WHAT IS A GOOD BULL WORTH?

How do you put a fair price on a bull? My experience is that a great many bulls are under priced. After investing time and money to produce a genetically superior product, far too many bulls go for little more than fat cattle prices-far less than what the bulls are worth. The genetic package that is bred into a bull distinguishes them from bologna bulls. Genetics, documented by performance records make a bull valuable. If you start with the basic bologna bull price, then add on the value of the genetic package, it may surprise you what the bulls are worth.

Most people don't think about it, but a bologna bull cost little to own. A 1200 lb. yearling at $1.00 per lb. is worth $1200.00 for slaughter. If he is used for five years and grows into a 2200 lb. chunk of bologna bull, he will at $1.00 a lb. have a $2200 salvage value. And the $1000.00 increase in value of the bull will pay the interest and feed on him. Consequently, this base price shouldn't be considered an expense in bull selection. You will eventually get it all back, plus interest. For this example let's assume that a potential customer is a commercial producer, who sells everything as feeder calves and raises his herd replacements. Let's also assume any bull for sale will sire 25 calves a year; 20 that will be sold as feeder calves and five that will be kept as herd replacements. If a bull will add 20 lbs. to the weaning weight of feeder calves then the twenty calves sold will weigh 400 lbs more than the average of the buyer's calf crop the year before. Figuring $150.00 per cwt. The bull will earn an extra $600.00 for the new owner the first year, or $3000.00 in five years. So a bull at $2320.00; ($1200.00 base price and $1600.00 additional earning) the buyer can expect to get all of his investment back over a five year period. But this bull offers even more. The five replacements heifers represent considerable added genetic value, we are not sure how you figure this value, but if the five heifers were just sold with the rest of the calves, their added weight would make them worth and additional $600.00 in five years. This means that the bull will pay for himself at a sale price of $3000.00 in five years.

However, you have more to sell than weight gains. If your records document calving ease, this bull may well provide a four percent better calf crop. That is one more calf to sell for each 25 cows he settles-five more during his useful life. An extra 500 lb. calf at $100.00 per cwt. Is worth $500.00, and in five years that adds up to $2500.00. The bull is now worth $6000.00 in added earning power to the customer.

Figure what your bulls can earn and be prepared to see in black and white; the bologna bulls plus genetic package approach. It can help document the value of the bull, and we haven't even figured the added value on carcasses or maternal yet. And also calves have averaged more than $150.00 per cwt. the last five years.