Raising dairy replacement heifers or steers to enter the beef market can be an important economic center for the dairy, but can also be a financial drain. A study done in Wisconsin in 2007 estimated the cost of raising a Holstein heifer to the point of its first drop of milk was in the range of $1600 to $2900. In recent years, the cost of purchasing a bred heifer has often been less than the cost of raising one on the dairy. However, many dairies were still able to raise a quality heifer on the farm and manage costs. Many factors contribute to this variability, and every dairy should have a firm grasp on their costs.