1. Value Difference of Feeder Cattle
Michelle F. Elmore
Extension Animal Scientist/
Beef Cattle Improvement
Alabama Cooperative Extension System

2. The Average Selling Price for Feeder Cattle Based on Muscle Score
Average Selling Pricea (Value/cwt)
Discount Compared to No. 1 (Value/cwt)
Number 1s
$110.82
---
Number 2s
$101.88
-$8.94
Number 3s
$78.41
-$32.41
Number 4s
$53.64
-$57.18
aAverages across muscle scores are different from each other (P<0.0001).
Source: “Improving the Value of Feeder Cattle” University of Arkansas Cooperative Extension Service. FSA3056.
Based on the Arkansas Livestock Auction Survey 2010 data, this table reflects the value of USDA muscle score on feeder cattle price. Discounts due to lighter muscling can be substantial regardless of weight. The discount between a number 1 muscled calf and a number 2 muscled calf was $8.94/cwt. For a number 3 muscled calf, a discount of $32.41, as compared to a number 1 muscled calf. For a number 4 muscled calf, there is a discount of $53.64 as compared with a number 1 calf.
As an example, for 3 calves each weighing 500 lbs, but each having a muscle score of 1, 2 and 3. The number 1 muscle score calf would sell for $44.70 more than the number 2 muscle score calf and $ more than the number 3 muscle score calf.

3. Alabama Value Difference in Feeder Steers for Muscle Score 1s and 2s
Weight Range
2010
Average Price Number 1s
($/cwt.)
Average Price Number 2s
Difference in 2010
Difference
5 Years Ago
lbs
$133.11
$125.15
$7.96
$8.17
lbs
$120.13
$115.14
$4.99
$6.34
lbs
$111.01
$107.31
$3.70
$4.71
lbs
$104.27
$99.91
$4.36
$4.60
lbs
$97.17
$94.77
$2.40
$4.95
Source: David Garcia, OIT, USDA-Alabama Department of Ag Market News Service.
Let’s now review 2010 market price differences due to USDA muscle score in Alabama. This table shows the 2010 average price by weight range for feeder steers with muscle scores 1s and 2s, and the difference between those reported market prices on a per 100 lbs basis. The greatest difference in market price due to muscle score is found in the weight range of lbs for a difference of $7.96/cwt. This price difference is also reflected in market prices reported 5 years ago for this weight range with a difference of $8.17/cwt.
The smallest price difference is reflected in the lb range in 2010 for a market price difference of $2.40/cwt. However, 5 years ago this price difference between muscle score 1 and 2 feeder steers was greater at $4.95/cwt. The average decrease in value for muscle score for steers as reported in was $4.68/cwt and was $5.75/cwt as reported 5 years ago.
At each weight range, the impact of muscle score from a 1 to a 2 is a decrease in market value for feeder steers.

4. Alabama Value Difference in Feeder Heifers for Muscle Score 1s and 2s
Weight Range
2010
Average Price
Number 1s
($/cwt)
Number 2s
($/cwt.)
Difference in 2010
Difference
5 Years Ago
lbs
$112.25
$106.35
$5.90
$6.66
lbs
$105.55
$100.58
$4.97
$6.37
lbs
$100.22
$94.95
$5.27
$5.23
lbs
$94.16
$89.33
$4.83
$4.33
lbs
$88.93
$84.82
$4.11
$5.01
Source: David Garcia, OIT, USDA-Alabama Department of Ag Market News Service.
This similar table shows the 2010 average price by weight range for feeder heifers with muscle stores 1s and 2s and the difference between those reported market prices on a per 100 lbs basis. The market price difference for feeder heifers for muscle scores 1s and 2s are more consistent across each weight range, as shown by the reported 2010 average price and the reported market price from 5 years ago. The average decrease in value for muscle score for feeder heifers as reported in 2010 was $5.02/cwt and was $5.52/cwt as reported 5 years ago.
Therefore, muscle score also has a direct impact on market value in feeder heifers as well as steers.

