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$PROFIT TM
Why $Profit helps:
Today, ranchers have too much data to study. With over
20 EPD traits and so many measurements, buying the best
bull has become really confusing. Every bull is good on
some traits and weak on others. The challenge is figuring
out how each of those traits is going to impact your bottom
line. We wish we knew which bull would make the most
money from birth to slaughter, but most of the time, we
end up guessing.
Back in 2005, we decided that we didn’t want to guess
any more. Dallas Horton asked Lee Leachman to come up
with one number that sorted the bulls on their bottom line
impact – so we did. Since then, we have provided $Profit
on all bulls we sell. Furthermore, we are basing almost all
of our own selection decisions on $Profit. Literally, we are
putting our money where our mouth is.
Let me tell you a story about two bulls that we bought
a few years ago from the same sale. Both bulls had
complete performance data, ratios, ultrasound, and
even feed efficiency data. They were both the same
breed. After the sale, we added their herd’s data into our
database to calculate EPD’s and $Profit. One bull came
out at $8,374 and the other came out at $14,258. That is
a huge difference – one bull was a great buy and the other
was an expensive mistake.
How $Profit works:
$Profit assumes that the average commercial bull will have
100 progeny over its lifetime. The model assumes that you
keep 30% of your heifers as replacements and that you
retain ownership on the remainder of the calves through
finishing and sale on a grid. We realize that many don’t
retain ownership, but doesn’t it make the most sense to
select from birth all the way to slaughter? Feedlots have
already proven their willingness to pay premiums for
superior Leachman sired calves.
Our simulation model then factors in all of the effects on
both income and expense to come up with a net profit
figure for each bull. $Profit allows you to compare any
two bulls and calculate the difference in profit that they
are expected to generate in your herd. Let’s compare a
$10,000 $Profit bull to $6,000 $Profit bull (the average
2008 born Angus bull). The predicted difference between
the bulls is $4,000 or about $40
per calf. $Profit works for us and it
will work for you too.
On the Ranch,
In the Feedlot,
& On the Rail,
$Profit™ simply works!
(970) 568-3983
What traits are included in $Profit:
$Profit includes nearly every trait that impacts profit-
ability. The effect of most traits on profit is fairly simple to
understand. Here is the list of what is included and its effect:
Revenue Traits
▪▪ Calving ease = more calves
▪▪ Weaning & yearling EPD = more weight
▪▪ Fertility (days to conception) = more weight and
more calves
▪▪ Carcass weight = worth more up to 1050 lbs.
▪▪ Marbling = valued based on grid premiums
▪▪ Ribeye area = value as impacts yield grade
▪▪ % Retail Product = more yield is more meat
Cost Traits
▪▪ Cow mature size = bigger eats more
▪▪ Cow intake = more intake costs more
▪▪ Feedlot feed efficiency = cost of gain
Some traits are not so easily characterized for $Profit.
Milk, for example, is a good thing until you get too much.
When over +25, milk EPD has a more negative effect on
fertility than it has a positive effect on weaning weight.
There are a few traits not yet included in $Profit: longevity,
structure, and disposition. These traits are important but
difficult to express in dollars.
Feed Efficiency Explained:
Feed:Gain: Difference in the amount
of feed a bull's progeny will consume
to produce one pound of gain.
Example: A -0.50 F:G EPD means this ani-
mal's progeny will consume 1/2 pound less
feed per pound of gain than would progeny
of a 0.00 F:G EPD sire.
Feed Intake: Difference in feed con-
sumption of each of a bull's progeny
in a 112 day feeding period.
Example: A steer whose sire has a -100 In-
take EPD will eat 100 pounds less feed in
112 days than one whose sire had a zero
Intake EPD.
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