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Bull Purchasing and Management

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Bull Purchasing and Management ~DMSION OF AGRICULTURE U~ljj RESEARCH & EXTENSION Agriculture and Natural Resources University of Arkansas System FSA3072 Bull Purchasing and Management Bryan Kutz Purchase bulls from reputable Introduction s who provide records of their Instructor/Youth breeder Making informed bull purchasing herd health programs. Obtain avail- Extension Specialist - and management decisions is vital to able records and breed registration Animal Science the success of a cow-calf operation. papers from the breeder. Inquire The two main purposes of breeding about performance information such bulls are to contribute high repro- as birth weight, weaning weight, ductive performance and transmit yearling weight, average daily gain, desirable genetics to the herd. Bull weight per day of age, weight ratios, purchasing and management deci- feed efficiency, size of contemporary sions impact both calf crop and herd group, frame size and scrotal circum- genetics for many years. Bull manage- ference data from a bull test program ment can be divided into the following or carcass trait (body composition) seasons, which may vary in length information from ultrasound scan depending on the operation: pre- data. Expected progeny differences breeding or conditioning (2 months), (EPDs) may also be available from breeding season (2 to 3 months) and seedstock producers and may give an post-breeding season (7 to 8 months). indication on how a bull’s calves are expected to perform for certain indi- vidual traits relative to calves from Prior to the other bulls within the same breed. Breeding Season Visual appraisal of structural Bull Purchasing soundness and conformation is also useful in the selection process. Con- Plan ahead. Purchase bulls at sideration should be given to the least 45 to 60 days before the breed- temperament (disposition) of sires ing season. This gives the bull time used in breeding programs as well. to adjust to new surroundings and to Many breeders will supply this type recover from stresses involved in sale of information upon request. Some or transportation. It also provides breeders provide additional customer enough time to find another bull if it service in the form of bull guarantees is discovered that the bull purchased or calf buy-back programs. is of questionable or unsatisfactory breeding potential. Do not wait until Bull Leasing the last minute to find a bull and then Bull leasing may be an attractive immediately turn him out to pasture option for producers interested in Arkansas Is with the cow herd. It is important genetic improvement while reducing to prepare a good Our Campus strong bull pen the capital investment and operat- to hold a new bull before he arrives. ing expenses needed for acquiring Posts should be placed no more than and keeping a breeding bull. Leasing Visit our web site at: 8 feet apart. Electric fencing may be allows a producer to use bulls that https://www.uaex.uada.edu necessary to effectively confine bulls. University of Arkansas, United States Department of Agriculture, and County Governments Cooperating have a higher dollar value (and superior genetics in situations. The proportions of input costs (land/pas- many cases) than the producer might be willing to ture, labor, management, buildings, machinery/equip- pay if buying bulls. There are many different types ment, feed and other cash costs) and calf crop or cash of leasing arrangements available. When considering receipts each lease participant is responsible for can leasing as an option, compare the costs and returns be tailored to fit the level of risk each party is willing from leasing a bull versus buying a bull. to assume. Share leases allow the bull owner and the producer leasing the bull to share risk. Participating It is also important to outline the responsibilities in this type of lease may be a way to obtain the use of of all lease participants in enough detail to answer bulls under situations when cash or credit is limited. any questions that might arise if the bull gets sick, dies or is determined to be an unsatisfactory breed- Producers with a large cow herd may want to con- er. If any expenses are to be shared, then the con- sider owning one or more bulls in addition to using tribution of each party should be decided up front. leased bulls. This helps ensure access to desirable Responsibility for unexpected expenses should also be herd sires in the event quality leased bulls are not determined at the time the lease is signed. Deciding readily available in future breeding seasons. In addi- these questions ahead of time protects both the owner tion, owned bulls may be sold for salvage value at the of the bull and the producer leasing the bull. end of their useful life in the herd to offset a portion of the initial purchase price or cost of raising home- Leased bulls are usually only kept during the grown bulls. However, interest and depreciation costs breeding season, so bull maintenance costs are not will be incurred with owned bulls unlike with many incurred outside of the time the bull is kept. Feed leased bull arrangements. costs alone for one bull may run close to $350 per year. Veterinary, medicine, labor and breeding sound- How Much Is a Bull Worth? ness examination costs will add to the cash outlay associated with keeping a bull. The bull owner should Performance information along with any expected determine the costs of bull ownership in order to set a progeny differences (EPDs) give an indication of the rental rate that will cover and provide a return above expected performance of a bull’s calves for particular these costs. traits such as growth performance relative to the performance of calves sired by another bull or group Cash leasing rates typically average $500 to $700 of bulls. Using this information, educated purchasing per bull for a single breeding season; however, this decisions can be made regarding the purchase price will vary depending on the cattle market and the differences that can be justified when comparing quality of the bull. Bulls can lose value as breeding bulls. To illustrate differences in bull value, here is animals over time. The salvage price of a bull at an actual scenario from the Livestock and Forest- the end of his useful life is often much less than the ry Branch Station in Batesville, Arkansas. Bull A initial purchase price of the bull. This lost value is and Bull B were exposed to cows of similar genetic referred to as depreciation and can be spread out as merit. Bull A sired calves that weighed on aver- an annual cost over the useful life of the bull. age 436 pounds at weaning. Calves sired by Bull B weighed 543 pounds on average at weaning. A $2,500 bull that depreciates to $700 loses more value each year [(2500 - 700) 6 or $300 per year Weaning weight difference between Bull B and Bull A is over 6 years] than a $1,400 bull that depreciates to 543 pounds − 436 pounds = 107 pounds. $500 [(1400 - 500) 6 or $150 per year over 6 years]. This depreciation cost difference may be factored into Lighter weight calves typically sell at a higher price per the lease rate so that the bull with the higher initial pound than heavier weight calves. If calves sired by value and higher annual depreciation cost is offered Bull A could be sold for $0.92 per pound and calves sired for lease at a higher rate than the less valuable bull. by Bull B could be sold for $0.78 per pound, then gross returns from each bull would be as follows: Although cash leases are more common, produc- ers may also lease bulls on a share basis. This share Bull A: 436 pounds × $0.92 per pound = $401 per calf basis typically involves use of a bull in return for a sold share of the calf crop. Returns from calf sales and, on rare occa-sions, returns from cull bull sales are Bull B: 543 pounds × $0.78 per pound = $424 per calf usually shared in the same proportion as each party sold contributes to costs. Because the value of calf pro- duction returns will vary with market fluctuations The difference in gross returns per calf would then be: and herd productivity, the cost of a share lease is subject to these changes unlike a cash lease. Share $424 (Bull B) − $401 (Bull A) = $23 per calf lease arrangements can be customized to individual If each bull can be expected to sire 25 calves per year, Ideally, a bull will have passed a BSE prior then the difference in gross returns per year between the to purchase. A BSE should be performed annual- two bulls would be: ly on each bull about 60 days prior to the start of the breeding season. This allows time to recheck or $23 per calf × 25 calves per year = $575 per year replace bulls receiving suspect scores. Do not use a bull that fails a BSE. Because the breeding poten- Over 5 years, the difference in gross returns between the tial of a bull can change over time, BSEs should be two bulls would be: conducted on a regular basis. Disease, injury and environmental conditions can affect proper function $575 per year × 5 years = $2,875 of the testes and impair reproductive performance. An annual BSE is essential, especially when there If Bull B cost $1,000 more than Bull A, then it would take is only one bull for the entire operation, one bull per 20.9 months to capture the difference in purchase price breeding herd or a high female to bull ratio is used.
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