University of Nebraska Extension - Holt/Boyd News Column for the Week of April 28, 2024

LaDonna Werth, Extension Educator Phone: 402-336-2760 E-mail: LWerth2@unl.edu

Choosing The Right Toy for Your Child

Because play is often described as the work of children, children need toys just as adults need tools for their particular jobs. Even children who lack commercially produced toys will find playthings such as fingers and toes, pots and pans, and hills and trees.

The national average for the number of toys a child receives during a gift-giving occasion is about 12. Most children are satisfied with three or four new toys. If a child receives too many new toys at once, he may become overwhelmed in deciding what toy to play with.

To eliminate some of the frustrations of too many toys, select toys with the child’s needs and interests in mind. A well-balanced selection of toys is necessary for the child’s total development. The selection might include:

• Toys for physical development like push and pull toys for younger children and wagons, sleds, and swings for older children.
• Toys to develop sensory skills through play with a variety of materials. Water, sand, pots, and pans are all possible examples. Anything that can be SAFELY touched, tasted, smelled, looked at or listened to would help in developing sensory skills.
• Toys for make-believe and developing social skills might include dolls, play cars, trucks, and accompanying play sets. These toys don’t need to be expensive. Many simple household items such as clothing or discarded kitchen materials make great play props. Children can use their imaginations, and empty boxes become many interesting playthings.

Books and puzzles are also considered toys and should be readily available to children. Plain paper and crayons can be helpful in developing a child’s creative skills.

The simpler the toy the better. A toy should be versatile and flexible for a variety of uses. Toys need adult supervision, but should need little, if any, adult instruction. Toys should not be purchased with the idea of allowing the child to “grow into” the toy. Follow the age guidelines found on the toy packages and labels. These guidelines take into consideration a child’s age, physical size, skill level and safety concerns. Many toys designed for older children may not be safe for infants and toddlers. These toys may have small pieces that can be choking hazards, or they may have mechanisms that are too complicated for the young child.

The Consumer Products Safety Commission - https://www.cpsc.gov/ provides safety and recall information for all toys sold in the United States on their website.

There is no way to ensure that every toy purchased will be the best toy. Be considerate of the child’s age, interests and current developmental needs and you will come closer to selecting a toy that is the best fit. A list of activity ideas for children based on their special interests can be found in the publication Nurturing Children’s Talents (GH6127) - https://extension.missouri.edu/publications/gh6127.

Source: Leanne Spengler, former Human Development Specialist, University of Missouri Extension

Net Farm Income Impacts Net Worth Growth

The beginning of the year is busy for businesses in finalizing records and filing annual income taxes. Farm and ranch operations are no exception. Beyond the net income or loss showing on the farm’s Schedule F, analyzing the true picture of the operation’s net farm income, and earned net worth change for the year is important.

Preparing an income statement using accrual adjustments will tell us more about the operation’s profitability and performance beyond what income tax statements provide. The income statement tells the story of revenue, expenses, and depreciation between the beginning of year balance sheet and the end of the year balance sheet. Hence, an important use of an income statement is to relate true profitability from the beginning of the period to the end as we observe changes in the balance sheets.

Farm accounting is most often done on a cash basis. Making necessary accrual adjustments to the cash accounting figures at the end of a year, along with adjusting the annual depreciation expense used on the Schedule F for tax purposes to actual use or what some refer to as “management” depreciation, assists in calculating true net farm income, otherwise known as profit (or loss in some cases). The net farm income figure is key in the relationship between earned net worth changes on the balance sheet.

Depreciation Adjustment

In many cases, the depreciation expense figure used on the Schedule F form is different from actual use depreciation due to the IRS Section 179 rule, allowing qualified business owners a deduction up to the total amount of a capital purchase, providing an instant expense deduction that helps in lowering taxes in a given year. Keep in mind that limits on Section 179 and accelerated tax depreciation rules can change from time to time based on current tax law.

When figuring actual usage or management depreciation, the calculation is the original purchase price of the asset, minus an estimated salvage value for the item, then figuring the value of that asset in proportion to its “useful life” each year until the salvage value is reached. For example, a $50,000 wagon with a useful life of 10 years and a salvage value estimated at $20,000 would be $3,000 per year in depreciation ($50,000 - $20,000)/10 years = $3,000 per year. On a cost basis balance sheet when new, the wagon would be shown as a $50,000 asset and at the end of the year, it would be valued at $47,000. On the next year end balance sheet, the wagon would be $44,000 in value on the books.

