Hay-Costs-on-Cow-Calf-Profitability---Montana-State-University by akgame

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Hay-Costs-on-Cow-Calf-Profitability---Montana-State-University

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									HayPriceEffect

See the SPAData tab in this spreadsheet for average values for cow-calf operations for much of the data you are required to enter below. This average data is provided only as a guide. Average Values for Revenue Items Your Herd Calf Crop or Weaning Percentage Based on Exposed Females 90% Price Per Cwt. (All Calves) $90.00 Replacement rate (cull rate on mother cows) 15% Average Weaning Weight (Steers and Heifers) 550 Pounds of calf sold per breeding cow (after holding replacements) 413 Revenue From Calves $371.25 Non-Calf Revenue Per Cow From Cull cows/bulls/rep Heifers $64 Gross Revenue For Each Cow $435.25 Expenses: Raised and Purchased Feed Costs Per Cow Grazing Costs Per Cow Other Operating Costs Per Cow (Vet/Med/Fuel/labor/etc.) Total Expenses Per Cow Breakeven for data shown above, NCR adjusted Net Financial Income Per Cow in the Herd

To check for updates of this spreadsheet, visit the link below.
http://www.montana.edu/extensionecon/farmmgt/software.html

Numbers in blue are those you are allowed/required to change for this spreadsheet.

Please see the "SPAData" tab in this worksheet to view averages and ranges of figures for cost of production data for Montana cow herds. This data is provided as a guideline for entering values request in column G. Data values entered in column G are used to calculate the sensitivity table shown below. The sensitivity table below uses 10% of the dollar value entered in Raised and Purchased Feed Cost Per Cow (at left) and the remaining feed costs are calculated using the hay price on the top row of the table and the amount of hay (tons fed) entered in cell G21. Pounds of hay fed per day Months hay fed Tons of hay required/cow 30 12 5.4 <<<These two cells allow you estimate (in a ball park sense) the affect of purchasing hay on the profitability of your current year's operation. You can vary the pounds of hay consumed and the number of months for which you might expect to provide your animals their full nutritional requirements through feeding. The tons of hay required per cow is calculated for you. You can then enter this calculated value in cell G21 at left to show the affects on profitability if that much hay had to be fed at a given price. Remember, the variation among individual producer situations will be tremendous and this spreadsheet is not designed to provide detailed analysis.

$82.00 $75.00 $176.00 $333.00 $0.65 $102.25

Tons of Hay Per cow (Average ton for each cow in herd) Starting hay price (Net Price per ton) -- used in the table below Hay price increment -- used in the table below Beginning Calf Price Per Cwt -- used in table below (avg strs & hfrs) Calf Price Increment -- used in the table below

1.5 $60 $5 $80 $5

The table below shows net income per cow using the average weaning weight, calving percentage and the other costs shown above but varying the cost of "Raised and Purchased Feed" based on different hay prices. Help Average Calf Price $80 $85 $90 $95 $100 $105 $110 $115 $120 $125 $130 $135 $140 $145

Table Values are Net Income Per Cow as Hay Price Per Ton Varies as Shown on the Hay price per ton line

