With cattle prices at very high levels, what are some things you can do to maximize use of this added income? It is always best to make proper investments and not hasty purchases because the cycle is just that – a cycle. The high cattle price cycle is historically 10-12 years apart and are usually high for only 1-3 years at a time. There are a few things you can do that will pay huge dividends and right now are a bit easier to do.
First, invest in good bulls. Actually, good bulls are a wise investment anytime. Obviously, on a yearly basis, each bull has an impact on the calves he sires. If you are keeping replacement heifers from bulls, 87.5% of the genetics in the cow herd (after 3 generations) can be traced to the bulls utilized. In either case, you can take average cows and create big impacts in the calves they produce. Producing calves that move your calf crop from a muscle score 2 to a muscle score 1 can pay off. So, now while you can afford it, buy sires that will pay you back for years to come. Good quality, highly productive, docile bulls are much more available than they were in the past.
Anytime spending more money to make more money is discussed, it helps to put a pencil to the scenario. (This input comes from Hannah Baker, UF/IFAS State Specialized Agent for Livestock and Forage Economics, Ona.) Using the average annual prices for 2024 at Florida markets, there is a $109 advantage with an improved muscle score.
475-lb Muscle 1 | $2.97 | $1,410 |
475-lb Muscle 2 | $2.74 | $1,301 |
Difference | $109 |
(Also, keep in mind that a Muscle 1 will hit their target weight in fewer days than a Muscle 2).
If you have a herd of 25 cows (or your bull services 25 cows) and assuming a 96% weaning rate, your calf crop of 24 calves with a $109 advantage brings in $2,616 more in revenue. Let’s assume the better-quality bull cost $7,500 and the lower quality bull $5,000. After depreciating both bulls over 5 years, you would end up spending $16 more on each cow to purchase the more expensive bull. In the end, however you would potentially make almost $90 more per cow per year because you were able to sell calves with a muscle score of 1 rather than a muscle score of 2.

Second, follow a good culling program. Culling poor performing cows is necessary no matter if the market is high or low. Inputs never decline in price. A cow that does not produce a calf or produces poor calves is utilizing resources and spending your money. Cull those cows now and cash in. With cull prices at these extremely high levels, selling these under-productive cows makes even more sense.
Finally, with this new-found, lower stocking rate, improve your pasture. Many times, our pastures are pushed to the brink of disaster. Letting our pastures recuperate and providing some soil fertility and weed management will help improve your forage production. Cull poor performing cows and use that revenue to provide some weed management or fertilizer to all or some of your pastures. If down the road you see that your stocking rate can be adjusted (because you culled heavily), you can purchase new females (and the prices may have come back down).
These principles are easier to implement now while prices are high. However, these principles are best management practices any time. Maybe the New Year’s goal should be better bulls, better culling, and better pasture – always be improving!