Innovations in Virtual Fencing and Carbon Markets
- 10 hours ago
- 9 min read
Levi Kokes owns and operates the 8,000-acre Kokes Ranch near Crook, Colorado. The ranch is comprised of approximately 7,000 acres of grazing land (which he mostly leases from his family) and 1,000 acres of dryland farm ground. He grows a mix of forage, corn, milo, sorghum sudangrass, millet, and wheat. For over 10 years, Levi has been working to transition this operation to regenerative agriculture practices in a way that will allow him to successfully transition the farm from the previous generation’s management.
Implementing New Practices
As part of the professional development that Levi undertook for that transition was joining the Colorado Conservation Tillage Association’s FARMS Program (Farmers Advancing Regenerative Management Systems). As part of that program, participants were provided a scholarship to HMI’s RAMP (Regenerative Agriculture Mentor Program). Levi joined HMI’s RAMP program in 2020 and started attending the in-person intensives as well as taking HMI’s Online Courses.
“I took HMI’s Financial Planning, Cropping Planning, Grazing Planning, and the Foundations course,” says Levi. “The RAMP program was set up so we had quarterly meetings on someone’s ranch and we had one meeting virtually. We were able to get together with other people and talk about all the different topics like no-till, cover crops, and holistic grazing. We could talk to people about what was working or what wasn’t and how to do different things or how to find funding to build infrastructure.
“One of the guys in the group, Louis Martin, was a huge source of info on how to put up infrastructure and how to get funding. We talked about stuff to avoid. I was able to go through the HMI principles in person with the HMI instructors and facilitators Wayne Knight and Linda Long. That helped to really learn those principles and apply them. The online classes are great, but you get a lot quickly and you have to do a lot of the work on your own. The RAMP program really helped me.”
Levi also learned about a carbon market company and a virtual fencing company that that would help him build his business through Green America’s Soil Climate Initiative Pilot Program that he was working with at the time. “Now 90% of my land is in the carbon program with Kateri and I run my cattle with Halter virtual fence,” says Levi. “I have 300 collars and can do the high intensity grazing I want. I used Vence collars for one year and then Halter came into US and we switched to them. We have 7,000 acres of rangeland and 1,000 acres of dryland farm ground. We grow dryland corn, milo, proso millet, but mostly oats, triticale, and sorghum sudangrass. We learned about cover crops in the FARMS program, although we had already been leaning toward doing that. We did find a market for the white milo, but mostly we put in the infrastructure so we could graze the cover crops we’ve grown because I don’t have an organic market near me.”
Finding Funding
Levi says he now has a 30-year contract with Kateri which provides the sampling, certification and aggregation for carbon credits. “They take a meter deep soil sample across different soil types on our property,” says Levi. “Then in Years 5 and 10 they will sample again. Year 5 is when they would sell the credits and we get 70% of the sale. In Years 1-4 we get a participation payment of $1/acre. They estimate that we are sequestering .4-.7 tons per acre (½ ton/acre average) and they will pay a credit of $25-40/ton.
“They also offer reimbursement for the virtual fence collars. I purchase the collars and subscription and then they reimburse me. In Year 5, the program costs come out of the carbon payment. Vence charged $50/collar (with battery powered at $60/collar). Halter collars cost $66/year and are solar powered so we don’t have to put the cattle in the chute to change batteries every 3-6 months. The subscription cost is $1,200/year.
“I’m on 2-3-day moves in the spring. To do what I am doing with the collars with poly or high tensile fence, I’d be spending 10-12 hours/twice a week. I would have to hire someone to do that (which would cost at least $20,000/year). With Halter I have the cattle trained within 1 week. With Vence you can’t go below 100 acres. But, with Halter I put 230 cows, replacement heifers, and first-calf heifers on 20 acres all together for about 4 hours. My biggest group that I’ve run for longer than that was 97 cows on 30-50 acres for 3-5 days.
“My water infrastructure won’t support the 300 cows as one herd so I have to separate herds. I have one group in Nebraska, and 2 in Colorado (on the East and West half of the ranch). I also have some older cows on a sub-irrigated grass section.
“With the collars I can set up a new paddock in 15-20 minutes. I can schedule shifts in the fencing for 4 a.m. Now I can move my cows from my phone and build the virtual fence on my phone. The cows are 40 minutes away so now I go once a week to check on them and the range condition. The cattle get cues on the collar to let them know that the fencing has shifted. The collars have speakers and solar panels.
“As the cattle approach the boundary line the collars beep. If they keep going then they get a shock. If they are facing the right direction for a fence break then they get a vibration. At that point they move themselves. The break will close on its own. I can schedule that break to remain open for 5 minutes to 1 day long. When the cattle are calving, I leave the break for longer so the calves can join up. Usually, I just have the break open for about 1-2 hours. In the heat of the day, they aren’t moving. I build the break around the water and give them plenty of space. I use alleys and breaks coming off the alley to shift them to another paddock.
