Better prices are available for calves and yearlings with third-party verification (TPV) of solid preconditioning and age and source verification. But you may have to find a special sale to take it to the bank.

Research by the Iowa Beef Center (IBC) shows that from October 2005 to February 2006, TPV of preconditioning claims for certified vaccination and at least 30 days weaning received a significantly higher premium than similar uncertified claims.

The premium hit $6.15/cwt. over the regular cash market, well ahead of the cost of a proper vaccination and preconditioning program. Calves with uncertified claims, or only the seller's word of vaccinations and at least 30 days weaning, received $3.40/cwt. more than the base cash price, but $2.75 below the TPV price.

Calves with vaccinations but without a 30-day weaning claim, weaning claim without a specific date, or weaning claim for less than 30 days, received $3.14/cwt. more than the base in the IBC study. Calves with only vaccination claims received $2.42/cwt. more than the base.

Iowa State University agricultural economist Harun Bulut worked with IBC director and fellow economist John Lawrence on the study that examined 105 sales in nine Iowa auction markets. More than 20,000 lots and 160,000 head were observed. Base calves were clean animals without vaccination and weaning claims, heifer, dehorned, non-black, not fleshy and healthy calves.

“Buyers at auctions included feedyards, stocker operators and others,” Bulut says. “Our recorders collected data on such market variables as sex, lot size and all of the rest, as well as price differences between calves preconditioned and documented in various ways.”

The data were analyzed using an econometric/statistical model in which the price received by a lot of feeder calves is explained by various factors. In particular, the study looked at the value placed on both the type and source of the preconditioning claims.

“This research shows significant value can be lost if information isn't trusted and/or not properly or accurately delivered to the market, even if all work is really done,” Bulut says.

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