There have been many reports showing that cow-calf operators can increase their calf’s value by using a preconditioning program. While there is profit potential in doing this it is best to do your homework first. The two things you must consider when looking into preconditioning are the value of gain and the cost of gain.
Value of Gain
This is the value that is added to the animal for every pound it gains. You can figure this number by estimating the selling value and the weaning value. Now to find these two terms you will need to use the futures market and a historical basis.
The futures market is where traders come together and try to outguess each other. It can provide you with a good estimation of what a group of your calves size and near the region where cattle will be fed is going to go for sometime in the future. Hence why it is called the futures market
Now you may not have the same size calf crop as what is being sold but that is ok. The cash and the futures market generally follow one another. So you can figure out a historical basis for every type of cattle. Taking the basis for a certain type then adding it to the futures price you can get an expected value.
Cost of Gain
This refers to how much it would cost you to put that pound of extra weight on that particular calf. You will include in this total all the vaccines, supplements, extra labor and such that will be used to make that calf grow. To figure this out add up all of the expenses then divide by the number of calves and that will give you the cost of gain. If the value of gain is greater than the cost of gain then it might be worth to you to do preconditioning. I discuss whether to creep feed or not here
Preconditioning Programs
There are many programs that you can choose from. One of the most common ones is to wean them for 45 days with a vaccination protocol. Since there are many to choose from (from particular breed to certain regions) you will want to look at which one best suits your facilities and your available resources.
Would like to thank our supporters for making articles like this possible, if you would like to become a supporter you can go to our Patreon page by clicking here
