A 3-yr experiment was conducted with cows and their calves to evaluate resource inputs, animal performance, and carcass characteristics of two production systems. In the control system, cows (CON; n = 99/yr) grazed pasture and were fed hay during the winter, and CON steer calves were finished in the feedlot for 211 d after weaning. In the treatment system (TRT; n = 100/yr), cows grazed pasture and crop residue during the winter and were fed hay. Treatment steer calves grazed crop residue after weaning, grazed pasture in the spring and summer, and were finished in the feedlot for 90 d. Body condition scores after TRT cows returned from crop residue grazing were greater (P < 0.01) for CON than for TRT cows. Calving rates were similar for both groups (CON = 91%; TRT = 93%). In the feedlot, CON steers had lower (P < 0.05) ADG and DMI, but were more efficient (P < 0.01) than TRT steers. Treatment steers had greater (P < 0.05) final weight, hot carcass weight and longissimus muscle area, and decreased marbling score. The cost per weaned calf and weaning breakeven were greater (P = 0.07) for the CON system than for the TRT system