What a time to be alive in the livestock industry! It is hard to open a paper, turn on the radio or overhear talk at coffee and not see how well the market trends have been at all levels. As we embark on the 2024 bull sale season throughout the Great Plains region, I have consistently seen large crowds gathering at each sale throughout South Dakota, Colorado, Nebraska and Wyoming. Whether it be the local sale barn or production sales at the ranch, it is hard to not notice the literal buzz in the air of optimism and joy. Although we all have our own storms to weather, be it cold weather, high interest rates, drought or volatile markets, sale season seems to gather and unite everyone. The smell of home-cooked meals, smiles on familiar faces and laughter fill the sale venues.
Bull selection can be a daunting task, trying to seek out the best genetics that fit your environment and meet the goals or your operation, all while fitting into the constraints of a budget. In the Jan. 29 issue of WLJ, Mark Z. Johnson, Oklahoma State University beef specialist, wrote “What’s a good bull worth in 2024?” The article quantifies the value of bull selection and equates it to the price of steers, be it weaned, yearling or finished. To further define a price point and answer the age-old question, Johnson defines a bull’s worth as “the value of five calves he sires.” Johnson does a great job of putting objective figures to what often feels a subjective matter. Every operation has different inputs and resources available and those can often change dependent on lease agreements, unprecedented weather patterns and just life playing out. This can directly and indirectly affect each operation’s budget and what is readily available to spend year to year. The value of the live auction setting is that it allows for true price discovery in real time. Early season results can help guide the direction and decisions of each operation. The 2024 sale market thus far has seen some phenomenal sales, and a consistent average of close to $8,000.
No one will argue that bull purchases have great value and can be a worthwhile investment. Value is defined as the regard that something is held to deserve; the importance, worth or usefulness of something. A bull’s importance is evident in their assurance of a calf crop and ensuring the circle of life on the ranch does not cease to exist. Worth is often measured in monetary amounts, and any rancher filling out a balance sheet will indeed find great worth in their bull selection. Usefulness can vary and given the time of year, a rancher may find his bull different levels of useful. Many a rancher will find bull ownership a “necessary evil” and can be found dragging their feet or cursing under their breath at those times of year when handling and transporting are required.
When the winter months seem to never end, and the snow doesn’t stop falling, feeding bulls can seem a less than worthwhile task. It is easy to quickly forget the warm summer months and high percentage of bred back cows with the promise of a great calf crop just over the horizon. All of these factors, including many more too numerous to name or too unpredictable to count, are the unquantifiable factors that play into bull pricing and worth. In the end, it is each individual operator’s decision to determine what this value is.
After too many miles to count on the road, and never enough invaluable conversations with multiple breeders, I wholeheartedly feel there are good quality bulls of all breeds offered at all price points. I continue to be amazed at the progress in genetics I am seeing at all levels from seedstock to commercial operations. It makes me excited and optimistic for the future of the livestock industry, opening the door for operations of all levels and budgets to purchase top-quality genetics. The value received by these genetics has the potential to be very profitable in 2024 and for years to come.
If this is the year that finds you in the market for a new bull, remember Rule Number 6 in one of my favorite books, “The Art of Possibility”: “Don’t take yourself so seriously.” At the end of the day we are blessed and fortunate to live the western lifestyle, and just like the markets we trend, we will continue to ride the highs and weather the lows focusing on the friendships we have gained and the knowledge that has been passed along and maybe along the way we’ll gather up a good bull or two. — TY GROSHANS
