From Cattle-FAX
Below weak imports and tight grinding beef supplies have driven cull cow and bull prices to record high level in recent months. Cull cows and bulls typically represent 15% of a cow/calf operation’s annual income, and there may be other opportunities to benefit from this market anomaly.
Bulls turned out in the spring are typically done breeding by the end of August in most parts of the country. They then graze with the cowherd and are penned up for the winter. Bull costs over the winter are significant, and dropout rates from injury or infertility can be expensive.
In the current market environment, if the cull bull prices hold through August (or past your breeding season), bulls can be taken to the sale, garner a sizeable price, and the money can be held for re-purchasing bulls the following spring. For example: A 1,800 pound bull in August bringing $70 puts $1,260 in your pocket. Wintering costs can range around $350-400 / head. Add in $50 for testing and figure a few getting injured or testing in-fertile, and it’s pretty easy to find $1,700-1,800 to put toward next spring’s bull purchase.
While this may not be feasible for the entire bull battery, it could be a good year to cull deeply and upgrade next spring.