Herd rebuild is certainly a hot topic these days, but retaining heifers may not be the first choice for many cattlemen. With market prices still favorable, we have to look at multiple factors when deciding to retain young females. So what’s the current status of heifer retention across the nation? We asked American Angus Association regional managers Will Harsh, Landon Andrews and Alex Tolbert.

Out with the old

It’s the perpetual conundrum: While trying to breed better cattle, why would we market our heifers? The question isn’t simple to answer.

The factors that lead to selling or retaining are unique to each individual producer. Yet one thing we should all have in common when deciding what to do with our heifers is reviewing our balance sheets, says Alex Tolbert, Region 3.

“The first thing I would tell anyone is to take a good look at both your balance sheet and accounts payable. We’ve got to make it through this year before we worry about five and 10 years down the road,” he advises. “I think that’s what we are seeing. When the market first gets hot, we pay the bills with the first check, but we look at making improvements with the second.”

The next question Tolbert recommends asking is whether a producer can properly manage additional females with existing resources. If the answer is positive, producers need to decide whether they’re developing females for others or themselves. Only retain the ones that move you forward, says Tolbert.

“This spring the purebred female market in our territory was up 34% with a 20% increase in sales. When you think about that, the market signals are sure in place to sell the old cows and keep more heifers back,” says Tolbert. “The money to be made at this point is having more cows in production. We have to own the factory.”

Rain is a good thing

While Tolbert notes that last year was dry in his region, an uptick in moisture is helping drive expansion opportunities. That hasn’t been the case in Region 11, says Landon Andrews.

Noting that drought is currently a major problem in his area, Andrews has seen purebred breeders cut their herds in half because of a lack of moisture. The southern and western portions of his region need four or five good years of rain before they start rebuilding, says Andrews.

Still, marketing cattle isn’t all bad news when prices are still trending favorably.

“The market right now is extremely lucrative, and I think that is a major driving force to sell females within my region. Most of our commercial guys are sending all their females to town and eventually on to a feedlot,” notes Andrews. “They’re selling these weaners and never looking back. I can’t blame those ranchers, because the market is finally getting good for them.”

With input costs still high and drought a major concern within his territory, Andrews advises producers to ensure their cattle are working for them.

“In drought conditions, we need to be a steward of the land and of our cattle. We need to take a deep, hard look into our herds and be pretty selective about what stays and what goes,” he stresses. “Cattlemen need to find the animals that work best in their region. There’s going to come a time when we just select for that profitable cow across the board, whether it’s as purebred breeders or commercial cattlemen. Our cattle have to earn their keep, and they have to work to remain in the herd.”

Transfer of wealth (aka cattle)

While data these days indicate 40%-45% of heifer calves are being put on feed, those points may not tell the full story of herd rebuilding within the state of Nebraska.

With a huge swath of females currently on feed, it can be easy to assume herd rebuilding hasn’t kicked in just yet. But Region 7’s Will Harsh advises deferring that opinion a bit longer.

“We're watching a lot of older producers get out and the first thing everyone thinks to themselves is, ‘Oh, these females are going to slaughter.’ I actually don’t think that’s the case,” muses Harsh. “We’re seeing a lot of these older producers get out of the business, but really we’re just seeing these females relocate. For as many older producers that we see dispersing, we’re welcoming new people in, which is optimistic.”

With cull cow and bull prices at tantalizing levels, many producers in Harsh’s area are calculating the cost of managing a single older female compared to two heifer calves and realizing they can come out ahead by upgrading their herd with new genetics.

“We’re seeing the price of what these older cows are bringing and producers are realizing, ‘OK, we need heifer calves.’ Younger females are going to require a whole lot less total feed than a bred cow,” says Harsh. “Essentially, two heifer calves can be equivalent to the cost of maintaining one bred cow. With that being the case, keeping your heifers back is the best way to advance your herd’s potential longevity and is essential to fostering growth in your overall herd’s performance.”

Editor’s note: “From the Field” is a regular Angus Beef Bulletin EXTRA column featuring advice, industry news and Angus updates from regional managers of the American Angus Association. For information on how to contact your regional manager, please visit https://www.angus.org/assoc/RM.