– Stan Smith, PA, Fairfield County OSU Extension
Fed cattle and feeder calf prices are presently ranging in the vicinity of historical highs. But then, so are cull cow prices. Knowing historically the income resulting from cull cows in a beef herd has made up roughly 20% of the beef cattle farm’s annual income, today with careful management it could be even greater.
Presently at a time when cattlemen might be trying to retain any breeding female that can produce a live and marketable calf, let’s carefully consider how we might optimize the profitability of the beef herd by employing a strategic culling plan.
Typically, when discussing culling considerations it might start by simply choosing based on condition, health or pregnancy status which cows need to go versus which should stay. Instead, let’s start by carefully considering the present reality of the economics of cull cows.
While in the past culls might have resulted in 20% of the annual beef cow herd income, consider that average cow size has increased 30% over the past 30 years. In fact, USDA’s AMS recently reported the average cow live weight sold was 1500+ pounds. Early this spring average condition cull cows were bringing $1-1.25 per pound and expectations that would increase throughout spring have become reality. When considering the cost and value of money is greater now than in recent past, it becomes apparent cull cows are a very real profit center for an operation that deserves careful marketing consideration.
As we consider the economics of cull cows and the development of a strategic culling plan it’s also important to realize that cattle inventory cycles are real and have been well documented for more than 130 years. Over those years cycles have averaged 8-12 years in length. Accepting the fact reduced cow numbers resulting from this cycle have been exaggerated by drought in the west, today we may only be nearing the bottom of U.S. cow inventory numbers and high cattle prices could easily be with us for 2-5 more years.
The next piece of this cull cow economic puzzle is crunching some numbers. For this example, keep it simple.
The next piece of this cull cow economics puzzle is considering how when during the year we might cull her impacts the bottom line as much as if we cull her. Cull cow values are commonly lowest in the Fall and highest in the Spring. Add to this a cow that just weaned a calf in the Fall is likely as pounds light as she’ll be during any given year. Using those assumptions, and again keeping it simple, speculate further on cull cow values.
What would it have cost to feed this potential cull cow four more months?
Admittedly there may be times when the delay in culling a cow is not warranted. Cows at risk of becoming unmarketable or significantly less valuable due to health concerns such as feet and leg issues which could cause her to go down, cancer eye, and lumpy jaw, etc. are non-negotiable if contemplating a delay in culling a cow. Considering the current value of a cull, preg checking a cow at the conclusion of the breeding season has never been more affordable. Accepting that available feed resources may also dictate when cows need to go, today retaining an open is another nearly non-negotiable.
Additional considerations when determining if she should stay or go might include teat and udder conformation, disposition, cow condition and general health of the cow. When each cull cow pound is worth $1.00+, anything that prevents her from sustaining weight and condition is cause for economic concern.
The point made is that no single culling strategy is most profitable each year or the same for each farm. The time and place within the cow inventory cycle, the time of year, the value of the calf that might have resulted from a retained cow, and available feed resources all play a role in developing a strategic culling plan in any given year for any given farm. The check list for developing that strategy may change in priority over time, but will always include:
- Consider breeding status and/or productivity of the calf at side (or past calves).
- Current and future market expectations (where are we in THE cycle?)
- Time of year.
- Soundness (structure, teats, udder, etc.) and/or immediate health concerns.
- Condition/marketability including drug residue status.
- Age and/or temperament.
- Available feed resources and space.
- Present cow herd numbers and/or replacement female availability.
As U.S. cow numbers begin to recover and reach a peak in the coming years and we approach the next bottom of the price cycle, makes plans to own the most consistently productive, small (relatively speaking) group of cows possible with plans at that time to retain heifers that will then likely be less valuable than today as feeders. In the meantime, today, plan to produce as many calves as possible while capturing maximum value for those cows that need to go.
For those cows with health or performance concerns, and knowing her value as a cull is significantly greater than the calf she might raise next year, today, is it worth the financial risk of trying to squeeze one more calf out of her?