PHARO CATTLE COMPANY CHEYENNE WELLS, COLORADO PHONE Helping you is our business and we take it very seriously.

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PHARO CATTLE COMPANY CHEYENNE WELLS, COLORADO PHONE 1-800-311-0995 - Helping you is our business and we take it very seriously. The Most Important Economic Trait Spring 2015 NEWSLETTER If profit is the goal, then fertility is by far the most important trait cow-calf producers should be selecting for. Studies have shown that reproductive traits are twice as important as growth traits, which are twice as important as carcass traits. Ironically, the status quo beef industry has been selecting almost exclusively for growth and carcass traits for the past 40-plus years at the expense of reproduction. Because the heritability of growth and carcass traits is very high, it is relatively easy to make changes in those traits. Unfortunately, members of the status quo beef industry mistakenly believe that when it comes to growth and carcass traits, more and bigger are always better. They forget that the optimum level for a trait is almost never the same as the maximum level. For at least 50 years, academics have told us that the heritability of fertility is very low so low that we shouldn t waste our time selecting for it. I m sure that if you were able to isolate fertility from everything else, then that assumption would appear to be true. In the real world, however, nothing is isolated. In fact, just the opposite is true. Truth be known it s easy to select for fertility. Fertility is more a function of fleshing ability than of anything else and fleshing ability is more a function of low maintenance requirements than of anything else. Reproduction cannot take place until maintenance requirements have been met and cows are storing up energy reserves in the form of fat. Since fleshing ability and maintenance requirements are very heritable, fertility is also very heritable. Keep in mind, though, it is just as easy to decrease the level of fertility as it is to increase it. As members of the status quo beef industry selected for more and more growth and for less and less back fat, they inadvertently selected for lower and lower levels of fertility. They created hard-keeping, high-maintenance cows that struggle to reproduce under what was once considered normal ranch conditions. The academic and status quo solution to this problem was to reduce stocking rates and/or increase supplemental feeding. Instead of producing cows that fit their environment, they artificially changed the environment to fit their cows. Over the last few years, Pharo Cattle Company has dared to compare the maintenance requirements of our cattle to cattle in other seedstock herds and to bulls in the major AI companies. There really is NO comparison! While nearly everyone else in the beef industry has been selecting almost exclusively for growth and carcass traits, we have spent the last 30 years selecting for efficient, lowmaintenance cattle that can do the most for the least the kind that can produce and reproduce with minimum inputs in many different environments. Bred-in Fertility Easy-fleshing PCC cows, bred heifers and heifer calves all wintering together on short, dry grass (no hay) during a severe drought. We believe most cow-calf producers can double their profit per acre on a sustainable basis. That s right double! To do so, however, will require producers to break away from the outdated, status quo way of thinking. Although many are saying this can t be done, we know better. Cow-calf producers around the world have already proven this We believe statement to be true. ~ Kit Pharo 1

Progress is impossible without change and those who cannot change their minds cannot change anything. ~ George Bernard Shaw ~ TWO Spring Bull Sales nd Springfield, MO Thursday, April 2 th Burlington, CO Monday, April 13 390 Low-Input Solar Bulls Developed WITHOUT Grain Fleshing Ability Bred In NOT Fed In Evaluated and Scored for Disposition Guaranteed Calving Ease FREE and Very Afforda-BULL Delivery Call or Email to receive a Sale Catalog THE PHARO CATTLE COMPANY NEWSLETTER Published four times per year by: Pharo Cattle Company 44017 County Road Z Cheyenne Wells, CO 80810 Editor: Kit Pharo Phone: 800-311-0995 Email: Kit@PharoCattle.com Website: www.pharocattle.com Our Mission: To help ranchers put more fun and profit into their business. Call or Email for a Free Subscription 2 Easy Money The easiest money you will ever make is the money you DON T spend. A penny saved is a penny earned. Fescue-Country Bull Sale... We have been raising bulls in Fescue Country for the past 14 years. We ve been developing our fall-born bulls on fescue in Missouri for the past ten years. Our 3 rd Annual Fescue Country Bull Sale will take place at the sale barn near Springfield, Missouri, on Thursday, April 2. These bulls are 18 months of age and are ready for a heavy workload. In addition to 137 Angus and Red Angus bulls, we will offer four Red Angus Plus bulls and 11 Polled Hereford bulls in this sale. If you live in a hot, humid environment and/or in Fescue Country, this is your source for low-maintenance PCC Solar Bulls. Those who do not live in Fescue Country should also take a look at these bulls. Bulls that work well in Fescue Country have been proven to work even better everywhere else. This sale will be broadcast over RFD TV and the Internet. Delivery will be provided to all 50 of our delivery points. Call us at 800-311-0995 to request a sale catalog. 25 Years and Counting... It is hard to believe that we are coming up to our 25 th Annual Colorado Bull Sale. It seems like it was just two or three years ago when we sold seven PCC Solar Bulls at our very first bull sale. We started as commercial ranchers who were very unhappy with the direction the beef industry was going. We decided to buck the trend and provide an alternative to the biggeris-better way of thinking. While the beef industry as a whole made fun of us, those who could think for themselves had no trouble understanding our program. We went from selling seven bulls to selling over 800 bulls per year. We hope you will make plans to join us for this special event. Call us at 800-311-0995 to request a sale catalog.

