Krawiec’s “grazing in the sweet spot” philosophy is a method that allowed him to scale from 40 cow-calf pairs on 373 acres in 2000 to grazing 5,000 yearlings on 5,500 acres by 2007 with minimal hired help.

“It was just myself and the summer students,” Krawiec said at the Manitoba Forage and Grassland Association’s (MFGA) 2025 Regenerative Agriculture Conference in Brandon on Nov. 12-13.

WHY IT MATTERS: Grazing at the right moment in the plant’s growth cycle can dramatically increase forage production, animal performance, and profitability, an Alberta rancher says.

Krawiec’s “sweet spot” is a specific point in grass growth, just before plants enter the reproductive phase, when around 15 to 20 per cent of plants are in reproductive phase and the rest remain in late vegetative state.

“The other thing about grazing in the sweet spot that is really critical is that I only take 20 to 40 per cent (of forages) during the growing season,” he said.

Success with the system requires training livestock to move as a co-ordinated group, Krawiec stressed.

Feeding soil biology year-round

Krawiec’s approach feeds soil biology multiple times per year, rather than just once.

When plants enter reproductive phase, they redirect energy from root exudates, which feed soil microbes, into seed production, he told conference attendees. Root exudates are fluids emitted through the roots of the plant. They contain a complex cocktail of sugars, amino acids, organic acids and metabolites. They promote microbial activity, facilitate nutrient cycling in the soil, and foster overall soil health.

“The thing about letting plants go into reproductive phase is that that’s where they release the least amount of exudates,” Krawiec said. “Instead of releasing exudates into the soil, those exudates go into producing seed.”

Gaining livestock performance

The impact on his farm has been substantial.

Krawiec reported increasing daily gains on heifers from 1.5 pounds per day to 2.5 pounds per day after implementing his system. Cow-calf producers using his methods commonly see 60-80 pounds higher weaning weights, while sheep producers can achieve lambs weighing 100-15 pounds in four-and-a-half months, Krawiec said. Conception rates in the first breeding cycle consistently exceed 80 per cent, and have gone as high as 83 per cent.

Last November, Krawiec backgrounded calves on stockpiled pasture at a cost of 12 cents per day. A forage test from that period showed 24 per cent protein and 65 per cent total digestible nutrients (TDN). That paddock yielded 317 stock days per acre.

Krawiec described a “tipping point” at approximately 175 stock days per acre where the system becomes self-sustaining, requiring no inputs except management. This typically takes two to three years, he said.

Grazing system math

Krawiec’s approach centres on respecting both graze period and resting periods. He found livestock behaviour helped indicate when a paddock has been grazed too long.

“The first day they walked back to water, I gave them a strip (of forage). Second day, they had to walk back to water. Day three, same thing, they had to walk back a lot of the water. Day four, same thing … but as we’re coming back to graze, they stopped in the first strip, and that’s when I realized that was my grace period,” he said.

Krawiec thus put ideal graze period at his latitude (similar to Athabasca, Alta.) at three days. With that three-day graze period and a minimum of 13 paddocks, the math works out to 36 days of rest. Rest periods increase at more northern latitudes due to fewer daylight hours, Krawiec added.

He pointed to his grazing chart as an essential planning tool.

The chart allows Krawiec to adjust rotation based on growing conditions. In June 2021, when temperatures hit 38.5 C for weeks, he extended his second rotation to 55 rest days after his strip system suggested that grass growth had slowed. He later sped up his third rotation to 42 days, and was able to keep high-quality forage through November, plus stockpiling enough grass to calve 1,000 cows the following spring.

“The results were amazing, but what I did was not amazing. I just used my grazing (method), and I just adjusted to conditions,” he said.

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May feeder cattle futures are trading at a $8 premium to the nearby March contract. The carrying charge in the futures market has encouraged buyers to step forward sooner rather than later. The backlog of market-ready fed cattle supplies in Alberta has been liquidated and feedlots are more current production. Strength in deferred live cattle futures was also supportive to the nearby feeder market.

