Cargill and JBS both have grids that are available to everyone with a minimum Choice/Select spread of $8.00 per cwt. So, a Choice carcass weighing 850 lbs. is worth $30 more than Select, no matter what the true spread is on the boxed product. Not big money, but makes it very workable as long as you don't have yield grade or other issues. That would be $30 per head and then add on top your Age/Source money, often $20 to as high as $45/head. Now you're getting somewhere.
Better yet, make that carcass a CAB and then you add $34 to $42 per head again, depending on the packer. $30 + $20 + $34 = $84.00 / head
Works good on the right cattle. There again, that's not considering YG 4 discounts. So, using the U.S. national average for yield grade 4 percentage (10%) you take one of the smallest discounts that's out there for yield grade 4's (-$5/cwt.) and multiply by 10%, you get minus $4.25 per head across the whole pen. Still looking at about $80 to the good. But you have to figure a discount for the selects, so if you've got 80% Choice cattle (realistic and a good figure), then you've got 20% of the $8 spread as an average discount. Result is minus $13.60/hd. across the pen. Then, a realistic percentage for CAB is 25% of the pen qualified (on Angus cattle), so that cuts you back to $8.50/hd. premium there, average. Grand total is plus $44.90 per head averaged on the pen of fairly decent, but not tremendous Angus-based cattle. That's without any premiums included for yield grade 1's and 2's or a nominal number of Prime. Keeping it simple.
Now, you don't have to sell on the grid to get the age/source premium, so don't let me fool you there.
HP