5. The Average Selling Price for Feeder Cattle Based on USDA and BIF Frame Score
USDA Frame Size
BIF Frame Score
Average Selling Price (Value/cwt)
Discount compared to Large Frame (Value/cwt)
Large
Equal to or
> 6
$108.81a
---
Medium
4 and 5
$108.67a
-$0.14
Small
< 3
$86.71b
-$22.10
a, b Averages without a common superscript differ (P<0.01).
Source: “Improving the Value of Feeder Cattle” University of Arkansas Cooperative Extension Service. FSA3056
As Josh has discussed, USDA frame size easily corresponds to the widely known BIF frame scores. USDA large equals BIF frame scores 6 or greater. USDA medium equals to BIF 4 and 5 frame scores, and USDA small equals to BIF frame scores or 3 or less. This table shows the value of frame as USDA and BIF frame sized small framed cattle sold at a discount of $22.10 as compared to large and medium framed calves. The value difference between large and medium framed cattle is low, but small framed cattle are discounted because they will generally have more backfat at slaughter, as compared to large or medium frame cattle. This extra backfat will have a negative affect on yield grade and red meat yield.

6. Alabama BCIA Records 1982-2010 Herd Size 205 Day Age
Avg. Adj. 205 Day Wt
Avg. 205 Day BIF Frame
No. Wt Records
No. of Frame Records
Small
5 to 29 cows
210 Days
555 lbs.
5.7
7,749
3,095
Medium
30 to 99 cows
214 Days
549 lbs.
5.6
37,087
10,549
Large
100+ cows
217 Days
533 lbs.
80,652
12,794
Overall
216 Days
539 lbs.
5.69
125,480
26,438
This table represents Alabama BCIA data collected from 1982 to 2010, sorted by herd size, for age at 205 day data collection, average adjusted 205 day weight and average BIF frame score at 205 days of age. Based on this data for the past 28 years, BCIA feeder calves are weighed at 216 days for 205 day data collection and have an average adjusted 205 day weight of 539 lbs with a 5.69 BIF frame score. This data represents 125,480 calves and 26,438 frame scores.
Using this average BCIA data from the past 28 years, what would the market value of an average BCIA feeder steer or heifer be? In 2010, the average market price for a 539 lbs large and medium 1 steer was $111.01/cwt for a market price of $ For a large and medium 2 steer, the 2010 market price was $107.31/cwt, so the market price for a 539 lbs steer would be $ For feeder heifers in 2010, the average market price for a 539 lb large and medium 1 heifers was $100.22/cwt for a value of $540.19, and for a large and medium 2 feeder heifer, the average 2010 market price was $94.95/cwt for a value of $

7. Relationship of Frame Size to Projected Mature Cow Weight and Slaughter Weight at Choice Quality Grade
USDA
Frame Size
Small
Medium
Large
BIF Frame Score 2 3 4 5 6 7 8 9
Mature cow weight (lbs)
955
1030
1100
1175
1250
1320
1400
1470
Steer slaughter weight (lbs)
850
1350
1450
1500
Heifer slaughter weight (lbs)
700
1000
1150
1200
1300
Source: Boggs, South Dakota State University, 1991.
Collecting frame scores can be a valuable tool. Frame scores can help predict performance by projecting mature size, indicating carcass composition, and estimating performance potential and feed requirements. Utilizing the BCIA data from the past 28 years with a average frame score of 5.69 as we just reviewed, BCIA herds will have a mature cow weight of approximately 1200 lbs, produce steers that will be at 1250 lbs at slaughter for a choice quality grade and produce feeder heifers that will reach 1150 lbs at slaughter for a choice quality grade.

8. Management Factors Affecting Market Price of Feeder Cattle
Castration of bull calves
Increased value of the calf
Steers have higher meat quality and are more docile
Sex of the calf
Heifers generally sell for $0.05 to $0.10 less per pound than steers, as steers gain faster
Fill and Shrink
Feeder cattle with excessive fill are discounted because of a greater potential for shrink
Several management factors can also affect the market price of feeder cattle.
First, castration of bull calves increases the value of the calf. Cow-calf producers and stocker operators benefit from castrating bulls because the market pays a premium for steers. This premium does depend on calf weight and can range from $5 to $12/cwt according to data from the 2010 Arkansas Livestock Auction Survey. Alabama 2010 reported market prices show an average value difference between a large and medium 1 steer and a large and medium 1 bull of $5.55/cwt and a range of $3.99/cwt in lbs calves to $8.34/cwt in lbs calves. Castration is a management practice that can pay for itself. Steers have higher meat quality as castration improves the color, texture, tenderness, and juiciness of the meat. Steers are also more docile than bulls.
Sex of the calf also affects the market price of feeder cattle. Heifers generally sell for $0.05 to $0.10 less per pound than steers, as steers gain faster.
The fill (or the contents of the digestive tract) and shrink (or potential loss of weight) of feeder cattle can also have an influence on the market price. Feeder cattle with excessive fill are discounted because of a greater potential for shrink.

