The August 1, 2023 Oklahoma Market Report indicates 525 lb. steer calves are currently worth $1,475/head, 861 lb. yearling steers are worth $2,040/head and with fed cattle worth $185/cwt, a 1,400 lb. finished steer has a live value of $2,600. I have seen headlines this week of “Historically Strong Profit Opportunities” and “Strong Cattle Prices.”

Recently my colleague, Dr. Derrell Peel predicted $4/lb. weaned calves, $3/lb. yearlings and $2/lb. fed cattle in the future. Overall, 2023 looks to be a very profitable year for all segments of the beef industry (cow-calf producers, stockers operations and cattle feeders). Low cattle inventories indicate high value of cattle of all classes for the next several years. Wow! This is great news and it leads to the question: Is retained ownership right for your operation?

To a commercial cow-calf operation retained ownership simply means holding onto your weaned calves and turning them into yearlings and/or fed cattle that will be marketed at a later date.

When all industry segments are profitable (which is rare), it makes economic sense to capture more value and profit potential from your calf crop through retained ownership. As is so often the case, your answer to this question should be based on answering several other questions and financial analysis of what’s going on in your operation.

Consider the following: