Farm Progress

The second most-read post of the year showed profit opportunities in real cow depreciation and appreciation.

Alan Newport, Editor, Beef Producer

December 27, 2017

1 Min Read
Heifers should appreciate in value until 3 to 5 years old, then start depreciating.Alan Newport

In this final week of the year we're reviewing the top five stories from the Beef Producer site in 2017.

The second-most-read post was "Consider the no-depreciation cow-calf operation," from June 22.

In this article we introduced the unique information that cow depreciation is not straight-line depreciation as most economists and the IRS would have us believe.

Instead, it is actually a bell-shaped curve that includes a period of appreciation at the front of a cow's life as she grows from heifer to a producing cow. Then comes a period of relatively stable valuation around 4 to 6 years old, then a period of rapid depreciation.

The article also included important ideas from Oklahoma producer and marketing teacher Wally Olson about how to use this knowledge to make more profit.

Read the story at this link.

Here's a related story about how these ideas can help you profit on heifers in declining markets.

About the Author(s)

Alan Newport

Editor, Beef Producer

Alan Newport is editor of Beef Producer, a national magazine with editorial content specifically targeted at beef production for Farm Progress’s 17 state and regional farm publications. Beef Producer appears as an insert in these magazines for readers with 50 head or more of beef cattle. Newport lives in north-central Oklahoma and travels the U.S. to meet producers and to chase down the latest and best information about the beef industry.

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