Weather has been conducive for backgrounding and flesh levels have been manageable. Most cow-calf producers have sufficient forage supplies to hold their calves for a longer period. The number of light-weight calves coming on the market appears to be declining as we draw closer to spring. This has bolstered demand for 500- to 600-pounders. Demand from Ontario buyers continues to be more aggressive, especially for Limousin-type cattle. Ontario elevator bids for corn were $322 per tonne last week compared to the Lethbridge market at $445/tonne.

South of Edmonton, a larger group of Simmental mixed steers carrying lower flesh levels on light grain ration with full health data averaging 970 lbs. sold for $233. In the Red Deer region, Angus-blended heifers with medium flesh on grain and silage diet weighing 930 lbs. closed bids at $213. Northwest of Winnipeg, a small group of Charolais-based steers weighing 895 lbs. silenced the crowd at $244 and similar-quality heifers weighing 830 lbs. charted the board at $226. In central Saskatchewan, Gelbvieh blended steers with medium to thicker flesh weighing 840 lbs. were quoted at $247 while in east-central Saskatchewan, thinner Charolais weighing 833 lbs. were quoted at $255.

North of Brandon, a small group of black lower-flesh steers weighing 737 lbs. reached up to $276. East of Calgary, Limousin mixed steers weighing 690 lbs. were valued at $278. In central Saskatchewan, Angus mixed steers weighing 610 lbs. stopped the crowd at $302 and mixed red heifers weighing 560 lbs. notched course at $265. In southern Alberta, black steers weighing 540 lbs. were quoted at $325 and red heifers which scaled at 500 lbs. were reported at $274. The calf market was even across the Prairies with notable premiums at any locations.

For the week ending Jan. 28, Canadian year-to-date feeder cattle exports were 9,215 head, down 33 per cent from last year. Market reports in Oklahoma had steer and heifer calves trading up $15-$20 compared to the last week of January. U.S. markets are digesting the recent cattle inventory report. Canadian prices appear to be trading at a premium to U.S. values to curb export movement.

— Jerry Klassen is president and founder of Resilient Capital, specializing in proprietary commodity futures trading and market analysis. Jerry consults with feedlots on risk management and writes a weekly cattle market commentary. He can be reached at 204-504-8339 or via his website at ResilCapital.com.

The post Klassen: Canadian feeder market rationing demand appeared first on Alberta Farmer Express.

Whether cattle are out of backgrounding lots or off grass, buyers are aggressively chasing the market higher. Ranchers in the wetter regions of Western Canada are being offered favourable contracts for September and October delivery. Pee-wee calves are also in hot demand with larger operations wanting early ownership given the prices for yearlings. Deferred live cattle futures are nearing contract highs and the barley harvest is right around the corner in southern Alberta. There is renewed optimism unlike any we’ve seen in a long time.

In northern Alberta, grass steers weighing 1,025 lbs. reportedly sold for $207; steers weighing 925 lbs. were valued at $217. In southern Alberta, light-flesh steers off grass averaging 1,010 lbs. were reported at $220 and larger-frame similar-weight heifers were quoted at $208. In the Lethbridge area, yearling steers off grass averaging 845 lbs. reached up to $231 and similar-weight heifers were quoted at $218. West of Saskatoon, a feedlot was offered 1,010-lb. grass steers for September delivery at $208. Tan steers with medium flesh levels out of the Lethbridge backgrounding lot averaging 1,020 lbs. reportedly traded hands at $208.

Heavier calves off grass were red hot while the market for lighter calves is developing in stages across the Prairies. In central Alberta, feedlot reports had 750-lb. steer calves off grass trading at $250 in Alberta and 825-lb. steer calves off grass reaching $235. Across the Prairie provinces, there was a light test of 500- to 700-pounders. In northwestern Manitoba, a small group of 630-lb. steers were quoted at $237; in east-central Saskatchewan, a handful of 610-lb. mixed steers reached up to $255. North of Calgary, a small package of Angus blended steers averaging 620 lbs. were valued at $260 and similar-quality and -weight heifers reportedly moved at $220.

Alberta packers were buying fed cattle on a dressed basis at $297 delivered; using a 60 per cent grading, this equates to a live price of $179. April 2023 live cattle futures closed Friday at $157.80. If we use an average basis, this would equate back to a southern Alberta live price of $200. The fed cattle market is expected to trend higher while barley prices are projected to trend lower throughout the fall period.