“The software isn’t looking at the amount of production in a given area. I go out and see what is out there and available and then I estimate the size of the paddock needed for the animals. I have five pastures on the east side of the ranch and 7 on the west in physical fence. I lease all the land with an operating lease from the holding entity.
“The recovery periods are based a lot on what I learned from the Kateri ranch consultant (and HMI Certified Educator) Kirk Gadzia. He set up photo points and did the monitoring using the Bullseye method. I’m looking for development of the seed head for a complete recovery. That can take the full growing season (which is 5-6 months) to a full year because of some of the pastures being degraded. Part of the grazing plan is to keep a certain amount of the ranch in recovery for a full year. There was a lot of set stocking before I started management. So, we had to destock at first and that has allowed for longer recovery periods.
“I’m also thinking of the recovery time for my drought plan and stockpiling forage for the winter or early spring. It’s all part of our plan. Right now, we are keeping our stocking rate the same at 330 cows. I could go to 400 cows, but the prices don’t allow it. I’m trying to find a way to do it.
Exploring Opportunities
Levi is excited about the opportunities ahead now that he has the tools to make better decisions. “What I learned from HMI’s RAMP program was a systems way of thinking,” says Levi. “With Holistic Management I learned that everything is affected by everything else and nothing is linear. But, you have to go through the decision-making process, and learn to be adaptive if you are going to succeed. My grazing plan needs to change several times through the year. For example, we were really dry going into the spring because we had no snow in the winter. It was well through April before we got any rain. So, we sold some cows. Then it started raining so we kept older cows to calve and then sell. I started bale grazing, and actually slowed them down because the cool season grasses didn’t really get going until the end of May. We were about a month behind and then we were able to catch up.
“We have a lot of old cows that we need to get rid of. I need to do some sell/buy marketing and buy some undervalued heifers after selling the cows. I might buy some bred heifers or go to the sale barn and buy some small groups and put them together and get rid of the ones who don’t fit. There are good genetics even at the sale barns for replacement heifers. I may sell/buy calves to graze cover crops.
“Learning about the Gross Profit Analysis at the RAMP group really helped with understanding the true cost of production and how you have to include depreciation. That was the biggest eye opening I had. You have to try to figure out what your actual cow costs are so you can figure out which enterprise is best for you, whether it is cows or heifers. That has been really helpful especially with crazy prices like there are now. That information keeps you in line.
“Right now, I am working on increasing our stocking rate by 25-30%. This in only the third season for taking over the ranch management here. We just came off a nasty drought so I am being slow and deliberate in the restocking until the grass is here.
“I got infrastructure grants through Kiss the Ground and Zero Footprint and cost share through the conservation district. I also got an NRCS Environmental Quality Incentives Program (EQIP) grant for water storage, pipeline, and troughs. My goal is to get to one-day moves, but I’ve got to work out my land plan. I’ve talked to the NRCS guys where it would be best to put the water. I got a grant for using a mobile tank and solar mobile booster pump so I can run out 1,000 feet from the booster pump to the mobile tank.
“I’m also working on our genetics so that the cattle are more grass efficient, fly resistant, and a medium frame that fits our context. Tenderness gene, genetic marker. We use Kit Pharo Tenet Certified bulls that are predisposed to tenderness and are easy keepers. “
“The RAMP program also taught me about safe to fail trials. Learning about those gave me the confidence to put 230 head on 20 acres. I learned you just have to give it enough recovery. I tried some small areas (less than an acre) and gave them 90- to 120-day recovery. We didn’t get a huge boost in productivity. Then I tried a 40 feet by 40 feet area with 50 cows (the equivalent of 1.3 million pounds/acre stock density) for 4 hours. It definitely improved the forage, but our limiting factor is rain and getting water to the animals so I can do that kind of stock density better.”
Land Health Improvements
Levi is excited about how the land is responding with his improved grazing management. “With the increased stock density, we are starting to see some grasses now we haven’t seen before or we usually only see them in a wet year,” says Levi. “My new favorite plant is leadplant (false indigo). I’m 5th generation on this place and we haven’t seen it before. Now it’s popping up all over the place. We have an intermittent stream that used to only run in heavy rain, but now the water is coming up (not year round) even in years that aren’t wet and we are only getting our usual 10-14 inches. Now we have willows, cottonwoods, sedges, and other riparian plants. In the past it was just a sand draw.
“We are also starting to see more warm season grasses starting in draws and spread up the hills. I’ve seen Big Bluestem, Switchgrass, Prairie Cord Grass, Side Oats Grama, the Blue Gramas, Buffalo grass, Needle and Thread grass, and Sand Dropseed.”
With these kinds of changes on the land and the support Levi now has from his Kateri contract, and improved infrastructure from the NRCS, he is on track to continue his improvements in grazing management and profitability—leading to a successful transition for his farm.