Heifer economics - part 2

摘要

Replacement females heavily influence a beef cow herd's profitability. Some operators raise replacements from scratch, others buy them, but the key to increased ranch profits is to introduce replacement females into the herd when the lifetime economicvalue (LEV) exceeds the salebarn price of (or cost of raising) that same heifer. The LEV of a preg-checked replacement heifer is the sum of all the net income generated by her calves while she's in the herd, including her salvage value. By discounting that net income back to today's dollars, we can compare a replacement heifer's calculated LEV to her salebarn price. Remember, a replacement heifer's LEV changes with the cattle cycle and its resulting beef price cycle, as does her salebarn price (see "Five critical points," p. 11).