PHARO CATTLE COMPANY CHEYENNE WELLS, COLORADO PHONE

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1 PHARO CATTLE COMPANY CHEYENNE WELLS, COLORADO PHONE Buy your bulls from someone who raises cattle the way you ought to. May / June 2002 NEWSLETTER In preparation for our bull sale, I had the opportunity to visit with hundreds of ranchers from Texas and New Mexico all the way north to Montana. For many ranchers, in an enormous area, drought has become a very real and a very threatening concern. Here at home, we are going into our third year of drought. Even though our cowherd is less than one-half it s normal size, our grass is still over stocked. It takes several nibbles for a cow to get a mouthful of dead, brown grass. In fact, I don t think the grass on our ranch has looked this bad since the dust storms of the 1950 s. In previous newsletter articles we have talked about developing a drought plan. Believe it or not, some ranches really do have a plan they can implement to limit their losses. If you don t already have such a plan, it may be too late to do so, but we can still review some possible options and ideas. 1. Know when to quit. Most ranchers are determined to hang on and fight until it is no longer possible. That s an admirable trait, but it may lead to financial ruin. Some are willing to spend every penny they have to hold their cowherd together through a drought, but when the drought finally does end they have no grass, no cows and no money. There is a big difference between giving up and limiting your losses. 2. Do not feed cows. Avoid feeding hay and other expensive grass substitutes to cows because they are a depreciating asset. Cows must be able to survive on cheap available forages. If you don t have an adequate supply of cheap forages, you must start selling cows. Don t wait until your forage resources are depleted and your cows are thin. Your hay and other feeds should be reserved for calves and stockers which can appreciate in value. Many ranchers are making a big mistake by feeding hay to cows on pasture. Along with eating the hay, the cows will continue to graze Drought Management 1 any grass they can find which will eventually decimate the grass plants. When it finally does rain the plants won t be able to respond. 3. Sell the bottom 20 to 50 percent. Every cowherd has a bottom 20 to 50 percent, and they aren t that difficult to identify. This group will consist of all open and dry cows, and all cows with small, poor-doing calves. It will also include your older and thinner cows, as well as all cows with bad eyes, bad udders and other structural problems. Most ranchers need a good drought every now and then to force them to get rid of their junk cows. The sooner you start selling your worst cows, the more forage will be left for your best cows. 4. Early weaning. A cow s nutritional requirements will decrease dramatically after her calf has been removed. It s much more cost effective to feed your calves than it is to feed your cows. Many producers have successfully weaned calves as young as 60 to 90 days of age. Early weaning makes it much easier for your cows to maintain body condition and breed back on minimum forager resources. 5. Take a vacation. Stan Parsons, founder of Ranch Management Consultants, says, One of the best drought plans is to shut the ranch down and take a vacation until it is over. There is no way you can fight or feed your way out of a long drought. I agree. Why not take a vacation or get a job in town? Sell your livestock, pay off your debts, put the remaining money in a savings account, and go do something else until the drought breaks. Why continue to work so hard if you know you re not making any money? We continue to pray for rain, but we realize God has his own timetable. Therefore, we also pray for God s guidance to help us through times like this. Please call, if you know of any pasture we can send our remaining cows to. ~ Kit Pharo

