Gross Return from purchasing Bred Heifers ?

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talltimber
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Re: Gross Return from purchasing Bred Heifers ?

Postby talltimber » Tue Oct 31, 2017 5:42 am

For some, it is to see and to be seen, for sure. They don't keep the cattle they buy long enough to do nothing but lose money, this is at a special hfr sale in my area.

Run of the mill breds and kill cows are not bringing much here either. I've got a couple older cows that need to go. Their bags are not what they once were, and are starting to require some assistance to get the calf started. Once the calf gets going, he can keep her beat down, and they raise some dandies. But with an outside job, I really dont' have the time for all that.

SS, how does your stocking rate vary with calf price? Are you stocking for forage, or stocking for input capability/value as in bought feed?
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BrangusUSA
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Re: Gross Return from purchasing Bred Heifers ?

Postby BrangusUSA » Tue Oct 31, 2017 9:54 am

Zirlot that was an interesting post about buying 60 mixed and then breeding and reselling them. I had considered doing the same. I also had looked at doing it with Brangus and Angus (red and black). Have a bunch of excess pasture so I need to increase stocking rate or lease less. I cant see getting $1250 each at sale barn here. Cheapest course of action would be to hold everything except culls and bull calves.
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Dave
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Re: Gross Return from purchasing Bred Heifers ?

Postby Dave » Tue Oct 31, 2017 10:11 am

BrangusUSA wrote:Zirlot that was an interesting post about buying 60 mixed and then breeding and reselling them. I had considered doing the same. I also had looked at doing it with Brangus and Angus (red and black). Have a bunch of excess pasture so I need to increase stocking rate or lease less. I cant see getting $1250 each at sale barn here. Cheapest course of action would be to hold everything except culls and bull calves.


I did that purchase of 60 heifers, breeding, and selling as breds for 4 years. Made good money first three years. Gave back the profit from one of those years on year four. It works in years of a growing cow herd. Not so much on years the market turns. I wish I had kept them on that fourth year and calved them out.
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Re: Gross Return from purchasing Bred Heifers ?

Postby Stocker Steve » Tue Oct 31, 2017 8:42 pm

talltimber wrote:SS, how does your stocking rate vary with calf price? Are you stocking for forage, or stocking for input capability/value as in bought feed?


Trying to stocking for increased soil fertility and increased profits. More cattle usually means improving soil fertility, but improving profit is a lot more complicated. This is what I am trying to work:

1) Livestock Classes
I used to focus mostly on gross margin per acre. This leads you to grazing young stock, not cows. This helps with drought planning but this also greatly increases your price risk... I think you need to find a personal balance here.
2) Livestock Performance
I also do a few gross margin what ifs like 100# lower weaning weight (from poor or old cows), and grazing hayfields (and buying in hay), and adding N. With current calf prices some cows are not generating a positive gross margin so they are gone. With $3.00 calves they would have stayed for "one more" and herd size would have gone up. I think you need to be a bit careful here so you are going to some stocking extreme and not putting away some profit for the next down turn.
3) Forage Chain
With a mix of short term cattle and cow/calf pairs you can do a better job of matching the annual forage production curve. So you end up with a variable stocking rate - - where you might try to match cow numbers to fall production, and have enough short term cattle to mostly utilize the spring peak, and perhaps some high energy annuals. This may seem like a huge amount of management, but you can pasture one herd at a higher stocking density on perennial pasture and get most of the benefit.
4) Delayed Weaning
Once you cull a few poor milkers and match up better with forage production - - it may become profitable to delay weaning IF you have the moisture to produce feeder quality feed. I dabble with cover crops, but it is usually easier to purchase local discounted feed. So far this year I have fed (too wet to combine) green chop corn and (too weedy) to sell oats. I think your location will dictate the practicality of this.
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Brute 23
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Re: Gross Return from purchasing Bred Heifers ?

Postby Brute 23 » Wed Nov 01, 2017 12:39 am

That sounds exhausting. :shock:

What do you do Stocker Steve? I can never follow your actual end game? You buy and flip cattle short term?
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Stocker Steve
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Re: Gross Return from purchasing Bred Heifers ?

Postby Stocker Steve » Wed Nov 01, 2017 8:39 am

Yes, I try a lot of things and it can get complex. Good thing the neighbors keep a close eye on it all.

The acreage mix shifts some as we build fertility. Right now it is about 65% cows, 25% yearlings, 10% low input grain.

The end game has some open issues. The short answer would be high stocking rates and low inputs with organic matter over 3%.
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Re: Gross Return from purchasing Bred Heifers ?

Postby Silver » Sat Nov 04, 2017 10:23 am

Doesn't look to me like breeding heifers is a profitable avenue, at least this year. In this part of the world people think they shouldn't have to pay more than $1,500 for them. Yesterday I sold open heifers for $1930. Someone could have bought those heifers as calves last fall for under $1,000 a head.
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