Fair Value of Open Replacement Heifers

[Stocker Steve]

I have a neighbor who wants to cherry pick a couple fancy open heifers out of my herd of stockers. I know what feeders are worth. What is a fair price for commerical replacement heifers vs. #1 feeder heifers?

 

[dun]

50% more then a feeder.

dun

 

[Jovid]

In your situation they would be worth the same as they are the same animals. If you take them to the sale barn they would be worth the price they bring.

Now what you can get your neighbor to pay that's a different issue.

 

[rgv]

Dun -

Why would it be 50% more?
Seems it would be a minimum price of the current price @ salebarn, maybe a premium for hand picking the best out of the bunch. But 50 % seems like a hefty premium.

RGV

 

[dun]

It is a hefty premium. But if you look at the return that she will generate I think it's fair. Particularly if they are the pick of the crop.
But, we only wold consider sellinh heifers that we had felt were of enough qulaity to be retained as breeding stock. If they're not good enough to keep as breeding stock they sure shouldn;t be good enough quality to sell as breeding stock.

dun

 

[ALACOWMAN]

Thats right if they are that good its worth a little more to a breeder to buy them ready too breed in good condition if you took them too a commercial replacment heifer sale they would bring more. so i can see them being worth more than market price. it would be that are wait till you sold um and ride to the barn with you and bid against the buyers. then i would worry about them picking up shipping fever during their stay there

 

[Jovid]

They are still worth the same.

What you can sell them for is totally up to what the buyer is willing to pay.

 

[dun]

They are still worth the same.

What you can sell them for is totally up to what the buyer is willing to pay.

By that reasoning, 2 heifers of the same weight with the potential to finish at the same weight and same quality are worth the same even if one is sway backed, high tail headed, screw clawed, post legged and a freemartin. In the feedlot they have the same value, and at the auction you'ld get the same dolars. But you don;t think that as a breeder the other one is worth more?

dun

 

[Jovid]

They are still worth the same.

What you can sell them for is totally up to what the buyer is willing to pay.

By that reasoning, 2 heifers of the same weight with the potential to finish at the same weight and same quality are worth the same even if one is sway backed, high tail headed, screw clawed, post legged and a freemartin. In the feedlot they have the same value, and at the auction you'ld get the same dolars. But you don;t think that as a breeder the other one is worth more?

dun

Absolutely.

Steve was asking about selling the exact same animals but to a different type of buyer. So in that situation they would be worth the same but the price he gets will depend on what the buyer is willing to pay. The neighbor may only want to pay feeder prce for replacement heifers.

 

[aplusmnt]

Not sure I would want to give $300.00 more on a $600.00 young heifer. Or $1,200.00 for a $800.00 heifer. Getting to close to what you could buy one already bred for.

Neighbor of ours offered to hold a few heifers for me, we weigh them and then I pay price of what his group brought at sale. This was way generous to me. But I would have not had a problem paying more.

Now if you have the quality of heifers that Dun has (saw some pictures of his) I can understand him getting 50% more. But some select ones out of a bunch of feeder heifers, they would have to be awful nice heifers.

 

[eatbeef]

some outfits charge steer price although most won't let ya cut and sort for that, add$ 25 to $50 for sorting

 

[Stocker Steve]

The fancy heifers will sell for more than the average ones, so they are worth more. We have a local guy who buys fancy blacks out of the sales barn, groups them, syncs & breeds them, and then ultrasounds for calf sex before reselling. He gets a big premium for this - - even though he pays more than average for his open heifers.

I am trying to be fair with a neighbors and not charge a big premium. Selling select open heifers for steer price could be a good starting point.

 

[Bullbuyer]

I wouldn't go more than 25% over market value if I were buying.

 

[got_cows?]

When you sell breeders I'm assuming you will guarantee that they will breed? Why wouldn't that be worth more? You send your heifer to the feed lot you never have to think about it again. Replacements should be the cream of the crop and you are selling yourself short if you let someone buy them for kill price.

 

[auctionboy]

Sell for .05 .10 over the auction price. You will save the commission. It is a good deal both ways even .20 above your feeder price.

 

[ALACOWMAN]

They are still worth the same.

What you can sell them for is totally up to what the buyer is willing to pay.

By that reasoning, 2 heifers of the same weight with the potential to finish at the same weight and same quality are worth the same even if one is sway backed, high tail headed, screw clawed, post legged and a freemartin. In the feedlot they have the same value, and at the auction you'ld get the same dolars. But you don;t think that as a breeder the other one is worth more?

dun

Absolutely.

Steve was asking about selling the exact same animals but to a different type of buyer. So in that situation they would be worth the same but the price he gets will depend on what the buyer is willing to pay. The neighbor may only want to pay feeder prce for replacement heifers.

then he would be going to the market and buying his own. or he would pay me a little extra to buy them in good shape ready too go. heres a chance for steve to make a little return on his investment and the neighbor to still get a fair deal

 

[mnmtranching]

Your neighbor sees the potential for some good stock cows.
I would figure what I would make per stocker. If it's 50.$ I would add the 50 plus top price for for fancy Heifers. Fair deal.

mnmt