Economics of herd rebuilding depend on cull rate, study finds

The study drew information from 17 farms registered with the council’s cow-calf production network from Western Canada and northern Ontario, said Brenna Grant, executive director of CanFax. It then modelled the farms’ recovery, based on a projected cull level (ranging from no extra culls to a 25, 50 or 75 per cent herd loss) and recovery strategy (purchased replacement stock versus replacement heifers).

“The overall objective that we wanted to answer with this study was: How do you minimize the equity drain on the operation?” Grant said.

A farm’s circumstances are rarely cut and dried, she said. Choices might hinge on availability of local feed or how strongly the producer wants to preserve herd genetics or level of concern about biosecurity when bringing in new stock. Cash flow also affects a producer’s ability to buy replacements.