Published as Research Brief #36 This is where farmers go to sell their cull animals, and when the cows are run through the ring, you have no clue about where they came from, what their general health status is, or what diseases they may be carrying. The value of gain (VOG) takes that a step further to determine if the cost of adding weight before selling your calves will help you turn an increased profit. And there are some hints in this definition that help define the practice of raising stockers," Detzel says. The net dollar value per head is then divided by the pounds of gain per head to determine the value of gain per pound. Implement an immunization schedule for respiratory and clostridial diseases. Feeder calf value of gain is a sensitive variable and can change frequently as changes in fundamental supply and demand variables influence the beef cattle market. Get involved in a local stocker sale, and talk with your local providers. Finding bargain cattle is the key to success with the stocker market, but it needs to be strategic. They calculated the point where returns equal costs (break-even points) by varying daily rate of gain and price spread. Schuster says, This cost is almost 10 percent below the 1992 state average, but most likely poorer quality land would be used for grazing. Aug 15, 2009. There was a lot to it, but the raw basic lesson was to check the beef futures contract prices. Consider if a calf is born 30 days earlier in the calving season and gains 2 pounds per day while on the cow, the calf will weigh 60 pounds more at the same weaning date in the fall. Cattle are herd creatures and your cow will become lonely and probably quite annoying if she doesnt have company in the field. I think its a good investment to also look into large animal feed dealers to supply the cattle with nutrients if he decides to get them. Figure out a cost per head per day. The facility can accommodate more than 400 head of 500-pound calves at any one time. Most cattle marketed through abattoirs come from feedlots.In an on-farm feedlot, the farmer fattens young cattle in pens or large paddocks, using bought-in or home-grown feed. However, be sure to budget for at least two cows if you dont have any other livestock. Breathing: Animals should breathe normally. LivestockMarket.com makes it easy for buyers to find the right livestock, horses, and hay for sale. It assumes that the producer already has basic equipment for fence construction and maintenance and cutting and raking hay. When the cattle start out thin and ragged, theyll gain at a quicker rate on spring forage. Before you buy, try to learn about what makes a good cow. Answer (1 of 2): What kind of cattle? Notify me of followup comments via e-mail. Detzel intensively manages his pastures, limiting the need to buy hay or provide feed. Cattle buying and selling prices in the budgets approximate averages for Kansas City market from 1980-87 (Table 1). For cow-calf producers who spring calve, now seems like a logical time to market weaned calves. . for me, Detzel says, and I didnt have to give up my cattle all together. Third, cost of gain should be relatively cheap. Farmers who wish to wish to evaluate a stocker enterprises profitability need to know how much they can pay for calves in the spring and still make a profit in the fall. If you have a corn price spike during that period, feeder cattle get cheaper. In fact, most cows need to wait until they are at least two years old before they have their first calf. Its important to understand that their feeder calf value of gain is not the same as the market price received, due to the price slide associated with marketing heavier animals. Notify me via e-mail if anyone answers my comment. Not Holsteins. The break-even selling price for beef stockers was $0.59 per pound, which is a $0.21 price spread. At any rate, by the time you pay for the bottle calf, milk replacer, calf starter, and high-quality hay, you probably would have been better off to just buy a weaned calf, which is what I recommend for beginners. Things can fall apart quickly for these calves. Try a mix of corn and molasses (you can get this as fattening mix from a feed mill). Apart from that our costs are minimal. If you can't figure in a profit, see if you can take care of someone else's cattle. Overall, the herd averaged a higher daily weight gain than the previous year. Both stocker types graze 200 days on a total of 100 acres. If you dont measure it, you cant manage it, Tonsor said. Producers need to be aware of all their input costs and keep records, not only of their cost of gain, but also calculate the value of gain. operations buy calves and enhance their weight, age, maturity, and in many cases, quality [Peel, p. 1]. it gives you a lot to think about. Heifer calves were consistently discounted relative to steers, from $8.00/cwt. Getting into stockers was a time-versus-return issue for me, Detzel says, and I didnt have to give up my cattle all together. Best of all, they have likely seen and heard it all, so they can help focus and refine your year on grass.. Get in the habit of taking them a little treat around the same time each day, such as grain or alfalfa cubes. Sale of domestic calves for fattening. Let's walk through it step-by-step. It's considered a more conservative type of cattle operation, but there are still a lot . While everyone else was bidding on a slaughter cow, he was bidding on a bred cow. Klemme warns, If any of the costs turn out to be higher than in this scenario, rate of gain lower, or the sell-purchase price spread more than expected, these profits can rapidly disappear. For example, a 10 percent decrease in the rate of daily gain from the budget example reduces profit by $29.85 per beef stocker and $27.14 per Holstein stocker. Cattle fattening farming business