketing agreement 86 7.2Futures market 86 4.0Options market 86 0.7Livestock Risk Protection (LRP) 86 0.0Livestock Gross Margin (LGM) 86 0.0Other 86 0.0

Spot cash market


Futures market

Options market

Yearlings Number Reporting

Percent Reporting

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting




A5. What percentage of the following pricing methods do you use for the cattle you buy and sell annually? (continued)

Livestock Risk Protection (LRP)

Livestock Gross Margin (LGM)

Yearlings Number Reporting

Percent Reporting

Number Reporting

Percent Reporting

0 percent 86 100.0% 86 100.0%1 to 19 percent 0 0.0% 0 0.0%20 to 39 percent 0 0.0% 0 0.0%40 to 59 percent 0 0.0% 0 0.0%60 to 79 percent 0 0.0% 0 0.0%80 or more percent 0 0.0% 0 0.0%Total 86 100.0% 86 100.0%

Finished Cattle Number Reporting MeanSpot cash market 165 72.9Forward contracting or marketing agreement 165 12.6Futures market 165 10.4Options market 165 4.5Livestock Risk Protection (LRP) 165 0.3Livestock Gross Margin (LGM) 165 0.8Other* 165 2.4

Spot cash market


Futures market

Options market

Finished Cattle Number Reporting

Percent Reporting

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting


Livestock Risk

Protection (LRP)Livestock Gross Margin (LGM) Other*

Finished Cattle Number Reporting

Percent Reporting

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting





A6. From which of the following sources do you typically buy feeder cattle?

Number Reporting

Percent Reporting

Custom feed, so do not buy or own 22 11.2%Purchase at in-state auction barns 99 50.5%Purchase at out-of-state auction barns 84 42.9%Purchase through video/internet auctions 44 22.4%Purchase direct from seller 80 40.8%Purchase through order buyers 102 52.0%Home-raise from own cow herd 61 31.1%Other 0 0.0%Total respondents reporting 196

Numbers and percents may reflect multiple answers.

A6a. If you custom feed cattle, what percentage is typically owned by:


Other cattle feeding operations 22 48.5Background/stocker operations 22 10.7Cow-calf operations 22 8.8Packers 22 0.0Crop operations not feeding cattle 22 24.1Non-farm operations or non-farmers 22 7.3Do not know 22 0.7Other 22 0.0

Other cattle feeding operations

Backgrounding/stocker operations

Cow-calf operations Packers

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting


Crop operations not feeding cattle

Non-farm operations or non-farmers Do not know

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting




A7. How important are the following traits for the feeder cattle that you buy? (1 = Not Important at all, 2 = Somewhat Important, 3 = Important, 4 = Very Important)


Castrated 172 3.6Condition 177 3.6Frame 177 3.4Vaccination history 174 3.3Dehorned 172 3.3Weight 179 3.2Reputation of seller 172 3.1Uniformity of head in a lot 170 3.1Sex of animal 178 3.1Weaned at least 30 days 168 3.0Weaned at least 45 days 166 2.8Animal care/handling practices 169 2.8Number of head in a lot 173 2.7Third-party health verified 170 2.6Breed background information 165 2.2Specific sire/genetic information 167 2.1Age and source verified 170 2.0Implanted 171 1.9Non-hormone treated 171 1.5Naturally raised 171 1.4Organically raised 169 1.2

Castrated Condition Frame Vaccination historyNumber

ReportingPercent

ReportingNumber

ReportingPercent

ReportingNumber

ReportingPercent

ReportingNumber

ReportingPercent

Reporting1 - Not at all important 8 4.7% 2 1.1% 5 2.8% 15 8.6%2 - Somewhat Important 9 5.2% 9 5.1% 11 6.2% 15 8.6%3 - Important 33 19.2% 54 30.5% 70 39.5% 45 25.9%4 - Very Important 122 70.9% 112 63.3% 91 51.4% 99 56.9%Total 172 100.0% 177 100.0% 177 100.0% 174 100.0%