2 Looking Back It s hard to believe that Pharo Cattle Company has been selling bulls for twelve years now. We started out as a commercial ranch with a very specific goal in mind. We wanted to maximize ranch profits by producing cattle that could survive strictly on what our ranch produces with minimum or no inputs. We experienced moderate success after changing a few of our management practices. The biggest problem we encountered, though, was finding a seedstock producer who could provide the genetics we needed to produce environmentally adapted cattle. For the most part, they simply did not exist. Most of the bulls we purchased seemed to take us farther and farther away from our goals. Many seedstock producers think that because they have registered cows and sell high priced bulls, they can justify over feeding and pampering their cows, as well as giving them a second or third chance. Consequently, I realized my seedstock producers did not have cows as good as my commercial cows. How were they going to be of any help to me? Being an opportunist, I promptly decided to take advantage of this situation by entering the seedstock business and the rest is history. Looking back, I can tell you it has not been easy, but it has been fun. Nearly everything we did went against conventional ways of thinking. Many of the so-called experts in the beef industry said we couldn t do the things we wanted to do. They said we should buy a herd of antelope if we wanted to raise environmentally adapted animals. They said we would be taking giant steps backwards if we required our cows to live within their means. They said we were naïve and didn t really understand the seedstock business. They said we wouldn t be able to sell bulls that had not been over fed on a hot feedlot ration. They said we wouldn t be able to sell bulls that had a frame score under 5. They said we would have very few repeat customers, and they said we would never be able to sell over 50 bulls per year. Had it not been for the support and the encouragement from a core group of trusted friends, we probably would have given up years ago. These friends challenged us to do what was right, even if it was not popular. The longer we persevered, the more convinced we became that we were definitely on the right track. Everything the so-called experts said we couldn t do has been successfully done. We went from selling 7 bulls to a few friends and neighbors in 1990 to selling over 200 bulls in 2002 to repeat customers from 18 different states. We started out with a passion and a dream to become the type of seedstock producer commercial ranchers need. Our focus has never changed. We have never strayed off course. We did not try to chase every new fad that came along. Our goal continues to be to help commercial ranchers maximize profits by providing the genetics they need to produce an environmentally adapted cowherd. E-Group... We have started using to share various news items and tidbits with others. These are things that don t usually make it in our newsletter. allows us to reach hundreds of people with the touch of a button. If you have and would like to be a part of this e-group, please send an to kit@pharocattle.com. If you are a PCC customer, we would especially like you to be a part of our e-group. As customers, you can also join our ongoing discussion group. 2

3 Thanks, But No Thanks At the risk of offending a few of our readers, I d like to share a concern that I believe is justified. Cattlemen, if you are proud of your heritage, I suggest you read on. First of all, it doesn t make much sense for the United States government to pay farmers to grow crops that are already in surplus. Some government farm programs, like the Loan Deficiency Payment (LDP), actually pay farmers more for producing more. Who are they fooling? Do they really believe this will reduce the surplus and improve the prices? Our well-meaning government, in all it s wisdom, has succeeded in putting our family farms in a terrible predicament. I don t know how, or if, they will ever be set free. From my observations, the only farmers who are truly benefiting from these programs are those who have learned how to farm for the government payments. Most of these are larger, corporate farms that have also become quite good at bilking insurance companies in their spare time. As cattlemen, we need to fight with all our strength to prevent the United States government from trying to help us with some program that is subsidized by the American taxpayer. I realize these proposed programs may look very tempting when you are in the middle of a drought or some other disaster, but they will eventually control and own you and your ranch. Unless that is what you want, I encourage you to stand up and say, Thanks, but no thanks. More government intervention and control has never been a good, long-term solution to any of this country s problems. This is a nation that became great because of individual determination and fortitude, not because of government subsidies and welfare programs. ~ Kit Attention: GRASS FARMERS PRAIRIE STATES SEED Grazing, Hay, Irrigated Pasture Grass, Legume, Turnip & other forage seed of all types For more information or to locate the nearest Prairie States Seed dealer call: (toll free) Brad Young Wausa, Nebraska prairie@bloomnet.com Words of Wisdom Big shots are only little shots who kept shooting. You don t quit trying when you lose; you lose because you quit trying. Minds are like parachutes not much good unless they are open. The person who wants something will find a way; the person who doesn t will find an excuse. For the real winners, there are no finish lines. One mistake will never kill you. The same mistake over and over will. The human body is the only machine that wears out faster if it is not used. Semen Quality Control By Dave Lewis Semen Quality Control Harvey Mackay Our website Our goal here at Rocky Mountain Sire By Dave Lewis Services is to provide the best conception rate in the industry. There is a big difference, from one Sire Service is to provide the best conception rates organization to another, in the way semen is in the industry. There is a big difference in the way processed and evaluated. Quality control varies semen is processed and evaluated. Quality control from almost none to very extensive. Do varies from almost none to very extensive. Do not assume that the quality is good just because not assume that semen quality is going to be good just because you bought you bought it from it one from of one the of big the boys. big boys. Semen The ability quality to distinguish is often a between sore subject a good to ejaculate some A.I. and companies. a bad one seems Some obvious, really but squeal there when are many someone in this else industry evaluates who apparently their semen. do not At know RMSS the difference. we are proud There of the are semen others who we don t are putting have enough into integrity your cows, to throw and we out encourage the bad ejaculates. others to examine it. RMSS Our has employees the expertise are proud and of the the resources work they to do, produce as well semen as the quality product that they is produce. unsurpassed It is anywhere in the RMSS world. is the It preferred is no accident collection that RMSS center no accident is among the A.I. preferred technicians collection and embryologists. center among A.I. We technicians receive very and few embryologists. (if any) fertility complaints. Your Although breeding we collect decisions 20 to are 30 bulls probably per day, the we most treat important every bull decisions as if it were you the make. only one. Those We carefully decisions evaluate don t every mean ejaculate much if for you concentration, use poor motility quality semen. and morphology. Our discard rate is probably We among collect the and highest process in the most industry. of the semen used and We sold collect by and Pharo process Cattle most Company. semen used You and can sold by be Pharo assured Cattle that Company, RMSS and semen I guarantee will be it as is good as good or or better than than anything on the market. 3 One of our goals here at Rocky Mountain