— Jerry Klassen is president and founder of Resilient Capital, specializing in proprietary commodity futures trading and market analysis. Jerry consults with feedlots on risk management and writes a weekly cattle market commentary. He can be reached at 204-504-8339 or via his website at ResilCapital.com.

The post Klassen: Alberta yearling market makes fresh 52-week high appeared first on Alberta Farmer Express.

While backgrounding may not be an option of many producers this year due to tight feed supplies, now might be a good time to start thinking if this strategy fits your operation.

The Beef Cattle Research Council’s Preconditioning and Backgrounding Calculator is designed to identify economic opportunities and risks from preconditioning or backgrounding cattle. The calculator has recently been updated to allow more flexibility in price projections. The cattle price index database embedded in the calculator is updated with the latest five-year (2016-20) provincial data from British Columbia to Quebec.

Producers can use the calculator to project net returns from preconditioning or backgrounding compared to selling cattle at weaning, as well as to identify the production cost, cattle performance or cattle price scenarios that could potentially result in positive net returns.

The net return from preconditioning or backgrounding, which is the difference between the gross revenue from selling cattle at weaning compared to gross revenue after a backgrounding period, will be determined based on the user’s projections on calf and feeder prices, sale weight at weaning, the length of backgrounding period, cattle performance, and backgrounding costs. Producers can adjust these variables to reflect their own production systems and market outlook.

To download the calculator, visit beefresearch.ca.

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“Our processing capacity has continued to increase over the past few weeks and cattle prices have been relatively strong, but markets are still vulnerable to a disruption in the processing plants,” Alberta Beef Producers chair Kelly Smith-Fraser said in a virtual town hall in mid-June.

The most recent fed cattle numbers indicate a backlog of around 130,000 head of cattle ready to be slaughtered. The Cargill plant at High River is now at 90 per cent of capacity and the JBS plant at Brooks and Harmony Beef at Balzac are close to capacity. Eastern Canada is now operating at 110 per cent capacity, while U.S. processing capacity is at about 95 per cent. Labour continues to be the biggest constraint.

The federal and provincial government have created a $43-million ‘set-aside’ program in Alberta to cover the costs of feeding cattle waiting to be processed, but Alberta Beef Producers and other cattle groups say the sector needs additional support. ABP has asked the provincial government to expand support to the cow-calf and backgrounding sectors. Cattle groups also want government to provide funding to reduce the cost of the Western Livestock Price Insurance premium for calf and feeder cattle insurance, and eliminate the reference margin limit on AgriStability, to make it more effective for cow-calf producers.

“Despite the assurances from the (provincial agriculture) minister that he is working to improve risk management programs and will monitor prices going into the fall, we have not received any commitment of funding for the cow-calf and backgrounding sectors at this time,” said Smith-Fraser, who ranches at Pine Lake.

“To be honest, it doesn’t appear likely that there will be any announcement of funding in the near future. There is no certainty that funding will be available for these sectors if there are major market drops in the fall.

“The existence of the Western Livestock Price Insurance Program makes it difficult for governments to implement the AgriRecovery fund to cover market losses. Any AgriRecovery support for the sectors in the fall would likely be restricted to cover feeding costs for cattle that can’t be sold.”

She encouraged producers to take steps to mitigate risk, and consider purchasing the Western Livestock Price Insurance, which was open until June 18. With COVID-19, premiums soared, but had since stabilized at about $42 a head, said Brad Osadczuk, finance chair with ABP.

Smith-Fraser said producers need to be prepared for the fall, and the uncertainty it will bring.

The set-aside program

Greg Schmidt, chair of the Alberta Cattle Feeders Association, explained the set-aside program, which launched June 29.

Along with dealing with the current backlog, there’s the issue of feeding cattle that will soon be ready for processing, said Schmidt, a cattle feeder from Barrhead. The industry has been pushing for the set-aside to start in the summer, he said.

“The other key point we’ve been making is that while the program covers extraordinary feed costs, the bigger issue is market and price stabilization,” he said.

Alberta Agriculture and Forestry began Part 1 of its two-pronged approach on June 12, with a feed cost offset initiative, followed by a bid set-aside program that started June 29. Both programs are administered through the Agricultural Financial Services Corporation Connect, and producers can download the application on the website.

