The Value of Heifer and Calf Characteristics in Bred Heifer Price1

This study used hedonic modeling toassess the marginal implicit value of bred heifer characteristics, of sire production and carcass characteristic expected progeny differences (EPD) for heifers' calves, and general market factors. Using sales data for 929 pens of bred heifers over the 2001 to 2004 period, economic value for bred heifer, expected calf characteristics, and market factors were computed. For heifer characteristics, results indicate that heavier heifers were priced $1.28/kg higher than lighter heifers, pens of AI heifers were premium priced $18.70/head, Angus heifers received a $58.96/head premium, and pens that were expected to calve outside a 30 d window were discounted $24.30/head. For expected calf performance characteristics, the impact of EPD birth BW on bred heifer price varied from a $120/head discount for a birth BW EPD below zero to an $18/head premium for a birth BW EPD greater than zero. The marbling carcass characteristic EPD was statistically significant (P < 0.01) and ranged in impact from a $90/head discount for a marbling EPD below zero to a $55/head premium for a marbling EPD greater than zero. For the market characteristics, buyers paid $26.45/head for each additional heifer in a lot. Buyers paid the greatest price for lots sold during the mid-point of the sale with a $35/head discount for heifers sold at the beginning of a sale and with an $8/head discount for heifers sold last at a sale. Buyers paid a $7.59/head premium for a pen of heifers all bred to the same sire.