By Pedro Fontes
Commercial cows represent a substantial investment. Whether a female is raised as a replacement or purchased as a bred heifer, considerable value is tied up in her by the time she enters the cow herd. Part of that value reflects the calves she is expected to produce over the remainder of her productive life. A young, productive female potentially has many calf crops ahead of her, while an older cow has fewer opportunities remaining. As a result, cow value generally depreciates as a female ages and approaches the end of her productive life. Cattle markets can certainly alter this pattern. A female purchased when cattle prices are lower may depreciate substantially less, or even increase in market value, if she is eventually culled into a stronger market. Yet replacing her in that stronger market will also be more expensive.
Source : osu.edu