The Economics of Raising Replacement Heifers: Estimating Direct Costs Using the Replacement Heifer Calculator

Abstract

Each year, cattle producers must decide what to do with new calves. There are two options for the females: sell them as weaned heifers or keep them to raise as replacements to build the herd. There are benefits to both. Raising replacement heifers can be costly, so selling calves can seem like the most economical option if the producer is considering only short-term revenues. However, the lowered biosecurity risks (because outside cattle are not introduced to the herd) as well as the opportunity to build and enhance herd genetics can make raising heifers as replacements the more economical choice long term. The decision must be made again each year based on the cattle market and short- and long-term goals of the operation. To help producers decide, this publications describes and explains the Replacement Heifer Calculator, a free cost estimation tool cattle producers may use to aid in achieving their herd goals.

Keywords

• heifers
• agricultural production economics
• production costs
• cattle productivity
• cost estmates