Spring 2018 - King Ranch Institute for Ranch Management - Texas ...

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Dave Hewitt, Ph.D., Caesar Kleberg. Wildlife Research Institute. Shad Nelson, Ph.D., Texas A&M. University-Kingsvill
Spring 2018 King Ranch® Institute for Ranch Management 1

From the Director Dr. Clay P. Mathis Director & Robert J. Kleberg, Jr. & Helen C. Kleberg Endowed Chair

Published By KING RANCH ® INSTITUTE FOR RANCH MANAGEMENT Texas A&M University-Kingsville 700 University Blvd., MSC 137 Kingsville, TX 78363 361-593-5401 361-593-5404 fax [email protected] krirm.tamuk.edu Clay P. Mathis, Ph.D., Director and Robert J. Kleberg, Jr. & Helen C. Kleberg Endowed Chair Ashley Patterson, Editor

“Service Learning: A Win-Win”

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or 15 years, the King Ranch® Institute for Ranch Management (KRIRM) has trained graduate students through our master’s degree program to prepare them to manage complex ranching operations. We are fortunate that 35 incredibly talented students have completed our program since the inception in 2003. As a testament to the capabilities of these alumni, in the last 12 months three KRIRM graduates accepted jobs managing cow-calf operations ranked among the ten largest in the United States. We are very proud of the success and impact of all KRIRM graduates. So how has KRIRM been successful in developing such talent? Most importantly, the students we strive to accept into our graduate program are mature, experienced managers with high integrity, intellect, and passion for our ranching industry and heritage. Beyond that, we have created a diverse curriculum of graduate coursework spanning from range livestock production to managerial finance and information systems management. These students also attend our lectureships and symposia, and receive extensive leadership training. It is a well-rounded and broad mix of curricular and extracurricular learning. However, there is one facet of this approach that is the most important. Throughout the two-year graduate program, our students also put these skills into practice while serving as consultants and providing credible solutions to partnering ranches. This service-learning approach is at the core of the KRIRM model for education and outreach. Each KRIRM graduate student completes six to eight service projects during their graduate program. Most projects are tackled as a team, but some individually. We are also very proud that, throughout the years, our students have completed more than 100 projects solving real problems for management and ownership of 40-plus of the most diverse ranches in North America. We are fortunate to have a great network of ranches from across the country that we work with on these service-learning/case-study projects. In this newsletter we included a synopsis of a case study completed by students a few years ago. Typical of projects of this nature, a ranch presented KRIRM with a problem they faced, or suspected in this case, and our students utilized their

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MANAGEMENT COUNCIL Chair: James H. Clement, Jr., King Ranch, Inc. Caroline Alexander Forgason, Robert J. Kleberg, Jr. & Helen C. Kleberg Foundation Gus T. Canales, A.T. Canales Ranches Dave DeLaney, King Ranch, Inc. Bob McCan, McFaddin Enterprises Erik Jacobsen, AgReserves, Inc. Neal Wilkins, Ph.D., East Foundation Mark Kossler, Turner Enteprises Dave Hewitt, Ph.D., Caesar Kleberg Wildlife Research Institute Shad Nelson, Ph.D., Texas A&M University-Kingsville Clay P. Mathis, Ph.D., King Ranch® Institute for Ranch Management

Photo by JoAnne Meeker

In this Issue Spring 2018 Volume 14, Issue 1

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On the Cover Photo by Candace Weeda KRIRM Graduate Student, Class of 2018

Impact Through Systems Education Ben Turner offers unique systems-minded experiences to KRIRM

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Simplicity Brings Efficiency

Wyoming’s TA Ranch has streamlined efforts to optimize production

Case Study

Implications of Trichomoniasis on a large ranch

Donations Support Student Programs

KRIRM recognizes and thanks three organizations

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Systems Thinking Lectureship

Learn how to be a systems thinker to benefit your ranching operation

Our Vision: We are determined to educate leaders who will make a positive difference in ranching and ensure that our hardearned heritage is not lost. Our Mission: The King Ranch® Institute for Ranch Management teaches graduate students using a multi-disciplinary, systems approach to ranch management, and provides the highest quality lectureships and symposia to stakeholders in the ranching industry. We serve the ranching industry by empowering graduate students and outreach attendees with skills that will enable them to strategically manage complex ranching operations and successfully lead our industry. Spring 2018 King Ranch® Institute for Ranch Management 3

Ben Turner offers unique systems-minded experiences at KRIRM By Ashley Patterson

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nowledge in just one of the scientific ‘silos’ is no longer enough to have the skills needed to manage the complex problems we face in agriculture…” Benjamin Turner, Ph.D., realized early in his career that he wanted to make a difference in the agricultural community. And that difference, he believes, happens as a systems-minded thinker. Now, as an assistant professor at Texas A&M University-Kingsville, his work aims to bridge the understanding and relationships of the “silos” (soil, forages, animals, and finances) to engage across multiple disciplines and ensure a thriving agricultural community in the midst of the challenges the industry faces.