4 Bull Sale Results Our 12 th Annual Spring Bull Sale was more successful than we could ever have hoped for. To be honest, I had some major concerns because of the impending drought and unstable markets. I was afraid we might run out of buyers before we ran out of bulls. That was not the case. There was an extremely strong demand for the right kind of bulls from start to finish. The only real weak spots we experienced were on bulls with little calving ease and little fleshing ability. We sold a total of 216 range-ready bulls to buyers from many, many different states. New markets continue to open up for the type of bulls we offer. Cattlemen appreciate our genetics, as well as the way we develop our bulls. Most of our bulls have the unique ability to hold up and actually gain weight while breeding cows during their first breeding season. Our thickness and fleshing ability are bred in, not fed in. Prices ranged from $1,250 to $4,900, with an overall average of $2,700. This was the first year we had a Repeat Buyer Discount for our past costumers. It s very gratifying to see customers and friends come back year after year. You know, they wouldn t be here if our genetics were not working for them. A happy and satisfied customer makes all of our hard work worthwhile. They make it much easier for us to continue to buck the traditional herd mentality that exists within the beef industry. Other seedstock producers like to brag about their funny-money, $20,000 bulls, but we would rather brag about our satisfied customers. Sale Averages Forage Tested Red Angus $3,040 Yearling Red Angus... 2, Red Angus.. $2,525 Forage Tested Black Angus. $3,450 Yearling Black Angus 2, Black Angus. $2,960 Forage Tested Hereford (16 head) $1,700 Forage Tested Tarentaise (3 head)... $2,620 Forage Tested Composite $2,460 Yearling Composite... 2, Composite.. $2,475 Black-baldy Bulls (3 head). $2, Head Average.. $2,700 The Law of Giving In Luke 6:38 Jesus says, Give, and it will be given to you. A good measure, pressed down, shaken together and running over, will be poured into your lap. For with the measure you use, it will be measured to you. Have you ever tried to out give God? It can t be done! The more you give, the more you will receive. This is one of God s many spiritual laws. Those who give to the church, or to a Christian missionary, or to the poor will receive blessings equal to, or greater than, the gift they gave. Are you a skeptic? Give it a try. You will never be able to out give God. 4 Yearling Red Angus Lot 15 This outstanding Colorado Hobo son was our high-selling bull. His name is Diablo. He was purchased by Gail Nason of Nebraska. Over the years, Gail has purchased some of our very best Red Angus and Composite genetics Semen Directory Call LOW COST COW/CALF PROGRAM The School The Three Keys Changing BCS Time of Calving Precise Nutrition Dick Diven Agri-Concepts, Inc N. Bandanna Way Tucson, AZ

