buying calves to fatten and sell

If you have to buy a weaner steer, they are about $200-300, depending on size and breed. I attended a marketing training a couple decades ago. A producer who is buying Holstein stockers that will gain 2 pounds per day and sell for $0.65 per pound in fall can pay up to $1.09 per pound in spring and break even. Choice beef cutout was at $272 per hundredweight on April 9, up $20 . However, it ultimately helps producers determine the optimal weight to market their feeder calves. Of course, for your first few animals, youre not looking for a show-quality cow. Visit with potential buyers and make them aware of what you have available, Blasi says. But if you're like most people, you may need to take out a loan to get your business started. And there are some hints in this definition that help define the practice of raising stockers, Detzel says. He then rested the pasture for at least 30 days and sometimes as many as 60 days. We supply the birds, feed and technical advice, while the farmers care for the chickens by providing the farm, housing and labor. While cows can and will eat some weeds, dont make the mistake of thinking that just because its green a cow will eat it. Knowing what auctions pay more for or take discounts can help producers maximize their product. 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. Get in the habit of taking them a little treat around the same time each day, such as grain or alfalfa cubes. Ask the questions that you have and listen carefully to the answers. Since a majority of producers spring calve, there are more cattle ready to sell in the fall, therefore the price is typically more depressed. Calves with a weight under the standar for their age can indicate some kind of . If you dont have a way to transport the cattle home, you will need to ask the farmer if he delivers and what his price is for that. The stocker cattle market is an opportunistic one. Any time Ive rushed into a cow-buying decision, ignoring the voice that said,Maybe this isnt a good idea Ive regretted it. On this website you will find categories for all types of equine and livestock, including cattle, goats, sheep, and swine. That means having money in place to buy at least one cow. Risk is often viewed only in a negative way, but when it comes to pricing cattle, good things can develop, and bad things can develop. You dont know these people. Ask farming friends or the local agricultural extension agent for recommendations. ($894/head gross value) and 8-9 weight steer in the same category was ~$137/cwt. What are your resources? Thanks for mentioning to think about what youre looking for in a cow before buying like will it be used for beef or milk. If you have grass, buy some green calves born last fall. Although the cattle market continues to deal with burdensome levels of market-ready finished cattle, strong consumer demand has kept a floor on fat cattle . Just weaned calves about 6mo old will cost the most, but gain good on grass. For example, a producer who is buying beef stockers with expectations of selling them in the fall for $0.65 per pound with a daily rate of gain of 2.2 pounds per day can pay up to $0.93 per pound for calves and break even. Daily rate of gain has an important impact on the profitability of the operation. Some farmers price their cattle higher and expect you to dicker with them. We do enjoy improving our herd, and they do a valuable service in keeping our fields free of brush and trees. Check with your local extension agent to determine how many animals per acre you can stock on your property. In fact, my veterinarian once told me that for most folks with just a few head of cattle, "If your cattle can keep the pastures from growing up in brush, and earn you enough money to pay the property taxes, then you are doing well." Just weaned calves about 6mo old will cost the most, but gain good on grass. Come join the discussion about livestock, farming, gardening, DIY projects, hobbies, recipes, styles, reviews, accessories, classifieds, and more! She also provides copywriting services for small businesses. A few beads of moisture on the nose is fine, but the cow or calf shouldnt be snotty. There are many methods to add weight to feeder calves that vary considerably. Wagyu calves can be 40 times the price of US cattle. Try to be concise and not bombard him with texts and emails. Its a net margin that drives the profit. Try a mix of corn and molasses (you can get this as fattening mix from a feed mill). My brother is thinking about buying some cattle because hes contemplating using them for milk because he has some land that he speculates might be put to better use. Thats because theyre eating better than they previously had. Knew guy, happened to be in the family, who was friends with the auction house. It is full of information that is spot on. Knowing the seller seems to improve a buyers chances for acquiring healthier cattle. Im running pasture animals and didnt have the indoor facility to rehab them.. If corn drops, feeder cattle get more valuable, Tonsor said. Easter egg or multicolored cattle, yellowish colored cattle and anything with big ears tend to get a bad rap and discounted at auction. Your email address will not be published. Finding bargain cattle is the key to success with the stocker market, but it needs to be strategic. However, they are quicker to take discounts for things they see as detriments. This is possible, but extremely unlikely for many, many years. This will give you a chance really think over the decision. There was a lot to it, but the raw basic lesson was to check the beef futures contract prices. If you have a corn price spike during that period, feeder cattle get cheaper. Consider all of these questions before you ever start looking for cattle. for the three years. However, dont waste the farmers time if you really cant offer close to what they are asking for. It can be difficult to source the cattle you want, but that doesnt mean that you are locked into one choice, he says. This pdf from the Alabama Extension service, This pdf from Mississippi State University. Last spring I wrote an article entitled At What Weight should I sell my Feeder Calves that bought forth many questions on the value of each additional pound of gain. Copyright 2023. 