Replacement Heifers

[t5j1h2]

Im new to the board and for the most part cattle in general. I figure everyone has in their mind what direction they would want to take their cattle operation, as do I. I THINK I understand that for the most part cattle operations are cow calf operations. I also understand that seed stock operations require a name, a history, a background, a reputation to be successful.

My question is, Would it be feasible to have a cattle operation with the purpose of selling replacement heifers? If so, would it take a reputation to be successful? or could you step into this type of operation just as you could step into a cow/calf operation?

Thanks,
TJH

 

[cypressfarms]

Hi TJ,

You don't need an established name to make money on replacement heifers. With cattle level at historic low numbers, and rain coming down in needed areas, I think the next several years will be good to the replacement producers. And experienced buyers know what they like/want, and they can tell very quickly if a heifer is worth their investment....No established name needed.

There are really two types of replacement producers in my opinion: those that bring their heifers (bred) to special replacement sales where they are grouped (usually in groups of 5 or 10) of similar type/size. They are ran through the stockyard and lately all heck breaks loose (the price jumps!). The second type of replacement producer does have a reputation built up, and sells heifers straight off his/her farm. The second type may be able to charge a little more, or set his own price - he can often show you the sire and momas on site, which is valuable info., and he/she will likely have other useful info like birthweight, weaning weight and other data.

With the replacement sale, you are taking more of a risk...but what isn't risky with cattle?

I would not, however, recommend just bringing your replacements to a regular once a week sale to be bid on. You'll make more money at the replacement sales (there are at least 3-4 per year within an hour drive of me); this is primarily because your customers (the bidders) are there to BUY REPLACEMENTS. At a normal weekly sale, people will buy replacements if something catches their eye, but there isn't the concentrated buyers that you'd have at a replacement sale.

Hope I answered your question

 

[t5j1h2]

Thanks for the information. Being new to the industry I am not looking to have a huge cattle ranch, or quiting my job to raise cattle but I am looking to try and have a little operation that I hopefully enjoy managing, and that will possibly pay its own way with hopes of turning a little bit of profit.

As I said in the OP everyone I am sure each individual has their perfect operation in mind. Mine is a pasture of somewhere between 5-10 registered Hereford cows, probably AI with a Brahman bull with hopes of producing some good F1 Tigerstripe heifers. I like the looks of Herefords, but I really like the F1 Tigerstripes. Through research I have done so far it seems that the F1 does really good in my neck of the woods and like I said I think that I would really like to raise them to sell as replacements. I do not feel like I would ever have more than 6-7 of them to sell even with a majority heifer crop. I would rather get to where I had a name of having good replacement heifers and selling them right off the farm, but I realize that does not come over night.

Like I stated, I am new to the cattle world but do have alot of interest. Is this a legitimate plan? Is this something that could pay its own way? On average say I could sell 5 heifers a year, is that enough to even matter or would it pretty much be an expensive hobby?

Just looking for information.

Thanks
TJH

 

[Cabo]

Until you get a reputation of having good heifers you can advertise on Craigs List. Can't beat the cost of the ad and a lot of people will see it. I saw this one today: http://jacksontn.craigslist.org/grd/3756941298.html

 

[Caustic Burno]

Cypress was right on a lot of point's every heifer in my pasture is spoke for.
I said I wasn't going to rebuild after the drought and I have caught myself adding to the number's.
There is going to be a huge market for heifer's with some ear around here for year's.
The black, red baldie with ear or tiger is going to fetch a premium in this area.

 

[cypressfarms]

Cypress was right on a lot of point's every heifer in my pasture is spoke for.
I said I wasn't going to rebuild after the drought and I have caught myself adding to the number's.
There is going to be a huge market for heifer's with some ear around here for year's.
The black, red baldie with ear or tiger is going to fetch a premium in this area.

And caustic, because a lot of cattlemen - myself included - will retain heifers (because buying replacements is just too expensive), the price of heifers will even be higher. I would not be surprised to see the price of heifer calves surpass the price of steer calves over the next several years, just due to the fact that people need replacements to grow their herd.

I've been fortunate this year in that most of my calves have been heifers. So, as long as they look nice, they'll be added into the herd...

 

[Caustic Burno]

Cypress I am putting together a group of girl's to do just what you are talking about. The market has changed for me and after the drought I couldn't play the seed stock game. Currently people are willing to pay a premium for yearling girl's.

I have been buying 1/2 to 1/4 brimmer girl's currently running an Angus bull producing a black brockle face or baldie calf. I still have a few Hereford's left as they age out I will be replacing them with Braford or Brangus type girl's. They will produce top selling steer calves through the barn and all the heifer's will fetch a premium as well.
The options to produce the WOW heifer's is almost endless with that type of cow.

