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Bred Heifer Pricing Question
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<blockquote data-quote="jdg" data-source="post: 1474604" data-attributes="member: 13350"><p>You get what you pay for ain't always true in the cattle business, as some people are known to pay more for something than it is worth. Having said that, I believe that there are $1500 bred heifers that are overpriced, and $2500 open heifers that are underpriced, but there's a lot more risk involved in the latter than the former. One bull calf raised by that $2500 heifer might NET you $3500 two years down the road. I said "might".</p><p></p><p> Are you selling freezer beef direct, club calves, registered breeding stock? Are you retaining ownership in a feedlot? Marketing is the difference maker. Direct sales are less volatile than taking your calves to the local barn when you need money. </p><p></p><p>I usually put a price on the sale heifers I believe they are worth to me, and keep them if they don't sell. This leaves me the option to sell three-in-one's for a premium after calving. So far this has worked in my model, and keeps my genetics moving in the right direction. </p><p></p><p>To answer the question, I'd say the heifers are probably worth $1600-$1900, but that's sight unseen and not knowing who's looking.</p></blockquote><p></p>
[QUOTE="jdg, post: 1474604, member: 13350"] You get what you pay for ain't always true in the cattle business, as some people are known to pay more for something than it is worth. Having said that, I believe that there are $1500 bred heifers that are overpriced, and $2500 open heifers that are underpriced, but there's a lot more risk involved in the latter than the former. One bull calf raised by that $2500 heifer might NET you $3500 two years down the road. I said "might". Are you selling freezer beef direct, club calves, registered breeding stock? Are you retaining ownership in a feedlot? Marketing is the difference maker. Direct sales are less volatile than taking your calves to the local barn when you need money. I usually put a price on the sale heifers I believe they are worth to me, and keep them if they don't sell. This leaves me the option to sell three-in-one's for a premium after calving. So far this has worked in my model, and keeps my genetics moving in the right direction. To answer the question, I'd say the heifers are probably worth $1600-$1900, but that's sight unseen and not knowing who's looking. [/QUOTE]
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