Dehorned Weight Reputation of seller Uniformity of head in a lot

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting

1 - Not at all important 13 7.6% 7 3.9% 13 7.6% 9 5.3%2 - Somewhat Important 22 12.8% 22 12.3% 28 16.3% 31 18.2%3 - Important 46 26.7% 78 43.6% 67 39.0% 70 41.2%4 - Very Important 91 52.9% 72 40.2% 64 37.2% 60 35.3%Total 172 100.0% 179 100.0% 172 100.0% 170 100.0%

Sex of animal Weaned at least 30 days

Weaned at least 45 days

Animal care/handling practices

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting




A7. How important are the following traits for the feeder cattle that you buy?(continued)

Number of head in a lot

Third-party health verified

Breed background information

Specific sire/genetic information

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting


Age and source verified Implanted Non-hormone treated Naturally raised

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting


Organically raised

Number Reporting

Percent Reporting

1 - Not at all important 147 87.0%2 - Somewhat Important 17 10.1%3 - Important 1 0.6%4 - Very Important 4 2.4%Total 169 100.0%

A8. Of the cattle you typically place on feed, what percentage is:


Calves 196 62.1Yearlings 196 37.9

Calves Yearlings

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting






Steers 196 66.9Heifers 196 32.6Cows/Heiferettes 196 0.5

Steers Heifers Cows/Heiferettes

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting




Beef 192 91.0Dairy 192 7.8Dairy x beef crossbred 192 1.2

Beef Dairy Dairy x beef crossbred

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting




A11. From which states/regions do you typically buy feeder cattle?

NumberReporting

Percent Reporting

Iowa 148 81.3%Missouri 76 41.8%Nebraska 63 34.6%Kansas 33 18.1%North Dakota 40 22.0%South Dakota 75 41.2%Minnesota 20 11.0%Wisconsin 14 7.7%Illinois 7 3.8%Texas 3 1.6%Oklahoma 6 3.3%Northern Plains (MT, WY, CO) 42 23.1%Southeast (KY, TN, VA, WV, NC, GA, FL) 52 28.6%South (AR, LA, MS, AL) 0 0.0%Other* 3 1.6%Total respondents reporting 182


*Other: California (2) Michigan (1)

A12. Why do you buy feeder cattle from the states/regions that you do?

Number Reporting

Percent Reporting

Price 105 59.3%Quality of cattle 136 76.8%Health of cattle 108 61.0%Relationship with seller 93 52.5%Past experience 117 66.1%Consistency of cattle 81 45.8%Vaccination program 58 32.8%Transportation costs 72 40.7%Other* 5 2.8%Total respondents reporting 177


*Other: Availability (1) Time of year (1)Large group size (1) No answer provided (2)

A13. Do you feed cattle or have cattle custom fed in other states?

Number Reporting

Percent Reporting

Yes 22 12.6%No 153 87.4%Total 175 100.0%



A13a. If yes, why do you feed cattle or have cattle custom fed in other states?

Number Reporting

Percent Reporting

Feedlot management 8 36.4%Feeder cattle price 5 22.7%Fed cattle price 3 13.6%Cost of gain 7 31.8%Services offered 12 54.5%Transportation costs 3 13.6%Weather 8 36.4%Diversify risk 9 40.9%Other* 3 13.6%Total respondents reporting 22


*Other: Not enough space at home (2) Good friend (1)

A14. In 2013, approximately what percentage of cattle finished in your operation was fed in the following facility:


Confinement bedded monoslope or gable roof building 192 13.7

Confinement bedded hoop building 192 4.9Slatted floor/deep pit building 192 4.0Open lot with shelter 192 50.6Open lot without shelter 192 26.8Other 192 0.0

Confinement bedded monoslope or gable

roof building

Confinement bedded hoop building

Slatted floor/deep pit building

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting


Open lot with shelter

Open lot without shelter

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting




A15. If you have expanded in the last 5 years what type of facility was added or expanded?

Number Reporting

Percent Reporting

Did not expand in the last 5 years 98 55.7%Confinement bedded monoslope or gable roof building 24 13.6%Confinement bedded hoop building 13 7.4%Slatted floor/deep pit building 9 5.1%Open lot with shelter 26 14.8%Open lot without shelter 20 11.4%Other 0 0.0%Total respondents reporting 176


A16. Which animal identification method(s) do you currently use?

