Most Recent
advertisement
Harlan's Resources:
About Harlan Hughes
A North Dakota State University professor emeritus, Harlan Hughes writes "Market Advisor," a monthly column in BEEF magazine, and he makes presentations at many state, regional and national beef industry events. He retired as the NDSU Extension livestock economist in 2000 and now lives in Laramie, WY.
Contact Prof. Hughes at 701/238-9607 or e-mail Harlan: harlan.hughes@gte.net.
Heifer economics part 3
- Increased percent calf crop from crossbreeding.
It appears that “black-on-black” breeding programs are moving ranchers further away from crossbreeding. This general trend concerns me because it imposes a huge hidden economic cost on the ranching sector.
Research suggests three production performance advantages from the heterosis provided by crossbred cows over purebred cows:
-
12% more pounds weaned per cow exposed,
-
10% more weaned calves per females exposed, and
-
a two-year added lifetime production from crossbred cows (see Table 1).
When I add a 10% gain in percent calf crop to my heifer-development models, I generate a 17.5% increase in the economic value of replacement heifers. That gets my attention!
-
- Increased lifetime longevity from crossbred heifers.
Research suggests crossbred cows have two years longer lifetime productivity. Research also shows the lifetime annual percentage of cows remaining in the herd remains higher for crossbred females, something also borne out in the North Dakota's CHAPS Data. When I plug these two longevity factors into my economic models, I gain a 6% increase in the economic value of replacement heifers during the emerging biofuels era.
- Increased weaning weights from crossbred heifers.
Research data suggests a 12% increase in weaning weight from crossbred cows. I calculated that a 10% increase in weaning weights would generate a 6% increase in net cash income per cow. (Part of the increased weaning weight was offset by reduced calf prices.) When I plugged this into my economic models, I generated another 5% increase in the economic value of developed heifers.
- Economic summary of crossbreeding.
Each of three crossbreeding production improvements was evaluated using USDA's Planning Prices for the emerging biofuels era. Though not shown on the table, a straightbred-developed replacement heifer has a lifetime economic value of $868 (earning a 7% rate of return on the initial development costs). When I added in a two-year increase in longevity, a 10% increase in percent calf crop, and 10% increase in weaning weights, I generated a $1,157 lifetime economic value for a developed crossbred replacement heifer (Table 2). This is a 33% increase in the lifetime economic value of crossbred developed heifers over straightbred-developed heifers.
Harlan Hughes is a North Dakota State University professor emeritus. He lives in Laramie, WY. Reach him at 701-238-9607 or harlan.hughes@gte.net.
| Purebred | Crossbred | Difference | |
|---|---|---|---|
| Pregnancy (%) | 91 | 96 | 5% Advantage |
| Pregnancy to weaning Live calf (%) | 92.5 | 96.5 | 4% Advantage |
| Calves/cow exposed (%) | 84.2 | 92.6 | 10.1% (92.6/84.2) |
| Weaning weight (lbs.) | 525 | 525 | 0 |
| Plus (lbs.) | 0 | 18 | 3.5% maternal boost |
| Plus (lbs.) | 0 | 45 | 8.5% direct boost |
| Total weaning weight advantage | 525 lbs. | 588 lbs. | 63 lbs. |
| Source: Leachman of Colorado “No Better Bull Seminar,” Feb. 8, 2007 Internet seminar | |||
| 1 calf | 2 calves | 3 calves | 4 calves | 5 calves | 6 calves | 7 calves | 8 calves | 9 calves | Open 3rd year | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Value of cull cows | Year | Net income | Net income | Net income | Net income | Net income | Net income | Net income | Net income | Net income | Net income |
| $55 | 2006 | ||||||||||
| $51 | 2007 | $121 | $121 | $121 | $121 | $121 | $121 | $121 | $121 | $121 | $121 |
| $48 | 2008 | $0 | $110 | $110 | $110 | $110 | $110 | $110 | $110 | $110 | -$275 |
| $46 | 2009 | $0 | $0 | $162 | $162 | $162 | $162 | $162 | $162 | $162 | $162 |
| $44 | 2010 | $0 | $0 | $0 | $186 | $186 | $186 | $186 | $186 | $186 | $186 |
| $42 | 2011 | $0 | $0 | $0 | $0 | $254 | $254 | $254 | $254 | $254 | $254 |
| $41 | 2012 | $0 | $0 | $0 | $0 | $0 | $206 | $206 | $206 | $206 | $206 |
| $41 | 2013 | $0 | $0 | $0 | $0 | $0 | $0 | $171 | $171 | $171 | $171 |
| $42 | 2014 | xxxxx | xxxxx | xxxxx | xxxxx | xxxxx | xxxxx | xxxxx | $177 | $177 | xxxxx |
| $44 | 2015 | xxxxx | xxxxx | xxxxx | xxxxx | xxxxx | xxxxx | xxxxx | $0 | $95 | xxxxx |
| Value of cull cow | $612 | $576 | $552 | $528 | $504 | $492 | $492 | $504 | $528 | $492 | |
| Interest discount rate | 7.0% | 7.0% | 7.0% | 7.0% | 7.0% | 7.0% | 7.0% | 7.0% | 7.0% | 7.0% | |
| Total undiscounted net income | $733 | $807 | $945 | $1,107 | $1,337 | $1,531 | $1,702 | $1,891 | $2,010 | $1,316 | |
| Beef cow worth | $685 | $713 | $792 | $886 | $1,024 | $1,130 | $1,343 | $1,304 | $1,350 | $878 | |
| Cow age | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 8 | |
| Purchase (100 head/year) | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2013 | ||
| Save rate | 90% | 92% | 95% | 97% | 97% | 99% | 97% | 96% | 96% | ||
| Remaining number | 90 | 83 | 79 | 77 | 75 | 74 | 72 | 69 | 66 | 66 | |
| Head cuIIed | 10 | 7 | 4 | 2 | 2 | 1 | 2 | 3 | 3 | 34 | |
| Market value | $6,851 | $4,989 | $3,168 | $1,773 | $2,048 | $1,130 | $2,687 | $3,913 | $89,096 | $115,654 | |
| Calculated LEV for a preg-checked crossbred heifer | $1,157 | ||||||||||
Want to use this article? Click here for options!
© 2009 Penton Media Inc.

























