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Understanding Cow Profitability in Modern Beef Production

Understanding Cow Profitability in Modern Beef Production


By Andi Anderson

The 2026 OSU Winter Beef Webinar Series concluded with an in‑depth discussion on cow herd profitability. In this final session, Garth Ruff, OSU Extension Beef Field Specialist, reviewed key topics from earlier webinars and explained the current economics of cow‑calf production.

Over recent years, producers have seen unusually strong profits, making it important to understand what influences revenue, expenses, and long‑term sustainability.

Previous sessions explored how hay quality, feed value, mineral supplementation, biosecurity, genetics, and bull selection shape profit potential.

Building on these concepts, the final session focused on how production costs and animal performance affect overall returns.

As Garth Ruff stated, “My name is Garth Ruff, beef cattle and livestock marketing field specialist with OSU Extension…we’re going to kind of wrap up the series. We’ve covered a variety of things from hay quality, mineral, genetics, bull buying, those type of things, biosecurity…all those things have a bottom line on cow calf production.”

He emphasized understanding variable and fixed costs. Variable costs change with herd size and include feed, supplements, pasture management, and veterinary care.

Feed remains one of the most significant expenses, influenced by pasture quality, grazing days, and cow size. Fixed costs include equipment, breeding stock, buildings, and labor. Producers must balance these costs to maintain profitability.

Cow size also affects efficiency. Larger cows consume more feed, while smaller cows require less energy for maintenance.

Ruff noted that the average cow weight in many herds today ranges from 1,400 to 1,450 pounds, influencing feed needs and land requirements. Good pasture management, soil quality, and controlled grazing practices help reduce feed costs and improve efficiency.

Genetics also play an important role. Traits such as calving ease, weaning weight, yearling weight, and milk production can influence revenue and the long‑term productivity of a herd. Farmers must match these genetic traits to their available feed resources to ensure cows remain healthy and productive.

Ruff’s presentation also highlighted the importance of evaluating market expectations. Producing calves with desirable growth and carcass traits positions farmers for stronger revenue, especially in today’s competitive cattle market.

“As a cow calf producer, this should be kind of a goal. We want to produce the type of calves that the feeder wants to feed and then the packer wants to process, the consumer wants to eat, and at the end of the day, make money doing it,” he explained.

The session concluded with a review of enterprise budget tools that help producers calculate costs and compare different scenarios. These tools support informed decision‑making and long‑term planning.

Overall, the webinar encouraged farmers to evaluate their inputs, genetics, and management strategies to sustain profitability during this unique period of high cattle prices.

Photo Credit: gettyimages-baranozdemir

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Categories: Ohio, Livestock, Beef Cattle

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