Editor’s note: The following is part four of a four-part series that helps you to evaluate different breeding programs, which bulls are optimal for your herd, and how much they’re worth. (See part one, part two and part three).
Different traits of bulls can contribute to different impacts on the bottom line of the operation. For example, a bull with a higher calving ease EPD may contribute to more live calves. Not surprisingly, bulls with higher calving ease (or lower birth weights) sell for a higher price (Simms et al., 1997). With the large variation in bulls available, bull prices extend over a wide range from $3,000 to over $20,000 per head.
Identifying a fair price during sire selection contributes to higher efficiency in operation economics. To estimate breakeven bull price, a bull valuation calculator has been developed. The purpose is to provide a general idea of how much a bull is worth based on key farm parameters.
Bull Values – two Scenarios
The value a bull provides depends on his individual performance, the environment (ex: pasture productivity), management (cow:bull ratio) and markets (calf price). For example, large framed bulls require more feed, leading to a higher maintenance cost, but that may be offset by heavier calves at sale time.
Two scenarios were studied – a low maintenance farm versus a high maintenance farm. Table 1 shows the parameters entered for each farm. The default values in the calculator are the averages of the two scenarios. Continue reading