Cow-calf producers experienced increasing prices and revenue in 2024, with the rise in revenue far outpacing the increase in cow costs.
CattleFax Analyst Matthew McQuagge shared results of 2024 CattleFax Cow-Calf Survey during a recent webinar.
The just less than 1,000 survey participants represent 41 states and more than 350,000 cows. The average herd size was 385 cows.
Cash cow costs, not including return to management or depreciation, was $753, up $30 compared with 2023. This was a new record in the CattleFax database. McQuagge says unpaid labor and management expenses were reported at $147 per head and depreciation at $134.
“If you add those up, that totals just over $1,000 per head for cow cost,” he says. “That’s pretty significant. But on the flip side, calf revenue jumped up sharply, almost $200 per head, to $1,615 in terms of revenue on a per head basis.”
Average weaning weights were steady reported at 556 lb. for steers and 518 lb. for heifers.
CattleFax did break out the cow costs by region. McQuagge says the biggest jump was in the Southeast region, increasing $45 at $691, but this is the lowest cost across the nation. He says that change relates to forage availability and supply. The northern plains reports the highest cow costs.
Around 25% of the respondents shipped their calves right after weaning, with 55% weaning for a minimum of 45 days.
Some of the key takeaways include:
- Calving and Weaning Strategies Matter
Operations with calves born within the first 45 days showed higher weaning weights, better fertility, increased longevity and more uniform calf crops. High-return operations had a larger percentage of calves born within the first 45 days.
“This creates further opportunities within the management of that herd to add value,” McQuagge says. “The marketplace rewards producers who wean and vaccinate for more than 45 days.” - Genetic Investment Pays Off
Bull purchase price directly correlates with calf value, thus producers can improve herd genetics with strategic investment.
“For every increase in $2,500 spent on bull purchase price, it’s resulted in an $85 per head increase in calf value,” McQuagge says. “If we assume a bull is in the herd for four years or sires 75 calves, that results in an added profit or added revenue of over $6,000 on that additional $2,500 investment.” - Vaccination and Value-Added Programs Have Diminishing Returns
Two vaccines typically provide maximum value with additional vaccinations show limited economic benefit.
“Beyond two vaccinations, there’s not much growth or increase in calf value for those additional shots,” he says. “Oftentimes we’ll see that the increase in value for these additional shots does not offset the increased cost.”
While value-added programs still offer potential revenue, their additional value has weakened with rising calf prices.
“Value-added programs, such as organic or natural beef, require different management techniques,” McQuagge says. “Over the last few years, these programs have declined slightly in participation. A lot of this decrease is due to the decrease in additional revenue for these programs, as calf prices have increased so much. One thing we often stress or recommend is to ensure that you have a marketing plan in place to take advantage of the additional work, costs and audits associated with these programs to make sure you’re capturing that value.” - Herd Expansion Planned
Survey results showed herd expansion intentions for operations include: Retaining heifers was the largest percentage of responses at more than 60%, but more than 15% plan to buy bred heifers and/or bred cows.
Reviewing the survey data, CattleFax calculates low-return, average-return and high-return producers. In summary McQuagge says, “Low-return operations really stand out in terms of cow cost, and high-return operations really stand out in calf value. That’s how they differentiate themselves.”
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