Having profitable cattle is the goal of many a producer. But when exactly does a cow become profitable? We have all heard the statement that it takes 6-7 years for a breeding cow to pay for herself, right? What if I told you that is not always the case.
That may be a widely held belief within the cattle business, things tend to be a little more complex than just going by a set number of years. Whether or not a cow will eventually be profitable requires several different components in order to justify her being there on the ranch.
It is easy for cattle to be profitable when the rains are coming on time and the grass is green. It is when things are not as good, such as during a drought, that her sustainability really comes into play. During times of drought when conditions are limiting feeding capacities it is important to account for all the relevant variables. If your cows are not performing regularly it may be time to do some culling with your herd.
Stressors in the market such as drought shortened forage supplies, expensive grain prices, high trucking costs may be already causing a financial strain for you. If sub-performing cattle are further draining your operation being profitable it may now be the time to make some herd adjustments. Here are some factors for you to consider in making this decision:
Factor #1: How often is she calving
When looking at this factor it is important to think in terms of your overall calving performance before you set your sights on any individual cow. It is also important for you to nail down the total breeding percentage for your upcoming calf crop as well.
A good rule of thumb to follow here is that you want to limit your open cows to 10-15% of the total herd. Having 90% of your cows bred by the end of breeding season is a good mark to shoot for.
Factor#2: Streamline your calving season
Cows that have their calves outside of your normal calving season can cause cost in managing your breeding program to go up. Ideally you want to have your herd set where every cow will calve within the first 3 weeks of calving season.
Research, like that done by the University of Nebraska-Lincoln, shows that when cows calve in the first 21-day cycle of calving season they remain in the herd longer than ones that go in the second or third cycle. The ones that meet this criteria, even the heifers, will more than likely be breed the next year.
Factor#3: What you do with open or late-calvers
What you do with these cattle is very important during times of drought conditions. Since it is likely that late-calving cows will be open in later years it is a good idea to cut overall numbers and market them. Another way that you can go is to replace them with heifers that are already in your herd. You can also purchase bred heifers that will better synchronize with the rest of your herd.
If you are looking to either market your culls or purchase replacement heifers you will need to keep an eye on the market when making this decision. If prices are high it may not be good financially to buy bred heifers unless you are buying close to their calving date. When making the choice of either buying or raising your replacement heifers you will need to keep in mind the additional feed costs to getting them ready.
It may seem that you are being too hard on your herd but making decisions like this will better for you in the long run. In order to stay in business for long a producer will need to become the most efficient operator. A cow that doesn’t provide a calf every year is not being the most efficient.
Factor#4: Feed cost management
As you may well be aware feed is the largest of all the variable costs for a cow-calf producer, and that is during good years. If you find yourself in drought type scenario those costs can increase to an even higher level. But it is one of many variables to keep an eye on in order to have profitable cattle.
Depending on how you provide supplements you may be able to make changes to save on your overall feed bill. Doing this correctly will help cows pay for themselves in the long run. If you are wanting to learn more about how to do this check out my previous article “How to reduce your feed costs”.
Factor #5: Keep track of your cow’s drop in value
An area that many producers do not give enough consideration is when a cow’s overall value starts to decline, or to put in another term when she depreciates. After her initial costs an open heifer typically will gain in value till about her 3rd breeding year. It is at this time that she will start to depreciate in value. As long as she has a calf every year, has no mobility problems, and has good milking ability this will stay pretty consistent. If however she stays open or calves later in the year this can cause her deprecation to accelerate.
Factor#6: How well your herd maintains BCS
During times when forage supply is tight maintaining your herd’s BCS of 5 for cows and 6 for heifers may require some supplementation. I don’t have to tell you that doing this can add to the overall costs to maintain those cows. This will also stretch the time that is required for her to pay for herself.
Factor#7: Your herd’s genetics
The overall genetics of your herd are things to watch and control in order to have profitable cattle. Balancing feed efficiency and milk production can go a long in helping cows breed on time and calve regularly.
Some of the EPDs that you should be looking are frame score and milk production in cows. Having a smaller frame size and a more average milk production will mean she will be able to eat less to maintain the correct body condition score.