Hay price per ton
$60 44.80 65.43 86.05 106.68 127.30 147.93 168.55 189.18 209.80 230.43 251.05 271.68 292.30 312.93 $65 37.30 57.93 78.55 99.18 119.80 140.43 161.05 181.68 202.30 222.93 243.55 264.18 284.80 305.43 $70 29.80 50.43 71.05 91.68 112.30 132.93 153.55 174.18 194.80 215.43 236.05 256.68 277.30 297.93 $75 22.30 42.93 63.55 84.18 104.80 125.43 146.05 166.68 187.30 207.93 228.55 249.18 269.80 290.43 $80 14.80 35.43 56.05 76.68 97.30 117.93 138.55 159.18 179.80 200.43 221.05 241.68 262.30 282.93 $85 7.30 27.93 48.55 69.18 89.80 110.43 131.05 151.68 172.30 192.93 213.55 234.18 254.80 275.43 $90 (0.20) 20.43 41.05 61.68 82.30 102.93 123.55 144.18 164.80 185.43 206.05 226.68 247.30 267.93 $95 (7.70) 12.93 33.55 54.18 74.80 95.43 116.05 136.68 157.30 177.93 198.55 219.18 239.80 260.43 $100 (15.20) 5.43 26.05 46.68 67.30 87.93 108.55 129.18 149.80 170.43 191.05 211.68 232.30 252.93 $105 (22.70) (2.08) 18.55 39.18 59.80 80.43 101.05 121.68 142.30 162.93 183.55 204.18 224.80 245.43 $110 (30.20) (9.58) 11.05 31.68 52.30 72.93 93.55 114.18 134.80 155.43 176.05 196.68 217.30 237.93 $115 (37.70) (17.08) 3.55 24.18 44.80 65.43 86.05 106.68 127.30 147.93 168.55 189.18 209.80 230.43 $120 (45.20) (24.58) (3.95) 16.68 37.30 57.93 78.55 99.18 119.80 140.43 161.05 181.68 202.30 222.93 $125 (52.70) (32.08) (11.45) 9.18 29.80 50.43 71.05 91.68 112.30 132.93 153.55 174.18 194.80 215.43

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SPAData

The tables below show the values from detailed cost of production analysis on 60 ranches in Montana. This data is provided as to values requested on the HayPriceEffect tab of this worksheet and to show the variation that exists among cow-calf operation It is not the case that the average cost of production is $350 per cow and there is only minor variation in this figure among prod averages (what this spreadsheet does) can be very misleading for an individual producer.

Summary of SPA Data as of October 2001
Number of Herds = 60, Herd Sizes: from 20 to 7066 Simple Average 93.16 90.58 5.72 84.86 576.59 537.96 557.48 472.07 0.94 30.16 18.39 $73.26 $67.78 $70.63 Simple Average $2,034.00 2.77% $4,154.00 1.69% $105.46 $80.95 $395.41 $81.43 $347.22 $71.29 -$14.21 -$2.62 Simple Average $447.51 $92.92 -$114.51 -$24.25 Weighted Average * 92.26 89.13 6.43 82.70 533.81 497.26 515.84 426.04 0.71 29.45 16.53 $78.56 $72.60 $75.73 Weighted Average * $1,795.42 5.15% $3,803.86 2.25% $81.94 $74.89 $332.46 $75.15 $283.20 $63.79 $40.17 $9.44 Weighted Average * $389.64 $88.69 -$66.26 -$15.46

Production Measures
Pregnancy percentage Calving percentage Calving death loss based on exposed females Calf crop or weaning percentage Weaning weight, steers and bulls Weaning weight, heifers Average weaning weight Pounds weaned per exposed female Raised feed acres per exposed female Grazing feed acres per exposed female Pounds weaned per acre Weaned calf pay weight -steers/bulls Weaned calf pay weight - heifers Weaned calf pay weight - weighted average

Financial Measures**
Total Investment Per Breeding Cow - cost basis Percent Return on Assets - cost basis Total Investment Per Breeding Cow - market value Percent Return on Assets - market value Raised/Purchased Feed Cost per cow Grazing Cost per cow Total Cost Before Noncalf Revenue Adj. per cow Total Cost Before Noncalf Revenue Adj. per cwt Total Cost Noncalf Revenue Adjusted per cow Total Cost Noncalf Revenue Adjusted per Cwt-Unit Cost Net Income After Withdrawals per cow Net Income After Withdrawals per cwt

Economic Measures
Economic Total Cost Noncalf Rev Adj per cow Economic Total Cost Noncalf Rev Adj per cwt Economic Net Income After Withdrawals per cow Economic Net Income After Withdrawals per cwt

*Weighted Averages are calculated on using beginning fiscal year breeding cows on hand **Measures are calculated on a pretax basis.

