Bull buying decisions in good times

Farm Forum

BROOKINGS — Genetic decisions have always been important, but the stakes have never been higher than they are now.

“We’re witnessing a cattle market for calves, feeder and live cattle unlike anything we’ve ever seen,” said Warren Rusche, SDSU Extension Cow/Calf Field Specialist. “That’s the good news – at the same time the amount of capital at risk and the dollars at stake with every decision have never been higher.”

The average bull bought this year will very likely cost more dollars today than at any other time in recent memory, said Rusche.

So how does that change bull buying decisions by producers? Rusche said that although the basics haven’t changed, there are some factors that are worth some additional consideration.

Longevity: One way to reduce the cost per calf of higher-valued bulls is to increase their productive life. In Table 1 there is a simple example of how getting more years of service from bulls lowers the cost per calf.

“High-priced bulls that don’t last are incredibly expensive,” Rusche said. “Buy bulls that have been developed to last and manage them so that they will hold up and not crash.”

Genetic Merit: Looking at Table 1, a producer would be easily tempted to lower their standards, Rusche said. “Every operation has budget restraints, but buying the wrong bull just because he is cheaper will be more costly than spending too much,” he said.

The SDSU Calf Value Discovery project has consistently seen profit spreads between high and low profit steers exceed $500 per head.

Accuracy of Selection: As the cost of breeding assets increase, the costs of making mistakes go up as well.

“Any tool that helps producers more accurately identify bulls that meet their goals will reduce that risk,” Rusche said.

Genomic-enhanced EPDs combine the power of DNA testing tools like the 50K test with traditional performance testing to improve genetic selection and increase the accuracy of EPDs.

Reproduction: In the simple terms, the bull has one primary job; get cows bred. In today’s market, it’s nearly impossible for a cow to lose money, provided that she’s pregnant and weans a calf. Breeding soundness exams, managing bull condition, and reducing the environmental stress on the bulls are musts.

“Having extra bull power as an insurance against injury may be worth considering as well,” Rusche said.

To learn more, visit iGrow.org.