Number Reporting

Percent Reporting

None 46 23.6%Plastic ear tag 151 77.4%Tattoo 7 3.6%Hot iron brand 12 6.2%Freeze brand 8 4.1%Ear notches 5 2.6%Brucellosis or any other metal tag 9 4.6%Electronic ear tag (RFID) 6 3.1%Other 0 0.0%Total respondents reporting 195



B. Production, Management, and Marketing Information

B. Production, Management, and Marketing InformationB1. What other livestock do you raise?

Number Reporting

Percent Reporting

None 94 50.3%Cow-calf 57 30.5%Hogs 43 23.0%Dairy cattle 1 0.5%Layers 11 5.9%Broilers 6 3.2%Turkeys 3 1.6%Sheep 3 1.6%Goats 2 1.1%Other* 3 1.6%Total respondents reporting 187


*Other: Horses (3)

B2. Economically, do you view your cattle feeding operation as the most important part of your overall farm operation?

Number Reporting

Percent Reporting

Yes 129 67.5%No 62 32.5%Total 191 100.0%

B3. If the number of cattle marketed from your operation has increased in the last 5 years, what factors contributed to the increase?

Number Reporting

Percent Reporting

Did not increase 102 56.4%Expanded feeding facilities 43 23.8%More custom feeding 14 7.7%Profitability of feeding cattle 44 24.3%Availability of co-product feed 34 18.8%Profitability of marketing cattle through cattle 35 19.3%Value of manure for fertilizer and crop production 42 23.2%New marketing opportunities or programs 5 2.8%Family members joining the operation 26 14.4%Other* 6 3.3%Total respondents reporting 181

Number and percent may reflect multiple answers.

*Other: Amount of capital I have (2) Found a good employee (1)Supply of cattle (2) No answer provided (1)



B4. If the number of cattle marketed from your operation has decreased in the last 5 years, what factors contributed to the decrease?

Number Reporting

Percent Reporting

Did not decrease 117 73.1%Deteriorating facilities 3 1.9%Low profitability 21 13.1%Difficulty in obtaining finances 2 1.3%Availability of labor 9 5.6%Age or health reasons 13 8.1%Focused on other farming enterprises 9 5.6%Environmental regulations 9 5.6%Feeder cattle supplies 9 5.6%Other 0 0.0%Total respondents reporting 160


B5. Which of the following best describes your business plans for your cattle operation in the next 5 years?

Number Reporting

Percent Reporting

Expand my operation 67 34.4%Decrease size, but not end 3 1.5%Maintain current size 98 50.3%End my cattle operation 4 2.1%Do not know 23 11.8%Total respondents reporting 195

B6. How important would the following factors be for improving cost of production on your operation? (1 = Not Important at all, 2 = Somewhat Important, 3 = Important, 4 = Very Important)


Ability to grow my own corn 186 3.4Health management 190 3.3Nutrition and bunk management 189 3.2Local supply of corn and corn co-products 188 3.1Implants for growth promotion 190 3.0Access to animal nutrition consultants 189 2.9Financial record-keeping programs 188 2.9Housing to provide cattle comfort 187 2.9Access to animal health consultants 187 2.8Apply manure according to a nutrient management plan 186 2.8Feed additives for growth promotion 188 2.8Availability of labor 187 2.7Data management and tracking programs 189 2.6Closeout and benchmarking services 189 2.5Equipment to feed co-products 185 2.5Access to financial consultants 189 2.4



B6. How important would the following factors be for improving cost of production on your operation? (continued)

Ability to grow my own corn

Health management

Nutrition and bunk management

Local supply of corn and corn co-products

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting


Implants for growth promotion

Access to animal nutrition consultants

Financial record-keeping programs

Housing to provide cattle comfort

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting


Access to animal health consultants

Apply manure according to a nutrient

management plan

Feed additives for growth promotion

Availability of labor

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting


Data management and tracking programs

Closeout and benchmarking

services

Equipment to feed co-products

Access to financial consultants

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting




B7. Do you agree or disagree that changing the following practices would expand your marketing opportunities? (1 = Strongly Disagree, 2 = Disagree, 3 = Neutral, 4 = Agree, 5 = Strongly Agree)