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. The reason is that they produce quality beef, and a lot of people would rather raise their own beef than purchase it from the store. The more stressed the animal is, the more potential you have for losing a lot of value.. Check the corn futures contract prices. Just took a quick look at the auction reports. Usually finishing farms buy in calves from hard-hill, high-country and dairy farms. Published as Research Brief #36 Buyers know what they want and will pay top dollar for it. Tonsor reminds producers that if they do choose to keep their spring-born calves until they are yearlings and sell them in the spring, that is when calculating VOG is imperative. Burt Rutherford. Geographic location, timing, weather, and even the corn market all play a role in what you can expect to receive for your calves. The problem, though, with many auctions is that you cant tell from looking at the cow whether she is sound, healthy, and strong. Marketing strategy for cattle. Assuming prices and costs described in the budget scenario, the break-even rate of gain for beef and Holstein stockers was just under 1.5 pounds per day. JNix/Shutterstock. The more you know, the more likely you are to succeed. Weve had just as many calves that needed intensive nursing and care as weve had ones who were easy to raise. Overall, the herd averaged a higher daily weight gain than the previous year. According to Tonsor, the corn market can significantly influence price between selling now or waiting until spring, either good or bad. These animals likely look a little rough and need TLC. You want them on the skinny side. There are many methods to add weight to feeder calves that vary considerably. Cattle are herd creatures and your cow will become lonely and probably quite annoying if she doesnt have company in the field. You can also use high protein range cubes that are typically used for winter feeding to augment a fattening mix. Castrating at an older age is also physically harder for the animal to recover. Last year 500lb feeders were $1.70-2.25 around here. In fact, you will be lucky if just you break even, most years. Since cattle are naturally grazing animals, some consumers seek out beef from cattle reared in their "natural environment". One way to help make sure your calves grow efficiently, while staying healthy is to provide them with the VitaFerm Gain Smart mineral, designed for weaned calves through yearlings. The first is "cow and calf", where you own a number of cows and a bull, aim to produce one calf from each cow per year, and either fatten the calves or sell at weaning age. They should have well-developed muscles in the shoulders and legs. Conformation: Male animals should look masculine; females should look feminine. Baker and Miguel Gomez evaluated the price per pound of 30,000 head of cattle. Dont Get Snookered: The Beginners Guide to Buying Cattle. Required fields are marked *. Every $0.01 change in price spread for beef stockers is worth about $10 per head on this operation. 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. They are also smaller than a full-grown cow and quite a bit less intimidating. Additionally, its very easy for a respiratory illness to become pneumonia in young cattle especially. If a cow stops eating for a day or two, begins breathing heavily, or shows other signs of illness, call the vet right away. One goal of the homesteading lifestyle is to live as independently as possible, providing for oneself and ones family. On good grazing, you could run lean cattle on four- to six-month cycles. But March thru October I am able to. Those stickers are the tip-off that the cattle came from the auction. If a producer has done his or her homework, has studied the future market and calculated their breakeven, retained ownership of calves through the feed yard might be a viable choice. With preparation and knowledge about what to look for in bargain cattle, getting into the stocker business can be lucrative. Regular sales attract all types of animals, but you'll routinely see dairy bull calves, dairy cull cows and finished . Third, cost of gain should be relatively cheap. You will have time to get used to caring for the cows before they need to be bred, something that will need to happen around the time they are fifteen months of age. The value of gain between 300 and 400-pound feeder steers was $1.23 per pound. It assumes that the producer already has basic equipment for fence construction and maintenance and cutting and raking hay. Probably less profit but also gets rid of the chance of a loss. For cow-calf producers who spring calve, now seems like a logical time to market weaned calves. The team developed a table to help farmers calculate this figure, based on the scenario. I also own a milk cow. The enterprise budget takes into consideration costs of labor, pasture, minerals, implants, marketing, veterinary, pumping water, interest, and miscellaneous needs.

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