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Bred Heifer Pricing ?
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<blockquote data-quote="Stocker Steve" data-source="post: 1619391" data-attributes="member: 1715"><p>I would be comfortable expecting an average of 2 calves out of them. One an done would be conservative. So $100 for one calfs depreciation.</p><p>Unproven heifers are a tough call. I would be comfortable expecting an average of 3 calves out of them. So $300 for 3 calves of depreciation.</p><p>Assume the same calving date. Lighter heifer would still eat less feed to calving - - assume $50 cost to calving savings.</p><p>Only a 300-100+50=$150 gross price difference before you adjust for cull weight.</p><p>So at 50 cents per pound cull price the purchase by the pound cow could be a better buy than the heifer if she was less 150/.50=300 pounds heavier.</p><p>Seems like we often overpay for heifers based on this calculation. Speculators would say that the heifer could be worth more than current cull price after 3 calves. That would depend on ability to forecast the cattle price cycle and great bred back. Getting pretty deep now...</p><p>I think the sad fact is bred heifers only make money during a portion of the cattle price cycle.</p></blockquote><p></p>
[QUOTE="Stocker Steve, post: 1619391, member: 1715"] I would be comfortable expecting an average of 2 calves out of them. One an done would be conservative. So $100 for one calfs depreciation. Unproven heifers are a tough call. I would be comfortable expecting an average of 3 calves out of them. So $300 for 3 calves of depreciation. Assume the same calving date. Lighter heifer would still eat less feed to calving - - assume $50 cost to calving savings. Only a 300-100+50=$150 gross price difference before you adjust for cull weight. So at 50 cents per pound cull price the purchase by the pound cow could be a better buy than the heifer if she was less 150/.50=300 pounds heavier. Seems like we often overpay for heifers based on this calculation. Speculators would say that the heifer could be worth more than current cull price after 3 calves. That would depend on ability to forecast the cattle price cycle and great bred back. Getting pretty deep now... I think the sad fact is bred heifers only make money during a portion of the cattle price cycle. [/QUOTE]
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