Post Weaning Value-Added Program – Precondition (PVAP-PRECONDITION)                              

The Post Weaning Valued Added Program - Precondition (PVAP-PRECONDITION) began in 2019 through a grant from the Kentucky Agricultural Development Fund and is administered by the University of Kentucky and the Kentucky Beef Network. The objective of PVAP-PRECONDITION is to encourage cow-calf producers to retain ownership and capture added value from their investment in beef cattle genetics, facilities, and improved management through diversified marketing strategies. This program is aimed at Kentucky cow-calf producers who have never marketed weaned calves. 

Justification:      Demand for weaned calves is growing and the cattle market is placing more emphasis on calves with a known management history.  The overwhelming majority of calves in KY are weaned on the trailer in route to the local sale barn.  Research has shown that calves preconditioned through programs such as the CPH-45 experience a 74% reduction in sickness and death loss making them more valuable to buyers.   By weaning and preconditioning calves on the farm in KY, producers can not only potentially capture a premium at the sale barn, but also add more weight to calves prior to marketing. Summary data from UK and the Kentucky Department of Agriculture have consistently shown positive net returns for participating in CPH-45 sales.

Eligibility

• Producers who have never weaned and preconditioned calves on the farm.
• Home raised weaned calves retained on the farm for 45-120 days prior to marketing. 

Procedures

• A site visit by the UK ANR Agent or KBN Facilitator and UK Specialist to inspect facilities to determine the suitability of a weaning pen, on farm feed storage, etc. will be conducted. This visit will include planning the weaning process and designing a proper feeding program. 
• Work, weigh and wean the calves using CPH-45 or similar approved protocol.  Begin the feeding program. Calves will be graded and valued at this time using current KDA market information.  
• Market calves at a recognized preconditioned sale or outlet such as CPH-45, Red Tag, Yellow Tag, Farmers’ Elite, etc.
• Complete required paperwork detailing beginning weights, feed and vet costs, and sales receipts.  Producers must submit completed paperwork to receive a PVAP-incentive payment.
• Payment will be $30/head (maximum $1,000) for producers completing the program.
• Producers will receive a closeout report detailing the costs and returns of the project.

Results

            A summary of closeouts for 10 farms that completed the program is in the chart below.  Closeout is still pending on one additional farm.

This program included 3 farms from Breckinridge County that were first timers to the concept of pre-conditioning calves.  These calves were sold at the local stockyards in a Yellow Tag Preconditioned calf sale.  Along with these 3 farms, 49 calves, were 1100 more calves from 8 counties and 2 states, KY and Indiana.  These producers ranged from first timers to long timers (sold in a Yellow Tag or CPH 45) sale for at least 18 years.  The pre-conditioned concept continues to produce higher profits for those invested in the cattle business.   Now, with the PVAP program, our 3 producers will be able to show other producers the actual profits for their calves to convince their neighbors that pre-conditioning calves pays off.  

In June a Yellow Tag Sale was conducted and profits were measured with ten producers.  They producers reported an average net income of $110 per head sold in the sale, compared to sales held the week prior and after the Yellow Tag sale.  This sale also hosted nearly 1000 head of calves from 6 counties and 2 states, Kentucky and Indiana.  Through PVAP program, we can now help producers take every aspect of preconditioning calves into consideration so they can figure their profit.