If available, marketing to a local packer 186 3.7Beef Quality Assurance (BQA) training 184 3.3Follow animal care or handling guidelines 187 3.3Share cattle performance information 186 3.0Contract production for a specific market 186 3.0Follow production practices and record keeping requirements to meet packer’s specifications 185 3.0

Use a marketing schedule 182 3.0Participation in a product supply chain 183 2.9Allow third party audits for verified programs 185 2.6Pool cattle for sale (i.e., combining your cattle to be sold with cattle of other producers) 189 2.5

If available, marketing to a local packer

Beef Quality Assurance (BQA)

training

Follow animal care or handling

guidelines

Share cattle performance information

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting

1 - Strongly Disagree 7 3.8% 10 5.4% 14 7.5% 16 8.6%2 - Disagree 18 9.7% 27 14.7% 26 13.9% 35 18.8%3 - Neutral 38 20.4% 61 33.2% 59 31.6% 77 41.4%4 - Agree 83 44.6% 63 34.2% 65 34.8% 42 22.6%5 - Strongly Agree 40 21.5% 23 12.5% 23 12.3% 16 8.6%Total 186 100.0% 184 100.0% 187 100.0% 186 100.0%

Contract production

for a specific market

Follow production practices and record

keeping requirements to meet packer’s

specifications

Use a marketing schedule

Participation in a product supply chain

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting


Allow third party audits for

verified programs

Pool cattle for sale (i.e., combining your cattle to be sold with cattle of other producers)

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting

1 - Strongly Disagree 34 18.4% 40 21.2%2 - Disagree 48 25.9% 50 26.5%3 - Neutral 71 38.4% 64 33.9%4 - Agree 27 14.6% 27 14.3%5 - Strongly Agree 5 2.7% 8 4.2%Total 185 100.0% 189 100.0%



B8. Please identify the people/individuals your operation uses as a source of management information:

Number Reporting

Percent Reporting

Private consultant/service 68 35.2%Supply company representative 127 65.8%Other producers 75 38.9%Veterinarians 158 81.9%Extension specialist 51 26.4%University experts 40 20.7%Other* 3 1.6%Total respondents reporting 193


*Other: Farm media (2)No answer provided (1)

B9. Please identify the people/individuals your operation uses as a source of marketing information:

Number Reporting

Percent Reporting

Private consultant/service 77 41.6%Auction market operator 68 36.8%Commodity broker 63 34.1%Other producers 51 27.6%Packer buyer 100 54.1%Extension specialist 8 4.3%University experts 7 3.8%Other* 7 3.8%Total respondents reporting 185


*Other: Farm media (5)No answer provided (2)


C. Crop Farming Information

C. Crop Farming InformationC1. What portion of your operation’s feed is produced by your own farm?

Number Reporting

Percent Reporting

Less than 25% 14 7.2%25%-49% 17 8.7%50% to 74% 49 25.1%75% or more 115 59.0%Total 195 100.0%

C2. How many of cropland acres were farmed in 2013?

Number Reporting

Percent Reporting

0 0 0.0%1-99 5 2.5%100-199 11 5.6%200-499 38 19.3%500-999 63 32.0%1,000-1,999 66 33.5%2,000-3,999 10 5.1%4,000-5,999 1 0.5%6,000-9,999 2 1.0%10,000 or more 1 0.5%Total 197 100.0%

C3. In 2013, of the cropland acres farmed, what percentage was:


Owned 196 52.4Rented 196 47.6Other 196 0.0

Owned Rented

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting



C. Crop Farming Information

C4. What crops are typically grown on your farm?

Number Reporting

Percent Reporting

Corn (seed) 12 6.1%Corn (grain) 180 91.4%Corn (silage) 128 65.0%Soybeans 139 70.6%Alfalfa 99 50.3%Hay 103 52.3%Cover cropa 48 24.4%Other* 9 4.6%Total respondents reporting 197

Numbers and percents may reflect multiple answers.aCover crop: *Other:Rye (20) Oats (5)Rye and Triticale (1) Wheat, Triticale (1)Rye and Wheat (Winter), Oats (Spring) (1) Winter Rye (2)Rye, Oats, Vetch (1) No answer provided (1)Rye, Radish (2) Rye, Wheat, Triticale, Beets (1) Rye/Clover (1) Oats (3) Carrots, Onions (1) No answer provided (17)


D. Manure Management and Application Information

D. Manure Management and Application InformationD1. Approximately, what percent of your total financial expenditure for cattle production is spent on manure collection, storage, handling, and application?

