Beef Buzz News
Schulz Evaluates the Cost of Buying Superior Cattle Genetics
Tue, 02 Dec 2014 14:52:46 CST
Ron Hays Beef Buzzes with Lee Schulz of Iowa State University
How much is it worth to step up your beef genetics for your mamma cow herd? This may include buying a higher quality bull, perhaps artificial insemination or using embryo transfer. There are a lot of ways producers can improve their herd, but it does cost money to improve genetics significantly. Iowa State University Livestock Market Economist Lee Schulz said he has rustled this question on behalf of cattle producers. As an agricultural economist, he considers this to be a capital budgeting investment analysis.
"Very much these analysis and decisions made by producers you know depend on expectations for calf prices as we are going out through the productive life of those replacements that will be entering the herd," Schulz said. "The annual cow costs for a specific operation but I think it is important to put these levels we have seen for these replacement prices into context. I have done random analysis quite a bit and looking at max bid prices of $3,200 to $3,400 for bred heifers here is really not that much more being paid by some producer, so just realizing there is quite a bit of risk but also quite a bit a return for this investment."
Radio Oklahoma Network Farm Director Ron Hays featured Schulz on the Beef Buzz feature. Click or tap on the LISTEN BAR below to listen to today's Beef Buzz.
Heifers and cows that have yet to reach their prime remain in short supply right now and they do command a premium. When you start adding superior genetics the additional premium is not all that much. Schulz said it might be a good time to think about adding a few extra dollars to get those top notch genetics.
"If you are looking for the superior genetics there may be potential to justify higher and higher prices, especially if we are putting superior genetics into a herd, also adding use to our herd and culling some of the older cows at record high cull cow prices, there may be some advantages to paying higher prices and getting those genetically superior heifers into your herd," Schulz said.
If producers are looking to cull some of those older females then its worth the adding feeding expense to put on a few pounds before marketing those culls at the auction barn. Culls are bringing top dollar right now, so that will offset the cost of investing in superior genetics to put back into your mamma cow herd.
The Beef Buzz is a regular feature heard on radio stations around the region on the Radio Oklahoma Network- but is also a regular audio feature found on this website as well. Click on the LISTEN BAR below for today's show- and check out our archives for older Beef Buzz shows covering the gamut of the beef cattle industry today.
right-click to download mp3
WebReadyTM Powered by WireReady® NSI
South Dakota Rancher Todd Wilkinson Tells EPW, Cattlemen Part of the Solution to Climate Change Tue, 22 Oct 2019 07:53:15 CDT
Rabo Analyst Don Close Predicts Grow Yard Concept Will Become Essential to the Beef Pipeline System Mon, 21 Oct 2019 11:56:03 CDT
OSU's Janeen Salak-Johnson Tells Cattle Producers Being Open to Doing Things Differently Can Save an Industry Fri, 18 Oct 2019 15:02:09 CDT
OSU's Janeen Salak-Johnson Warns Beef Producers of the Coming Scrutiny from Animal Welfare Activists Thu, 17 Oct 2019 05:56:09 CDT
Letting the Markets Do What They Do - Economist Glynn Tonsor Explains All Wed, 16 Oct 2019 07:45:29 CDT
NCBAís Season Solario Explains How the Checkoff is Working to Head Consumers Off at the Pass, Digitally Speaking Tue, 15 Oct 2019 09:31:40 CDT
