Resources Conservation Service in Temple. “This can be a mistake be- cause cull animals can represent 10 percent to 20 percent of a cow-calf operation’s annual gross revenue.” Research has shown that im-
proved cow management and mar- keting make it possible to increase the value of cull cows by 25 to 45 percent or more. Factors affecting value of cull cows are sale weight, body condition, muscling, quality and blemishes. The opportunities to add value come from adding weight, improving quality classifi cation, and taking advantage of seasonal price patterns, Homeyer says. “Ideally, cull cow marketing
should be opportunistic, meaning that cull cows shouldn’t necessar- ily be marketed the same way ev- ery year,” Homeyer says. “While the marketing strategies may vary from year to year, the questions that
producers ask themselves remain the same.”
What time of year is it? Historically, cow prices have fol-
lowed a seasonal pattern based on demand and the number of slaugh- ter cows for sale, Homeyer says. Because most producers calve in the spring, the majority of cull cows hit the marketplace in October, Novem- ber and December, after weaning in the late summer and fall, coinciding with the production cycle. January and February also see relatively high slaughter cow numbers be- cause many producers delay selling their cull cows to defer taxes. The number of slaughter cows on the market is lowest in the late spring and early summer. Slaughter cow prices are inverse-
ly proportional to supply, being low- est in October, November and De-
cember and gradually increasing until they peak in April. “Understanding and exploiting
seasonal price patterns offers the greatest opportunity to consistently maximize returns on cull cows,” Homeyer says.
What are the tax implications? Selling cull animals is a signifi -
cant source of revenue; therefore, it can have signifi cant tax implica- tions, Homeyer says. From a fi nan- cial standpoint, every year is differ- ent, so producers must consider the timing of the sale in relation to that year’s taxes. In some years, it may make sense to defer the sale of cull cows to take advantage of higher prices, while in other years it may make sense to take a lower price
in the near term for tax reasons. MORE
is weaned and will be ready to go by the second week of June — Bulls and Heifers available!
Our Fall Calf Crop
TRIPLE RANCH
www.TripleLBlackHerefords.com
• Registered Black Herefords • Bobby & Jared Lide
714 FM 1366 • Mexia, TX 76667 • 254-739-5311 Bobby (Cell) 254-625-3800 • Jared (Cell) 254-625-3806
tscra.org
July 2013 The Cattleman 29
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