Maximizing Profit and Opportunity: Sell, Keep or Buy Open Cows?

As fall-calving herds get ready to preg check and spring calving wraps up, many producers will be faced with deciding what to do with opens. Consider these tips when deciding which option is best for your herd.

Cull cows represent about 20% of the gross income in commercial cow calf operations.
When deciding on whether or not to sell a cull cow, figure out how long you think you’ll want to keep her and what potential value she would bring you versus what it would be if you sold her today.
(FJ)

The goal for every cow should be to produce a calf every 365 days. One of the hardest decisions at pregnancy check time is deciding what to do with open or late-bred cows.

Kansas State University veterinarian Bob Larson says cows that don’t rebreed or that calve late are often sold because they no longer fit into a producer’s management program.

When deciding which option is best for an open cow, it is important to consider multiple economic and management perspectives.

Larson explains there are two producer approaches to open cows:

  • Detail-oriented, tight breeding program. He says these managers “run a really good, tight ship.” These producers calve early, keep costs under control, sell all opens and even late bred cows because they don’t fit their tight management system.
  • Risk-takers, opportunity seekers. “The other group who are pretty economically viable are guys who will do anything,” Larson says. “They are looking for undervalued cattle to add value to them.” These producers will keep or even buy open or late bred cows with the goal to increase value and profitability.

During a recent “Beef Cattle Institute Cattle Chat,” Larson and his K-State colleagues Brad White and Brian Lubbers, veterinarians; Phillip Lancaster, beef cattle nutritionist; and Dustin Pendell, ag economist, discussed cull cows. The team shares these considerations when evaluating cull cows.

  1. Reproductive factors. Lancaster says an important question to consider is if an open cow results from a reproductive biology issue or a nutrition problem. The consensus by the Beef Cattle Institute team was that determining the exact cause can be challenging and each cow requires individual assessment. White says first-calf heifers can be a challenge due to nutrition needs and the fact they’re still growing.
  2. Economic analysis. Pendell emphasizes the importance of putting pencil to paper and calculating costs of keeping an open cow versus selling. The cull cow market tends to have seasonal value changes. For example, White says in the fall the cull cow market tends to be lower because of the large influx of open spring-calving cows.

    To overcome this potential loss in value producers could retain ownership. Larson explains winter feeding costs could be up to $2 per day. If low winter-feeding options are available, retaining ownership and feeding to add weight and trying to re-breed for next-season calving could add value to the cow. The producer could then sell as a bred cow or keep.

    Another option discussed was feeding the cow as a feeder. Larson explains previous research investigating the use of a growth implant and putting the cull cow on the corn diet. He says this is a good option if the cow is thin, as she will gain efficiently and could add profit to the cow compared to selling during a lower market.

Open cows can be viewed as either a loss or an opportunity, depending on a producer’s management approach.

White summarizes the cull cow strategy by saying: “Producers don’t have to make a knee-jerk reaction. It might not be the same every year, depending on feed cost and forage availability. Do the math and decide.”

Listen to the podcast.

Your next read: Cull Cows – Should They Stay or Should They Go? And When Should They Go?

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