The question has been asked forever, or at least as long as we have been breeding cattle with a notion of trying to make the next generation better: What is a good bull worth?
It is a classic and timeless question. It is an important question. At this time of year, when many bulls are being marketed and we are planning ahead for spring breeding season, it is the question that is asked a lot!
The answer
“A good bull is worth the value of five calves he sires.” That answer has been given many times over the years. It is a good answer and a good rule of thumb to follow. The problem is, it doesn’t exactly narrow down the range. If we do a little math, this answer may in fact lead to more questions, such as: When are you marketing your calves? What is their value?
According to the most recent USDA cattle market report:
• 500 pound weaned steer calves (Large, 1) are worth about $2/lb. for a value of $1,000 per head. Therefore, if your future marketing plan is to sell weaned steers, $1,000 x 5 = $5,000.
• 875 lb. yearling steers (Large, 1) are worth about $1.57/lb. for a value of $1,374 per head. Therefore, if your future marketing plan is to sell yearling steers, $1,374 x 5 = $6,870.
• 920 lb. beef carcasses are worth $2.26/lb. for a value of $2,079 each. Therefore, if your future marketing plan is to retain ownership through finishing and sell fed cattle on a carcass value basis, $2,079 x 5 = $10,395.
So, in the current market, a good bull is worth somewhere between $5,000-10,395 to a commercial cattle operation. Where exactly in that range a bull falls depends on your marketing plan and the market conditions at that time. There is not an exact number because there are many layers to this onion.
One important point illustrated here is the longer you will own the offspring before marketing, the greater the amount you can afford to pay. Retained ownership gives you more time and opportunity to capture the value of your investment in genetics. And this doesn’t even consider the value added to replacement females if selecting daughters as the next generation of cows.
There will be more on that next week, when we discuss looking at your unique operation to shed more light on this question and determining where to apply selection pressure. Until then, keep the included chart in mind as another way to evaluate the ownership cost of bulls on a per-cow or annual basis. — Mark Z. Johnson, Oklahoma State University Extension beef cattle breeding specialist