Number Reporting

Percent Reporting

Less than 5% 39 20.2%5%-9% 88 45.6%10% to 19% 48 24.9%20% or more 18 9.3%Total 193 100.0%

D2. What type of manure is managed on your operation?

Number Reporting

Percent Reporting

Slurry 18 9.2%Liquid 32 16.3%Solid (including bedded pack) 194 99.0%Other 0 0.0%Total respondents reporting 196


D3. What practices are in place on your operation to manage/control manure?

Number Reporting

Percent Reporting

None 22 11.3%Stockpiling 136 69.7%Composting 43 22.1%Confinement building 54 27.7%Solids settling basin 96 49.2%Clean water diversion 43 22.1%Holding pond 43 22.1%Vegetative treatment area 52 26.7%Other* 2 1.0%Total respondents reporting 195





D4. What application method is used for your operation’s manure?

Number Reporting

Percent Reporting

None 3 1.6%Drag line or drag hose 6 3.1%Tank wagon 27 14.1%Irrigation/sprinkler 19 9.9%Surface application with no incorporation 123 64.1%Surface application with incorporation within 24 hours 39 20.3%Surface application with incorporation after 24 hours 95 49.5%Other 0 0.0%Total respondents reporting 192


D5. Please identify the month(s) in which the majority of your operation’s manure application is done?

Number Reporting

Percent Reporting

January 82 42.3%February 97 50.0%March 127 65.5%April 118 60.8%May 41 21.1%June 18 9.3%July 17 8.8%August 25 12.9%September 58 29.9%October 115 59.3%November 131 67.5%December 86 44.3%Total respondents reporting 194


D6. Does your operation have a manure (or nutrient) management plan?

Number Reporting

Percent Reporting

Yes 74 43.0%No 98 57.0%Total 172 100.0%

D7. Is your operation’s manure tested for nutrient analysis before application?

Number Reporting

Percent Reporting

Yes 67 35.1%No 124 64.9%Total 191 100.0%



D8. Do you calibrate your manure application equipment prior to land application?

Number Reporting

Percent Reporting

Yes 75 39.1%No 117 60.9%Total 192 100.0%

D9. Is your operation’s manure application typically supplemented with commercial fertilizer application?

Number Reporting

Percent Reporting

Yes 161 83.0%No 33 17.0%Total 194 100.0%

D10. What is the end use of the manure produced on your operation?

Number Reporting

Percent Reporting

Applied to cropland owned or managed by my own operation 192 98.5%Applied to pasture land owned or managed by my own operation 49 25.1%Applied to cropland managed or owned by other farm operations 33 16.9%Applied to pasture land managed or owned by other farm operations 2 1.0%Utilized in commercial markets (e.g., sales to horticulture businesses, etc.) 1 0.5%Not harvested (e.g., used in open lot maintenance) 2 1.0%Other 0 0.0%Total respondents reporting 195


D11. Do you agree or disagree that the following factors are major reasons for some crop producers to be willing to use feedlot manure? (1 = Strongly Disagree, 2 = Disagree, 3 = Neutral, 4 = Agree, 5 = Strongly Agree)


Adds to soil organic matter 190 4.4Good source of phosphorus 188 4.3Good source of other nutrients 191 4.2Increases yields above yields with commercial fertilizer alone 191 4.2

Reduces cost of fertilizer program 191 4.2Corrects low yielding parts of fields 192 4.2Good source of nitrogen 192 4.0Manure use supports feeding operations that use our corn or corn co-products 191 3.8

Less leaching loss of nitrogen with manure 191 3.6Reduces soil erosion 189 3.6Improves water infiltration 188 3.5Makes the land easier to till 188 3.4Prefer organic nutrient sources 186 3.3



D11. Do you agree or disagree that the following factors are major reasons for some crop producers to be willing to use feedlot manure? (continued)

