A Closer Look at Cattle Income
Article By: Jody Ausen, Insurance Relationship Manager
For many dairy farms, cattle sales have become a meaningful part of annual revenue. For farms selling beef on dairy calves and cull cows, this can represent a sizable share of the income, but the value can change significantly before they are sold.
Consider a 500-cow dairy that sells approximately 249 beef on dairy calves and 175 cull cows each year. Based on Livestock Revenue Protection (LRP) prices quoted on October 6, 2026 and an average of the January through August 2027 sale periods, the illustrated values are approximately $1,245 for a 99-pound calf and $2,430 for a 1,500-pound cull cow.
Together, those cattle sales represent approximately $735,000 in illustrated annual value. When combined with $3 million in milk sales, calf and cull-cow revenue accounts for nearly 20% of the dairy's projected total sales. At the quoted 100% LRP coverage level, the estimated producer premium for the illustrated annual head counts is $30,017, or approximately 4.1% of the cattle value.
*Illustration based on October 6, 2026, quotes for 99-pound calves and 1,500-pound cull cows. January-August quoted values were averaged to estimate a full year; actual sale prices, future coverage offers, and premiums may differ.
LRP can help protect eligible calves and cull cows if the program's market price falls below the selected coverage price. It does not guarantee the price offered by a local buyer. For the coverage to reflect the farm's actual price exposure, the coverage dates, head counts, and target weights should align with the dairy's cattle-marketing plans.
Security Financial Bank has invested in LRP tools that help us prepare timely quotes using an operation's cattle types, head counts, target weights, and marketing dates. We can also prepare Dairy Revenue Protection (DRP) quotes around your milk production plans. Rather than relying on a generic illustration, producers can review operation-specific figures that reflect their operation as market offerings change. Shortly after markets close, SFB can provide information designed to support timely risk-management decisions and help protect farm revenue.
If calf and cattle sales are an important part of your dairy's income, contact Jody Ausen, SFB insurance relationship manager, at jausen@sfbank.com or call 715.672.2418 to review current prices and protection options for your upcoming sales. Price protection is also available for feeder cattle, fed cattle, and swine.
Equal Opportunity Provider. Insurance products offered are: not a deposit, not insured by the FDIC or any federal government agency, not guaranteed by any financial institution, may lose value.
