Are you going to TB test before you sell?
Cost/Benefit analysis indicates advantages for vet work

Fall feeder cattle runs are just around the corner, and producers should be busy deciding how they will prepare their cattle for sale. In past years, Minnesota feeder cattle sellers made decisions on weaning, vaccinating, and backgrounding. New to this year's checklist will be whether or not feeder cattle should be TB tested to be eligible for out-of-state buyer consideration.

In June, the State of Minnesota applied with USDA for split-state TB status. This application is currently being reviewed and processed by USDA. It is hopeful that USDA will approve Minnesota's request by early October; however, there is no certainty that Minnesota will obtain split-state status before the bulk of the feeder cattle trade this fall.

The University of Minnesota Beef Center in conjunction with the Minnesota Department of Agriculture has recently developed a Cost of TB Testing worksheet. This worksheet calculates the per head costs associated with TB testing feeder cattle in order to become eligible for out-of-state delivery. This worksheet analyzes three different methods for eligibility and is customizable to include specific herd data.

While it is too early to determine the exact market effect on feeder cattle ineligible for out-of-state delivery; commonsense suggests there will most likely be discounts on untested feeder cattle until Minnesota receives split-state status. Currently, under Minnesota’s Modified Accredited TB status, federal requirements for Minnesota feeder cattle to move out-of-state are:

Castrated or certified spayed feeder cattle: Negative individual TB test within 60 days prior to movement.

Sexually intact feeder cattle: Negative whole-herd TB test within 12 months of movement and negative individual TB test within 60 days prior to movement. (Note: States may impose additional requirements; always check with the state of destination for the complete import requirements.)

Based on data calculated by the Cost of TB Testing worksheet, the following observations and conclusions were made:

• Total costs of TB testing averaged $18/castrated or spayed feeder sold and $26/sexually intact feeder sold (e.g. veterinarian trip fee, test cost, labor, handling, etc.).
• Impact costs of TB testing on 550-lb steers averaged $2.13/cwt, and impact costs of TB testing on 500-lb heifers averaged $8.91/cwt (whole herd test option) or $5.87/cwt (spayed heifer option).
• It pays to TB test all steers for sale when discounts for TB untested steers presented to the sale are greater than $3.00/cwt.
• Also, discounts for TB untested heifers presented to the sale need to be over $5/cwt to pay the additional cost of testing and spaying or over $9/cwt to pay for the additional cost of whole herd testing.
• When marketing heavy feeders (over 700 lb), discounts greater than $3/cwt are more than sufficient to encourage paying for costs of TB testing steers and spayed heifers.

Under optimistic scenarios, Minnesota can achieve split-state status this fall. However, producers should be planning to invest $15 to $25 per feeder sold (vet fees, testing costs, labor, etc.) to prepare for delays in this process. Regardless, due to the increased volume of TB testing and shortage of veterinarian practitioners, advanced planning for TB testing may be the best strategy. Additionally, most private practitioners will permit additional health practices (vaccination, pregnancy checking, etc.) to occur concurrent with the reading date of the caudal fold test (second visit).

Bottom line, feeder cattle sellers failing to offer properly tested cattle this fall will likely experience price discounts at time of sale, particularly for untested heifers. The most cost effective method to meet these requirements is to castrate and spay all feeder cattle offered for sale and perform a TB test on these animals. Because costs of TB testing are not highly sensitive to herd size, most producers will require $2/cwt to cover the costs associated with testing steers, but will require from $5 to $9/cwt to prepare heifers for sale (individual TB test and spaying heifers or individual and whole herd TB test). This means that discounts greater than $3/cwt for TB untested steers, and discounts greater than $5 to $9/cwt for TB untested heifers will likely make it attractive to be prepared.

For more information on the Cost of TB Testing worksheet and TB testing and feeder cattle marketing strategies, visit the University of Minnesota Beef Team Website, or contact Dr. Alfredo DiCostanzo at dicos001@umn.edu or Ted Radintz at the Minnesota Department of Agriculture at ted.radintz@state.mn.us. For more information on Minnesota's TB status visit the Minnesota TB-Free Website, or call the TB Free Hotline at 1-877-2373.