“The immediate feed cost offset initiative will use up to $12 million out of the total $43 million allocated to the fed cattle industry to compensate for the cost of keeping animals on a maintenance ration,” said Schmidt.

The feed cost offset initiative is available to Canadian residents who report farm income for tax purposes in Alberta, and who are actively feeding eligible cattle in Alberta. The initial payment will work to address feed costs up to $2 per head on eligible cattle.

“It is intended to compensate for cattle held back from May 1 to June 30,” said Schmidt, adding more details will be available soon.

Lot location, premise identification numbers, numbers in each lot, type of animal, average per head, weight in pounds, original marketing date and actual estimated marketing date will all be required for applications.

Eligible animals must be designated Grade A, and the average weight at the lot be a minimum of 1,300 pounds per heifer and 1,400 pounds for steers.

On June 29, the bidding setaside system was to become operational, and includes a weekly bid that producers can enter each week through an online system. More information is available on AFSC’s website.

Although the program is a good one, said Schmidt, the test will come as more cattle become ready for slaughter and the effect that has on prices.

“Our biggest hope is that we can stabilize these prices,” he said.

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Early in the week, the mood was quite depressing; yearlings were under pressure with feedlot buyers on the sidelines. By Friday, the market appeared to be well established. Backgrounding operators have been active sellers over the past couple of weeks, especially in Saskatchewan and Manitoba. It’s that time of year when forage and silage supplies tighten up on smaller operations.

At the same time, major feedlot operators have been buying small volumes on a scale-down basis. Flesh levels are also quite on certain packages and heavier yearlings are severely discounted. Feedlot operations that were not well hedged earlier are waiting for lower values. Order buyers are not speculating on ownership; if they don’t have the orders, they’re not raising their hands. Yearling cattle don’t pencil out given the deferred live cattle futures. Secondly, the fact that many packers are not showing bids reflects basis uncertainty.

In central Alberta, mixed steers weighing just over 1,000 lbs. were quoted at $134; mixed medium- to larger-frame steers fed a higher grain ration averaging 900 lbs. were valued at $142. In southern Alberta, a larger group of black steers weighing 925 lbs. were valued at $147 and red mixed heifers averaging just under 800 lbs. were reported at $150. In Manitoba, Charolais-based steers weighing 855 lbs. were quoted at $154 and similar-quality heifers weighing just over 900 lbs. were valued at $139.

Calves and grass cattle were firm last week. In southern Manitoba, black steers averaging 540 lbs. were quoted at $231 and their older brothers weighing just under 700 lbs. were valued at $207. In central Saskatchewan, mixed steers weighing 710 lbs. were quoted at $187. A small group of black steers weighing 730 lbs. were quoted at $182 in southern Alberta. South of Edmonton, reports had a small group of mixed steers weighing 610 lbs. trading for $215 and black heifers averaging 615 lbs. selling for $185.

Ideas are that once these lighter calves come on the fed market next winter, beef demand will have returned to normal. There is no doubt that U.S. feedlots will have a competitive advantage next fall with lower corn values. This may be underpinning prices in Manitoba and eastern Saskatchewan.

— Jerry Klassen manages the Canadian office of Swiss-based grain trader GAP SA Grains and Produits Ltd. and is president and founder of Resilient Capital, specializing in proprietary commodity futures trading and market analysis. Jerry consults with feedlots on risk management and writes a weekly cattle market commentary. He can be reached at 204-504-8339 or via his website at ResilCapital.com.

The post Klassen: Yearling prices stay sluggish, calves hold value appeared first on Alberta Farmer Express.

It appears buyers are incorporating a risk discount due to uncertainty in beef demand longer-term. Rising unemployment levels, sluggish consumer confidence and a sharp drop in disposable income are all factors weighing on the cattle complex. Backgrounding operators have tried to stretch out the feeding period on fall-placed calves, which hasn’t been a positive experience. Demand for grassers has also subsided. The farmer-cattle producer is finally realizing this COVID-19 pandemic may last longer than earlier anticipated. Even these producers don’t want to be holding high-priced inventory.