 

[t5j1h2]

Thanks for all the insight. Every little tid bit of information is always helpful.
Thanks
TJH

 

[BC]

I bought a couple of Brangus type heifers for replacements Saturday. Average weight was 468 lbs and average cost per lb. was $146.50 and average per head was $685.62

 

[Anonymous]

Ive got a Brangus heifer right now that is ~900 lbs that I picked up for 800.00. In 30 days ill blood test her and if she's open I'll make a nice little profit. And I'm sitting on 6 other heifers that avg 450 right now at 7 months and hoping they look good at at year so I can breed them at 15. I can't afford to keep buying replacements that are also from unknown sources.

 

[Brute 23]

Networking will play a major role on both the buying and selling end. Be leary of sales. Top producers don't always take their top cut to sales. Those are sold long before the sale. ;-)

 

[Dave]

I know a guy who runs about 200 cows that are registered Angus. He told me several years ago that he runs his program primarily to raise heifers for replacements. As he said you can turn over a rock and find 2 guys trying to raise bulls but people breeding for maternal quality cattle aiming at the replacement market are rare enough that a person can do good at it. He does sell a few bulls but his main market is selling groups of quality heifers to commercial ranchers.

 

[t5j1h2]

cypressfarms and Caustic Burno - I may not be understanding correctly but....if most cattlemen produce their own replacements, who makes up the market for selling replacements?

 

[Anonymous]

cypressfarms and Caustic Burno - I may not be understanding correctly but....if most cattlemen produce their own replacements, who makes up the market for selling replacements?

Most producers only replace 10% per year. Unless they are also growing their operation. Tht would still theoretically leave 40% of the calf crop to go to sales under a 50/50 bull heifer ratio

 

[Caustic Burno]

cypressfarms and Caustic Burno - I may not be understanding correctly but....if most cattlemen produce their own replacements, who makes up the market for selling replacements?

What you need to understand replacement heifer's that you retain are not free they are very costly.

I know more that buy versus retain and we have turned this ground over and over on here.
I watch replacement's sell every week at the barn. Everything from singles to pen's of five.
There is no advantage IMO for the commercial cattleman to retain.

 

[Anonymous]

cypressfarms and Caustic Burno - I may not be understanding correctly but....if most cattlemen produce their own replacements, who makes up the market for selling replacements?

What you need to understand replacement heifer's that you retain are not free they are very costly.


There is no advantage IMO for the commercial cattleman to retain.

There is a cost associated with retention but the last half of what I quoted you is a pretty blanket statement that isn't always true. A low input operation would benefit more from retaining heifers than an operation that requires high management and a higher daily cost per animal unit

 

[highgrit]

I like to raise my own replacement heifers. My way of thinking is calves that were raised here know what it takes to make it here. And I don't have to worry about bringing in disease from other cattle. Also it's nice to know the history of my cows. I have always made out good buying pairs off the farm, breaking even is about the worst I have done.

 

[Brute 23]

Im with you highgrit. There is a lot of value in that animal being use to the way you operate. By the time my heifers are ready to breed they are just how like them. When you retain cattle generation after generation you know what you are getting.

With that said... the majority of junk I see people keep... should not be kept... especially the black ones. ;-)

 

[Dave]

There are a lot of sides to this disscussion. One advantage to purchased replacement heifers is that they are not daughters of your bulls. So if you have high dollar bulls you can keep them longer without worrying about them breeding their own daughters.

A real good cattleman told me 10 years ago or so that he figured he was into heifers $1,100 a head at the time of their first calf was born. And he said that was based on 35 cents a day to graze his own grass in the summer. I am sure if you asked him today that price has gone up considerably.

 

[Caustic Burno]

cypressfarms and Caustic Burno - I may not be understanding correctly but....if most cattlemen produce their own replacements, who makes up the market for selling replacements?

What you need to understand replacement heifer's that you retain are not free they are very costly.


There is no advantage IMO for the commercial cattleman to retain.

There is a cost associated with retention but the last half of what I quoted you is a pretty blanket statement that isn't always true. A low input operation would benefit more from retaining heifers than an operation that requires high management and a higher daily cost per animal unit

There is no way I can pencil out carrying two cow's for two year's with no return to the farm.
That is what it cost to retain that heifer along with all the other associated cost with raising her.
That cost will vary by region. Here I would have to feed 16 roll's of hay to carry two cow's for two year's before I get any income that cost alone is 800 dollar's
Secondly there is no depreciation value on the retained heifer as she has no value to the IRS unless sold.
The bought heifer or cow is ready for immediate service and has depreciation value.
Again IMO there is no benifit to the commercial cattleman.
I am not pasture blind either as I am alway's looking for the more better cow, that is why we live so long as there is no perfect herd. If we do get there we die the next week and our kid's haul them to the salebarn.