Economics of Bull Buying

How much can I afford to pay for a bull?

Submitted by Travis Meteer, U of I Beef Extension Specialist for Illinois Beef magazine

A popular question this time of year is “How much can I afford to pay for a bull.” My go-to answer is usually – “How much revenue loss would you have from a pasture full of open cows?” After all, we often de-value the role of the bull. We forget that he is a crucial part of the equation to making our product.

Now, the question is a good one to ask. Especially after watching calf prices climb seemingly all of 2014 and the prices paid for bred heifers at year-end, it is only logical to wonder what a good bull will cost this spring.

Old rules of thumb are good to reflect on. For instance, “two times the value of a fat steer” or “four to five times the value of a feeder calf”, are both common measures used by old-timers to determine the value of a bull. So, I tested these figures with historical prices from the Illinois Performance Tested Bull Sale and prices paid for feeders and fats from National Agricultural Statistics Service (NASS). As it turns out, using values from 1996 to 2014 (the last 19 years) the average bull price was four times the value of a feeder calf and 2.1 times the value of a fat steer. Looks like those old rules of thumb work pretty well.

Using these multipliers, we can speculate to the average price of bulls this coming sale season. Looking at recent market reports, 500-pound feeder calves are bringing $2.40 or more. Thus, value of a 5-weight feeder calf is conservatively $1,200. History tells us four times that value will get us close to the average. Thus 4 x $1,200 = $4,800 for an average bull price.

A conservative price for fat steers weighing 1,300 pounds is $1.60. Therefore the math tells us a fat steer values out at nearly $2,100. The previously stated multiplier of 2.1 times the value of a fat steer would yield an average bull price of just over $4,400. Thus, we have a conservative range of $4,400 to $4,800 for the average bull price.

That said, there will be many bulls that bring in excess of those figures. So, what factors contribute to bulls bringing more than the average? Are they worth the extra money?

For simplicity, let’s say a bull breeds 25 cows per year for four years resulting in 100 calves over his lifespan. With these conservative assumptions, even a small improvement in a valuable trait can greatly increase a bull’s value.

For instance, Calving Ease (CE) EPD is defined as the difference in percentage of unassisted births. So, let’s say you purchase a bull that is five points better in his CE than the breed average for current sires. For both Angus and Simmental, that would mean purchasing a bull in the top 10 percent of the breed for that trait – not an unrealistic buy. The 5-point improvement should translate to five percent more unassisted births. In the real world, it’s fair to say half of assisted births don’t make it. Thus, a five percent improvement in CED could easily translate to 2.5 percent more calves. Out of 100 calves sired over a lifetime, that’s 2.5 more calves. The added value from improved CE would be $3,000 (2.5 more calves x 500 lbs x $2.40/lb.).

The most common example for added value of a bull is improved EPDs for weaning weight (WW). Let’s say you purchase a bull with a WW EPD of 60 (breed average for Angus is 50). That’s 10 additional pounds at weaning per calf. If the bull sires 100 calves in a lifetime and a pound is worth $2.40, then the result is $2,400 more income over his lifetime when compared to the average of current sires.

Another figure bull buyers can look at are $ values (Weaned Calf Value ($W), Beef Value ($B), All-Purpose Index (API), Terminal Index (TI)). These values are expressed in dollars and if you match your herd needs with the correct index, they can help you be more profitable. In the January/February 2014 issue of Illinois Beef magazine, I discussed these indexes in a column titled “Understanding and UtilizingEconomic Indexes in Sire Selection”. You can find this piece archived on my blog.

When selecting your next herd sire, identify the traits that can add dollars to your operation. Don’t sacrifice functionality, structural soundness, docility, and other traits that can affect longevity. View purchasing a bull as an investment and treat it as such. Investing in a good bull that can improve profitable traits in your herd can allow your farm to be more competitive no matter the market dynamic.

Bottom line, bulls are a significant contributor to profit or loss in your cattle herd. The have an impact now and for years to come if you are retaining replacement females. Look for traits that hold value in your market. Find a bull that can inject those traits. The “expense” of a bull can be a great investment in the future of your cattle herd.

Incorporating Genomics

Accuracy and reliability are becoming required tools of the trade for many in agriculture. On a diversified farm near Blue Mound, T.J. Curtin has seen that reality in all areas of production – from growing corn and soybeans to raising registered Angus bulls.

He likens the cattle industry’s use of DNA technology to other agricultural advancements, such as the use of seed varieties in row-crop operations.

“In Illinois, corn is king,” T.J. said. “Seed-corn companies today offer us much more information on each variety, and that improves accuracy. Buying a bull is similar to buying a bag of seed corn, and if I can offer higher accuracy using genomic technology, then I am willing to do that.”

