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News Column

Paul C Hay, Extension Educator

CULL COWS HAVE HIGHER VALUE NOW

"Every year, about this time of year it seems that someone asks me to speak about cull cow marketing", said UNL Ag Marketing Specialist Dillion Feuz. "The date they want me to speak is generally the week before Thanksgiving. The problem with that talk then, is I am always a couple of months late with my advice."

Like a lot of things, getting things done when others aren't is at times quite valuable. Cull cow sales likely account for 20-25 percent of gross revenue on most cow-calf operations. It is therefore worth considering different cull cow marketing strategies, if the cow-calf business is a significant part of your operation.

Dr Feuz examined prices from Billings, MT, Sioux Falls, SD and Torrington, WY and they all have one thing in common: November has the lowest cull cow prices of the year. The price in September is generally near the annual average price, while the price in November is about 10 percent below the annual average. So for example, if the current price is $55 per cwt. then one would expect a price of $50 per cwt. in November. That is a decline of $5 per cwt., or on an 1,200 pound cow, that is a decline of $60 per cow.

Cow weights and body condition also likely decline from the end of August into November. Research done in the Nebraska Sandhills showed a 50 pound decrease, which represents about a half of a body condition score on the cows. So really, the difference in value of a cull cow in September and November is probably over $90 per head. I can almost guarantee you increased returns from selling cull cows in August rather than in November. I say almost, because in the last 20 years there has been one year, 2003, when the price in November exceeded the price in September. As with almost all business decisions, it is not that simple. If you sell cull cows in September versus November what are you going to do with the calf? Weaning and caring for calves during fall harvest as well as getting the cows pregnancy checked takes added time when it is a precious commodity.

If you choose not to cull cows now, but wait until the traditional late October early November time frame, then you may want to consider feeding the cull cows for 30-60 days before selling them. Research from South Dakota State indicates that many cull cows fed on a high energy concentrate ration will gain 3 pounds per day, and will improve their cull cow grade by one or two grade levels. During the feeding period the cows are gaining weight, the market is typically rising and the cows are moving into higher market grades that are also higher priced. Some of my projections indicate a $50 to $100 gain per head in value after feed and yardage is considered. You need to evaluate your own situation.

I know numbers always look better on paper. However, I think there are some real economic advantages to either selling cull cows now, or feeding them for a few months if you do not cull until November.

View other Gage County News Columns & News Letters: http://gage.unl.edu/news/news.htm

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