The benchmark reports are interesting and folks tend to value them in different ways, but they are a little more than just a means to compare yourself with your neighbors or fuel a competitive spirit.

Calf prices look to be strong for the next few years as the national cow herd continues to bounce back from liquidations related to drought. These market conditions pose a great opportunity to increase profit potential through value-added programs.

The USDA’s June 2024 Cattle on Feed report showed 11.6 million cattle and calves on feed for the slaughter market in the country on feedlots with capacity of 1,000 or more head, slightly below the June 2023 report.

Since the purchase price of calves is currently high, there can be a wide price spread between the purchase price of cattle that came from a good vaccination and health program versus cattle that have not.

Over recent decades, cattle disease management, prevention and treatment have changed dramatically. Vaccines, antibiotics, technology and even diseases have altered course.

Former heavyweight boxing champion Mike Tyson famously said, “Everyone has a plan until they get punched in the face.” While he was referring to strategy in the boxing ring, the same holds true for starting lightweight (sometimes called peewee) calves.

It’s no secret: Feed has always accounted for, by far, the biggest production expense of beef cattle production.

The USDA’s latest Cattle on Feed report, published May 24, showed that 1.87 million head of fed cattle were marketed in April, a more than 10% increase from the same period last year.

There was a 10% increase in February feedlot placements from 2023 to 1.89 million head, representing the most February placements since at least 1996.