Farm Progress is part of the Informa Markets Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

2017's No. 2 story: The no-depreciation cow herd

Alan Newport Heifers on pasture
Heifers should appreciate in value until 3 to 5 years old, then start depreciating.
The second most-read post of the year showed profit opportunities in real cow depreciation and appreciation.

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.

Hide comments


  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.