Bull Price

[Anonymous]

I have been in the purebreed seedstock business for about 4 years. Is there a rule of thumb of how much I can pay for a breed heifer, How much would the yearly bull have to bring to make the business profitable and pay for the heifer if I keep her for 5 years?

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[Anonymous]

These questions you will have to answer yourself as none of us have the same overhead and fixed cost structure as you do. The best thing to do is to prepare a budget analysis for the next 5(+) years on a spreadsheet showing your cost to produce each calf and what each calf will return. If you have left a cell for cow depreciation you can now use a trial and error method to arrive at what you can pay for the heifer based upon how much money you want to make in your operation. The bull cost would run the same. Figure out using the EPD of your target bull how much the calves he sires will be worth and then work backwards to figure how much you can pay for him and still make your targeted profit margin.

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[Anonymous]

Good advise from Scott. You'll have to know what you can expect to sell her calves for before you know what to pay. But if you're just getting started, it might take a while to get your reputation established and get the true value of your calves. Good luck..

> I have been in the purebreed
> seedstock business for about 4
> years. Is there a rule of thumb of
> how much I can pay for a breed
> heifer, How much would the yearly
> bull have to bring to make the
> business profitable and pay for
> the heifer if I keep her for 5
> years?

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