A Systems Approach

Featured photo: Turner teaching the farm and ranch business management class at Texas A&M-Kingsville. Photo courtesy of Texas A&M-Kingsville.

that I could,” said Turner. “Those experiences shaped what I looked for in graduate school to be both intellectually stimulating and rigorous, with a high probability of making a difference on the ground.” That led Turner to South Dakota State University for his Ph.D. program where he worked on a land conservation project using systems thinking and various other projects with highly respected, innovative farm and ranch managers in the Northern Plains. While the doctoral program expanded his training in soil science, hydrology, and watersheds, Turner was also forced to enhance his systems thinking skills in a variety of ways during the land conservation project. But perhaps the best part of his systems training, he said, was working in the field with ranch managers who helped Turner tie everything together in a holistic soil assessment across the landscape. “It’s made me even more appreciative of the profitable, creative, conservation-minded mangers,” explained Turner. “All of the best managers I’ve worked with have been system thinkers at their core.” Turner notes that a systems-driven approach is important to develop, especially when managing the ranching industry toward a sustainable, profitable future.

Cherished memories of a childhood spent raising 4-H projects and learning life lessons, skills, and the meaning of hard work from his father and grandfather sparked Turner’s motivation to make a difference in an industry that taught him so much already. When the time came to choose his educational path, Turner decided to pursue agricultural degrees with an emphasis on business. This mix of business and agriculture set the stage for Turner to further his knowledge in the agricultural areas he was familiar with, Educating the Next Generation of System while gaining experience and growth in economics, Thinkers business, and systems thinking. “Once I made the right decision [for degree programs], Turner began his role at Texas A&M-Kingsville as an instructor in 2015 as he wrapped up his postdoctoral I tried to learn from the best farm and ranch managers 4 King Ranch® Institute for Ranch Management Spring 2018

research with New Mexico State University. After completing his research, Turner began a faculty position responsible for the undergraduate agribusiness program that includes a ranch management component. Shortly after, Turner began working with the King Ranch® Institute for Ranch Management (KRIRM) graduate students. The core curriculum at KRIRM teaches systems thinking to ranch management graduate students through classroom instruction, practicums, and service projects with partnering ranches. Students at KRIRM collaborate with the most diverse and complex ranches in North America, allowing an array of ranching issues involving finances, resources, grazing management, wildlife, and livestock to be addressed and solved with a systems approach. This is exactly how Turner hoped to influence students and ranchers, working on interesting and stimulating projects that are aimed to directly impact ranching operations, he said. In his role with KRIRM, he serves as a member on each KRIRM graduate student committee, providing leadership and expertise in agribusiness related projects. “My goal for advising any of the KRIRM students,” said Turner, “is to complement the already high quality advising they receive regarding courses, collaborating with working ranch managers on their projects, and identifying and securing the right jobs after graduation.” Turner believes he can add a high-quality technical support for the KRIRM graduate student projects, helping them to successfully execute their final projects. “If I can share some of the lessons I’ve learned along my own path, then I will gladly do so,” he said. Beginning in the fall 2018 semester, Turner will teach

the KRIRM graduate systems course. He looks forward to the challenging, but rewarding opportunity to share important systems concepts at a high level for the KRIRM graduate students. “My goal is that all students leave the class equipped and fluent enough in the systems language that it becomes an integrative framework for their projects during the remainder of their program,” said Turner.

