BFE Another problem with yearlings is when you run into years like this one when the 7-8 weight cattle are bring very little more per head than 5 weights.
http://greenvillelivestockauction.com/market-report-98/[/quote said:
The yearling market here is very very seasonal. They need to be gone by Labor Day, to a feedlot locking in the seasonal kill price during February/March/April. Common yearlings brought $1.31 here last fall and had an excellent value of gain. That said, holding cattle is not so great during the declining price part of the cattle cycle. There are ways to manage equity during this phase - - LRP, and sell/buy marketing, are mentioned most often.
One of the things adjustments we are making due to the increasing scarcity of inexpensive hay is to reduce the cow numbers about 15% per year, and increasing yearlings accordingly. Could even have a pretty cow herd at some point. ;-)
I think most cow/calf producers are overstocked in this area. I know I am. If you tweak cow size down, tweak % of cows in the herd down, and increase stockpiling - - you can quickly reach a point where your winter hay usage is about half of what it was. So potentially more of an optimum, not a maximum, number of calves produced per acre per year.