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Raise ’em or Buy ’em

Insight offered in deciding whether to raise or buy replacement heifers.

Deciding whether to raise or buy replacement heifers is never an easy decision. It isn’t the same for every operation.


Scott Brown

“Compare apples to apples of what you can grow versus what you can buy,” says Scott Brown. It’s impossible to predict what the future market will be. Producers must compare similar type and kind of cattle to identify which is more economical.

Scott Brown, University of Missouri assistant extension professor, said the decision fluctuates according to the cattle cycle. High cattle markets make heifer development more expensive, but sometimes, lower cattle markets make producers more interested in buying heifers instead.


Brown said producers have to start with evaluating their herds. It’s important to determine the genetic potential and identify what’s missing.


“If you want to successfully grow replacements, you have to understand your current herd,” he said. Some producers may have high-quality genetics, while others are lacking in certain areas.


After evaluating genetics, it’s a numbers game. Producers need to know how current supply and demand for bred heifers affect the market. If producers decide to raise their own, they run the risk of prices dropping. It’s important to calculate risk and profit potential. Brown said heifer development costs can be divided into three stages:

  1. Stage 1 is calving to weaning. There isn’t much cost associated with this stage, and the risk is often minimal. Producers can sell the heifer at weaning, but remember profits are taxable.
  2. Stage 2 is weaning to breeding. Costs in this stage include feed, interest and breeding expenses.
  3. Stage 3 is breeding to calving. Grazing and supplement costs fall in this stage. Costs in stages 2 and 3 may help reduce taxes.

Once producers calculate their costs and risk, they can decide if raising or purchasing heifers is a better investment.


If purchasing, buying from the right source is important. Finding a reputable breeder from whom to buy heifers can take time. Missouri and Kansas offer programs that create guidelines for producers who raise heifers.


David Patterson and Richard Randall, along with state extension specialists, founded Missouri’s Show-Me Select (SMS) heifer program in 1997.


“The program is a coordinated effort between livestock specialists, producers and veterinarians to implement management practices that improve the longevity and performance of beef heifers entering the cow herd,” said David Hoffman, University of Missouri Extension livestock specialist.


Inspired by the success of the SMS program, the Kansas Department of Agriculture teamed up with the Kansas State University (K-State) Extension to start the Sunflower Supreme program. “We’re in the third year in the program and have certified 2,000 heifers,” said Jaymelynn Farney, K-State extension specialist. The goal of the program is to provide a marketing option for producers in Southeast Kansas. “But more importantly, producers that go through the guidelines make more money on their cow herd,” Farney said.


For more information about the Show-Me Select and Sunflower Supreme programs, visit www.agebb.missouri.edu/select or www.sunflowersupreme.org.


This article is an abbreviated version of the cover story of our September Angus Beef Bulletin. Read the full version in the magazine or online when archived by using the "Search Back Issues" link at http://angus.media/About/Angus-Beef-Bulletin.


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Editor’s Note: Austin Black is a freelancer and cattleman from Nevada, Mo.



 




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