Inventory Adjustments

Next, beginning and ending year inventory changes need to be considered in calculating an accrual adjusted net farm income figure. Net income should include a measure of the value of production for year and the expenses that relate to that production period. A farm’s cash accounting records might show selling $80,000 of the previous year’s crop along with just $30,000 of this year’s production, leaving $105,000 in year end crop inventory. In this same example, all the weaned calves were sold before the first of the year, therefore raised livestock inventory on the beginning balance sheet and on the worksheet, is zero. Then during the year being analyzed, the calves raised are all still in inventory at a $25,000 value at yearend. By figuring these accrual adjustments, net farm income, otherwise known as “true” or real profitability is calculated for a given period.

The net farm income amount is used in the Statement of Owner Equity along with personal income, family living, income and self-employment taxes paid to reach a “total change in retained earnings” figure, then if needed, adding in a change in the market value of capital assets noted on the balance sheets to determine actual net worth growth or change from the beginning of the accounting year to the end of the year.

In the example, the Schedule F Form indicated a positive $6,500 net farm profit. After the $53,000 depreciation figure adjustment and positive inventory change of $37,100 minus the actual use depreciation calculation of $35,854, net farm income for the year is $60,746. This is $54,246 more than the Schedule F indicated.

Net Farm Income and Net Worth Change

Net farm income along with non-farm wages and earnings should be positive enough to cover family living expenses or owner withdrawals along with self-employment and income taxes, with the difference being what is available to reinvest into the operation or in other words, grow the operation’s net worth. If year after year, net farm income falls short, and net worth erodes, the financial stability of the operation will become of concern.

Source: Glennis McClure (Center for Agricultural Profitability – April 22, 2024)

Heifer Harmony: Optimal Management for Heifers in the Feedlot

Heifers that are not retained as replacement females for breeding often find their home in the feedlot, with heifers comprising approximately 37% of total cattle on feed in the US during a normal cattle cycle. The US is currently experiencing a tightening beef cow herd due to the ongoing drought conditions experienced by many of the cow/calf producing states. Not only has the US culled nearly 10% of the cow herd since 2020, but replacement heifer retention is low, with an elevated number of heifers making their way into the feedlot, representing nearly 40% of cattle on feed (USDA National Agricultural Statistics Service). With greater heifer placement in the feedlot, managing feedlot heifers to ensure their health, well-being, and optimal growth is key for feedlot sector profitability.

There are many factors to consider when feeding heifers, including nutrition, animal health, pregnancy management, and growth enhancing technology use. Providing a balanced and nutritionally complete diet that meets the nutrient requirements of growing and finishing heifers is key for optimizing growth and performance. Monitoring feed intake and adjusting the ration based on heifer weight and frame may improve feed efficiency and increase rate of gain. There is no indication that heifers respond to varying feedstuffs (grains, roughages, or byproducts) different than steers, however, it is well established that heifers gain less and are less efficient than steers. Like managing steers, including appropriate pen space (this varies based on geographical location), bunk space (9” to 12”), and providing access to clean water is critical when managing heifers in a feedlot.

Pregnancy prevention and/or management is the most critical difference when comparing management of heifers vs. steers in the feedlot. It is estimated that 2 to 15% of intact heifers that enter the feedlot are pregnant. There are always increased costs associated with heifers that enter the feedlot pregnant, regardless of pregnancy management method. To properly manage pregnancy in a feedlot, pregnant heifers should be identified upon arrival. At the time of receiving or initial processing, heifers should be pregnancy tested via rectal palpation, ultrasound, or blood test.

If the pregnancy check is positive, producers have the option to remove the pregnant heifer from the feeding group or consult with their veterinarian regarding abortifacients. Selection of an abortifacient should be determined by the stage of pregnancy of the heifer. The most common abortifacient utilized in the US for pregnant heifers is an injection of prostaglandin, commonly Lutalyse (Zoetis) or Estrumate (Merck Animal Health), which may be used in combination with dexamethasone depending on stage of pregnancy. For feedlot producers that choose an abortifacient as their pregnancy management method, it is recommended to monitor the health and behavior of heifers for up to 1 week post abortifacient administration.

It is important to keep in mind that both the drug protocols used and the stress of delivering the fetus are immunosuppressive, therefore, it is common to modify bovine respiratory disease (BRD) prevention and monitoring protocols for heifers during this period as they are at increased risk of respiratory outbreak.  One final consideration is to be aware that protocols for pregnancy termination are not always 100% successful. Depending on the management and resources of the individual yard, evaluation of the termination success rate in groups with high pregnancy rates may be advantageous to ensure that there are no surprises later on in the feeding period.

