by Hannah Baker, University of Florida / IFAS Extension

Due to current inventory levels and producers beginning to think about expansion, the value of young cows and heifers is increasing as demand for breeding stock increases. As discussed in last week’s In the Cattle Markets issue, pastures in the majority of the country are in better condition than they have been since 2019, which will play a key role in producers’ ability to start expanding. However, there are still no strong signs of heavy retention efforts when looking at the percentage of heifers on feed (38.1%). The next quarterly Cattle on Feed  report in October will provide more insight into whether more heifers are being retained.

On average (heavy emphasis on average), bred heifers are selling between $3,500 and $4,500 per head. The cost of raising your own replacements, depending on the development program, may not be too far off from that range when considering the opportunity cost of keeping a weaned heifer calf.

Is it financially feasible to make the necessary investments and/or changes to increase the chances of her getting bred that second time?

Prices for a 500- to 600-pound heifer calf in the cash market were approximately 30% higher year-over-year in July, varying by state and region. In Florida, August prices for heifer calves were 40% higher year-over-year. Whether buying replacements or raising them, rebuilding efforts are going to be large, upfront investments in the current market as we move closer to a period of expansion.

Looking past the initial investment of buying or raising replacement heifers, the investments do not stop there. The hardest year for a heifer to get rebred is with her second calf. A first-calf heifer needs to conceive within about 83 days of calving — while still growing and raising her first calf. So, the follow-up question would be: “Is it financially feasible to make the necessary investments and/or changes to increase the chances of her getting bred that second time?”