A Lifelong Commitment to Learning

Turner has shown that his drive, work ethic, and dedication is right in line with the mission of KRIRMeducating leaders who will make a positive difference in ranching. Director and Endowed Chair of KRIRM Clay Mathis, Ph.D. has already witnessed Turner’s ability to see and communicate systems at play in a complex problem. Mathis explained that Turner brings a unique perspective to the KRIRM program, which has helped the students better understand the assigned projects. “Dr. Turner is very dedicated to developing our graduate students,” said Mathis, “and he also has a passion for teaching and discovery.” A common characteristic among the most successful ranch managers, owners, employees, and educators is a commitment to lifelong learning. Turner anticipates that he will glean new insights and experiences from the program and the graduate students. Even with his extensive ranching experiences in Texas, New Mexico, and South Dakota, there is always something more to learn. Turner looks forward to the opportunity of learning from the ranch management graduate students who have faced challenges in other diverse environments of the ranching community.

Above: A working landscape in South Dakota. Working landscapes make ideal laboratories for teaching and learning about complex agricultural problems. Right: Turner processing soil samples in the field during land use assessments with producers. Spring 2018 King Ranch® Institute for Ranch Management 5

Pairs grazing meadows mid summer on TA Ranch’s 3,000 head, Angus-based commercial operation in Wyoming.

An early spring irrigation dam. The ranch moves tarp dams daily from April to June to flood irrigate the fields.

By Kindra Gordon

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ife is really simple, but we insist on making it complicated,” believed Chinese philosopher Confucius. The same mantra may also be applied to ranching. But at the TA Ranch, located in high elevation country near Saratoga, Wyo., an effort to streamline and simplify has prevailed. Since joining the ranch as manager in 2012, James Sewell has focused on reducing labor and decreasing equipment needs while maintaining production on the 3,000 head, Angus-based commercial cowherd. As a result, he reports, “Everything is happier now… By simplifying our system it is less stressful on people, equipment, cattle and finances.” Sewell adds, “Focusing on simplification has allowed the ranch to get similar [production] results, but it requires a whole lot less to get to that end product.” 6 King Ranch® Institute for Ranch Management Spring 2018

Flood irrigation foundation

The historic TA Ranch has been owned by the Pace family of Texas for about forty years. They purchased the original ranch headquarters and have added acres to it through the decades. The forage base for the ranch comes from 7,000 acres of flood-irrigated meadows, which are a mix of native grasses and Garrison creeping meadow foxtail. “Sixty to seventy percent of our forage comes off irrigated or sub-irrigated meadows,” says Sewell. Thus, he shares, “The focus of our ranch is irrigation. That’s number one.” As a result, irrigation is also the primary labor need on the ranch. With spring snow melt, April, May and June are the primary months for flood irrigation on the meadows. “You have to irrigate when the water is there,” Sewell notes.

All total, in the six years Sewell has worked with TA Ranch, there have been a lot of changes: from water and fencing developments to grazing plans and reducing machinery. Traditionally on the ranch, cows calved in April. Forage – about 8,000 tons of hay per year – was swathed and baled through the summer, then fed through the fall and winter. It was a year-round effort with high-costs and workload. But after joining the ranch, Sewell, whose background included a decade working in supervisory roles with Deseret Ranches in Utah and Florida, was tasked with analyzing the ranch’s expenses and making changes. The focus was on reducing labor, machinery and feed expenses. Calving was transitioned to May, allowing more ranch labor to be directed to irrigating the meadows. All calves are sold in November and December, replacement cows are purchased so no heifers are calved on the ranch. This strategy is another labor saver. Sewell says, “When the cows calve, we don’t ride through to check cows or tag, the herd is only checked on for water availability and to monitor forage.” Baling hay has also been minimized. Instead, the grazing season has been extended into the fall, and windrow and swath grazing are utilized from October through early April. Electric fencing is used to help portion out access to fresh windrows, and alfalfa is fed as a protein supplement as needed. While the lowest elevation on the ranch is 6,800 feet, Sewell explains that their average annual precipitation is only about 9 inches/year. Thus, he says swath grazing works well. “We usually have less than 6 inches of snow, so the cows have no problems grazing down to the windrows.” With the modest rainfall amounts, hay quality is also preserved fairly well, he notes. In total, Sewell says the TA Ranch has moved from feeding about 2-1/4 ton of hay/cow/year to half or three-quarter ton of hay/cow-unit/year. That includes all hay fed to horses, bulls, and weaned calves. Windrow grazing has allowed us to reduce labor, and require less fuel consumption and less machinery needs, he adds.

Premium calves

In spite of the ranch’s low input approach, a calf crop that garners top market prices is still produced by using

Sewell’s wife Jennifer, and children, Aspen, Cody, and Wynn, helping Sewell check on grass height.

