As we continue into the winter feeding months, cow-calf producers have additional opportunities to impact their bottom line. Winter feeding costs represent the single largest cost to cattlemen, typically representing 55 to 80 percent of total costs for their cow herd.
This cost is important to consider when making the decision to cull open or unproductive cows or feed them through winter while trying to improve body condition score. Additional consideration should be given to feed resources available and market value for cull cows.
Cow-calf producers should consider what their individual feed costs are, along with feed availability. The average cow can eat 2.2 percent of her bodyweight in dry matter each day over the feeding period. For producers in the Upper Midwest, where hay prices are averaging $65 to $100 per ton and feeding periods are long (around 150 days), feed costs can add up quickly. Depending on hay quality, producers may need to add corn or another energy source into the ration along with providing a supplemental mineral.
Individual costs will vary with different management practices depending on labor, yardage, vet fees and ingredients in the ration. Assuming feed costs of $65 per ton for hay, $2.90 per bushel of corn and an average mineral price of 35 cents per pound, total ration costs can average $1.43 per head per day. This feed cost assumes a 1,300-pound cow eating 2.2 percent of her bodyweight in dry matter and a 15 percent shrink due to hay feeding losses. Assuming an average daily gain of 0.84 pounds over 120 days, the daily feed cost gives us a $1.70 per pound of gain. Producers looking to reduce costs should look for strategies to reduce feeding shrink, such as using hay rings or considering a TMR.
When looking at marketing cull cows now or feeding them over the winter and selling them this spring, cow body condition needs to be considered along with feed resources on hand. Thin cows with low body condition scores may be candidates to feed over the winter as they have the greatest opportunity for body condition improvement. With thin cows currently selling in the Upper Midwest for $40 per hundredweight (cwt), there currently may be revenue opportunities, assuming a producer can increase the cow's body condition score during the winter.
If the March price is $56 per cwt for an average condition cow (as opposed to the $40 per cwt for the thin cow today), the producer has the opportunity to gain an additional $250 in revenue by improving the cow's body condition, while the feed costs (assuming the above prices for this gain) are approximately $153. Note though that no yardage, management fees, vet costs, etc. have been included. Also, the risk is whether she gains body condition score. If not, she could possibly receive the same or lower price per cwt in the spring than she would today.
Cow-calf producers looking to cut costs this winter should look for strategies to reduce feed waste and cut feed costs along with looking for marketing opportunities for cull females to increase revenue. Open or unproductive cows cost producers in the long run if kept in the herd; producers should look at their own costs to see if it benefits them to market their cull cows now or continue to feed them until spring. Individual costs will vary depending on location as well as management practices, but opportunities to improve the bottom line may currently exist for this winter's feeding months if appropriately priced hay can be procured. 
Jared Geiser is a research assistant and Brenda Boetel is a professor and extension economist. Both are with the University of Wisconsin – River Falls Department of Agricultural Economics.
This originally appeared in the In the Cattle Markets newsletter.
PHOTO: Producers should look at ways to eliminate feed waste or cut feed costs this winter. Staff photo.
