The spring bull buying season is here and it’s time to revisit an age-old question: What is a good bull worth? 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. 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 a question that is asked a lot!
The answer
I remember first hearing the answer nearly 40 years ago as a student at Oklahoma State University (OSU). “A good bull is worth the value of five calves he sires.”
I’ve heard that answer again 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 “cowboy math,” this answer may in fact lead to more questions. Such as:
What is considered a “good bull”?
For this discussion, qualifications to meet “good bull” status are:
• A bull that sells with a registration paper which includes pedigree information and a complete set of genetic values (including EPDs and bio-economic indices) to be considered in the selection process.
• A bull that has passed a breeding soundness exam and selling with a breeding soundness warranty (terms will vary).
When are we marketing our calves? What is their value?
According to a recent (Jan. 21) Oklahoma Market Report:
• 524-pound weaned steer calves (Large, 1) are worth about $3.50/lb. for a value of approximately $1,834 per head. Therefore, if my future marketing plan is to sell weaned steers, $1,834 x 5 = $9,170 is the answer.
• 912-lb. yearling steers (Large, 1) are worth about $2.53/lb. for a value of over $2,300 per head. Therefore, if my future marketing plan is to sell yearling steers, $2,300 x 5 = $11,500 is the answer.
• 1,500-lb. finished beef steers are worth $2/lb. live for a value of $3,000 each. Therefore, if my future marketing plan is to retain ownership through finishing and sell fed cattle on a live weight basis, $3,000 x 5 = $15,000 is the answer.
So, in the current market, a good bull is worth somewhere between $9,000-15,000 to a commercial cow-calf operation. Where exactly in that range depends on your marketing plan and the market conditions at that time. There is not an exact number because there are many variables in play.
*Cost per calf sired: Assuming 150 calves sired over duration of time as a herd bull.
One key point illustrated here is that the longer you own the offspring before marketing, the greater the value of the bull to your operation. Retained ownership gives you more time and opportunity to capture the value of your investment in genetics. It is noteworthy that we haven’t considered the value added to replacement females a bull will sire. Bulls used to sire the next generation of cows have an even greater long-term economic impact on the profit potential of your operation and should be valued accordingly.
I encourage cow-calf operations to consider their production system and marketing plan. Doing so should dictate where to apply selection pressure. Genetic values pay when you purchase bulls capable of improving genetic potential for the specific traits that will translate to added value at your intended marketing endpoint.
Figure 1.
Bull purchase price $6,000 $9,000 $12,000 $15,000
Cost per calf sired* $40 $60 $80 $100
Keep the above chart in mind as another way to evaluate ownership cost of bulls on a per calf sired basis. — Mark Z. Johnson, Oklahoma State University Extension beef cattle breeding specialist
