TIMELY TOPICS
At a recent meeting of cattle producers, your columnist took part in a discussion around current market values of beef brood cows and heifers (young female cattle that have not yet had a calf).
The discussion centered around whether to keep young heifers to allow them to grow and ultimately keep them for breeding or to sell young heifers into the market where they are likely to go directly into the food system as beef. Recent sales of young pregnant heifers have exceeded $3,800 per head! By comparison, older cows intended for slaughter have been bringing over $1,200 per head!
One of the stockmen pointed out the depreciation pattern of young cows was not necessarily a straight line from a high value pregnant heifer to the point in the future where she is an old cow. The value of a young pregnant cow, 3 to 5 years old, is arguably the same or close to the same as a pregnant heifer that is 2 years old. The argument being that the slightly older cow has already undergone the challenge of having her first calf, has passed this test, and is now pregnant again.
The market strategy under discussion that evening entailed the retention and breeding of heifers that could be sold as pregnant heifers or could be sold as young pregnant cows in three to four years.
The cattle market’s high prices since 2023 have been signally a need for more breeding cattle to produce more calves. Cattle prices nationally have slipped downward a little in recent days due to increased uncertainty related to demand for beef and concerns the restaurant trade (where most steaks and other high value cuts of beef are consumed) could see a downturn in a weakening economy.
But cattle supplies remain tight and the risk of a significant rapid decline in cattle prices appears unlikely. So, is retaining beef heifers with an eye to keeping them or selling them as young cows a wise strategy for some Rockbridge cattle producers? Your columnist offers a grudging “maybe” for an answer.
The cattle producer considering this course first and foremost needs to examine their annual cost of production and have a detailed and reliable estimate of what it will cost them to grow and breed these young heifers.
Second, the stockman must consider their experience and capacity to successfully promote and market young pregnant cattle. Do their cattle have a good reputation?
Finally, I’ll repeat what I have shared earlier in this space: All of our Rockbridge livestock producers need to seize this moment in the livestock markets and the general economy set these priorities: First, build cash reserves, even if that means paying some taxes. Second, ensure infrastructure needs are met (fences, water sources, and animal handling equipment). Third, adopt modern management practices that guarantee a low cost of production with high reproductive efficiency and low cost-of-weight gain for livestock.
There are a number of livestock budgeting tools available on the Rockbridge County Cooperative Extension website https://rockbridge. ext.vt.edu/. If you do not have access to the internet or simply could use individualized and confidential advice in making some decisions for your farm, contact me, Tom Stanley, at the Rockbridge Extension Office, (540) 4634734.
