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Improving Ranch Economics Using an Open Cow Decision Replacement Tool

Jon Biermacher

Summary

Well-managed cow/calf operations commonly realize between 8% and 12% open (non-pregnant) cows annually. Many producers do not replace their open cows; instead, they keep them and give them a second chance, frequently at an economic loss. An Excel®-based decision tool was developed to educate ranchers about the relative economics for three alternative replacement options, including (1) replacing an open cow with a bred heifer, (2) replacing an open cow with a bred 3–6-year-old cow, and (3) retaining an open cow, giving her a second chance. Enterprise budgeting techniques are used to calculate the net value ($/hd) for each replacement option. Net values are calculated each year prior to weaning in November using projected market prices for open (slaughter) cows ($/lb), bred heifers ($/head), bred cows ($/hd), and calf prices ($/cwt) for two consecutive calf crops. Also, the decision tool allows producers the option to calculate their own values using their own projected prices, provided for a side-by-side comparison with our projected values. A focal point our education program is our recommendation to utilize pregnancy testing at weaning, helping reduce the risk of economic loss by providing producers additional time to source replacements with the breed-type and performance traits most suited for their operation. For the 2026 and 2027 calf crops, the net value of the bred heifer replacement option is projected to impact producers by providing an additional $150/hd compared to the bred cow option, and $605/hd more than keeping an open cow and giving her a second chance.

Details

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