CME August live cattle futures are down US$32 from January highs, while September feeder cattle futures are down US$40 from the peak in winter. Earlier in March, the western Canadian feeder market divorced from the futures board, but has inevitably succumbed to the current environment. Many auction barns had limited volumes over the past week, as only essential players are allowed into the arena.

In central Alberta, mixed medium-frame steers on light grain ration weighing 875 lbs. were quoted at $152 while tan heifers averaging just over 900 lbs. were valued at $146. Manitoba and Saskatchewan prices were approximately $4-$8 below the main feeding regions of Alberta. U.S. feeder markets were down $12-$15 from last week, contributing to the negative tone in the eastern Prairie regions. In southern Manitoba, Charolais-based steers weighing 825 lbs. were valued at $158 while tan heifers weighing 870 lbs. were quoted at $133.

Calves were quite variable across the Prairies. In southern Alberta, Simmental-blended steers weighing just over 550 lbs. were valued at $213, but similar-weight steers in central Saskatchewan were quoted at $220. The finishing feedlot has moved to the sidelines for the time being. The farmer-cattle producer who purchases calves one time per year still has some buying power.

Alberta fed cattle prices for the August and September timeframe are expected to be around $120, given Friday’s futures close. The April 2021 live cattle futures reflect an Alberta cash price around $139-$141. The price variance between weight categories reflects the economics for feeding with the finished animal sold into the appropriate marketing period.

— Jerry Klassen manages the Canadian office of Swiss-based grain trader GAP SA Grains and Produits Ltd. and is president and founder of Resilient Capital, specializing in proprietary commodity futures trading and market analysis. Jerry consults with feedlots on risk management and writes a weekly cattle market commentary. He can be reached at 204-504-8339 or via his website at ResilCapital.com.

The post Klassen: Feeder market lacks buying interest appeared first on Alberta Farmer Express.

Favourable weather contributed to higher auction market volumes over the past week. Steady demand was noted for grassers but the market had limited upside once the buying crowd switched over for feedlot placement. Many ranchers are running low on feed at this time of year, forcing some to bring cattle to market. This usually results in variable calf quality. Feedlot shopping lists included some type of pre-conditioning with weaning of 30-60 days earlier. Backgrounding buyers are on the sidelines and feedlots want cattle that will perform from Day One without extensive care and attention. At the same time, silage supplies are considered tight in some areas of Alberta and some feedlots can’t bring in cattle that won’t be on full feed in short order. Buying interest for yearlings was sluggish. According to market comments, yearlings are carrying heavier flesh levels this winter and feedlots are on the defensive with the recent slide in the fed market.

In central Alberta, Simmental-cross steers averaging just over 810 lbs. on light grain diet weaned last fall with full shots dropped the gavel at $184; Charolais-blended heifers averaging 835 lbs. backgrounded with silage only with full shots carrying low flesh reportedly sold for $165.

In eastern Alberta, Angus-blended steers weighing just under 500 lbs. reached up to $245 while their older brothers averaging 550 lbs. were quoted at $234. In southeastern Saskatchewan, mixed steers weighing 530 lbs. reached up to $238 while mixed red heifers weighing 510 lbs. reached up to $199. A group of exotic heifers averaging just over 500 lbs. were valued at $203 landed in southern Alberta feedlot.

Alberta packers were buying fed cattle on a live basis in the range of $152-$155, down from last week’s range of $157-$158. Feeding margins have slipped into negative territory by $60-$80 per head. There is a serious concern over exports into Southeast Asia due to the novel coronavirus outbreak. If earlier beef export projections don’t come to fruition, the fed cattle market will have serious downside; therefore, feedlot operators are factoring in a risk discount on yearlings.

— Jerry Klassen manages the Canadian office of Swiss-based grain trader GAP SA Grains and Produits Ltd. and is president and founder of Resilient Capital, specializing in proprietary commodity futures trading and market analysis. Jerry consults with feedlots on risk management and writes a weekly cattle market commentary. He can be reached at 204-504-8339 or via his website at ResilCapital.com.

The post Klassen: Uncertain beef demand weighs on feeder market appeared first on Alberta Farmer Express.

