beef cow cost calculator

Beef Cow Cost of Production Calculator This calculator is designed to assist producers in determining their annual cost of production for their cowcaal herd. It provides an assessment of feed costs, the cost and return to produce a lb of calf, based on either the number of calves produced (accrual basis) or the number of calves actually sold (cash basis), the profit (loss) per lb of calf produced, per cow and on a herd basis. Producers need to input their cow information, days on stored feed, pasture and aftermath grazing. Days on stored feed, pasture and aftermath grazing must add to 365 days (1 year) or a warning will appear. The calf information section allows you to project your returns on your calf crop. You fill in the number marketed and retained, their average weight and sale price or average value. The calculator can evaluate past performance, as well as projecting ahead. It allows you to look at “What if” scenarios, whether they are feed costs or value of calves. Just overwrite the blue numbers on the sample cost of production calculator. The bred replacements section requires you to input the number of bred females purchased for replacements and/or the number of bred females raised on farm and an average cost/value. Only include replacements entering the herd that will calve and/or wean a calf in the year you are assessing/forecasting. The value of the raised replacements will be used in the total costs when looking at costs on an accrural basis. Yardage is a cost per head per day and includes hydro, telephone, taxes, insurance, bedding, manure removal, housing and equipment repairs attributable to the cow-calf herd. Interest is only on operating loans and does not include long term loans. The calculator can evaluate past performance, as well as projecting ahead. It allows you to look at “What if” scenarios, whether they are feed costs or value of calves. Just overwrite the blue numbers on the sample cost of production calculator. The livestock sales section allows you to track other income other than weaned calves that is attributable to the cow herd. Enter the number of cull cows and bulls sold as well as any cattle sold for breeding purposes and their average value. The Income from Cow Herd section summarizes the cash income for the year and includes calves sold, cull animals and breeding stock sold.Budget Developed by: Joanne Handley, Beef Cattle Program Lead Nancy Noecker, Beef Cow-Calf Specialist John Molenhuis, Business Analysis and Cost of Production Program Lead For more information contact: Agricultural Information Contact Centre 1-877-424-1300 ag.info@omaf.gov.on.ca www.omaf.gov.on.ca The Returns section provides the analysis of the information entered. There are two columns: Calves Produced looks at the total production of the cow herd for the year and includes the total weight and value of calves produced, both sold and retained. In this column retained calves are valued and considered "sold" to a separate enterprise (i.e. bull development, heifer development, backgrounding), therefore the cow herd is credited for the total production and value of all weaned calves for that year. Raised replacements entering the herd as bred heifers are "purchased" by the cow herd at fair market value and included in the cow herd costs. Calves Sold includes only actual cash costs and returns for the year. Only the calves marketed are included and the total cow costs are adjusted to include the annual heifer development cost for each raised replacement entering the herd instead of the full market value for raised replacements. This column allows you to assess your returns for the year on a cash in and out basis to determine if the cow herd is generating the required cash flow to meet debt servicing requirements. Remember the information provided by the calculator is only as accurate as the information you enter. The Feed Requirements Section allows you to enter the feed fed to the cow herd on an annual basis, only include the feed fed to the cows that have the potential to calve in the year you are assessing. Enter your feed costs per tonne and the lbs fed per head per day of each feed fed. This will calculate your stored feed costs based on the number of days entered at the top of the page. To ensure your feed values entered are realistic, dry matter offered is calculated and compared to the potential dry matter intake based on the body weight of your cows. If the dry matter offered is less than 2.1% or greater than 2.7% of body weight a warning will appear and you need to reassess your feed fed. Enter your pasture costs and aftermath grazing costs as dollars per day. The number of days will be transferred from the top of the page. This information will calculate