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By JACK DUNFORD
Extension Agent, Farm Management
This winter I was asked the question, “Should I sell my open beef cow or hold her over, giving her another chance to calve next year?”
With feeder cattle prices beginning to weaken and predicted to gradually fall for the next three-tofour years, it is important that feeder cattle producers make management decisions that will improve their net income. Being a Farm Management Agent, I computed an extensive five-year net income stream for five scenarios including the tax implications of selling the open cow and/or purchasing a replacement. There are too many numbers to include in this article, but let me summarize the results for five possible management decisions covering a five-year period:
1. The cow calves normally every year; $885 of net income.
2. An open cow is allowed to “skip a year”; $503 of net income.
3. The open cow is rebred to calve in another calving season; ie, moved from spring to fall group; $492 of net income plus a 200 pound calf still nursing the cow at the period.
4. Sell the open cow and buy a
95.2%