As agriculture producers hope for rain, many face important management decisions.  

Small grain producers who would normally plant grazing wheat and oats in early September have no deep moisture in the soil profile, as well as no top soil moisture.

Even if we did receive 3 1/2 inches of rain, I don’t think it would be enough to germinate seed. Even if it did germinate seed, there would be no deep soil moisture to aid in plant development. It will take a big, slow rain to quench our current drought.

Small grain producers would normally be applying pre-plant fertilizer applications before they planted wheat. Any input cost a farmer faces is a gamble, even more so this year than in previous years because of the extreme dry conditions.

With little to no rainfall, many specialists are stating that much of our fertilizer put out this year is still available in the soil profile.  

No time will it be more important and economical than this year to do a soil test to measure the levels of available soil nutrients.

Stocker cattle operators face a tough time as well. Stocker operators would normally be looking at buying a few calves now that they could turn cattle out on dormant summer grass.

Then, as the wheat emerges and gets off to a good stand, the stocker folks will buy more calves and put them on the wheat pasture.

But there is a shortage of warm season grass and even if you did plant small grains for grazing, they would not emerge or grow as I previously stated.  

Beef cattle producers have been selling off cows and looking at record-high hay prices, as well as record-high slaughter cow prices. As the price of hay goes up and grass supplies diminish, the higher than normal slaughter cow price looks appealing.

Rising prices  

In Central Texas, beef cattle producers would normally start feeding hay late in the year and into the first part of next year, waiting for the spring grass to green up and for wheat to get off to a good enough stand to turn out on.

But many producers have been feeding hay to their cows since June and hay is now 3 1/2 times the normal asking price.  

Producers have to weigh the options: Buy hay from now until next spring and hope it rains, or sell out.

Hay production in Central Texas also is important. Whether you are buying hay for hobby horses, cows, or goats, it is an important part of a feed ration.

The hay suppliers I have talked to in our area are scrambling to take care of their usual customers, while trying to ease the burden on everyone else looking for hay.  

As quality of available hay decreases, you really need to pay attention to the body condition of your livestock because you may need to up the energy and protein levels. A good resource is available at http://animalscience.tamu.edu/images/pdf/beef/beef-factors-and-feed.pdf.

There are tax implications from the massive sell-off of beef herds. As weather causes producers to sell livestock, the gain on sale can be postponed.

There are two different tax treatments, both of which apply only to weather-related sales in excess of normal business practice.  

The first treatment applies to draft, breeding or dairy animals that will be replaced within a two-year period. The second applies to all livestock and allows a one-year postponement of the reporting of sales proceeds. I recommend you visit with your financial consultant for more information.

Hay show

The Heart O’ Texas Hay Show will be held at the Robinson High School Cafeteria on Sept. 29. For more details, call the McLennan County Extension Office at 254-757-5180.

Shane McLellan, a county extension agent for more than 13 years, serves as the agriculture agent for McLennan County. Send email to s-mclellan@tamu.edu.