is a very profitable business, and many people are making money all over the world by doing cattle livestock . Schuster worked with a UW-Madison team including Rick Klemme, CIAS director, Dan Schaefer and Mike Siemens of Animal Sciences, Dan Undersander of Agronomy, and stocker operator and veterinarian Larry Smith to develop a stocker budget. Look at your barns and outbuildings, particularly if you live in an area that sees subzero temperatures and copious precipitation in the winter. via That's Farming. Buyers discount heifer calves because heifers present more potential management problems and heifers do not perform as well as steers. With a high quality cattle from the beggining we achieve more easily desired rates in growth and fattening. The Aggieville Showdown continues to put agriculture in the Aggieville Business District with its third annual event set for Saturday, April 1, 2023, featuring cattle exhibitors from across the country. Being out with the herd in the morning moving line or water is the best way to start my day.. The moral of the story is, get a drug addiction. I also own a milk cow. Much of what you pay for a cow will be out of your control; the market is what it is. Stocker operations basically allow the calves to "grow up" after weaning so that they are better suited to go into a feedlot to be finished. Contact CIAS for more information about this research. A plant nurse at a Tyson Foods medical clinic, Bobbie Gail Blair, 49, has been charged with 10 counts of impersonation of a medical professional and two counts of identity theft after falsely claiming to be licensed. The results give New York farmers an idea for the ways people are getting paid at auction. Chances are they can help you generate a few different names to source from. But managing pasture, animals, costs, and markets plays a key role in determining the level of profit producers can expect. "These cattle, both steers and heifers, are grazing to grow. If you tend to be impulsive, you may want to go by and look at cattle before you bring the livestock trailer along. Its important for producers to know their value of gain, because to make money, the value of gain needs to be greater than the cost of gain. Udder: The best cows should have four quarters that are fairly similar in size. Cows will be a bit nervous around new people, particularly younger heifers. I consent to Homestead.org collecting and storing the data I submit in this form. When you get home, youll probably want to go ahead and vaccinate the cattle for the diseases that are common in your area. The worksheet starts with the value of the purchased calf and the projected value of the calf after 150 days on feed. Water, piping, and tank costs are included, as are the cost of a loading chute and gates for handling the cattle. The more you know, the more likely you are to succeed. After a typical birth the calf should breathe within 30 seconds of delivery, says Dr. Geof Smith, dairy technical services veterinarian for Zoetis. Conformation: Male animals should look masculine; females should look feminine. So I hoped to find someone who allready knows a bit more Knew guy, happened to be in the family, who was friends with the auction house. Certified Angus Beef is the market standard, with black Angus bringing premium prices and their red cousins a close second. They too should have straight, strong legs and move smoothly as they walk. I enjoy milking and handling my cow every day. The financial success of a stocker operation will depend on some factors which are largely outside of the producers control, like weather and price spread. In this example, beef stockers are purchased for $0.80 per pound and sold for $0.68 per pound, a price spread of $0.12. Copyright 2023. You buy the calves, buy the corn futures contract, sell your beef futures contract. Therefore, for calves to be ready for market on May 1, they need to be weaned in early September at the appropriate age and weight. Priced to sell give me a. This will help you round them up when you need them because they will begin to associate you with snacks. Sincerely Steve Arnold, a rancher in Pozo, California, said 12 of the last 15 years have brought less than half of normal rainfall to his area about 200 miles northwest of Los Angeles. These cattle, both steers and heifers, are grazing to grow. However, you will have to absorb that market risk and be exposed for a longer period of time to do that. There, theyll bring a higher price than New York auctions. At the . Weve had just as many calves that needed intensive nursing and care as weve had ones who were easy to raise. For cow-calf producers who spring calve, now seems like a logical time to market weaned calves. So, if a bull weighed 600 lbs, rather than 550, his price . I have read that steers are high in spring and low in fall, which could limit profit. They raise the calves on high forage diets until they are heavy enough to enter the feedlot, which is approximately 600 to 800 pounds. Raising bottle babies can be a fun, rewarding experience. My job has shifted and for the next few years I will not be available November through end of February to care for animals. This article will serve as a follow-up to revisit the value of gain, and share the calculation for producers to use to evaluate their individual situation. You (very likely) will not win in this situation. However, the calves are frequently quite fragile. An 18-month-old beast can provide over 150kg of beef. Selecting your replacement heifers to meet long-term herd goals, Veterinarian perspectives from the birthing barn: Part 2. But March thru October I am able to. On this website you will find categories for all types of equine and livestock, including cattle, goats, sheep, and swine. Some producers use hedging instruments in the form