If a pregnancy is unknown or the producer chooses to retain a pregnant heifer in the feedlot, an outlined standard operating procedure (SOP) should be in place for the possibility of calving in a feedlot. This SOP should include guidelines on sanitation, dystocia support, calf health and well-being, and heifer management post-calving, keeping in mind that dystocia support and neonatal calf management can be two of the greatest challenges for ensuring animal welfare in yards that feed a large population of heifers.

Although some feedlot producers may choose to retain a confirmed pregnant heifer through the feeding period and market her prior to expected parturition, this management method is not economical when compared to feeding a non-pregnant heifer. Although the live body weight of a full-term pregnant heifer will be heavier than a non-pregnant heifer, this difference in live body weight is due to the fetus, enlarged uterine, and excess fluid from pregnancy. On a carcass-adjusted basis, heifers that are pregnant at slaughter have reduced average daily gain (when adjusted for pregnancy weight), worse feed conversion, and lower dressed yield compared to non-pregnant heifers. In general, the further along in gestation that a heifer is at the time of harvest, the lower the carcass dressed yield will be. If a feedlot regularly markets pregnant heifers to the packing plant, this may result in a lower price at the time of sale or potential marketing challenges for the yard further down the road.

Aside from pregnancy testing upon feedlot arrival, feedlots have the option to purchase spayed heifers or hire veterinary assistance to complete the spay procedure at the time of heifer processing. Spaying is a surgical procedure which involves removal of the ovaries, rendering a heifer sterile, for prevention of pregnancy. Removing the ovaries eliminates the hormonal fluctuations associated with the estrus cycle, which can impact heifer behavior. Even when purchasing spayed heifers, feedlot operators are encouraged to pregnancy test new arrivals, as the spay procedure may have failed, and heifers could be pregnant. Although dated, research shows that when comparing non-implanted spayed heifers to non-implanted intact heifers, spayed heifers gained less. However, when implants were administered to spayed heifers compared to intact heifers, spayed heifers had a significant improvement in rate of gain over intact heifers.

The separation of sexes in the feedlot pen or avoiding “mixed pen” feeding is one of the best ways to avoid unplanned breeding in the feedlot. There is always the possibility that a steer retained a testicle during the castration process, so if choosing to feed in mixed pens, performing a testicle check during receiving is highly recommended. When separating sexes into separate pens, the feedlot has the option to include a Type A Medicated Article known as Melengestrol Acetate or “MGA” in the diet. For heifers fed in confinement for slaughter, MGA is utilized to suppress estrus, preventing pregnancy, and subsequently increasing rate of gain and improving feed conversion. Estrus suppression also reduces behaviors associated with estrus, including mounting, riding, and standing heat behavior, all of which can be an energy loss for the animal. Unnecessary mounting can result in severe bruising, which may result in a carcass-weight loss for cattle sold on a carcass basis due to excess trim at the packer.

The use of growth enhancing technologies, such as implants and beta-agonists, are labeled for use in both steers and heifers fed in confinement for slaughter. Growth promoting implants have the greatest return-on-investment of any animal health-related technology utilized in the feedlot sector. To achieve the full weight gain advantage from implant administration, a proper plain of nutrition must be offered to the cattle. Feedlot producers should work closely with their veterinarian and nutritionist and follow recommended guidelines for growth enhancing technology use. In general, steers exhibit a greater gain response to growth enhancing technologies than heifers. This difference in response is largely due to the naturally circulating level of estrogen in intact heifers, which may increase impetus for fat deposition. Since steers typically have a greater potential for lean muscle mass compared to heifers, and implants stimulate the deposition of lean muscle tissue, steers respond more robustly to implants than heifers due to their inherent muscle development capacity. That being said, there are still additional pounds to be gained by utilizing growth promoting implants in feedlot heifers, and the profitability of these technologies should not be overlooked.

One advantage of finishing heifers is their ability to deposit intramuscular fat, known as marbling. Estrogen and progesterone play a major role in the synthesis and deposition of lipids, which cause heifers to have a natural impetus for the deposition of fat. This can become a challenge when feeding heifers for extended days on feed, as excessive fat deposition can cause heifers to qualify for USDA Yield Grade (YG) 4 and 5 discounts. However, feedlot producers may have an opportunity to gain a premium for USDA Quality Grade (marbling score) when feeding heifers and selling on the grid, pending that YG 4s and 5s can be managed and their discount does not outweigh the marbling premium. When it comes to optimal management of heifers in the feedlot, nutritional status, heifer health, pregnancy management, and growth technology use are all key considerations, and when managed correctly, can be profitable for a feedlot operation.

Source: Jessica L. Sperber - Nebraska Extension Feedlot Specialist (BeefWatch – April 8, 2024)