The Curtin family has been raising Angus cattle for nearly 80 years. Now in its fourth generation, Curtin Land and Cattle is home to 200-plus head of registered Angus cattle, a row-crop operation and a family trucking business. The Curtins sell about 40 registered bulls each year during the annual production sale.

The technology first captured T.J.’s attention three years ago when he attended a sale offering genomic-enhanced expected progeny differences (EPDs). The added accuracy with a simple DNA test is what led T.J. to try the technology in his own operation and he has used it ever since. 

“As farmers we take risks all the time, but when we can lessen that risk, that is of great value,” T.J. said. “Commercial producers put a lot of trust in us as breeders, and now I can offer them higher accuracy for what cattle are going to do.”

Curtin is part of a growing number of cattlemen who are contributing genomic information into the EPDs produced by national breed associations.

DNA information incorporated into genomic-enhanced EPDs can be a powerful tool for cattlemen wanting to make more rapid herd improvement. In many cases, it’s similar to an added 10 to 12 progeny being reported on a given animal.

“Genomic information can help producers optimize selection, mating and management decisions for more profitable and sustainable herds,” said Kent Anderson, associate director of technical services for Zoetis. “With genomic-enhanced EPDs, producers can more confidently select genetically superior young sires before progeny information is available. Genetic testing isn’t just for seedstock producers. There are tests available that can help producers better select replacement heifers and feeder cattle for better returns.”

Due to the Curtins tight calving season, the parentage portion of the test that comes with the HD 50K test T.J. uses has helped with herd management.

“Calving for us is fast and furious – we will have around 150 calves in our first 50 days of calving,” he said. “Sometimes you can have two cows right next to each other that calved at the same time and by accident tag the wrong calf with the wrong cow – mistakes like that can happen. With the HD 50K test, we’ve caught a couple that have gotten switched and with genetic defects you have to be on the ball and get the parentage correct.”

Last spring, T.J. conducted a survey of his customers to determine whether or not they value genomic data when making a bull purchase. About 85 percent of respondents said yes, and he said that is all the reassurance he needs to know the technology is worthwhile.

“This type of technology is significant with today’s cattle prices because we need to identify cattle that will lead us to our goals more quickly,” T.J. said. “And we need to identify those superior cattle that can covert feed more efficiently and keep producing more beef with less cattle.”

Bulls - Winter's Forgotten Animal

Breeding success depends on the reproductive health of both the cow and the bull. But, because a bull is expected to service various numbers of cows, the potential fertility of the bull is extremely important.



Cattle producers consider many factors when making the decision of which bull to turn out with the cows. What genetic and physical improvements need to be made? What sire breed would best complement my cow base? How many bulls are needed to correctly cover my cows? These are all relevant questions that need to be answered as we approach the spring breeding season. Nonetheless, without a proper Breeding Soundness Exam (BSE), these decisions may not matter. The greatest bull with bad semen will not produce calves. So, consider a BSE insurance for your breeding season.



“It is essential to evaluate bulls every year before breeding starts because the fertility of an individual animal can vary from year to year. The breeding soundness exam should be performed 30 to 60 days before the start of breeding season. It is important to allow sufficient time to replace questionable bulls,” said Buzz Iliff, veterinarian with the Wyoming Vet Clinic. “This will also allow enough time for stressed animals to recover and to be tested again before beginning the breeding season.”

According to Buzz, the stress of the harsh winter could have an affect on a bull’s fertility, especially with the increased potential of frostbite to a bull’s testicles. Consulting your veterinarian to conduct a BSE will include a semen check, which can determine semen quality and fertility.

The physical examination of a BSE includes evaluating body condition, feet and leg structure and the general health of the individual bull. The external evaluation of the reproductive tract includes evaluation of the testes, spermatic cords and epididymis. Scrotal circumference is an important measure since it is directly related to the total mass of sperm-producing tissue, sperm cell normality and the onset of puberty in the bull and his female offspring.

Weight and body condition are important factors in whether a bull will be a good breeder. He needs to be in proper fitness condition to be athletic and have the endurance to breed cows.



It's important to remember that a fat bull is not as athletically fit and is just as likely to hurt himself and have issues covering cows as a bull that is too thin. When we talk about body condition scores, a body score 5 to 6 (with 1 being emaciated and 9 being obese) is fine for a bull. A BCS 5 bull isn't particularly pretty, but he is going to settle more cows than the fat bull.

Throughout the breeding season, managers need to observe and address health issues and physical problems that may arise, and manage the hierarchy of social dominance among the bulls. This is true if your herd has two bulls or 20 bulls. There's no substitute for knowing your bulls and closely monitoring them to see what's actually happening in the pasture.

"It is very important to continually assess these interactions and adjust things if necessary - move bulls, rest bulls or whatever is needed to make sure the cows get bred," Buzz said.