of forward, futures, or options contracts to protect their prices. Even though the average herd size in the United States is less than 100 head of 500-pound cattle, buyers want to know a grower has enough cattle to make a sizable load. That would be his other option ..buy a couple of old cows with calves at foot. Due to the increase in absorption and digestion, your calves should gain more efficiently and convert and grow more quickly. The key to profitability is good management and knowing what works best for your operation. I went against all the recommendations when I bought my first round of stockers, he says. Since cattle are naturally grazing animals, some consumers seek out beef from cattle reared in their "natural environment". The rumen fill is a triangle shaped area on the left hip of the cow. I attended a marketing training a couple decades ago. A Mini Highlander might be perfect for his farm, so Ill try to suggest it to him. Simply stated, cost of gain (COG) is the marginal cost of putting weight on your cattle. You just cant know and its a gamble of hundreds of dollars. document.getElementById("ak_js_1").setAttribute("value",(new Date()).getTime()). Preparing Bull Calves for a Feedlot 18 Veterinarian Check 18 Feed Ration 21 Key Ingredients 21 Fiber 22. He only treated two cattle in 2019. Everyone has grass in the spring. You could always hay your fields and sell your hay - I don't do this so have no idea if haying is profitable but it seems I am always buying a little hay each year and a lot of cattle men buy a LOT of hay each year. These programs often specify a level of management to ensure . Phone: (254) 283-7992. But dont expect him to advise you on building your herd. Detzel has found that establishing a relationship with a cow/calf operation has increased his chances for success. The University of Kentucky describes a stocker calf as a steer or heifer that is 6 to 9 months of age and weighs 400 to 700 pounds. This is a lot of meat and will fill up a small chest freezer with top grade steak . According to Tonsor, the corn market can significantly influence price between selling now or waiting until spring, either good or bad. The feeder calves with the greatest value are almost always the heavier calves. Its nice that you talked about how you should try to learn about what makes a good cow before you buy. But by having some . If you have a farming neighbor, talk to him and ask him to show you his best cows. Fixing a problem with a few dozen can be much more difficult, expensive, and time-consuming. Angus cattle are one of the most popular breeds of cattle in the US. Disposition is especially important for dairy animals that you will be handling on a daily basis. There are factors that depend a lot on . You want them on the skinny side. The cost of wintering an animal is more than any other season, Tonsor said. Otherwise your just trading dollars. For a better experience, please enable JavaScript in your browser before proceeding. This is possible, but extremely unlikely for many, many years. In future we will fatten the calves from our house cows for meat, but we bought this steer before we got the cows. This pdf from the Alabama Extension servicegoes into great detail about what makes a good beef animal. However, I love raising cattle and we dont do it for the money. And there are some hints in this definition that help define the practice of raising stockers, Detzel says. You and everyone else. Keep a close eye on them for a week or two since they may be encountering viruses that theyve never dealt with before, and they may get sick. Typically, stocker buyers buy em ugly and sell em pretty by finding cattle that are have recently been weaned or are coming out of their first winter. While it could be argued cattle are less work than sheep, they still require a great deal of effort. Its important for them to have the most nutritious and stress-free lifestyle so they can grow healthy and put on pounds.. These animals are used for research studies on production-related topics. Beef Magazine is part of the Informa Markets Division of Informa PLC. We have been able to raise our own beef. The investment paid off. One thing I want to mention is that raising cattle will probably not make you very much money. Remember that you dont have to buy the very best cattle to have good animals on your farm. There are many methods to add weight to feeder calves that vary considerably. But, its not significantly cheaper than grocery store beef, although the quality is much better. However, when buying from total strangers, use caution. Informa Markets, a trading division of Informa PLC. "The prices at the stockyard have come down due to the fact that most people buying cows to fatten them up and send them to the Midwest are not buying . And if you have to buy winter hay, it will take longer still. Dont make the mistake of buying a bargain cow that you see listed on Craigslist. 9. Buying better quality stock also means being prepared to reject a delivery of cattle or walking away at an auction. Thats because theyre eating better than they previously had. Just took a quick look at the auction reports. Lines and paragraphs break automatically. That is why the prices change so much. Cattle dont like change, so if you can buy the same brand of feed from the original owner, that will help them adjust to the change. Load size also contributes to the price buyers are willing to pay. Good dairy cows are pricey; they are also fragile and it seems that weve had more than our fair share of bad luck with dairy cows. Even just 3 or 4 months of growth in a heifer can mean the difference between an easy calving and a healthy, strong, good-sized calf and a difficult calving and small calf. We don't own or operate any feedlots, so we buy cattle from nearly 4,000 independent