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What's a bull worth?
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<blockquote data-quote="turning grass into beef" data-source="post: 704546" data-attributes="member: 5195"><p>This subject was discussed on this forum about 2 years ago. Here was my opinion at that time and it is the same today.</p><p></p><p>The following is my way of deciding what to pay for a bull. Take it for what it is worth. The first thing to consider is that feeding a good quality bull year round costs the same as feeding a poor quality bull, so that is a wash. The next thing I assume is that you will use a bull on average for 3 years and on average he will sire 33 calves per year. For round figures we will use 100 calves sired in his lifetime. Let's assume that a poor quality bull costs $1000. A bull that costs $2000 will have to return $10 more per calf than the $1000 bull. If you sell 500 pound calves that is a $0.02 per pound difference. 2 questions then have to be analyzed. 1) Will the calves sired by the good bull bring a premium of $0.02 or more because of their quality? and 2) Will the calves off the good bull weigh more (at the same age), thus you will have more pounds of calf to sell. </p><p>If you are keeping your own replacements a third question that will need to be considered is; How will a better quality bull improve my cowherd and thus my calf crop in years to come? </p><p>We raise and sell 2 year old purebred shorthorn bulls. We use our bulls, as well as buy purebred 2 year old horned hereford bulls to use in our commercial cow herd. Based on the reasons stated above we have no problem paying between $3000 and $4000 for a bull if we feel his quality justifies the price.</p></blockquote><p></p>
[QUOTE="turning grass into beef, post: 704546, member: 5195"] This subject was discussed on this forum about 2 years ago. Here was my opinion at that time and it is the same today. The following is my way of deciding what to pay for a bull. Take it for what it is worth. The first thing to consider is that feeding a good quality bull year round costs the same as feeding a poor quality bull, so that is a wash. The next thing I assume is that you will use a bull on average for 3 years and on average he will sire 33 calves per year. For round figures we will use 100 calves sired in his lifetime. Let's assume that a poor quality bull costs $1000. A bull that costs $2000 will have to return $10 more per calf than the $1000 bull. If you sell 500 pound calves that is a $0.02 per pound difference. 2 questions then have to be analyzed. 1) Will the calves sired by the good bull bring a premium of $0.02 or more because of their quality? and 2) Will the calves off the good bull weigh more (at the same age), thus you will have more pounds of calf to sell. If you are keeping your own replacements a third question that will need to be considered is; How will a better quality bull improve my cowherd and thus my calf crop in years to come? We raise and sell 2 year old purebred shorthorn bulls. We use our bulls, as well as buy purebred 2 year old horned hereford bulls to use in our commercial cow herd. Based on the reasons stated above we have no problem paying between $3000 and $4000 for a bull if we feel his quality justifies the price. [/QUOTE]
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