Making a calf crop stand out to buyers is critical for profitability and long-term success, regardless of an operation’s size. While smaller farms may feel disadvantaged by these efforts, they can significantly enhance their calves’ appeal and secure higher prices using simple but often overlooked methods.
The following are a few tips from Doug Ferguson, a Nebraska cattle marketer, to help smaller cow-calf operations achieve higher returns.
Think seriously about profit
“Getting top dollar doesn’t always mean the most profit,” Ferguson says. “In today’s markets, there’s an obsession with ‘market-topping’ or ‘bell-ringers,’ but if the cost of raising them is too high, you could sell them and still not be profitable.”
He emphasizes that profit must be the number one goal if a producer desires to make money.
“Make the irrevocable decision to be profitable, and remain committed to this goal,” he says.
Know your customer
“By this, I don’t mean know their name and address, but know if you’re selling into a stocker program, grass operation, backgrounding yard or finishing lot,” says Ferguson. “There’s a massive difference in what they’re looking for.”
He explains that with today’s high prices and lower corn costs, many are tempted to feed for a longer period, but this decision usually turns optimal calves into animals with too much fat.
“As a buyer, I’m turned off and likely won’t bid,” he says. “I know they’ll lose 50 to 75 pounds in shrink from the diet change alone. Know the targeted market, and try not to make decisions to knock you off course.”
Take advantage of your agent
Sale barn agents are key players, since they constantly communicate with buyers and know what they want.
“When dropping off cattle at the auction, it says right at the bottom of everyone’s paperwork to ‘Ask your agent,’” says Ferguson. “Take advantage of this. They’re the best source of information.”
Reputation is a real thing
Buyers tend to remember owners and the animals they raise. Reputation is a reality.
“Just because you’re a smaller operator doesn’t mean you don’t have good quality,” Ferguson says. “Your reputation is based on quality and how your calves performed in the past. Try to be consistent by striving for uniformity. We’ll probably remember you, and we like it when we’re confident in what you’re bringing in.”
Have a hard wean
“There’s so much stress in weaning and the diet change that comes after. If you don’t have a hard wean of 45 to 60 days, you’re begging for a wreck,” Ferguson says. “Many buyers won’t touch calves weaned 10 to 20 days.”
Say no to ‘a round of shots’
“Another thing about knowing your customer is vaccines,” Ferguson says. “Don’t just have the auctioneer say your calves had a round of shots. Does this mean a 7-way in the spring or a 5-way respiratory with a 7-way clostridial and somnus backing it up?”
Specific information when it comes to vaccines is crucial for cattle buyers.
A snip and a clip
“This one is a little trickier due to our high cattle prices, but producers will see monetary gains by castrating and dehorning before they sell,” Ferguson says. “Unfortunately, some aren’t bothering with these procedures because they’re getting a bigger check than ever. I suppose this is fair, but I still recommend they do these procedures.”
If producers don’t know how or don’t have the time to deal with these processes, they should pencil out the value of having a veterinarian take care of it, as discounts add up quickly.
Keep shrinkage in mind
“Buyers know what it looks like when calves are tanked up on silage before the sale to get more weight,” Ferguson says. “They’ll sell at a discount because we understand they’ll lose this weight.”
Think about shipping one to several days before the sale, so calves get some feed and water but don’t have the full look to discourage buyers. It’s a balancing act as auctions charge for yardage, but it’s worth considering.
Think bigger
“Check out how big the sale is going to be,” Ferguson says. “Look for a special calf sale. I guarantee they’ll sell better. Don’t be the guy hauling 40 head to the weekly sale with only 300 total. Some buyers won’t even attend, as they know they’ll never fill a load. Hit a sale with a good-sized run. Look for large consignments and big load lots.”
Test out a later time slot
Ferguson suggests producers with smaller numbers could test the waters of having their calves sell later in the sale, as smaller groups are often needed to fill truckloads.
“It’s luck of the draw, but you could text the sale barn agent that you don’t mind if they hold your cattle up until later,” he says. “They sometimes use the smaller groups while sorting the bigger bunches. It all works together, and while buyers understand this, the smaller cow-calf operator often doesn’t.”
Represent
“If at all possible, be there when your calves sell,” Ferguson says. “You can jump in and correct any misrepresentations if they arise and work on building up your farm’s reputation at the same time.”
Keep them down home
Ferguson believes selling the calf crop directly from the farm can work well, but the seller must understand the buyer will use a pencil shrink.
“This sometimes upsets sellers, as they think buyers are trying to steal weight,” he says. “This isn’t the case. If you haul them to the sale barn, you’ll shovel manure from the trailer too.”
Agree on a price, a shrink percentage and a slide, and understand you don’t need the market-topping price to make the most money, as you won’t pay commissions, freight, yardage and other small fees.
“The buyer will get a slightly better deal, but because you’re not paying all the other charges, you’ll net more,” Ferguson says. “Don’t blow a deal over something silly, and understand there are limitations. If you tell them no too many times, eventually, they will no longer be interested in your cattle.”
Employing one or more of these strategies can significantly increase the profitability and reputation of small cow-calf producers, helping their operations remain competitive in the evolving cattle production landscape.