Summary of SPA data by type of expense
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SPAData

Number of herds = 60, Herd sizes from 20 to 7066 head, data from 1991 to 1999 Simple Average $1.72 $5.64 $70.22 $31.57 $7.93 $2.45 $16.41 $11.34 $70.94 $3.67 $27.19 $2.23 $0.16 $3.40 $23.98 $1.22 $12.07 $18.56 $11.49 $13.94 $1.98 $23.58 -$4.32 $2.59 $37.84 $0.86 $9.32 $0.00 Weighted Average * $2.68 $4.99 $51.20 $20.24 $6.13 $3.02 $9.85 $8.31 $60.67 $1.28 $20.12 $0.81 $0.03 $1.88 $19.36 $0.90 $9.69 $17.68 $9.78 $10.71 $1.55 $27.37 -$3.79 $3.10 $19.89 $1.80 $15.98 $0.00

Chemicals Custom Hire Depreciation Expense Feed Purchased Fertilizer & Lime Freight Gas, Fuel, Oil Insurance Total labor-management-family living Rents and Leases Lease cost for Grazing --total dollars Lease Cost for Raised Feed--total dollars Lease Cost for Land--total dollars Lease Cost for Livestock--total dollars Repairs and Maintenance Seed Supplies Property Taxes Utilities Vet, Med, Breeding Professional Fees Miscellaneous Net Accrual Expense Other Non-Cash Operating Expense Interest Expense Capital Gain-Loss Income Taxes Extraordinary Items

*Weighted Averages are calculated on using beginning fiscal year breeding cows on hand

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SPAData

es in Montana. This data is provided as a guideline on that exists among cow-calf operations in Montana. minor variation in this figure among producers. Using

2001
Standard Deviation 3.33 4.97 3.59 5.81 69.38 62.88 65.12 72.37 0.66 14.98 9.61 $12.43 $12.23 $12.23 Standard Deviation $1,533.00 8.42% $3,314.00 4.58% $71.10 $44.81 $149.33 $31.47 $153.55 $32.26 $155.38 $31.97 Standard Deviation $153.52 $37.30 $145.39 $32.55 Minimum Value 84.66 73.78 0.00 71.23 454.00 427.54 441.00 346.00 0.00 7.43 4.57 $58.00 $50.00 $54.18 Minimum Value $341.97 -1.73% $482.70 -1.10% $21.48 $11.18 $206.58 $41.97 $90.38 $22.26 -$585.74 -$104.07 Minimum Value $122.86 $30.26 -$572.33 -$158.89 Maximum Value 100.00 100.00 23.11 100.00 747.31 681.17 700.00 638.00 3.57 115.17 53.46 $105.10 $96.99 $100.84 Maximum Value $7,750.89 2.17% $19,071.80 1.38% $386.76 $236.58 $949.75 $174.15 $901.23 $171.58 $291.47 $66.89 Maximum Value $949.73 $253.98 $83.42 $20.49

expense
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SPAData

data from 1991 to 1999 Standard Deviation 4.23 9.92 57.70 37.62 9.63 3.42 9.29 11.65 53.80 15.55 26.72 6.16 1.19 15.49 14.15 2.05 9.36 10.85 7.93 7.72 3.67 23.31 36.09 17.18 57.08 3.27 32.61 0.00 Minimum Value $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.59 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 -$140.00 -$1.59 $0.00 -$1.47 -$60.76 $0.00 Maximum Value $20.22 $48.31 $319.69 $175.21 $34.53 $12.89 $55.00 $67.88 $302.98 $95.00 $111.68 $27.96 $9.03 $96.00 $82.64 $11.12 $37.59 $46.54 $35.05 $34.45 $15.80 $111.71 $101.97 $128.80 $301.95 $18.53 $143.64 $0.00

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