When it comes to having replacement heifers there are 2 ways that you can use: buy or raise them. Most producers tend to raise their own but buying them can also be an option. When it comes to decide which to go with, like with any other options. it is important to weigh the pros and cons to determine which is best for your situation.
Selecting the most economical source for your replacement heifers is of vital importance for you. There is no point in going with an option that will only cost you more money in the long run. Here are some things that you can look at when you are deciding on either to buy or raise:
Factors to Consider
No matter which way you end up choosing there are some factors to consider in your decision
- Money available
- you will need to look at the money that you have available for any purchases. This can be money that you have in the bank. Also any potential loans (may not always be the best choice) you may be able to get
- Feed costs
- As with any option where you are increasing the number of cattle that will be on your place you need to decide if you can even afford to feed them.
- Labor availability
- You will need to decide if you even have the manpower to handle any new cattle on your place. This can be either with increased feeding or simply hauling them to your place.
- Cattle Prices
- This kind of goes hand in hand with the money available part of this list but it deserves to have it’s own section here. When making a decision on either buying or raising will need to look at if you can even afford the price to pay for them.
- Reproductive rates
- You will want to also look at the potential rates of any potential heifers that you will either raise or purchase to know which ones you will want to use.
Raising Replacement Heifers
Advantages
First advantage is that you will have more control over certain factors that are going into your herd. This can include things like the overall improvement of genetics in your cow herd. Since you will be raising them from birth you will also be able to know what all diseases that your heifers have been exposed to. This will be important so that your cows won’t run the risk of getting some disease that could severly cripple your operation.
Another advantage is that it can cost less to raise them over buying them. It is for this reason that most people tend to raise them over buying them. While this may not be true for every operation it could be for what you are needing.
Disadvantages
A disadvantage for raising replacement heifers is that it is more of a long term investment over just buying what you need. Looking at the productivity cycle of cattle it can be at least 2 years before you start to see any return on the feed/other costs it took to raise them.
Buying Replacement Heifers
Advantages
Since you will not be raising them from birth it can free up resources that would normally be needed to raise them to be used for other things.
Another advantage is that you control just how many replacement heifers you will have you can expand or decrease the size of your herd in less time. This can be used to take advantage of either good grass growth or possibly drought like conditions.
Disadvantages
Depending on how the market is looking it can cost more to buy rather than raise the heifers that you will need. This will mean that you will need to pay attention to how prices currently are but also what the futures market looks like as well.
Making the decision
As I mentioned several times before in other posts there is never a “once-size-fits-all” answer when it comes to cattle operations. What you will need to do is to look at all of the factors that are available and make the decision that works best for you.
The things that you will need to look at are your budget, your overall goals, and even the cattle market itself. Now I will say that when you look at your budget it will be in your best interest to look at what it actually is and not what you hope it is. When making a decision on something that can affect your place for years to come it is not a good idea to look at things through an “idealized world” type of mindset/
If you are looking for ideas of how to make a decision on this subject Iowa State has a couple of spreadsheet examples that you can look at to give you some ideas. They have an example for if your are wanting to buy and wanting to raise your replacement heifers.
Crunching the numbers
When looking at the numbers you will want to look at the most likely scenarios that are liable to occur during heifer development. once you have an idea of what the net return will be you can then weigh it against the potential risk that you may face with the option you go with.
There are some variables that will be hard for you to predict but are still important. These are for you to try to predict in order to make an informed decision. 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 end up purchasing a lot throughout the year you may be able to lock in prices. This can be done for the contract year but this is more for larger operations.
Though you may not be able to accurately predict some of these prices you can get a fairly accurate guess. If you are not sure I would recommend visiting with your local beef extension specialist, feed nutritionist, as well as your local veterinarian.
If you are wanting to read more about how to develop your heifers I go over that in a previous post Heifer Development 101.