“Historical Perspective on Cull Cow Prices”
By: Justin Waggoner, Ph.D., Beef Systems Specialist
The sale of cull animals is one of the primary sources of revenue on a cow-calf operation, contributing 17- 24% of the gross income reported by cow-calf operators within the Kansas Farm Management Association from 2013-2017. The figure below offers some historical perspective on cull cow prices in Kansas (LMIC, compiled by Robin Reid). Cull cow prices are seasonal, being lowest in the months of October, November, December, and typically increase in March and then remain steady during the summer months.
The relative difference between the market low and high, based on the 5- and 15-year average prices illustrated in the graph is approximately $10-$15/cwt. Thus, the market value of a cull cow increases $10- $15/cwt. from November to March. A 1,300-lb. cow sold in November at $40/cwt. would generate $520 while the same cow, if sold in March at $55/cwt., would generate $715, a difference of $195.
Although, the cull cow market has been relatively soft in 2019 and we cannot foresee what the market will be in 2020, the historical data indicates that cull cow values typically increase over the winter. The question then becomes whether the increase in value is substantial enough to justify holding onto those cows for an additional 120 days.
For more information, contact Justin Waggoner at firstname.lastname@example.org.