We have replaced all our bulls with top-sort PCC bulls. The PCC way of ranching is fun and exciting. Having efficient cows that calve in sync with nature and graze year-round does awesome things for a ranch's bottom line. We are having so much fun, it s hard to act our age. We only wish we would have started sooner. Henry Meyer North Dakota Red vs. Black For over three decades, Certified Angus Beef has done a tremendous job of promoting black-hided cattle. Producers from all parts of the country north, south, east and west would tell you that black calves consistently outsold red calves at their local livestock auction barn. That sentiment, however, began to gradually change five or six years ago. It is not at all uncommon to see red calves top the market on video sales and at auctions around the country. I have nothing against Black Angus cattle. In fact, most of the bulls Pharo Cattle Company produces and markets are Black Angus. I just think Red Angus cattle have gotten the short end of the stick for over 30 years. They have been unjustly discounted simply because they weren t black in color. That is not right! The first Aberdeen Angus herdbook was published in Scotland in 1862. It entered both red and black Angus cattle without distinction. This practice continues today in most of the world. The first American herdbook, published in 1886, made no record as to color. However, the American Aberdeen Angus Herdbook stopped registering red-hided Angus cattle in 1917. Fortunately, that did not eliminate animals that carried the recessive red gene and it did not eliminate the occasional birth of a red-hided Angus. In 1954, the Red Angus Association of America was founded to provide a way to register red-hided Angus cattle in the United States. It now registers around 64,000 calves every year and is currently ranked as the fourth largest breed in America. In addition to having the same attributes that have made Black Angus cattle so popular, Red Angus cattle have two very distinct advantages over their black counterparts heat tolerance and fly resistance. Anyone who has red and black cattle in the same herd will notice that the black animals will head for shade and/or water before the red animals during the summer months. In other words, red-hided animals will spend more time eating and growing. Based on some research done by MARC at Clay Center, Nebraska, red-hided animals can have a surface temperature as much as three degrees lower than black-hided animals as well as a lower rate of respiration. That is a substantial difference. A few years ago, I overheard a veterinarian at a meeting in Fort Worth, Texas, say he does a lot of preg checking. He went on to say he could be blindfolded and still be able to tell you if the cow he was palpating was red or black in color. We AI breed our cows in the middle of August and I think I might be able to do the same thing. Red Angus cattle, as a whole, are more resistant to horn flies than Black Angus cattle. I have not seen any research on this, but I suspect red cattle have 20 to 50 percent fewer flies than black cattle in the same herd. I do not know what to attribute this to. Some say red cattle have a thicker hide than black cattle which makes black-hided animals an easier target. I m not sure of that. Pharo Cattle Company sells both Red and Black Angus bulls that have been proven to work very well in most environments. If you prefer black over red, that is fine; I m not trying to talk you out of black cattle. I am, however, suggesting you consider red cattle if you live in a hot and/or humid environment. Colorado High at 10 years of age ~ Kit Pharo 3 GO RED

Worth the Wait... Our Spring Bull Sales will be among the last of the season but we think they ll be well worth the wait. Where else can you find such a large selection of Solar Bulls that were developed without grain? Where else can you find bulls that were produced by easy-fleshing, low-maintenance momma cows that have never been pampered? Where else can you find bulls that can reduce cow size and maintenance costs without cheating you on pounds? Where else can you find bulls that are guaranteed for calving ease? Where else can you find bulls that can breed more cows for more years? Where else can you find bulls that were produced with your long-term profits in mind? Can t Make the Sale? If you don t think you will be able to attend either of our Spring Bull Sales, we suggest you request a sale catalog and take advantage of one of our Stay-At-Home options, as well as our Bull Delivery service. We make it easy. With our unique Quick Sort program, you can quickly sort bulls to your exact specifications and then you can watch a video clip of every bull that made your sort. And... you can do all of this from the comfort of your home. It s not unusual for 50% of our bulls to be purchased through one of our Stay-At-Home options. Call or email for a sale catalog. Getting Your Money s Worth... I can t decide if people who wear pajamas in public have given up on life or are living it to the fullest. Temporary vs. Forever... If you are like me, it is very easy to get all caught up in temporary stuff, while ignoring the things that last forever. That doesn t sound like the smart thing to do, does it? In 1 Peter 1:24-25, we read: All men are like grass, and all their glory is like the flowers of the field; the grass withers and the flowers fall, but the word of the Lord stands forever. Our worldly status and accomplishments are temporary at best. Therefore, I challenge you to spend some time every day in God's word. I guarantee it will be time well spent. NOTE: If you are not already receiving our weekly devotions, send your name and email address to Kit@PharoCattle.com with devotions in the subject line. Based on the results of some early bull sales, it looks as though bull prices will be higher this spring than they were last spring. PCC is offering 110 more bulls this spring than last spring in an attempt to hold our prices down. Most reputation seedstock programs have been averaging in the $6000 to $8000 range. I just heard of an extremely high-input outfit selling 400-plus overfed Diesel Bulls for an average price of $18,400. Unbelieva-BULL! Why would anyone pay so much for a bull that is guaranteed to fall apart? Considering that calf prices are as high as they are, it shouldn t surprise us that bull prices will also be high. More than ever it is critical to get your money s worth when buying bulls. In addition to buying bulls that will move your program in the right direction, it is important to buy bulls that won t melt and fall apart when you take them home. Bulls that can maintain or gain weight during their first breeding season will be able to service more cows. Consequently, you won t need as many bulls. We also suggest you buy bulls that have been bred, selected and developed for longevity. A bull that can breed more cows for more years than the average bull will probably be worth a whole lot more than you will ever have to pay for him. 4

