The Woodward News

Local News

August 5, 2011

Drought can force difficult decisions on cattle

Woodward, Okla. — One of the main concerns of agriculture producers during the current drought is deciding whether or not to sell their cattle.

“It all depends on your finances and situation,” said Area Extension Farm Management Specialist Dr. Rodney Jones during an OSU Extension drought meeting Thursday at High Plains Technology Center.

Jones said producers need to compare the “net costs” vs. the “net benefits” of keeping or selling their cattle.

Jones said there are many factors to consider before making the decision.

“The main cost will be feed and that will probably be $2 to $3 per day,” he said.

Jones said if the producers sell they will also be able to eliminate other expenses such as labor, repairs and veterinary costs.

Producers also need to consider the price they may receive - something that varies from one situation to the next.

“The prices of the cattle will certainly be lower than they would be if they were not in a drought,” he said.

Another factor to consider is the how long the drought might last.

“Do you think we’ll receive moisture soon or do you think the drought will go on for a while,” Jones said.

Jones said if the drought continues it will be difficult to establish winter forage for the cattle.

“My assumption is the drought is long term based on the current forecasts,” he said.

Jones said the “driving factor” in the decision of keeping and selling is the cost of the cattle now and the cost of replacement cattle in the future.

“We’re not comparing apples to apples because you’re probably selling an early bred calf now, but getting cow with a calf in the spring,” Jones said. “It just depends on what you’re selling and plan to purchase.”

Extension Farm Management/Taxation Specialist JC Hobbs said there are tax related issues to consider if a producer decides to sell the cattle.

Hobbs said there are 2 different tax treatments - involuntary conversion and deferral income for one year.

“The first (involuntary conversion) applies to the sale of livestock held for draft, breeding or dairy purposes,” Hobbs said. “The second (deferral of income for one year) applies to sales of any livestock.”

Under involuntary conversion, producers selling livestock they must purchase replacement livestock within a certain amount of time.

“If producers sell their cattle in 2011 due to the drought, they have until the end of 2014 to purchase replacement livestock,” he said.

But, any livestock they purchase must be used for the same purpose as the cattle that were sold.

“They can’t sell a dairy cow and then buy back a beef cow,” Hobbs said. “Replacement livestock must be used for the same

Text Only
Local News
  • Board hears updates

    Woodward School Board members honored a group of Woodward FFA students for their service to the community during the board's monthly meeting Monday night.

    April 16, 2014

  • Red Cross sets open house Thursday

    Northwest Chapter of the American Red Cross is holding an open house at its Woodward office, 1209 9th St.

    April 16, 2014

  • Commission hears communications presentation

    Woodward County Commissioners heard an informative report from Pioneer Telephone Special Projects and Engineering Manager JR Ools regarding new and emerging communications technologies being made available in the region.

    April 15, 2014

  • Extension Service important to state

    Recia Garcia remembers.
    She remembers how the lives of those she met through 4-H and through her work as a 30-year veteran with the OSU Extension Service changed her in ways she still sees today.

    April 15, 2014

  • Legislation targeting Okla. judiciary stirs debate

    OKLAHOMA CITY (AP) — For the first time since a bribery scandal rocked Oklahoma's Supreme Court 50 years ago, state lawmakers are considering tinkering with the way Supreme Court justices and appellate court judges are selected.

    April 13, 2014

  • Filing period brings some area races

    There will be a few races on the June 24 primary ballot and the November general election ballot in Northwest Oklahoma counties.
    The three-day filing period ended on Friday.

    April 13, 2014

  • walkerweb.jpg Walker promoted to Captain

    Stan Walker's father Samuel Walker was an Oklahoma Highway Patrol Officer from 1942 to 1946 before taking on another career in energy where he spent the rest of his working days in Northwest Oklahoma.

    April 13, 2014 1 Photo

  • Reports, hires on agenda

    Woodward Board of Education members will take up a number of routine items as well as hire some teachers for the early childhood center at their meeting on Monday.

    April 13, 2014

  • Area school calendars

    School calendars April 14-19

    April 13, 2014

  • Red Cross recognizes local volunteer

    When Karen Daily, Red Cross volunteer and owner of Western Medical & Drug, gets up in the morning, it is with the purpose and understanding that she may need to offer some of her time to her community.

    April 13, 2014

Business Marquee
AP Video

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.