Beef cow-calf farmers are at the center of our production unit program. Efficient cow-calf operations with cost-effective crop rotations can reduce input costs from farm chemicals and equipment and increase yields and profits.
As large ruminants, cattle can make the best use of temporary and long-term pasture in high-yield crop and livestock rotations for high-value markets. To rebuild soil health, yields, and food quality, these rotations may include the judicious use of irrigation with carefully selected farm chemicals and soil additives.
Processing
It is well known that beef processing is not readily available to conventional and specialty cow-calf producers who want to develop new commodity and retail markets. Without processing, producers cannot conduct meaningful product and market research.
Given the lack of processing, near-term and midterm production unit profits will depend on good working relationships with the owners of local feedlots, packing houses, and grain companies that do business with local, regional, and national food companies. Once production unit planning has started, we will discuss preliminary contracts with these key buyers.
However, we cannot rely on new economies-of-scale and commodity markets for very long because major grocery chains and beef packers are already contracting with ranches, farmers, and feeders. The impacts on farm communities of off-market pork and poultry contracts are well known. To survive and thrive over time, smaller farmers must have extensive consumer support in nearby cities.
Therefore, our production unit business model is based on building farmer-owned retail food brands in partnerships with cow-calf producers who are already selling beef to local and regional customers. To build processing capacity, our business plans will include discussions, cost estimates, and contracts with the owners of local locker plants and packing houses. These contracts will center on custom processing for market research.
Supply Management and Quality Control
My informal discussions with cow-calf farmers, feeders, and packers near Omaha suggest some interest in grass-raised and grass-finished beef. However, both buyers and sellers are hesitant. Buyers want to know the producers. They also need reasonable estimates of the production potential and quality. Producers need forward contracts with experienced buyers. Both groups need production standards.
Although production standards for organic beef are available, we need a systematic way to increase the number of quality grass-raised and grass-finished cattle – without the expense of organic certification during product and market development.
We intend to use our production unit system to match herd size with demand. Audit trails and accounting will be standardized.
Production Standards
A clear set of production standards is the first step in evaluating consumer demand for beef produced on regenerative, specialty, and organic farms. My proposed production standard is based on a five-step process that addresses grain-versus-forage, soil health, and medications.
Step 1 cattle would be produced without growth hormones, parasiticides, and antibiotics. These cattle would receive a conventionally produced ration.
Step 2 cattle would be raised without genetically modified (GM) feed and forage.
Step 3 beef would be produced using Step 1 and Step 2 methods plus defined amounts of organic feed and forage (transitional or certified) expressed as a percentage of the total diet.
Step 4 cattle would be certified organic at birth and raised on a certified organic ration.
Step 5 organic beef would be certified as: 1) Grass-raised and grain-finished, or 2) Grass-raised and grass-finished.
For more on this subject, please see Understanding the Different Kinds of Beef in the Marketplace.
Please contact me to arrange an appointment.
Jim Steffen, President
Massena Corporation
402-317-2639
jim@massenafarms.com
Reposted: 02-08-2026