Page 13 - MWC 8-10-2023s

The Midwest Cattleman · August 10, 2023 · P13
Do Heifers Have More Potential Value Than Steers?

By Aaron Berger, Nebraska Extension Beef Educator
When going out to tag •Pregnant heifers can be
calves, most cow-calf produc- retained in the herd or sold
ers would prefer to find a new as bred heifers.
bull calf rather than a heif- •Retained bred heifers
er. This is logical given that enter the herd and generate
the bull calf, which in most income from the calves they
cases will become a steer, produce.
will weigh more, and bring •They can then also be sold
more money per pound when as young to middle-aged bred
selling at weaning than his cows when they are often at
heifer herd mates born at the their peak value.
same time. In the feedyard,
steer calves grow faster, are Tax Breaks of Raised
more efficient and finish at Heifers
heavier weights, providing When raised heifers re-
greater pounds to sell at har- tained more than 24 months For cow-calf producers who understand and leverage a heifer’s value potential, steers
are great for providing income, but heifers can be used to generate wealth
vest. Steer performance jus- for breeding purposes are
tifies the premiums paid for sold as bred females or as the long-term cattle cycle sig- ture value from heifers when
steers over heifers. cull cows, they provide ad- nificantly impact the poten- working with market condi-
For the cow-calf producer ditional tax advantages, as tial lifetime value that will tions and capitalizing on the
though, could heifers have their sale is taxed at a capital be generated by a heifer calf. tax advantages. For cow-calf
more potential value than a gains rate rather than as or- So, which is preferable, a producers who understand
steer? Heifer calves provide dinary income. This is a sig- bull calf or a heifer calf? It and leverage a heifer’s value
more options and opportuni- nificant benefit due to these really depends on if the cow- potential, steers are great for
ties than a bull calf. To pro- dollars being taxed at a lower calf operation is structured providing income, but heif-
duce calves, you need heif- rate than ordinary income to benefit from the value ers can be used to generate
ers and relatively few bulls. and capital gains income not prospects that heifers pro- wealth.
While the bull is important being subject to self-employ- vide. There can be tremen-
genetically, he doesn’t con- ment tax. dous opportunities to cap-
tribute much to the environ- The Big Picture of Heifer
mental factors that influence Profitability
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success in the production of Obviously, the cattle mar- w
calves. The cow provides and ket and the long-term cattle
delivers the vast majority of cycle comes into play in this
what a calf needs from con- discussion when looking at
ception to weaning. the value of a bull calf ver-
Heifer calves give a cow- sus a heifer calf. The re-
calf producer several mar- tained heifer calves that will
keting options: generate the most value are
•They can be sold at wean- the ones that produce calves
ing. when prices are high and
•They can be retained and then are sold themselves as a
exposed for breeding. bred cow or for harvest when PowerPostowerPost HD
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•Non-pregnant heifers can prices are near their cyclical
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