A freshly windrowed pasture on TA Ranch.

strategic marketing. The black Angus cross cowherd is bred to black SimAngus sires. Calves born in May and early June are shipped in early November. Calves born in mid to late June and July are shipped in early December. “Our target with our calf crop is to provide nice uniform calves that do well in grazing operations. We want them uniform…peas in a pod. A 400 lb. weaning weight is our goal,” explains Sewell. Because of the Wyoming ranch’s equal distance to the Panhandle of Texas and Central California, TA Ranch calves are in demand for both regions. About 80 percent of TA Ranch calves are sorted into uniform groups and sold as non-hormone treated cattle (NHTC) through the Superior Livestock Auction’s “Week in the Rockies” July video sale. “We see strong bidding and consistently top the market for our weight class…At the Superior sale there’s a palpable excitement in the room when TA Ranch calves come through. Our cattle’s good reputation works for us,” Sewell says. Regarding replacement females, Sewell typically looks for 4- to 7-year-old cows, which he buys private treaty or via auction markets. He purchases about 450 bred cows from December through March, and notes, “Since we calve later, we typically pick up late bred cows from someone else’s herd.” continued on page 9.... Spring 2018 King Ranch® Institute for Ranch Management 7

Case Study Implications of Trichomoniasis on a large ranch Project Team: Chris Kirby and Candace Weeda

Introduction

Trichomoniasis, commonly referred to as “trich”, is a venereal disease that reduces profitability and efficiency of livestock operations around the world. A large, extensively managed ranch in the Southwest identified, through performance data, that Trichomoniasis may be present in their 2,000-plus cow herd. As a result, King Ranch® Institute for Ranch Management graduate students embarked on a service project to better understand the practical and financial implications of the presence of Trichomoniasis on the ranch. The project objectives were to: 1) Develop a financial model to demonstrate financial implications of varying levels of Trichomoniasis prevalence in the bull battery; and 2) Develop management recommendations to overcome Trichomoniasis in the herd if the disease is detected.

Project Approach

In order to determine the financial impacts of varying prevalence rates (0-30%) of Trichomoniasis in the herd, the ranch was analyzed as five management units. Cow inventories and associated bulls were used to calculate revenue, replacement costs, calf sales and weaning percentages at differing disease prevalence rates. Scenarios of 10%, 20% or 30% prevalence rates were considered (Table 1). Ranch personnel subjectively determined an assumed prevalence based on assessment of performance of individual herds across the ranch.

Results and Discussion

The scenario resulted in a projected operating income of $741,199 and an estimated 8 King Ranch® Institute for Ranch Management Spring 2018

Trichomoniasis prevalence rate of 16%. The implication of this is an estimated $429,519 reduction (~$167 per exposed female) from the optimum scenario where Trichomoniasis is assumed to be absent. The losses result from a reduction in: 1) weaning rate of 13.5 percentage units (equating to $195,820 in foregone calf sales); 2) calf revenues from younger and smaller calves; and 3) operating income from the deficit between cull animals and replacements. The Net Present Value (NPV) across the multiple scenarios of continued operations at various prevalence rates is shown in Table 2. The 10-year NPV, or opportunity cost of taking no action on the treatment and control of Trichomoniasis, is more than $3 million.

Best Trichomoniasis Management Practices: All breeding bulls must be tested and

kept away from females while awaiting test results. Testing estimates range from $70 to $100/bull in addition to labor cost for gathering, transportation, etc. Conservatively, it would cost approximately $25,000 to test the 116 bulls at the ranch. One hundred percent of all bulls must be gathered and tested. Untestable bulls must be eliminated to effectively control the disease.

Recommendations

It was recommended that the ranch immediately implement a Trichomoniasis testing protocol. The opportunity cost of not testing is calculated to be in excess of $3 million over the next 10 years, which more than recovers the cost of initiating and continuing an aggressive management program to eradicate Trichomoniasis. Ongoing surveillance and control measures will be required in future years.

