Bred Cow Prices

[DogPatch]

If we bought a cow for $1000, and are upset about her being only worth $200 after 8 to 10 years of use, why doesn't anyone look at this like depreciation on a piece of machinery?

If its a cull after only 5 yrs, then she was a poor model, and we're lucky to get that back!

Trouble is most of us that complain the loudest, likely have too much capital costs that those culls are being used to pay for.

[dfarms11]

the trouble with cows is they can depreciate that much over night! No machine will depreciate 80% overnight unless it is in an accident or something, but you can insure for that, cows, you cannot.

[smcgrath76]

Cow maintenance and cow depreciation are two of the biggest costs in any cow calf operation. We all do things to reduce maintenance cost, such as calving season, cheap feed sources, least cost rationing, controlling cow size. Not many of us (myself included) are really good at addressing the depreciation rate of our cowherds. There are some tools out there to help, but it is a tough thing to do.
Anyone have any ideas?

[brian99]

Sorry I didnt reply earlier, and I guess smcgrath addressed the missunderstanding. $4 barley causes low calf prices, and the resulting nonprofitabale cow herd causes low bred cow prices. Heard heifers quit selling at Perlich Bros. (Lethbridge) because there were no bids over $800. A few old blacks sold for good money, though.

I think most of us cow guys have done a good job keeping costs in line. When we are faced with a skyrocketing dollar, poor fat basis levels(which no one is talking about), and higher barley costs, all you can do is background longer and shrink the meat supply. After all we're the only cattle guys who can.