Adds to soil organic matter

Good source of phosphorus

Good source of other nutrients

Increases yields above yields with commercial

fertilizer alone

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting


Reduces cost of fertilizer program

Corrects low yielding parts of fields

Good source of nitrogen

Manure use supports feeding operations that use our corn or

corn co-products

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting


Less leaching loss of nitrogen with manure

Reduces soil erosion

Improves water infiltration

Makes the landeasier to till

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting


Prefer organic nutrient sources

Number Reporting

Percent Reporting

1 - Strongly Disagree 11 6%2 - Disagree 18 10%3 - Neutral 78 42%4 - Agree 59 32%5 - Strongly Agree 20 11%Total 186 100%



D12. Do you agree or disagree that the following factors are major reasons for some crop producers to be reluctant to use feedlot manure? (1 = Strongly Disagree, 2 = Disagree, 3 = Neutral, 4 = Agree, 5 = Strongly Agree)


Manure application causes compaction 187 3.7Manure use is subject to too many regulations; too much book-keeping 185 3.4Nutrient application is too uneven 184 3.3Nutrient availability is too unpredictable 185 3.3Manure use causes complaints of odor 186 3.2Manure use requires too much time 185 3.2Manure often contains unwanted material 188 3.1Ground cover disturbed with incorporation or injection of manure 186 3.0Manure use requires too much management 185 3.0Manure use delays planting crops 187 2.9Manure use causes complaints of flies 185 2.9The cost of manure use is too high 185 2.8Manure use causes complaints of road traffic 186 2.8Manure use increases the risk of contaminating surface or ground water 185 2.7Manure use causes complaints of noise 186 2.5

Manure application causes compaction

Manure use is subject to too many

regulations; too much bookkeeping

Nutrient application is too uneven

Nutrient availability is too unpredictable

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting


Manure use causes complaints of odor

Manure use requires too much time

Manure often contains unwanted material

Ground cover disturbed with incorporation or injection of manure

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting




D12. Do you agree or disagree that the following factors are major reasons for some crop producers to be reluctant to use feedlot manure? (continued)

Manure use requires too much management

Manure use delays planting crops

Manure use causes complaints of flies

The cost of manure use is too high

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting


Manure use causes complaints

of road traffic

Manure use increases the risk of

contaminating surface or ground water

Manure use causes complaints

of noise

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting

1 - Strongly Disagree 20 10.8% 15 8.1% 23 12.4%2 - Disagree 47 25.3% 54 29.2% 71 38.2%3 - Neutral 75 40.3% 83 44.9% 78 41.9%4 - Agree 42 22.6% 29 15.7% 13 7.0%5 - Strongly Agree 2 1.1% 4 2.2% 1 0.5%Total 186 100.0% 185 100.0% 186 100.0%

D13. Do you typically transfer manure off your farm?

Number Reporting

Percent Reporting

Yes 29 14.7%No 168 85.3%Total 197 100.0%

D13a. If no, why haven’t you transferred manure off your farm?

Number Reporting

Percent Reporting

I have sufficient land for utilization of manure produced by my own operation 160 98.8%There are no other users for manure in my area 3 1.9%I do not have the time to spend transferring manure off my farm 7 4.3%I do not have the equipment for transferring manure off my farm 7 4.3%I do not know what value to charge for the transfer of manure off my farm 7 4.3%Other 0 0.0%Total respondents reporting 162




If you typically transfer manure off your farm please answer questions D13b, D13c, and D13d.

D13b. Do you partner with other businesses or individuals to transfer manure off your farm?

Number Reporting

Percent Reporting

No partners 12 42.9%Crop farmers 14 50.0%Crop consultants 1 3.6%Fertilizer dealers 1 3.6%Brokers for organic products 3 10.7%Other 0 0.0%Total respondents reporting 28


D13c. What is your most common financial arrangement(s) for transfer of manure off your farm?

Number Reporting

Percent Reporting

I give away manure at no charge or payment 6 22.2%I pay users of manure to accept manure 0 0.0%I charge per unit volume, weight, or load 13 48.1%I charge per unit distance manure is hauled 5 18.5%I charge per unit of nutrients provided 4 14.8%I charge for specific services provided 6 22.2%Other* 6 22.2%Total respondents reporting 27


*Other: Trade for cornstalks (5) No answer provided (1)

D13d. What agronomic services do you include with the transfer of manure off your farm?