Weather conditions have played a larger role in the price structure this fall. Major finishing feedlots continue to focus on preconditioned calves and have left the unweaned or unvaccinated feeders to the smaller backgrounding lot. Therefore, prices were quite variable for similar-weight cattle and the steer-heifer spread appeared to widen in the lighter weight categories. Buyers were quite fussy on quality features and smaller framed fleshier calves were discounted accordingly.

One buyer stated there’s just not the buying enthusiasm that’s been evident in past years. The past couple of months have been extremely challenging and silage supplies are considered tight for some southern Alberta feedlots. Given the current conditions, comments suggest feedlots are factoring in a slightly higher death loss due to adverse pen conditions. The market was harder to define this week and prices were quite variable across the Prairies.

In central Alberta, medium-frame fleshier mixed steers weighing just under 900 lbs. were quoted at $185 while similar-quality mixed heifers averaging 860 lbs. were valued at $178. In central Saskatchewan, larger-frame medium-flesh tan steers averaging just over 900 lbs. were quoted at $188 while similar-quality mixed heifers averaging 860 lbs. were valued at $174.

In southern Alberta, black Angus-based steers with health records and averaging 600 lbs. were valued at $206 while similar-quality heifers weighing 640 lbs. were quoted at $182. North of Calgary, larger-frame mixed vaccinated steers weighing 525 lbs. sold for $232. In Manitoba, Charolais steers weighing 550 lbs. reportedly sold for $230 and similar-quality heifers weighing 524 lbs. were valued at $194. Buyers appeared to step up to the plate if they knew there was some pre-conditioning.

Wednesday’s selloff in feeder cattle futures also contributed to a defensive tone in the latter half of the week. The non-commercial or managed-money futures trader pushes the market off of its equilibrium. While this is a double-edged sword, the backgrounding operator has been able to purchase price insurance to secure a profit which may have tempered the downside.

— Jerry Klassen manages the Canadian office of Swiss-based grain trader GAP SA Grains and Produits Ltd. and is president and founder of Resilient Capital, specializing in proprietary commodity futures trading and market analysis. Jerry consults with feedlots on risk management and writes a weekly cattle market commentary. He can be reached at 204-504-8339 or via his website at ResilCapital.com.

The post Klassen: Challenging weather influencing feeder market appeared first on Alberta Farmer Express.

Weakness in deferred live cattle futures, along with rising feed grain prices, caused buyers to lower their bids accordingly.

Steers averaging 1,000 lbs. were readily trading from $163 to $165 across the Prairies while 950-lb. animals were quoted from $168 to $172.

Many backgrounding operators were passing on bids with hopes of turnaround in upcoming weeks. Margins for the summer period on calves bought last fall could turn quite disastrous, so replacement cattle need to offset the equity erosion.

Larger-frame medium-flesh Angus-cross mixed steers averaging 880 lbs. traded for $172 in central Alberta; tan larger-frame medium- to thinner-flesh heifers averaging 850 lbs. were quoted at $165 in the same region.

Prices for calves and grassers held value with week-ago levels. Red- and white-face medium-frame steers averaging just over 600 lbs. were quoted at $234 in central Saskatchewan while 625-lb. heifers with similar features traded at $198. Lighter mixed steers averaging 450 lbs. traded for $265 just south of Calgary. Pasture conditions heading into spring are excellent. There’s strong demand for grassers and yearling supplies next August and September will be rather tight.

Feedlot operators are struggling to secure barley supplies. While the price has increased, grain merchants are having a difficult time delivering on time because of adverse weather over the past couple of weeks.

Alberta packers were buying fed cattle at $164 on a live basis, relatively unchanged from week-ago levels. The nearby fed cattle market has divorced from the futures market. U.S. slaughter during the first quarter is coming in lower than anticipated; however, the U.S. Department of Agriculture is projecting a year-over-year surge in second-quarter beef production which has weighed on the live and feeder cattle futures markets.

— Jerry Klassen manages the Canadian office of Swiss-based grain trader GAP SA Grains and Produits Ltd. and is president and founder of Resilient Capital, specializing in proprietary commodity futures trading and market analysis. Jerry consults with feedlots on risk management and writes a weekly cattle market commentary. He can be reached at 204-504-8339.

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