Mark Johnson of OSU Extension recently published an article on the economics of herd expansion where he provides an excellent overview of the current value of replacement heifers and the economic drivers behind expansion decisions.
He highlights that while calf prices are at record highs, rebuilding the cow herd has been slow. Drought, high interest rates, and the capital required to purchase or raise breeding females continue to hold producers back. Yet, from a breakeven perspective, this may actually be the best time in years to add new females—today it takes about 2.75 calves to pay for a bred heifer, compared to 4.5 on average, and as many as 9 back in 2015.
For those looking to expand their herd, we advocate using genomic tools to improve profitability and sustainability. Tools developed by Gentec, such as EnVigour HX™ (which measures retained heterozygosity to maximize hybrid vigor), and genomic indexes for heifer fertility and lifetime productivity (Replacement Heifer Profit IndexTM and Feeder Profit IndexTM), allow producers to identify replacement females with the greatest potential for fertility, resilience, and long-term profitability.
By combining today’s favorable economic signals with genomics-driven selection, producers can reduce risk, improve herd productivity, and ensure that every replacement investment pays off well into the future.
Read Mark’s full article here:
Contact Gentec today to learn how these tools can fit into your herd expansion strategy.
lgentec@ualberta.ca