Alex TolbertAssociation Perspective
Should you raise or buy replacement heifers?
Third and 20 on their own 45-yard line with 2 minutes left to go before the half. Coach calls for a pass, so he relays the call, and they break the huddle.
As they approach the line of scrimmage, he surveys the field and assesses the defense — four down linemen, no linebackers in the box, corners playing off the line and safeties over the top.
Upon his assessment of the defense, he calls a change in plan via an audible, then he hands the ball off to Knowshon Moreno for a 28-yard dash followed by a touchdown.
What just happened? That’s just another day at the office for most valuable player (MVP) quarterback Peyton Manning. The offensive coordinator looks for the play with the highest probability for success and relays that play to his quarterback and entrusts him to carry out the mission. The information has been gathered, assessed and a decision is reached and relayed to the team for execution.
However, the line of scrimmage offers new information, different circumstances and different probabilities. Thus, different pathways emerge for success. There can be success in an unconventional method — run on a third and 20. All Moreno has to do is make it past the line of scrimmage and his chances at first down are probable. Gather the information, assess the options, make the call and execute the plan.
Life, business and cattle operations are no different. We spend hours gathering information during the day, then we come home, enjoy some family time and continue to read articles growing our perspective and information base to make more-informed decisions each day.
We gather more info, reevaluate and execute new plans. Daily, technology changes and information at our disposal changes, so our perspective changes. The decisions we made yesterday using the best information we had at that time may not be the most logical decision today as we reevaluate and reassess our resources and understanding.
One question that I have been asking a lot lately is what makes more sense — raising replacements or buying them? I think this is a question that should be asked every so often as your operation, your resources and your information change over time. Doing things the same way because that’s the way you’ve always done them is a sign of stagnation and complacency. In this new era of herd expansion, I challenge you to evaluate or reevaluate your plan for replacement females. Here are some thoughts on both choices.
Raising your own
Keeping your heifers is the conventional method of replacement selection, and it’s a noble cause. When keeping your own replacements, you are in control. You alone can bask in the success; likewise, you alone can bear the responsibility when a bad decision or bad luck takes hold. Having control of the genetics, environment and development of replacement females can play a key role in the success of the cow herd.
Developing your own replacements is a time-honored task in which many take great pride and enjoyment. At the same time, it poses some risk. Keeping those heifers is a commitment of resources that can confuse the most diligent of number crunchers.
The dedication of resources to properly develop replacement females is one that begs scrutiny. The expense of time and feed, and the opportunity cost associated with managing heifers on pasture or land that could be devoted to mature cows that better utilize the space they are given and (should) produce a greater return expressed in more pounds of weaned calf per unit of input.
Knowing the work ethic of their mothers is useful. Taking on the risk of those that won’t breed and those that are culled at older ages is an unknown expense at weaning time when most of us make replacement decisions.
Based on the market value of inputs, can I develop them cheaper than I can buy them? Measuring inputs and outputs vs. knowing and holding a solid understanding of the genetics of your herd is vital to your success, so what makes the most sense for your operation?
Buying replacements
Buying your replacements is growing in popularity as some cattlemen become more specialized in their efforts. Buying replacements allows some cattlemen to focus on what they enjoy most — watching the miracle of birth and focusing on having a productive cow herd that produces a high percentage of weaned calf. This model also allows the producer to maximize outputs by buying high-performance bulls that excel in producing pounds of weaned calf, which can be accompanied with added birth weight in many cases.
The questions with this model are the variables that are involved, including genetics of the females, productivity of their mothers, management during development, and the breeding choices of the previous owners. Because of their resources and current market conditions, can someone else put the weight on cheaper than I can? These are questions you may have to leave unanswered.
I believe the solution to this question is different for each operation. In evaluating and seeking the best answer for your operation, I offer you this simple question: Do you have the resources to sort those heifers and manage them separately until they are at least 2 years old?
While other factors will play a role in your eventual decision, your response to this question should have some weight in how you answer the replacement-heifer-source question. Market conditions, which are in constant motion, play an important role in your answer to this question also.
Only you know the resources you have at your disposal and the value of those resources. I encourage you to challenge yourself and ask the hard questions. Is what I’m doing today the best use of my resources? Am I maximizing the resources at my disposal? Assess the information and make a decision. From time to time reevaluate the information and don’t be afraid to call an audible.
Editor’s Note: Alex Tolbert is the regional manager for Region 3, including Kentucky, Ohio and Tennessee. Click here to find the regional manager for your state.
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