Success StoryCow-calf Profitability Strategies



Cow-calf Profitability Strategies

Author: Kenneth Burdine

Planning Unit: Agr Economics

Major Program: Farm Management

Outcome: Intermediate Outcome

Cow-calf operations are the most common type of beef enterprise in the state of Kentucky as Kentucky is home to more than one-million beef cows.  Historically, cow-calf profits have been very low due to the small nature of most of the operations, the cost of hay production, and high overhead requirements.  During 2018 / 2019, an effort was made to focus more extension programming on strategies aimed at improving profitability for cow-calf operations.  This topic was covered at 16 separate county or regional programs reaching an estimated 861 producers directly.

In some cases, cow-calf profitability was a stand-alone program, while in other cases, a discussion of the cattle market was also included.  Further, topics varied somewhat across locations based on the suggestion of the agents and perceived needs in the county.  Strategies discussed in the 16 programs included managing winter feed costs, incorporating calving season and cow size into culling decisions, cutting costs versus lowering cost of production, and the economics of selling steers rather than bulls.