Which would have the most value?

[Soapweed]

Curious to know which has the best value:

Bred Angus heifers weighing 1075 pounds at $2150 per head ($2.00 per pound),

or

Replacement quality Angus heifer calves weighing 650 pounds at $1300 per head ($2.00 per pound)?

 

[Doug Thorson]

You know the answer,,,,,,,,,,

Figures don't lie but liars figure. I can make both sides of that one pretty easy

 

[Soapweed]

You know the answer,,,,,,,,,,

Figures don't lie but liars figure. I can make both sides of that one pretty easy

No, I don't know the answer. Please enlighten me, although you will probably say "stay away from Angus and go with Hereford."

 

[Ho55]

To me it depends on what the bred heifer is bred to.

 

[Soapweed]

To me it depends on what the bred heifer is bred to.

Easy calving Angus bulls

 

[eatbeef]

So lets say it rains and its a perfect world,

Bred Heifer: Annual cost $800. 500 lb calf at $2.15. So $275 profit and a 2nd calver that ought to be worth more in my book because you dont have to worry about her and she is bred back. So sell her at $2200 in a year. Total profit $325

Replacement: Cost to develop and breed, $625. Sell at $2150 in a year. Total profit $225

DISCLAIMER:
There are other variables that will add to profit and subtract from profit that may occur.
Prices based it off of same market one year down the road.
No health problems
All animals breed
Costs stated will vary and not be the same for anybody on this forum.

 

[Ho55]

I bought 15 bred heifers a few years back that were bred to a pretty good calving ease angus bull. The calves came easy and that's about it. They didn't do much that summer. Littlest calves I had. To me I would rather buy the heifer calf run her the way I do my own replacements then breed her to something I picked and know will work in my environment.

 

[Soapweed]

So lets say it rains and its a perfect world,

Bred Heifer: Annual cost $800. 500 lb calf at $2.15. So $275 profit and a 2nd calver that ought to be worth more in my book because you dont have to worry about her and she is bred back. So sell her at $2200 in a year. Total profit $325

Replacement: Cost to develop and breed, $625. Sell at $2150 in a year. Total profit $225

DISCLAIMER:
There are other variables that will add to profit and subtract from profit that may occur.
Prices based it off of same market one year down the road.
No health problems
All animals breed
Costs stated will vary and not be the same for anybody on this forum.

Thanks for your thoughts. Your insight and mathematical ability is much appreciated.

 

[redrobin]

Breds are cheaper. That'd be a good ticket on some open heifers.

 

[eatbeef]

So lets say it rains and its a perfect world,

Bred Heifer: Annual cost $800. 500 lb calf at $2.15. So $275 profit and a 2nd calver that ought to be worth more in my book because you dont have to worry about her and she is bred back. So sell her at $2200 in a year. Total profit $325

Replacement: Cost to develop and breed, $625. Sell at $2150 in a year. Total profit $225

DISCLAIMER:
There are other variables that will add to profit and subtract from profit that may occur.
Prices based it off of same market one year down the road.
No health problems
All animals breed
Costs stated will vary and not be the same for anybody on this forum.

Thanks for your thoughts. Your insight and mathematical ability is much appreciated.

I have been trying to decide which way to go with the money from the cull cows this year, so my time spent figuring this on here most likely made up my decision.

 

[WB]

A lot of variables go into this equation. Probably no wrong answers. If anyone can predict markets into the future please let me know. Cash flow, feed, labor available pasture all variables. Something tells me that high prices will cure high prices just have no idea how this will all play out. After watching bull sale on Superior the other day we had all better start AI ing or run them open this year. If you had told me five years ago that we would see these prices I would have said you were crazy.


FWIW Soap. Females are cheaper if you come north a bit. Most of the heifers open and bred are moving south of here.

 

[Soapweed]

Thanks for the comments. In my case, it is too late. The deed has been done. I sold bred heifers for the amount stated, and immediately reinvested the proceeds into the heifer calves for the amount stated. Both the selling and buying were private treaty deals, so commission was not a factor in either case. The buyer pays the trucking on the bred heifers, and they will be Colorado bound. The ranch where I bought the heifer calves offered to keep them until the middle of May at a cost of $1.20 per head per day. When I looked at the heifer calves, I took along an electric Spearhead branding iron. They will run my heifers through, brand them, and then turn them back out with their own replacement heifers until grass time. Later, they will give their heifers and mine pre-breeding vaccinations. The heifers will be trucked to our ranch about the middle of May.

The main reason I did this trade was to make calving time easier on our crew, since I probably won't be a great deal of help this year. The advantage is less cows and heifers to calve, while still maintaining enough numbers to utilize our grass next summer. I think the old Kosmo Kid is happy realizing this should result in less work for him during calving. :wink:

 

[RSL]

FWIW - the one thing I would look at is that the breds will cash flow much quicker and it looks like the high market may stay for a bit. The opportunity to obtain one extra year of high prices (calves on the ground in 2014) is worth a lot over the extended lifetime of the female. It is also less risky in my mind than making the investment in a heifer calf and not know the market a year out, or the breeding success of those heifers.
We are looking at selling calves and buying breds here, but no one in Canada seems to want cows very badly. :shock:

 

[Faster horses]

Looks to me, Soap, that you stand to make a profit both ways. Considering everything, I think you made a good business decision. I'm sure you will show us the Red Angus heifers when you get them.

 

[Big Swede]

Hey if they were Red Angus they would have cost more than $1300. :lol:

 

[3words]

I would have kept the bred heifers,and told Kosmo Kid to find himself one or maybe 2 good hired men that he would and could work with.

 

[eatbeef]

Thanks for the comments. In my case, it is too late. The deed has been done. I sold bred heifers for the amount stated, and immediately reinvested the proceeds into the heifer calves for the amount stated. Both the selling and buying were private treaty deals, so commission was not a factor in either case. The buyer pays the trucking on the bred heifers, and they will be Colorado bound. The ranch where I bought the heifer calves offered to keep them until the middle of May at a cost of $1.20 per head per day. When I looked at the heifer calves, I took along an electric Spearhead branding iron. They will run my heifers through, brand them, and then turn them back out with their own replacement heifers until grass time. Later, they will give their heifers and mine pre-breeding vaccinations. The heifers will be trucked to our ranch about the middle of May.

The main reason I did this trade was to make calving time easier on our crew, since I probably won't be a great deal of help this year. The advantage is less cows and heifers to calve, while still maintaining enough numbers to utilize our grass next summer. I think the old Kosmo Kid is happy realizing this should result in less work for him during calving. :wink:

I would say you did good. You costs won't be near as high as I stated with the price per day your paying until spring. Mine was figured around 1.80 a day until grass. I would say Kosmo should be able to sleep easier at night.

 

[eatbeef]

I would have kept the bred heifers,and told Kosmo Kid to find himself one or maybe 2 good hired men that he would and could work with.

Around here I would like to know how to find 1 "good" hired man,let alone 2, without having to give away my arm for it.

 

[katrina]

Soap, Family comes first. Don't fight your head on this one. You did the right thing.

 

[RSL]

I would have kept the bred heifers,and told Kosmo Kid to find himself one or maybe 2 good hired men that he would and could work with.

Around here I would like to know how to find 1 "good" hired man,let alone 2, without having to give away my arm for it.

Based on pictures, I think Soap's strategy has been to breed their own. I think there are a couple more on the way up that might be handy in a few years .