Number Reporting

Percent Reporting

None 10 37.0%Soil testing 8 29.6%Manure analysis 15 55.6%Crop consultant services 1 3.7%Record keeping 6 22.2%Injection of manure 4 14.8%Measurement of application rate 8 29.6%Application rate adjustment for individual fields or crops 6 22.2%Incorporation of manure within 24 hours 0 0.0%Tillage to address compaction from manure application 1 3.7%Other 0 0.0%Total respondents reporting 27



E. Farm Transition Information

E. Farm Transition InformationE1. What is the ownership arrangement of your cattle operation?

Number Reporting

Percent Reporting

Sole proprietorship 113 58.2%C-Corporation 21 10.8%S-Corporation 25 12.9%General partnership 19 9.8%Limited partnership (partnership with limited liability) 4 2.1%Limited liability corporation (LLC) 12 6.2%Other 0 0.0%Total 194 100.0%

E2. If you have an heir (e.g., son, daughter, grandchild, in-law, other relative) to take over the cattle operation, are you encouraging them to do so?

Number Reporting

Percent Reporting

Yes 142 75.5%No 46 24.5%Total 188 100.0%

E3. Would you be willing to work with a non-family member if an heir is not present or interested in entering cattle production?

Number Reporting

Percent Reporting

Yes 121 66.1%No 62 33.9%Total 183 100.0%

E4. Is there a succession plan for transferring the cattle operation upon exiting the industry?

Number Reporting

Percent Reporting

Yes, next generation or secondary operator will take over the cattle operation 108 56.3%Yes, another established producer will take over the cattle operation 0 0.0%Yes, a beginning producer will take over the cattle operation 3 1.6%Yes, operation will no longer feed cattle and any land will be used for producing crops 4 2.1%Yes, operation will no longer feed cattle and any land will be used for non-agriculture purposes 0 0.0%No, have not planned farm transition 77 40.1%Other 0 0.0%Total 192 100.0%



E5. Please indicate the degree to which you perceive the following factors as obstacles or attractions for future generations entering cattle production: (1 = Major Obstacle, 2 = Obstacle, 3 = Neutral, 4 = Attraction, 5 = Major Attraction)


Rural lifestyle 188 4.1Self-employment 190 4.1Work with livestock 188 3.8Work with family 190 3.7Feed availability and costs 188 3.3Cost share programs (e.g., EQIP) 188 3.1Expansion of corn acres 188 3.1Salary 188 3.1Expansion of soybean acres 185 3.0Market access 190 3.0Cattle availability and costs 189 2.9Land tax policy 186 2.6Animal care/handling regulations 187 2.6Capital availability and costs 188 2.6Work hours 190 2.5Labor availability and costs 189 2.5Land availability and costs 189 2.2Environmental regulations 189 1.9

Rural lifestyle Self-employment Work with livestock Work with family

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting

1 - Major Obstacle 4 2.1% 3 1.6% 0 0.0% 4 2.1%2 - Obstacle 6 3.2% 7 3.7% 14 7.4% 14 7.4%3 - Neutral 23 12.2% 26 13.7% 42 22.3% 58 30.5%4 - Attraction 92 48.9% 93 48.9% 94 50.0% 82 43.2%5 - Major Attraction 63 33.5% 61 32.1% 38 20.2% 32 16.8%Total 188 100.0% 190 100.0% 188 100.0% 190 100.0%

Feed availability and costs

Cost share programs (e.g., EQIP)

Expansion of corn acres Salary

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting




E5. Please indicate the degree to which you perceive the following factors as obstacles or attractions for future generations entering cattle production. (continued)

Expansion of soybean acres Market access Cattle availability

and costs Land tax policy

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting


Animal care/handling regulations

Capital availability and costs Work hours Labor availability

and costs

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting


Land availability and costs

Environmental regulations

Number Reporting

Percent Reporting

Number Reporting

Percent Reporting

1 - Major Obstacle 53 28.0% 70 37.0%2 - Obstacle 74 39.2% 83 43.9%3 - Neutral 43 22.8% 30 15.9%4 - Attraction 14 7.4% 2 1.1%5 - Major Attraction 5 2.6% 4 2.1%Total 189 100.0% 189 100.0%


F. Operator Information

F. Operator InformationF1. What portion of your cattle operation’s labor is supplied by non-family, paid employees?

Number Reporting

Percent Reporting

Less than 25% 132 67.3%25%-49% 28 14.3%50%-74% 22 11.2%75% or more 14 7.1%Total 196 100.0%

F2. What is your gender?

