Factors Affecting the Sale Price of Bred Heifers and Bred Cows Sold Through Superior Livestock Video Auctions

Objective: The objective of the study was to evaluate potential factors influencing the sale price of bred heifers and bred cows sold through video auctions while adjusting for all other factors that significantly influenced prices. Study Description: Descriptive characteristics of lots offered for sale were obtained through a livestock video auction service (Superior Livestock Auction, Fort Worth, TX). Data were available on 1,870 lots of bred heifers sold through video auctions from 2010 through 2018 and 1,237 lots of bred cows sold through video auctions from 2011 through 2018. Two separate multiple regression models were developed to determine the factors influencing the sale price for each. The Bottom Line: Understanding the various factors influencing the sale price of bred heifers and bred cows will allow producers to make more informed investment decisions.


Introduction
Literature regarding factors that influence the sale price of bred heifers and bred cows is typically limited to analyses within a defined region or breed composition. Descriptive information about bred females is often provided to buyers across numerous marketing venues. From physical descriptors, management factors, and lot characteristics, comprehending how traits have the potential to cause variation in sale price is imperative in allowing producers to make sound and informed purchasing decisions. Continued research and understanding of the value placed on bred female traits may prove advantageous to producers throughout various regions of the United States.

Experimental Procedures
Information describing factors about lots of bred heifers and bred cows marketed and sold nationwide through a livestock video auction service (Superior Livestock Video Auction, Fort Worth, TX) were obtained from the auction service in an electronic format. These data were collected for all lots of bred heifers offered for sale from 2010 through 2018 and all lots of bred cows offered for sale from 2011 through 2018. Two separate multiple regression models were developed using a backwards selection procedure to investigate various factors influencing sale price of both bred heifers and bred cows. Quantifiable factors within both models included sale year, weight (linear and quadratic), region of the United States where the lot originated, breed description, variation in weight within the lot, origin (home-raised or purchased), frame score, flesh score, and size of the lot (linear and quadratic).

Results and Discussion
Data were collected from 1,870 lots of bred heifers over a nine-year period (2010-2018) and 1,237 lots of bred cows over an eight-year period (2011)(2012)(2013)(2014)(2015)(2016)(2017)(2018). Sale year was a significant factor influencing price within both models. Bred heifers sold for the greatest (P < 0.05) price in 2014, compared to all other years. In 2014 and 2015, bred cows sold for similar (P > 0.05) prices, but at prices greater (P < 0.05) than all other years. For both bred heifers and bred cows, those lots categorized as Red Angus sired sold for the greatest (P < 0.05) price, compared to all other breeds. Region of the United States affected bred heifer sale price, with the greatest (P < 0.05) price paid for bred heifers originating from the North Central region. Additional lot characteristics that significantly influenced price within both models included weight (linear), frame score, and flesh score. Non-significant factors for bred heifers were weight variation within the lot, lot size (linear and quadratic), and weight (quadratic). Non-significant factors for bred cows included lot size (quadratic), origin (home-raised or purchased), and region where the lot originated. A complete list of factors affecting the sale price of bred heifers and bred cows are shown in Table 1 and Table 2, respectively.

Implications
Continued research and understanding of the characteristics and factors that influence the sale price of breeding cattle across the United States may provide insight to cow-calf producers.

Acknowledgments
We would like to thank the Red Angus Association of America for their support in conducting this research.  In order to prevent multicollinearity between the linear and quadratic lot size terms, the number of heifers in each lot was centered at zero by subtracting the mean lot size of all the lots (47.5 head) from the lot size of each lot. k In order to prevent multicollinearity between the linear and quadratic base weight terms, the base weight of each lot was centered at zero by subtracting the mean base weight of all the lots (1,000.7 lb) from the base weight of each lot.