5 My mom and dad both grew up during the Great Depression of the 1930 s. People of my generation and younger can t even imagine how tough those times were. Many of the things we consider to be necessities were considered luxuries in the 1930 s. I remember listening to Dad talk about his memories of being a little boy. To my amazement, he had nothing but good and happy memories. Yes, people were very poor and times were tough, but Dad was as happy as any little boy could be. I remember him telling how you could make a pair of shoes last well over a year if you kept putting new pieces of cardboard in the bottoms to cover the holes in the soles. He said all the kids, and most of the adults, had cardboard in their shoes. That s just the way it was. After thinking about it for a moment, Dad said the reason he had nothing but good and happy memories was because he didn t know any better. Everything is relative. From his perspective, that s just the way things were suppose to be. He had no reason to be unhappy or disappointed. They Don t Know Any Better I ve been reminded of Dad s statement several times the past two months as I ve taken various visitors out to see our cowherd. Even though our grass is as short as it has been for nearly fifty years, we are still requiring our cows to work for a living. Except for a few (very few) snow days our cows have been fed virtually no hay or protein supplement for over two years. When you drive out to see our cows they are either grazing or lying down chewing their cud. They don t come running to meet you like cows that are being fed. Keep in mind, half of our remaining cowherd are firstcalf heifers. Heifers get no special treatment on our ranch. Visitors are amazed that our cows and heifers are so contented and can do so well on so little. There is a simple reason our cows are so happy and contented. They don t know any better. They have no reason to be unhappy or discontented. However, if our cows knew our neighbors were feeding their cows everyday, they might try to run away from home. ~ Kit Pharo Baler twine is a temporary fix, until you can find some baling wire. Calvin Benedict Missouri A Reputation Built on Pride and Quality An Observation Worth Noting... No doubt about it, calving ease bulls were extremely popular at this year s bull sale. We could probably have sold 50 more if we had them. So, what does that mean? I m no expert, but I would have to say herd expansion is well under way. Ranchers are retaining heifers to put back in the cowherd. That could, or should, help keep calf prices up for a couple more years, but soon after all these heifers come into production we will have a surplus of calves hitting the market. The current cattle cycle has been the longest and most messed up cycle in history, but it will eventually run its course. Pay attention, and you will be able to maximize profits. 5 Kit and Deanna Pharo s new home and office (toll free)

6 Night Man (Angus) Dear Pharo s, I just wanted you to know that I owe you folks a great deal of gratitude. Reading about the tragedy that struck your family raised a red flag with me. It took me a long time to admit I had a problem. Yes, I too suffer from depression. Reading your information gave me the strength I needed to seek help. I have two fantastic boys and a wonderful wife. I knew this before, but could not see. As the old hymn says, I once was blind but now I see. I am now on medication. My family life has improved and my work has improved. Thank you for my life my good life. Brett Moline EPDs: B.Wt , W.Wt. +25, Y.Wt. +52, Milk +14 Thick, calving ease son of DHD Traveler sons sold for an average of $3,130 Semen available at $14 Colorado Hobo (Red Angus) Depression Depression is a very common illness that affects 17 million Americans. It affects people of all ages, of both sexes, and of all races. It knows no boundaries. Depression is a medical illness that can almost always be successfully treated and controlled with medication. If left untreated, though, it will lead to a miserable and unsatisfied life full of shaky and broken relationships. Our son, Trapper, took his own life at the age of twenty-four. Since Trapper s death we have had many people open up and talk to us about depression and how it has affected their life or someone close to them. Understanding the complexities of this terrible illness has helped us immensely in dealing with Trapper s death. We only wish we had known more sooner. Brett gave us his permission to share the above letter in hopes that it might give others the strength they need to seek help. If you even suspect that you or someone you love is dealing with depression, please seek help immediately. Don t hesitate to consult a mental health practitioner or your family physician. Feel free to call us or go to the Favorite Links page of our website ~ Kit and Deanna 6 EPDs: B.Wt. 1.6, W.Wt. +21, Y.Wt. +43, Milk +14 Phenomenal volume, thickness and fleshing ability plus calving ease 20 sons sold for an average of $3,435 Moderator (Angus) EPDs: B.Wt. 4.1, W.Wt. +15, Y.Wt. +31, Milk +9 Deep ribbed bull with superb calving ease 11 sons sold for an average of $3,125 Several more Angus and Red Angus bulls are available at $8 to $14 Composite and Tarentaise bulls at $6 to $14 Over 30 A.I. Sires