Information You Can Use... In addition to the usual EPDs, weights and ratios, we evaluate and score all of our bulls for disposition, muscling, masculinity, fleshing ability, thickness, calving ease, longevity and low maintenance. We also provide an udder score for the dam of every bull. We use a 1 to 5 star rating for all of these traits with 5 stars being the best. As if that wasn t enough, we provide ultrasound data on each bull so you know what he looks like under the hide. Considering the way our bulls are developed, I think you will be very impressed with this information. Our bulls have what it takes to produce a very desirable end product with or without grain. NO ONE else in this business provides you with as much useful information as we do. To help you utilize this information, we created a unique computer Quick Sort program that can sort and resort bulls to match your exact specifications in just a matter of seconds. If you don t have a computer, we would be glad to do the sorting for you. Dream Come True... Keep it Simple Cow-calf producers are in the business of converting FREE solar energy into a highprotein food product. Properly done, the cow will do nearly all of the work for us. What a GREAT business! 2015 AI Sire Directory... There are 60 top-sort bulls to choose from in this year s lineup. Most of these bulls are Angus and Red Angus but we also have a nice selection of Lowlines, Polled Herefords, Tarentaise and Composites. If you are serious about reducing cow size and maintenance requirements, and if you are serious about increasing thickness and fleshing ability, and if you are serious about calving ease and cow efficiency, then we have exactly what you are looking for. We have the biggest and best selection of low-maintenance, grass-based genetics in North America. Call or email to request our 2015 AI Sire Directory. Forty years ago last summer, Deanna and I spent our honeymoon camping and fishing in the Colorado Mountains. We have always loved spending time in the mountains and we have always dreamed of having our own little getaway in the mountains. Late last year, we officially made that dream come true. We are as excited as a couple of kids with a new toy. After many miles of riding and hiking, we purchased some mountain property near Westcliffe, Colorado. This property is covered with tall ponderosa pines and rocks. We can see portions of the awe-inspiring Sangre de Cristo mountain range off to the west. I maintain that this is the most beautiful mountain range that I have ever seen. At sunrise, the peaks often have a pinkish red color. That is how this range derived its name. Sangre de Christo is Spanish for blood of Christ. Our view of the Sangre de Christo mountain range We had an Amish family build a very nice cabin for us. I think they gave us more than our money s worth in this home-away-from-home. The cabin is off-grid. If we had to, we could survive without inputs from the outside world. I like that! Our backyard is breathtaking! This property borders thousands of BLM acres with 16 miles of Grape Creek. Although this is public land, very few people have access to it. We are less than 30 minutes from some great fishing holes. Wildlife is plentiful. There are mule deer around every corner. You will often see eagles circling overhead. Wild turkeys are a common sight. We have been told that this area has one of the highest concentrations of bear and mountain lions in the state of Colorado. 5

PHARO CATTLE CO. PRSRT STD 44017 County Road Z US POSTAGE PAID CHEYENNE WELLS, CO. 80810 PERMIT NO. 28 Grand Island, NE PHONE 800-311-0995 E-MAIL Kit@PharoCattle.com Tyson@PharoCattle.com WEBSITE www.pharocattle.com ADDRESS SERVICE REQUESTED Cowboy Logic: For every person climbing the ladder of success, there are ten waiting for the elevator. PHARO CATTLE COMPANY Efficient, Easy-Fleshing, Moderate-Sized, Low-Input, Grass-Based Genetics with Calving Ease Sneaky Pete Johnny B Good 123 Meatball Pledge Call or Email to receive a Catalog for our two Spring Bull Sales 1-800-311-0995 Bulls@PharoCattle.com Beral 6