9. Management Factors Affecting Market Price of Feeder Cattle
Body condition
Over-conditioned feeder cattle will be discounted
Horned calves
Horned calves will be discounted because of potential bruising and extra processing to remove horns
Sickness or Lameness
Sick or lame feeder cattle will be discounted
Over-conditioned feeder cattle will also be discounted in market price. Feeder cattle with extra body condition will lose more weight than feeder cattle with average body condition through the stress of transit and co-mingling in the next production phase. Buyers are unwilling to pay for this extra weight in “fleshy or fat” feeder cattle.
Buyers also prefer animals without horns. Horned calves will be discounted because of potential bruising and the extra processing to remove the horns. Dehorning reduces the possibility of injury and bruising. Cattle without horns also require less space at a feed trough and in transit.
Sick or lame feeder cattle will also be discounted in market price. Discounts for unhealthy cattle can be at $60/cwt for sick cattle and $68/cwt for lame cattle. Sick and lame feeder cattle have a much higher risk of not recovering and being unproductive or can result in death loss for a buyer.

10. Management Factors Affecting Market Price of Feeder Cattle
Uniformity
Uniform in age, breed type, calf sex, and weight
Uniform feeder cattle will gain more predictably in the feedlot
Weight range in feeder cattle is described as:
Even
Uneven
Very uneven
Uniformity begins with the cow herd and herd sire
Uniform feeder cattle frequently receive a premium in market price. Uniform feeder cattle are similar in age, breed type, calf sex and weight. Uniform feeder cattle are favored as cattle will gain more predictably in the feedlot.
The terms even, uneven and very uneven are used to describe the weight range in feeder cattle.
Calves are considered EVEN when there is less than 100 lbs of variation in weight of calves and less than 150 lbs in variation in yearling cattle.
Calves are considered UNEVEN when there is 100 to 150 lbs in variation in weight in calves and 150 lbs to 200 lbs in variation of weight in yearling cattle.
Calves are considered VERY UNEVEN when there is over 150 lbs in weight variation in calves and over 250 lbs of variation in yearling cattle.
Uniformity begins with the cow herd and the herd sire on the farm or ranch. Having a defined breeding and calving season is a very important step to produce uniform feeder cattle that are similar in age and weight. .

11. Actual 205 Day Wts by each 21 Days of the Calving Season: Steers Born 2007-2009
A herd within the Alabama BCIA program was selected to illustrate the importance of defined breeding seasons to produce calves that are uniform. This medium size herd is predominately Angus based with a 90 day calving season. Three years of data from is represented in this chart for a total of 206 calves, 111 steers and 94 heifers. Each year’s calf crop was divided into 21 day groups according to each year’s calving dates. Twenty-one day groups were used as it is the average estrous cycle length for cattle or each time period that a cow would have a chance to conceive a calf. This chart shows the average actual 205 day weights for steers for each 21 days of the calving season across these 3 years.
As you can see from the chart, as age decreases, weight also decreases for each 21 day period.
Across the entire 3 year period, there is a 163 lb difference in actual 205 day weights across all 21 day groups.
For these 3 calf crops, the majority of steer calves (109 out of 111) were born in the first 4 21 day groups, with only a 67 lb difference in actual 205 day weight. This group of feeder steers would be described as even with less than 100 lbs difference in weight.
Totals per group: Group 1 = 10 steers; Group 2 = 43 steers; Group 3 = 47; Group 4 = 9; Group 5 = 2.

12. Actual 205 Day Wts by each 21 Days of the Calving Season: Heifers Born 2007-2009
This chart features the same BCIA herd with the actual 205 day weights for heifers born from A 95 lb difference in actual 205 day weight across all 21 day groups for 3 years is shown. The majority of the heifers were also born within the first 4 21 day groups, where there is only a 43 lb weight difference across these 3 years of data. A high level of uniformity in age and weight has been accomplished across these 3 calf crops within this herd due to the defined 90 day calving season and similar breed type.
Selection of a herd bull is a very vital decision to make as a cow-calf producer and will affect uniformity of feeder calves. Herd bulls will represent half of the genetics of the resulting calf crop. When replacement heifers are retained, the herd’s genetics are further influenced by herd bull selection, up to 87%. Therefore, the importance of selecting genetically superior bulls cannot be overemphasized for quality and uniformity.