By Andi Anderson
Winter backgrounding is a way to raise calves for sale in the spring. Calves are typically placed on feed in the fall and are sold in the spring. Winter backgrounding can be a profitable way to raise calves, but it is important to carefully consider the costs and risks involved.
The expected return to winter backgrounding is $185 per head. This is based on an expected purchase price of $255 per cwt for 500 lb steers, an expected sale price of $232 per cwt for 800 lb steers, and a 2.5 lbs per day gain.
The key assumptions made in the analysis are the cost of the calves being placed and the expected sale value in the spring. The cost of the calves being placed will vary depending on the weight and quality of the calves. The expected sale value in the spring will vary depending on market conditions.
Producers should carefully calculate their breakeven purchase prices for calves and be opportunistic as they approach this fall. The breakeven purchase price is the price at which a producer can break even on the cost of the calf, feed, and other inputs.
Winter backgrounding can be a profitable way to raise calves, but it is important to carefully consider the costs and risks involved. Producers should carefully calculate their breakeven purchase prices for calves and be opportunistic as they approach this fall.
Photo Credit: USDA
Categories: Ohio, Livestock, Beef Cattle