Number Reporting

Percent Reporting

Male 196 99.5%Female 1 0.5%Total 197 100.0%

F3. What is your age?


Years 196 56.3

Number Reporting

Percent Reporting

Less than 30 years 2 1.0%30 to 54 years 85 43.4%55 to 70 years 89 45.4%71 years or more 20 10.2%Total 196 100.0%

F4. How many years of experience in feeding cattle do you have?

Number Reporting

Percent Reporting

Less than 1 1 0.5%1-5 1 0.5%6-10 5 2.6%11-15 7 3.6%16-20 9 4.6%21-25 21 10.8%26-30 19 9.8%31-35 23 11.9%36-40 33 17.0%41 or more 75 38.7%Total 194 100.0%


F. Operator Information

F5. How many more years do you expect to be feeding cattle?

Number Reporting

Percent Reporting

Less than 1 2 1.0%1-5 23 11.7%6-10 54 27.4%11-15 30 15.2%16-20 33 16.8%21-25 18 9.1%26-30 13 6.6%31-35 11 5.6%36-40 4 2.0%41 or more 9 4.6%Total 197 100.0%

F6. What portion of your household income is from off-farm sources?

Number Reporting

Percent Reporting

Less than 20% 131 66.8%20%-39% 31 15.8%40%-59% 23 11.7%60%-79% 7 3.6%80% or more 4 2.0%Total 196 100.0%

F7. What is the highest level of education that you earned?

Number Reporting

Percent Reporting

High school 82 42.1%Technical training (certification or associates degree) 27 13.8%Attended college, no Bachelor’s (B.S. or B.A.) degree 33 16.9%Bachelor’s (B.S. or B.A.) degree 47 24.1%Graduate or professional degree (M.S., M.A., M.B.A., Ph.D., D.V.M., Law degree) 5 2.6%Other* 1 0.5%Total 195 100.0%

*Other: 8th grade (1) F8. Please identify the industry-related organizations that you or your operation is a member of:

Number Reporting

Percent Reporting

Iowa Cattlemen’s Association 142 78.5%County Cattlemen’s Association 114 63.0%Breed association 15 8.3%Iowa Farm Bureau 143 79.0%American Farm Bureau 25 13.8%National Cattlemen’s Beef Association (NCBA) 48 26.5%Ranchers and Cattlemen’s Action Legal Fund (R-CALF) 11 6.1%Other* 9 5.0%Total respondents reporting 181


*Other: National Corn Growers Association (1) National Farmers Organization (1) Wyoming Stock Growers (1) American Soybean Association (1) National Farmers Union (1) No other listed (2) Iowa Pork Producers Association (1) Tri-County Steer Carcass Futurity Cooperative (1)

. . . and justice for allThe U.S. Department of Agriculture (USDA) prohibits discrimination in all its programs and activities on the basis of race, color, national origin, age, disability, and where applicable, sex, marital status, familial status, parental status, religion, sexual orientation, genetic information, political beliefs, reprisal, or because all or part of an individual’s income is derived from any public assistance program. (Not all prohibited bases apply to all programs.) Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact USDA’s TARGET Center at 202-720-2600 (voice and TDD). To file a complaint of discrimination, write to USDA, Director, Office of Civil Rights, 1400 Independence Avenue SW, Washington, DC 20250-9410, or call 800-795-3272 (voice) or 202-720-6382 (TDD). USDA is an equal opportunity provider and employer.

Issued in furtherance of Cooperative Extension work, Acts of May 8 and June 30, 1914, in cooperation with the U.S. Department of Agriculture. Cathann A. Kress, director, Cooperative Extension Service, Iowa State University of Science and Technology, Ames, Iowa.

www.extension.iastate.edu www.iowabeefcenter.org

Documents

Iowa Beef Center 2014 Feedlot Operator SurveyIowa Beef Center 2014 Feedlot Operator Survey 3 Table of Contents Introduction 4 Participating Feedlot Operators by District 4 Survey Response