Cow-Calf Commentary for Iowa Cattleman Magazine
By Randie Culbertson, Cow-Calf Extension Specialist
March 2026
Why do bulls cost so much?
The price tag for a high-end vehicle, such as a Porsche or Ferrari, would be significantly higher than for a Kia or Chevy Malibu. You expect to have more horse power under the hood with the Porsche or Ferrari compared to that ol’ Kia but that doesn’t mean that the Kia doesn’t get you from point A to point B. It just may not get you there as fast or in the same fashion (assuming you didn’t get pulled over for speeding in the Ferrari). Although the price tag of anything is only worth what someone is willing to pay, the price is determined by the market, the cost of bringing the product to market, and the product's quality. This is true for the price tag for bulls. Bulls vary in quality, and as a result, so will their price tag.
So, what makes a bull cost what he does? The old rule of thumb for bull prices is 2 times the value of a fat steer or 4 to 5 times the value of a feeder calf. If we consider a 500-pound feeder calf going for $500/cwt, that would equate to an expectation of paying $10,000 to $12,500 for a bull. In many cases, bulls will sell for more than the “rule of thumb” expected price. Why? What makes a bull a Ferrari and not a Kia?
Let’s consider what you are purchasing that bull for – to get cows pregnant! Assuming the bull is structurally and breeding sound, both a Ferrari and a Kia can get that done. The true value of a bull is in his genetics and what genes he has to pass on to his progeny. Bulls have an oversized influence on the genetics of a cow herd since a herd bull can sire 20 to 50 calves in a single breeding season, with an AI sire having potentially higher influence. If replacements are kept from a bull, his genetics can remain in the herd for over fifty years. The genetic potential of bulls is the “horsepower” under the hood and is what separates the Ferraris from the Kias.
So why are genetics so expensive? Two main things contribute to the cost of marketing genetics. First, genetic progress in beef cattle is slow. The process of breeding animals for their genetics is a long-term investment. Unless you have deep pockets, the process of taking a commercial herd and grading up to produce quality bulls for market can take years. The use of AI and embryo transfer can help to speed up this process, but it still won’t occur overnight. As seedstock operations begin producing high-quality bulls with better genetics, the expectation is to recoup the costs of years of work to develop these bulls.
Second, there is a cost associated with returning genetic predictions (EPDs) for bulls. It takes data to generate EPDs, and collecting that data isn't cheap. Along with the cost of proper bull development, the work involved in collecting and submitting data to breed associations is not insignificant, not to mention the actual cost of submission and registration. For reliable genetic predictions, careful record-keeping and the submission of "clean" data are a must. This also requires that seedstock breeders maintain pedigrees for their cow herd (although DNA and genomics have improved this significantly), records of animal cohorts or contemporary groups, and herd management records. Most breed associations require data for registration, and in some cases, those requirements are more stringent for bulls used for AI. Animal registration and data collection are labor-intensive and can be tedious. Seedstock breeders pushing the envelope for genetic improvement may be collecting measurements or phenotypes on expensive but economically relevant traits such as feed intake, methane, and carcass ultrasounds not only for herd bull prospects but for female counterparts as well. This is in addition to performance traits commonly collected, such as birth, weaning, and yearling weights. The cost of data collection includes labor, equipment, and, in some cases, software to manage the data.
What about DNA? In this day in age, there is no excuse for a bull not to have DNA (genomic) information. The advantages of having DNA information include correcting pedigree errors, identifying genetic defects, and improving EPD accuracy Although the cost of running DNA has decreased over the years, it is still a cost for seedstock operations.
By the time all the data has been submitted, DNA results returned, animals registered, and EPDs returned, there is a significant financial investment in these animals. In addition, the result of all this work is a range of genetic potential among the bulls. Some will be better than others, and not all of these bulls are going to make the “cut”. In addition, some will not pass breeding soundness exams (BSE). As a result, the bulls who do make it to sale day need to bring in enough revenue to cover their development costs, the cost of data management and collection, DNA testing, AND the other animals who were retained but didn't make it to be sold as a bull.
At the end of the day, when planning to buy a bull, keep in mind what you are paying for. Similar to shopping for a vehicle, what you are willing to pay will determine the amount of genetic "horsepower" under the hood. It would be great to own that brand-new Ferrari, but the bank account may not be able to support it, and what is the practicality of owning that high-end sports car?
Before making that bull purchase, be honest about how much bull you need for your operation and what your budget can afford. Purchasing a bull is a long-term investment that directly impacts profitability through the genetics of the bull’s progeny. Pay attention to how you market your calves, and select a bull who can increase the value of calves based on your operation’s calf marketing. For example, if you purchase a bull in the top 10% for marbling but market your calves at weaning, you would not be capitalizing on the genetic potential for marbling. In contrast, if you purchased a bull with the genetic potential for increasing weights at weaning, you could take advantage of those genetics when selling calves at weaning.
We always want that fancy, high-end vehicle (i.e., a Ferrari), but buying a practical everyday vehicle may be the most economical choice. At the end of the day, purchase the bull you need and take advantage of his genetic potential.
For more information about purchasing bulls:
Sire Selection Manual
Developing Beef Cattle Breeding Objectives
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