The Likelihood of Positive Returns from Value-Added Calf Management Practices
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Extension faculty have been educating cow-calf producers about value-added calf management
programs and the premiums available at auction from these management practices for
years. Despite these efforts, producers express doubt regarding the likelihood of premiums
and the profitability of value-added management practices. We use matching pairs to calculate
the difference in premiums and net returns between adopters and nonadopters and
calculate the likelihood of positive net returns (and premiums) for individual practices and
practice bundles. The probability of positive net returns ranges from 57% for dehorning to
79% for a certified vac-45 program (calves certified by a third party to be preconditioned for a
minimum of 45 days, vaccinated, and dehorned) and probabilities increase with more
practices adopted.