NCBAís Season Solario Unveils the Magic Behind the Success of the Beef. Itís Whatís for Dinner Brand Fri, 11 Oct 2019 06:26:18 CDT
Changes in the Dynamics of Global Beef Trade Evident in Latest Export Numbers Out from USMEF Thu, 10 Oct 2019 13:42:22 CDT
Markets Well Down the Road to Recovery as Heat from the Tyson Fire Cools Down Wed, 09 Oct 2019 05:54:36 CDT
With a Trade Deal in the Bag, NCBAís Kent Bacus Says Nothing Stands in the Way of US Beefís Domination in Japan Tue, 08 Oct 2019 20:05:48 CDT
The Numbers Donít Lie - K-State Economist Glynn Tonsor Says No Beef Demand Bump from COOL Mon, 07 Oct 2019 08:20:15 CDT
Better Times Ahead for Cow/Calf Producers Says LMIC Senior Economist Jim Robb Fri, 04 Oct 2019 07:00:38 CDT
Market Watcher Jim Robb Suggests Aggressive Female Slaughter Activity May Set Stage for Higher Fed Prices Thu, 03 Oct 2019 08:00:20 CDT
LMAís Chelsea Good Shares Her Thoughts on Today's Hot Button Issues in the Animal Ag Industry Wed, 02 Oct 2019 09:26:24 CDT
Livestock Marketing Associationís Chelsea Good Working with Industry Partners to Address Post-Fire Market Concerns Tue, 01 Oct 2019 06:28:51 CDT
okPORK's Roy Lee Lindsey Exposes the Hypocrisy of Mandatory Country of Origin Labeling Mon, 30 Sep 2019 18:14:34 CDT
NCBAís Colin Woodall Pushes Back on OCMís False, Inflammatory Claims Regarding Checkoff Funding Mon, 30 Sep 2019 11:50:44 CDT
King Ranch Institute's Dr. Clay Mathis Talks Technology on the Ranch, and How to Make Money Using It Fri, 27 Sep 2019 14:29:24 CDT
King Ranch Institute's Dr. Clay Mathis Talks Technology on the Ranch, and How to Make Money Using It Fri, 27 Sep 2019 10:36:39 CDT
Trump Strikes Deal with Japan - NCBA Lobbyist Colin Woodall Affirms It's Just What Cattlemen Wanted Thu, 26 Sep 2019 10:25:22 CDT
Grow Yard Concept Finding Its Footing in Beef Industry - Analyst Don Close Says Opportunity Abounds Tue, 24 Sep 2019 10:30:21 CDT
K-State's Glynn Tonsor Says Struggling Cattle Markets Propped Up By Robust Domestic Beef Demand Mon, 23 Sep 2019 11:53:00 CDT
Burger King Reports Increased Sales of Conventional Beef Burgers Alongside Climbing Impossible Burger Sales Fri, 20 Sep 2019 10:34:32 CDT
USMEF's Dan Halstrom on What Japan's Meat Trade Really Wants from the US Beef Cattle Industry Thu, 19 Sep 2019 10:11:34 CDT
Formal Agreement with Japan Announced by White House Could Help Grow Island's Taste for Tongue Wed, 18 Sep 2019 11:05:20 CDT
OSU's Janeen Salak-Johnson on Killing the Sacred Cows of the Beef Business, How Being Open to Doing Things Differently Can Save an Industry Tue, 17 Sep 2019 10:34:24 CDT
OSU's Janeen Salak-Johnson Warns Beef Producers of the Coming Scrutiny from Animal Welfare Activists Mon, 16 Sep 2019 11:07:53 CDT
Repeal of WOTUS Strikes Emotional Chord with OCA's Michael Kelsey, Reflecting on Action's Significance Fri, 13 Sep 2019 11:36:52 CDT
American Angus Assoc. CEO Mark McCully Reflects on the Angus Breed's Role the Beef Industry Today Thu, 12 Sep 2019 11:49:28 CDT
Fall Looking Like a Mixed Bag for Beef - Peel Advises Producers Pay Close Attention to Market Dynamics Wed, 11 Sep 2019 10:06:31 CDT
Fall Looking Like a Mixed Bag for Beef - Peel Advises Producers Pay Close Attention to Market Dynamics Wed, 11 Sep 2019 10:04:16 CDT
Cattle Markets Not Expected to Improve as Seasonal Demand Shifts into Lower Gear Heading into Fall Tue, 10 Sep 2019 10:22:26 CDT
State Officials in Colorado Help Local Farmers, Ranchers Launch New "Better With Beef" Initiative Mon, 09 Sep 2019 11:21:19 CDT
Beef Industry Soon to Launch New Campaign Leveraging Consumer Interest in the BQA Program Fri, 06 Sep 2019 10:06:04 CDT
NCBA's Alisa Harrison Highlights the Tremendous Value Digital Marketing Adds to the Beef Checkoff Thu, 05 Sep 2019 10:27:08 CDT