CALF_News_December_2019_January_2020

25 CALF News • December 2019 | January 2020 • www.calfnews.net Continued on page 27  Rawhide Processor by John McDonald 3 Sizes Available! The First Hydraulic Corral and still the Largest! • Pull on highway at speed limit. • Fits through any gate your pickup will. • Stable on uneven terrain. • Wheels on each panel and electric over hydraulic jack eliminates lifting—saves time. • Permanent sheeted adjustable alley. • Frame gates for sorting. • Transport wheels are permanent, no sliding off the axles and rolling out of the way. Rawhide Original Standard Size Rawhide Portable Corral 900 NORTHWASHINGTON ST., ABILENE, KS 67410 785.263.3436 www.rawhideportablecorral.com “If they’re producing an animal that has a higher cost of gain, the input has to be less and vice versa. Work with a good feedyard that can produce closeouts and know costs before you feed, barring weather events like the Northern Plains feeders faced in 2019.” Risk management Any number of events can cause mar- kets to crash or shoot limit up. Cattle value and feed costs should be protected in the event one or both have wide price swings for one reason or another. “With today’s volatility and uncer- tainty in the global commodity market, any protection, whether it be options, straight futures or forward contracting, is highly recommended,” Johnson says. White says risk management should be thought out in advance of any poten- tial emotional event in the cycle.“If you are a risk manager, you need to be a con- sistent risk manager year after year, not just because 2019 was tough,” she says. “Working capital – cash – is king, so protect your cash with a diverse risk management strategy, which can include crop insurance, hedging, and/or contracts, and develop a plan you can stick to.” For smaller cow-calf or stocker operators, Tonsor says Livestock Revenue Protec- tion is a tool that can provide price protection similar to out options. It is available through the USDA Risk Management Agency. For LRP-Feeder Cattle coverage, producers can buy specific coverage throughout the year. Last July, the program was revised to allow up to 3,000 head of feeder cattle to be covered at a time. Weight limits are 600- 900 pounds. The annual limit for LRP-Feeder Cattle is 6,000 head per producer per year ( July 1-June 30). All insured calves and cattle must be located in a state approved for LRP-Feeder Cattle at the time you buy an insurance policy. The length of insurance coverage available for OPPOSITE PAGE: KSU’s Glynn Tonsor notes that ag lenders will “take note of equity drain” on feedyards when it’s time to loan them money. ABOVE: Good cow-calf and stocker operators should pencil in a profit for 2020, but lenders may want some solid projections and equity to guarantee a loan. each specific coverage endorsement is for 13, 17, 21, 26, 30, 34, 39, 43, 47 or 52 weeks. Keep good records, cultivate good relations “It’s always important, whether you’re making money or not, to have a good rela- tionship with your lender,”Tonsor says.