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Bred Heifer Pricing ?
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<blockquote data-quote="Stocker Steve" data-source="post: 1619379" data-attributes="member: 1715"><p>Bud was a keep it simple kind of a guy, and he was not on the zero cow depreciation band wagon.</p><p></p><p>My recollection was that to compare bred trades he allowed $100/yr in depreciation, adjusted for cull weight, and adjusted for cost to calving. So a typical "good trade' was selling an older cow, and buying back a younger one for similar money, but not necessarily a heifer.</p><p></p><p>I have the sell old buy younger down. Estimating cow longevity can be hard, and I am still working on the planned profit part.</p><p></p><p>Bud did not believe in forecasting. Bud used the current cull market price in his calculations. Most speculators use some seasonal price adjustment. Guys who bought older bred cows for 47 cents last fall have made a nice paper profit. Bud admitted his sell buy system worked more often on calves than cows. Too many emotional cow bidders. :nod:</p></blockquote><p></p>
[QUOTE="Stocker Steve, post: 1619379, member: 1715"] Bud was a keep it simple kind of a guy, and he was not on the zero cow depreciation band wagon. My recollection was that to compare bred trades he allowed $100/yr in depreciation, adjusted for cull weight, and adjusted for cost to calving. So a typical "good trade' was selling an older cow, and buying back a younger one for similar money, but not necessarily a heifer. I have the sell old buy younger down. Estimating cow longevity can be hard, and I am still working on the planned profit part. Bud did not believe in forecasting. Bud used the current cull market price in his calculations. Most speculators use some seasonal price adjustment. Guys who bought older bred cows for 47 cents last fall have made a nice paper profit. Bud admitted his sell buy system worked more often on calves than cows. Too many emotional cow bidders. :nod: [/QUOTE]
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