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Abstract

Culling decisions within beef production systems are not reversible, and as such, data can help decision-makers double-check heuristics to avoid costly mistakes. In this essay, we use financial methods to examine cow culling decisions, evaluating their impact on overall herd profitability. To do so, we use production and financial data from 16 “typical farms” within the Canadian Cow-Calf Cost of Production Network to explore the financial impact of different culling strategies. This essay builds on prior literature by using Canadian data, as there may be differences in costs and productivity across production regions. We identify four culling scenarios that vary based on productivity by dam age and replacement heifer source. We compare a breeding female’s value when nonpregnant to the value of a bred replacement heifer using net present values and the equivalent annual annuity of these decisions and calculate the return on assets to measure the impact of these decisions on profitability. Results confirm that the current practice of replacing all nonpregnant cows with homegrown or purchased-bred heifers is financially optimal in the current high-price environment. The return on assets model finds that replacing open cows with home

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