Simplicity Brings Efficiency, continued.... Other efficiencies

Another area where TA Ranch has focused on being efficient is their business-minded approach to the work week. The ranch strives for a 7 a.m. to 5 p.m. work day, five days a week. Sewell explains that he feels employees will hustle more during the week if they know they can count on their evenings and weekends off. He recognizes that not every weekend is completely work free, but work is kept to a minimum. He adds, “It allows spouses to plan things during the time off, and it is a big deal to have some time away from the ranch work.” Sewell says it has attributed to employee retention as well. Also mimicking business structure, the ranch holds staff meetings every Monday morning. “Each employee addresses what is being done in the stewardship area they oversee, we go through results (such as pregnancy rates, weaning weights, calf crop percentages). Sometimes it’s half hour, sometimes it’s an hour and a half,” Sewell says, but notes that the communication is time well spent. An annual calendar is also posted on the office wall to communicate to everyone important dates – from

shipping calves to vacation dates. As a result of their many changes and holistic approach, the ranch has gone from 16 staff when Sewell arrived to four currently. The ranch does hire 2 to 4 seasonal interns, and Sewell notes that fills labor gaps, while also test-driving possible future employees who may be a good fit on the ranch. All total, in the six years he has worked with TA Ranch, there have been a lot of changes: from water and fencing developments to grazing plans and reducing machinery. The ranch has not applied fertilizer the past two years. “We continue to refine our program,” he says. Going forward, he anticipates putting more focus on soil health in the ranch’s irrigated meadows. “By improving soil health, we think we can increase forage quality and productivity and decrease our need for supplemental alfalfa. I think we can improve soil health through our grazing practices, reducing disturbance, and leaving more cover when we windrow,” Sewell concludes.

Studying Economies of Scale >King Ranch® Institute for Ranch Management (KRIRM) student Lee Creech worked on an analysis project for the TA Ranch with guidance from James Sewell prior to graduating in December 2017. Creech, a native of Lloydminster, Alberta, studied various projects looking at economies of scale and budgeting for the TA Ranch. >Of the experience he tells, “It was a fantastic exercise in ranch budgeting and looking at effects on unit cost of production.” Since graduating from KRIRM, Creech is now manager of Colorado-based Rocky Mountain Sire Service owned by Leachman Cattle of Colorado. >Sewell, who became familiar with KRIRM during his years working with Deseret Ranches, credits Creech for helping the ranch recognize that windrowing as many irrigated acres as feasible is important to maximize animal days/acre. “The more acres we windrow, the more economic advantages of scale,” says Sewell. >Sewell attended several KRIRM lectureships while employed with Deseret and credits KRIRM for fostering opportunities to take new approaches to ranch management, as well as connecting people across the industry. Spring 2018 King Ranch® Institute for Ranch Management 9

Donations Support Student Programs We would like to recognize and graciously thank the following organizations for the generous donations that will assist in KRIRM’s mission to educate the next generation of ranching leaders: East Foudation Houston Livestock Show and Rodeo The Burnett Foundation These recent donations will support student education and outreach programs at the Institute. From the faculty, students, and staff at KRIRM, thank you for the donation, and thank you for trusting in our mission to serve the ranching industry.

Upcoming Events From the Director, continued....

May 14-16, 2018

Richard Mifflin Kleberg, Jr. Family Lectureship on Equine Management Kingsville, TX

August 13-16, 2018

John B. Armstrong Lectureship on Systems Thinking Kingsville, TX

September 21-22, 2018 Managing Farm and Ranch Employees Lectureship Kingsville, TX

Keep up with all of our news and events online!

krirm.tamuk.edu

/krirm

@KRIRM

@kingranchinstitute

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experience and technical skills to quantify and describe the impact of the issue and provide recommendations. The subject happened to be Trichomoniasis. Although this project was conducted before bull testing for the disease began, it helped management better understand the impact the disease was potentially having on their operation, which was estimated to exceed $3 million over the next ten years. Since the completion of the project Trichomoniasis was detected, and two years later the most recent round of testing on the ranch found no positive bulls. Would the ranch have tested for Trichomoniasis without KRIRM working on a project? Probably, yes. Would the real significance of the disease been fully understood without the KRIRM students tackling this case? Probably not. It was a great opportunity for KRIRM graduate students to serve and learn. The accountability for conducting excellent analysis, developing practical recommendations and solutions, and communicating deliverables is exceptionally high, just like it will be in the managerial roles our students will hold in the future. The honing of these skills in the context of ranch management is of paramount importance and the key to excellence.

Spring 2018 King Ranch® Institute for Ranch Management 11

700 University Blvd, MSC 137 Kingsville, TX 78363

Save the Date!

October 18-19, 2018 Kingsville, TX

Horse Program Success on Working Ranches 15th Annual Holt Cat® Symposium on Excellence in Ranch Management

krirm.tamuk.edu/symposium

Includes King Ranch Equine Tour and Demonstration