Introduction
With cattle prices at all-time highs, forward-thinking cattle feeders and backgrounders will be doing some calculations to determine what they can pay for feeder calves, and/or what they should forward contract them for and some cow-calf producers will look at the possible returns to retaining the calves longer. To assist with this task UW-Madison Division of Extension has assembled a set of fall projections.
These projections are intended to serve as an initial guide. They are based on regional averages; therefore, the prices and scenarios will not apply to every feedlot operation. Producers are strongly encouraged to use their own numbers rather than the estimated costs to evaluate their specific situation.
Download 2024 Fall Cattle Feeder Enterprise Projections tool
Fall 2024 purchase prices were determined by looking at area feeder sales in western Wisconsin and southeastern Minnesota. Projected sale prices were estimated by looking at futures contract prices and taking into account seasonal and cyclical trends in addition to current placements and animal breed influence on prices.
Market volatility can result in rapid changes in margins. The projections suggest there is opportunity for profit for some of the enterprises if cash prices follow what the futures market is predicting they will be. Price optimism is largely due to tight supplies of feeder cattle coupled with continued strong demand for beef.
UW-Madison Extension Feedlot Enterprise Budget Tool
For users to evaluate their own situation, we recommend using the UW-Madison Extension Feedlot Enterprise Budget Tool (xls) that the projection sheets were adapted from. The fully functional Extension Feedlot Enterprise Budget Tool includes section tabs to help producers evaluate their operation more accurately. In the projection’s spreadsheets, the yardage calculator and ration cost calculator components are not functional due to the way they are bundled together into one spreadsheet. Customizable sections include Feed Costs, Yardage, and Labor and Management. Using the enterprise budget tool or similar tools with your own numbers is more valuable to help you with your decisions.
Download UW-Madison Extension Feedlot Enterprise Budget Tool
About 2024 Fall Cattle Feeder Enterprise Projections
The projections include the following twelve different feedlot related enterprises that are summarized on the first tab of the file. Each enterprise projection has its own sheet within the file.
- Cull cows 1200-1400 lbs
- Holstein bull calf birth to 400 lbs
- Beef x dairy cross calf birth to 400 lbs
- Beef x dairy cross steers 400-1450 lbs
- Beef x dairy cross heifers 400 to 1350 lbs
- Holstein steers 400-800 lbs
- Holstein steers 400-1500 lbs
- Holstein steers 800-1500 lbs
- Beef feeder steer calves 500-1450 lbs
- Beef feeder heifer calves 475-1325 lbs
- Beef feeder calves background 550-900 lbs
- Finish beef yearlings 800-1450 lbs
Authors
William Halfman
Brenda Boetel
Brenda Boetel is an Extension Agricultural Marketing Specialist for the University of Wisconsin. Her teaching program and extension research provides leadership in educational programming for problems facing the livestock/meat and corn/soybean industries. She teaches classes at UWRF on price risk management, has authored articles on livestock issues and been interviewed by high impact outlets, including the US Farm Report.
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