7 Cows on cows. Man, that really makes me mad. See that one over there sucking the firstcalf heifer who is trying to clean her newborn calf. Man, that makes me mad. I'm gonna get the saddle horse, no, the four wheeler, no, I'm gonna get my 3/4 ton pickup with the heavy duty grill guard. I'll show that cow a copy of the by-laws of this ranch. Varroom, Varroom, slam, bang, bang. Now I've got 'er in the chute. Donna, get me the Vet Supply Catalog. I'm gonna order one of those things ya put in the nose that has those sharp points on it. Yea, I'll need my credit card too. No, I don't have any idea how long it will take to get it here. We'll feed and water 'er right here in the chute until it comes. Man, that makes me mad. I'm so mad right now I don't know if I coming or going. Matter of fact I'm so mad I m lost in my own thoughts. These negative emotions are really getting me down. I have to take a time out. I'm going to my quiet room to meditate a few minutes. Boy, I feel better now. Forgave those cows and stopped that tidal wave of negative emotions. They re in my past and the past is gone. Yep, we culled 'em. Cows On Cows by Dave Gwyn A few years ago we were calving and started noticing a red blaze-face cow with fresh blood on her head almost every morning. Donna, "What the H is going on here?" Dunno, yer the cowboy, you tell me." Early one morning a few days later I drove over a small rise and there she was, sucken another cow that was laying down in labor trying to give birth to her own calf. Now if that don't beat all. Man, I was mad. I made up my mind when I got these calves over the scours I was going to haul her to town. Whoa, do I see two dots that need a line connecting them? Could one cow sucking the colostrum from other cows cause scours? We had used that red blaze-face cow as a recipient cow in the spring of '97. In the spring of '98 she had a angus ET heifer calf. When the ET calf was weaned I sold that red blaze-faced cow. Guess what? We just sold that ET heifer for the same reason. Now, her daughter is in the keepin' pen. Should I sell her too? Dave and Donna Gwyn are cooperative producers for Pharo Cattle Company. 7

8 PHARO CATTLE CO. PRSRT STD County Road Z US POSTAGE PAID CHEYENNE WELLS, CO PERMIT NO. 9 Cheyenne Wells, CO PHONE kit@pharocattle.com deanna@pharocattle.com WEBSITE ADDRESS SERVICE REQUESTED Cowboy Logic: If you aim at nothing, you will hit it every time. Private Treaty Bulls Do you still need a bull? Although our spring bull sale is over (see results on page 4), we still have over 50 bulls left at home. These bulls were pulled from the sale for various reasons. Rest assured, though, all bulls that don t deserve to be bulls have already been eliminated. This lineup consists of Angus, Red Angus, Hereford and Composites. Several bulls can safely be used on first-calf heifers. These bulls are affordably priced at $1200 to $1800 on a first-come basis. They will go fast. If you are interested, call or kit@pharocattle.com. We will mail or detailed catalog pages on this offering. A few of our cooperative producers also have bulls for sale. Feel free to call them. > Monte Howrey (ND/SD) (Angus) > Charlie Totton (SD) (Angus) > Randy Kurtz (SD) (Angus) > Keith Lapp (NE) (Hereford) Forage-Tested Bulls...For Sale This Fall Last October we sold 50 forage-tested bulls in our 1 st Annual Fall Bull Sale. Everyone had a great time and enjoyed the format of our Cowboy Auction. One attendee said, This feels more like a family reunion than a bull sale. We plan to sell 50 to 100 forage-tested bulls this next October. Once again, the sale will be held here on the ranch. This offering will include some of our very best Angus, Red Angus, Hereford and Composite bulls. These forage-tested bulls have never been shut up in a corral and have never been fed any grain. For the most part, they will be 16 to 18 months old. Are You Interested? We will be sending sale catalogs out only to those who have indicated they are interested. If you have an interest, please call or send an to kit@pharocattle.com or to deanna@pharocattle.com. Thanks. 8

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