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Raising vs buying replacement heifers
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<blockquote data-quote="DiamondSCattleCo" data-source="post: 351678" data-attributes="member: 2862"><p>I did a cash analysis above aplus, therefore opportunity costs don't enter into the equation. Besides, whats your true opportunity cost in this case? You've lost the $500 on the sale of a calf, but in return you now have a $1200 bred heifer. So you really haven't lost anything, but added $700 value to that $500 calf.</p><p></p><p>Edit: The one cost I didn't add in, but should have is the initial cost of the cow amortized across all its calves in its life. Its tough to peg that though since the cull market swings wildly up here these days. You have to start your herd somewhere, so you buy a $1200 heifer. She's going to deliver _at least_ 10 calves (or she'd better anyway), and at todays cull prices, she'll be worth $200. So add another $100 to the cost of the cow in my calculations which raises the cost of the replacement heifer to $886.</p><p></p><p>CowpokeJ</p><p></p><p>My heifers are dropping calves by 24 months of age. If they're not, they leave as I don't allow slow maturing animals to stay. So thats 9 months inside her dam (part of the $327), and another 15 months on feed/grass as either a feeder or a bred heifer.</p><p></p><p>As I said Cowpoke, my costs will not be the same as yours, and its important that each person do their own analysis of the situation.</p><p></p><p>Rod</p></blockquote><p></p>
[QUOTE="DiamondSCattleCo, post: 351678, member: 2862"] I did a cash analysis above aplus, therefore opportunity costs don't enter into the equation. Besides, whats your true opportunity cost in this case? You've lost the $500 on the sale of a calf, but in return you now have a $1200 bred heifer. So you really haven't lost anything, but added $700 value to that $500 calf. Edit: The one cost I didn't add in, but should have is the initial cost of the cow amortized across all its calves in its life. Its tough to peg that though since the cull market swings wildly up here these days. You have to start your herd somewhere, so you buy a $1200 heifer. She's going to deliver _at least_ 10 calves (or she'd better anyway), and at todays cull prices, she'll be worth $200. So add another $100 to the cost of the cow in my calculations which raises the cost of the replacement heifer to $886. CowpokeJ My heifers are dropping calves by 24 months of age. If they're not, they leave as I don't allow slow maturing animals to stay. So thats 9 months inside her dam (part of the $327), and another 15 months on feed/grass as either a feeder or a bred heifer. As I said Cowpoke, my costs will not be the same as yours, and its important that each person do their own analysis of the situation. Rod [/QUOTE]
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