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Central Texas | IMO-cow operators are in the drivers seat at this time. The stocker/cow market ratio will tell you when to switch as it varies over time. Figure how many stockers the $value of 1 cow will buy. When the ratio is low, say less than 2 stockers per cow, keep/buy cows. When the ratio is high it may be time to switch to stockers. Just be sure you always use the same size/sex/type stocker and type cows for your ratio to get a fair comparison over time. Would suggest using 500# steers as the price is readily available and it makes the math easy. Figure the ratio and write it on your calendar every so often so you can see the changes over time. When the ratio is high it is saying sell cows & buy stockers, when low it is saying sell stockers & buy cows. Basically it is buying what is low & selling what is high.
In my area this past January, stockers were high enough compared to cows that I replaced 750# yearlings with heavy bred cows. The cows actually cost less per head than the yearlings sold for. Using a 500# steer value the ratio was about 1.1 :1.
There is a lot of opportunity out there, especially if you listen to what the market is saying. | |
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Which is more profitable per acre of grass?
