The young cow has seven years of calf sales in which to pay back the initial purchase price, three of which will be during her peak years of production, from four to six years of age. The expensive development and high culling phase is behind the young cow and her cheapest and most productive years are ahead. The old cow is past her prime and has only three years in which to offer a return on investment. Cull Cow Salvage Value's Effect on Replacement Purchase Power Salvage value of the cull cow is important to include in the up-front purchase price of a brood cow. At some point every cow will be culled or die.
Cull value is a one-time income as opposed to calf sales which are yearly.
Every effort in management should be made to keep cows in the producing herd for as long as she remains on a positive cash flow basis that exceeds that of a potential replacement cow. Yet, this value is very important in determining profitability of a cow. Without this income most cows cannot make a profit. A cow must be sold while she is healthy enough to receive money from a cull sale. The exception to this would be upgrading to a higher producing, more profitable cow.