feeders and ranchers. Even if they seem nice, they may not be completely honest. Detzel has a few white cows in his herd and one with horns, which he knows are really going to get discounted. Given the big price difference between thin and fat cattle, you could make good . The Virginia Feeder Cattle Summary stated, that during September 2013 the weighted average price for a 6-7 weight medium and large #1 muscle feeder steers was~ $149/cwt. Conversely, with fewer fall-born calves, the supply in the spring is lower, so those calves tend to bring higher prices. The rarest steak in the world, olive wagyu, can cost anywhere from $120 to over $300 for a steak. Immunization is only one piece of the equation. Avoid buying a cow with a mucus discharge around the eyes. The bred cows are due for calvin.See More Details. to sell is a weaned calf weighing around 350 to 550 pounds. Thank you it is very well done. I might go buy a few next week. 2. Do not overstock your pastures, Detzel says. To be successful, you must check the current price in the market so you can get a grasp on what your buying offers should be and what you can expect to get when you sell your cattle. Theyll have good-looking coats, and theyll be spread across the pasture rather than balled into a group.. 1,484. Calculating value of gain assists producers in looking ahead at potential marketing opportunities and allows them to carefully evaluate their production plans. But Arnold, 67, said . Steers? Create a vaccination schedule for your cattle and follow it. June 14, 2022 long lake, florence county, wi long lake, florence county, wi Just weaned calves about 6mo old will cost the most, but gain good on grass. magazine.] in the example above. Therefore, producers should evaluate value of gain regularly as they prepare to market their feeder calves in 2018 to be more profitable. Thanks for that. Castrating at an older age is also physically harder for the animal to recover. This is just what it sounds like: You own a cow herd, then sell the calves that are produced. for the three years. Broadly speaking, there are three different types of cattle operations. While there are benefits tofeeding monensin to beef cows, how might the use of monensin for developing replacement heifers benefit your operation? How to market cattle to maximize value. For example, value of gain can vary greatly from weight class to weight class making it very important to calculate the value of gain of all weight classes, before adding additional weight to your feeder calves. At What Weight should I sell my Feeder Calves, Cash Cattle: Active Friday Trading at Higher Prices, Cattle from Across the Country Set to Return to Aggieville. They should be bright-eyed and just look fairly content. Its quite a gamble and you want your first experience with cows to be as easy as possible. buying calves to fatten and sell. Young cows can have trouble calving if theyre too young, and they need to expend most of their energy into growing their own bodies rather than supporting a pregnancy. 1. But there is no further information online to which point it's profitable to feed them. The stocker cattle market is an opportunistic one. Another good way of educating yourself is to take classes that many agricultural extension agencies offer. As they made arrangements to sell about 120 head of cattle in March 2020, they reached out to a friend who owns a feed lot that sells animals to a JBS plant in Utah. Read about the different methods of castrating calves. This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. It is full of information that is spot on. If calves are bawling or commingled from numerous sources together, it means they were just separated from their mother and thrust into a challenging environment. This article originally appeared in the January/February 2020 issue ofHobby Farmsmagazine. If you have to buy a weaner steer, they are about $200-300, depending on size and breed. They should be properly weaned, Blasi says. Any time Ive rushed into a cow-buying decision, ignoring the voice that said,Maybe this isnt a good idea Ive regretted it. What breeds are common in your area? Together, they go in on trucking and ship their cattle out of state to auction in Missouri. we love animals and have so many already. Registered in England and Wales. Most spring-born calves are weaned at 5 to 7 months and some go into a backgrounding program, depending on the end target. Feedback, questions or accessibility issues: Center for Integrated Agricultural Systems Logo Image, Center for Integrated Agricultural Systems, UW Extension Publication A3718: Stocker enterprise budgets for grass-based systems, Outwintering dairy cattle: the fate of manure components (Research Brief #35), Wisconsin School for Beginning Dairy Farmers (Research Brief #37), 2023 Board of Regents of the University of Wisconsin System. Check the corn futures contract prices. The only time that the value of gain per pound would be equal to the market price per pound is when there is no difference in price per pound between different weights of feeder calves. Producers who have a solid understanding of their costs and rates of gain can use a simple management tool to determine what spring calf prices will make money for them in the fall, says Don Schuster, economist with the Center for Integrated Agricultural Systems (CIAS). These cows don't produce any milk, you just feed them to gain weight and then sell them. But being too cheap can end up eating into profits over the long run. Dont get me wrong, it is quite an investment and it is a huge step for any homesteader. Regular sales attract all types of animals, but you'll routinely see dairy bull calves, dairy cull cows and finished . The next sections, Feed Costs and Other Costs, may vary from farm to farm and year to year.