Replacement heifers are the backbone of a successful and profitable ranching operation. Over time, breeding stock needs to be rotated out to maintain a strong genetic pool and ensure your herd’s overall health and productivity. Plus, as cows age, they eventually reach a point where they can no longer breed, leaving gaps in your operation. Having a reliable supply of replacement heifers ready to step in is essential to keep things running smoothly and avoid any disruptions to your breeding program.
When it comes to sourcing replacement heifers, you have two main options: raise them yourself or buy them. While most ranchers choose to grow their own, purchasing heifers can also be a practical solution, depending on your needs. Both options have unique advantages and challenges, so carefully weighing the pros and cons is essential. What works for one operation might not work for another, so it’s all about finding the approach that aligns with your specific situation, resources, and long-term goals.
Choosing the most cost-effective and practical option for your replacement heifers requires a close look at your ranch’s setup. Your facilities, labor availability, feed costs, and overall budget will all play a role in the decision. Whether you’re considering the time and resources needed to raise heifers or the upfront cost of buying them, your focus should be on making a choice that strengthens your operation without draining your finances. After all, a smart investment now can save you from costly mistakes later.
Things to Keep in Mind Before Deciding
No matter which route you choose—raising or buying replacement heifers—there are a few critical factors you need to consider. These factors can make or break the success of your decision, so it’s worth taking the time to think them through. From your available budget and feed costs to labor needs and cattle prices, each aspect plays a role in determining what will work best for your operation. It’s not just about what seems easiest or cheapest upfront; it’s about what aligns with your long-term goals and resources. By understanding these factors, a producer will be better equipped to make a choice that benefits your ranch both now and in the years to come.
Things to consider
- Money available
- You must look at the money you have available for any purchases. This availability can be money that you have in the bank. Also, any potential loans (though they may not be the best choice) you may be able to get
- Feed costs
- As with any option involving increasing the number of cattle in your place, you need to decide if you can afford to feed them. Understanding your feed costs is vital when facing drought conditions, which we often have to deal with.
- Labor availability
- You must decide if you even have the workforce to handle any new cattle in your place. This labor increase can be either increased feeding or simply hauling them to your place. Naturally, raising replacement heifers will be more labor-intensive for you than just buying them.
- Cattle prices
- This factor goes hand in hand with the money available part of this list. However, it deserves to have its own section here. When deciding on either buying or raising, you must consider whether you can even afford the price to pay for them. When looking at the costs, you must look at the total costs (feed, vaccines, etc.), not just the initial market costs.
- Reproductive rates
- You will also want to look at the potential reproductive rates of any replacement heifers. One way to do this is to look at their mother’s performance to gauge her potential.
Raise or Buy? Finding the Best Option for Replacement Heifers
Raising or buying replacement heifers is a big decision when it comes to keeping your ranch running smoothly. These heifers aren’t just extra cattle—they’re the future of your herd and play a crucial role in maintaining productivity and profitability. But the right choice isn’t the same for everyone. It depends on your operation’s size, resources, and long-term goals. Understanding the benefits and challenges of each option can help you make the best decision for your ranch.
Both raising and buying replacement heifers have pros and cons, and each option has a place, depending on the situation. Raising your own offers more control over genetics and health, while buying heifers can save time and free up resources. The key is knowing what fits your current setup and what will work best in the long run. Let’s dive into the factors you must consider to make an informed choice that suits your ranch and its unique needs.
Should You Raise Replacement Heifers?
Now that we’ve covered the key factors to think about, it’s time to dig into the pros and cons of your options. Let’s start with raising your own replacement heifers. This approach offers unique advantages, like giving you more control over your herd’s genetics and health. You’ll know exactly how they’ve been raised, what they’ve been fed, and what they’ve been exposed to, which can give you peace of mind. But, as with anything, there are trade-offs to consider. Raising heifers requires a longer-term commitment of time, money, and resources, and it’s not always the most flexible option when market conditions change. Let’s explore these points further to help you decide if raising is the best fit for your operation.
Advantages
The first advantage of raising your own replacement heifers is the level of control it gives you over your herd’s genetic improvement. This control empowers you to make strategic decisions that can significantly impact your herd’s productivity and profitability.
Since you will be raising them from birth, you will also be able to know all the diseases that your heifers have been exposed to. This knowledge will be necessary so that your cows won’t run the risk of getting some disease that could severely cripple your operation.
Another advantage of raising replacement heifers is the potential cost savings. While this may not be true for every operation, it’s a factor that can make raising heifers a financially sound decision for many ranchers.
Disadvantages
One disadvantage of raising replacement heifers is the longer-term nature of the investment. It can take at least two years before you start to see a return on the feed or other costs. This longer-term commitment requires patience and a steadfast commitment to your herd’s future.
Is Buying Replacement Heifers the Right Choice?
Now, let’s shift gears and take a closer look at what buying replacement heifers could mean for your operation. This option has its own set of advantages, like saving you time and effort since you’re not raising them from birth. It can also offer flexibility, letting you adjust your herd size quickly to respond to things like market conditions or available forage. But, as with anything, there are potential downsides to keep in mind. Buying heifers can sometimes be more expensive upfront, and you’ll need to pay close attention to their health and genetics to ensure they’re a good fit for your herd. Let’s break this down so you can see if this path aligns with your goals and resources.
Advantages
Since you will not be raising them from birth, it can free up resources typically needed to raise them to do other things. This freeing up of resources can benefit smaller types of operations that have few resources at their disposal.
Another advantage is that you can control how many replacement heifers you will have; you can expand or decrease the size of your potential herd in less time in response to conditions. A producer can use this fluidity to take advantage of good grass growth or drought conditions.
Disadvantages
Depending on the market, buying rather than raising the heifers you need can cost more. This potential cost means that you will need to pay attention to current prices and keep an eye on what the futures market could look like.
Making the decision
As I mentioned several times in other posts, there is never a “one-size-fits-all” answer regarding cattle operations. You will need to look at all the available factors and make the best decision for you.
You will need to consider your budget, your overall goals, and even the cattle market itself. When you look at your budget, it will be in your best interest to consider what it actually is and not what you hope it is. When deciding on something that can affect your place for years to come, looking at things through an “idealized world” mindset is not a good idea. Consider this an investment, so make a wise choice here.
Suppose you are looking for ideas on how to decide on this subject. In that case, Iowa State has a couple of spreadsheet examples that can give you some ideas. They have examples for if you want to buy and ones if you want to raise your replacement heifers.
Running the Numbers: What’s the Smarter Investment?
When looking at the numbers, you should look at the most probable scenarios that will likely occur during heifer development. Once you have an idea of the net return, you can weigh it against the potential risk you may face with the option you choose.
Some variables will be complex for you to predict, but they are still important. These things are for you to anticipate in order to make an informed financial decision. These include things like the sale price of heifer calves, feed costs, and production performance of purchased vs raised heifers. Now, as far as feed costs are concerned, if you buy a lot throughout the year, you can lock in prices. A producer can do this price lock for the contract year, but it is more of an option for larger operations.
Though you may not be able to predict some of these prices accurately, you can get a reasonably accurate guess. This correct guess is where paying attention to the overall trend and even your own intuition can come into play. If you are unsure, I recommend visiting your local beef extension specialist. A feed nutritionist and your local veterinarian are also good options. Other local ranchers can also be valuable resources.
If you would like to read more about how to develop your heifers, I went over that in a previous post, “Heifer Development 101”.
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