Forecasts indicate that feeder calf prices are expected to stay strong through 2025 due to the limited feeder calf supply. Furthermore, the rate at which slaughter cows are being marketed remains nearly at historic highs. Despite these factors, ranches have not yet begun to retain more heifers, hindering the expansion of the U.S. cow herd.

Kimberly Williams-Brackett

Freelance Writer

Kimberly Williams-Brackett is a freelance writer based in Idaho.

So what’s this mean for bull buyers this year?

Bulls should be readily available, making it relatively easy for buyers to find the specific bull they desire, Hall says. Despite this accessibility, bull prices remain strong. After reviewing sale reports from 35 Angus bull sales since Thanksgiving, Hall notes the average price stood at $6,150 for sales featuring at least 50 bulls. “Remember these are averages, so bulls with exceptional expected progeny differences (EPDs) are going to command higher prices,” he says.

Hall advises bull buyers to allocate time before the sale to carefully examine catalogs and pinpoint sales offering bulls that match their criteria. Calving ease bulls typically command higher prices. He advises producers to save those bulls to breed replacement heifers. Additionally, when selecting bulls for mature cows, Hall emphasizes the importance of not dismissing a high-growth, high-carcass bull simply because it is not a calving ease bull, as mature cows are capable of handling higher birthweights. “If you need a bull selection refresher, contact your extension professional, breed representative or a seedstock producer,” he says.

How much should a producer spend on a bull? “A rule of thumb is: A bull is worth the value of four to five feeder steers,” advises Hall. “For instance, if you’ve sold steers at 1,400 dollars each, a reasonable valuation for a bull might be around 7,000 dollars. It’s crucial to keep in mind that while feeder calf prices are projected to remain robust for the next couple of years, they are expected to decrease. Hence, it’s advisable to pay a fair price for a high-quality bull without overpaying. With numerous sales and a variety of bulls in the market, there are ample options available.”

Seedstock producers

2024 should be a good year for more larger established seedstock operations, with historically high feeder calf values providing cow-calf producers with increased income to spend on bulls. However, as cow-calf producers become more discerning in their selection processes, it may prove wise for seedstock producers to simplify their information.

“Assisting bull buyers by condensing information into easier-to-understand bullet points may reap benefits,” Hall says. “For example, most seedstock breeders identify calving ease bulls. Adding designations for superior carcass, maternal or feed-efficient bulls will better inform buyers. Mentioning bulls that will improve structure or udder quality is also good.”

Hall adds, “While high feeder calf values may help bull sales for most seedstock producers, the low cow numbers mean fewer bulls are needed industry-wide. Smaller seedstock producers or new operations may experience less-than-desired demand. Similarly, bull sales that are late in the spring bull sale season may also be challenged. The 2024 bull sale season may not be the best year to increase the amount of bulls offered.”

Quality genetics in focus

John Nalivka, owner and president of Sterling Marketing Inc. in Vale, Oregon, discusses bull buying in today’s market.

“The market has been very good, and I think this will be the market outlook over the next two years depending on consumer demand,” Nalivka says. Now is the time for ranchers to use this opportunity to make some hard decisions on their management. He notes, “The industry will become more data-driven. It’s a matter of managing and marketing the performance data and value of your herd beyond the ranch – in the feedlot and the packing plant. Think about the entire supply chain and the consumer on the other end of that chain.”

“It definitely will not be less work as producers have to collect the data and manage the data. But the added work will be worth the payoff,” Nalivka says. Half of the equation to bull buying is the genetics of those bulls and using EPDs to express those genetics. DNA mapping is the next step used in conjunction with those EPDs. “I think that is priority. There’s definitely a lot more to be done if we can drive this market towards this pricing system based on the genetic merit of cattle.”

Nalivka is a member of the Genetic Merit Task Force, a group of about 45 experienced beef industry people including ranchers, cattle feeders, geneticists, breed associations and livestock economists. The first meeting was held in Denver on Nov. 2, with several more to follow in the next 18 months. This task force focuses on the marketing of genetics – which, of course, begins with bull buying.

Nalivka says, “The idea is to base the pricing of feeder cattle on the genetics of those cattle, as well as the health, performance in the feedlot and carcass quality. This entails buying high-quality bulls and paying attention to genetics to build a herd of cattle.”

Bull management decisions

Although TLC Angus has a production bull sale in November, they do sell spring-born bulls at the Idaho Angus Association’s Gem State Classic Bull and Female Sale in February. “We also sell a few bulls and females at the ranch, along with a few project calves,” says Cindy Kinder of TLC Angus in Hagerman. The sale is Feb. 10 at the Rising Stars Therapeutic Riding Center in Twin Falls.

With the high prices in the market, ranchers must change their bull management decisions. “Buyers should get rid of older bulls,” Kinder says. “The cull price is high, too. There is more money to spend on new genetics.”

“Updating to newer genetics is very important. A bull will have 10 years of influence in someone's herd,” Kinder says. “I tell buyers to know your market and make your cattle better for that market.”

On the seedstock side, these market highs can be beneficial. “Market highs benefit seedstock in that they are getting better prices for the cull calves,” Kinder says. “At TLC Angus, we have not expanded our offerings. We already cull pretty hard, using phenotype and genotype qualities. We don't want anything out there that we would not use ourselves.”

Kinder says, “With high commercial cull prices, we don't keep anything that is a ‘we will wait and see’ situation."