the annual feed costs per cow. The Cow Costs section examines your variables costs which include health and vet, breeding, yardage, feed costs and amount fed. Yardage is a cost per head per day and includes hydro, telephone, taxes, insurance, bedding, manure removal, housing and equipment repairs attributable to the cow-calf herd. Interest is only on operating loans and does not include long term loans. The heifer development cost is the cost per heifer to raise your own replacements on an annual basis. This value is used in determining cash costs on an annual basis.Cow Information Bred Replacements # of Cows 50 # Purchased 2 Average Cow Weight (lbs) 1,400 Cost ($/hd) 800 $ Days on Stored Feed 210 # Raised 5 Days on Pasture 155 Value of Raised Replacement 800 $ Aftermath Grazing (Days) 0 Calf Information Livestock Sales # of calves Marketed 41 # Of Cull Cows 5 Sale Weight (lbs) 600 Value of Cull Cows ($/hd) 210 $ Sale Price ($/lb) 0.90 $ # sold for Breeding 2 Calf Return 22,140 $ Value of Animals sold for breeding($/hd) 800 $ # of Calves Retained 7 Income from Cow Herd $/Cow Herd Income Average Weaning Weight (lbs) 540 Calves Sold 443 $ 22,140 $ Average Value ($/lb) 1.00 $ Cull Cows Sold 21 $ 1,050 $ Total Value of Retained Calves 3,780 $ Breeding Stock Sold 32 $ 1,600 $ Total Cash Income 496 $ 24,790 $ Cow Costs Cow Herd Costs $/Cow Herd Cost Feed Cost 394 $ Winter Feed Cost 277 $ 13,864.91 $ Pasture Cost 116 $ 5,812.50 $ Health & Vet. Expenses ($/hd) 25 $ Health & Vet. Expenses ($/hd) 25 $ 1,250.00 $ Breeding ($/hd) 30 $ Breeding ($/hd) 30 $ 1,500.00 $ Marketing/Trucking ($/hd) 30 $ Marketing/Trucking ($/hd) 30 $ 1,500.00 $ * Yardage ($/hd/day) 0.25 $ Yardage 53 $ 2,625.00 $ Interest on Operating ($/hd) 10 $ Interest 10 $ 500.00 $ Heifer Development Cost ($/heifer/yr) 400 $ Replacements 112 $ 5,600.00 $ Total Cow Costs 653 $ 32,652.41 $ Feed Requirements $/tonne lbs. per Head/Day Percent DM Hay 80 $ 36.0 275 $ 90 Haylage -$ --$ 45 Corn Silage 30 $ --$ 35 Dry Corn 145 $ --$ 86 Beef Supplement 400 $ --$ 90 Salt & Mineral 480 $ 0.03 2 $ 100 Other -$ --$ $/day Number of Days Pasture 0.75 $ 155 116 $ Aftermath Grazing 0.20 $ 0 -$ % DM Intake (2.5% of body wt) 35.00 Winter Feed Cost 277.30 $ Actual DM Offered 32.43 Pasture Cost 116.25 $ Total Feed Cost 394 $ Returns** Calves Produced Calves Sold Cost to Produce a lb of Calf 1.15 $ 1.25 Return/lb of Calf 1.01 $ 1.01 Profit (Loss) per lb of Calf (0.14) $ (0.24) $ Profit (Loss) per Cow (81.65) $ (117.25) $ Profit (Loss) for the herd (4,082.41) $ (5,862.41) $ * Yardage is hydro, telephone, taxes & insurance, bedding, manure removal, housing, equip. repairs Numbers in Blue can be edited/changed for individual producers Budget Developed by: Joanne Handley, Beef Cattle Program Lead Nancy Noecker, Beef Cow-Calf Specialist John Molenhuis, Business Analysis and Cost of Production Program Lead For more information contact: Agricultural Information Contact Centre 1-877-424-1300 ag.info@omaf.gov.on.ca www.gov.on.ca/omaf $$$ Beef Cow Cost of Production Calculator $$$ Calves Sold includes only actual cash costs and returns. Only the calves marketed are counted and the total cow costs are adjusted to include an annual heifer development cost instead of the full market value for raised replacements. **Returns: Calves Produced includes all calves produced by the herd, both sold and retained. The value of the retained calves is included in the calculation of the return/lb of calf. Raised replacements are included in the Cow Herd Costs at fair market value. Go to Risk Analysis SectionRisk Analysis Expected returns are subject to the risk of fluctuations in both the revenue and expenses. Sale prices and costs of production (COP) are the key risk variables in the cow calf enterprise. Increases in prices received and decreases in your COP will have positive impacts on your net return. Conversely, market price decreases and increases in your COP will have a negative impact on your net return. The expected sale price you entered and the and cost of production that you calculated in the cow-calf calculator are displayed below on the left. You can assess the impact of increases or decreases in sale prices and COP on you net return/lb of calf produced, by using the boxes on the right to enter various numbers to represent the percentage amounts that the sale prices and COP could vary by. The results are displayed in the table below. Expected values: (from Calculator) $ /lb Key Cow-calf Risk Variables: + /-% Expected Sale price 0.90 $ Sale price ranges around the Expected Sale Price 10% Expected Cost per lb of calf produced 1.15 $ Cost per lb of calf produced ranges around the Expected Cost 10% Expected Net Return per lb of calf produced (0.14) $ Interpreting the Table: The expected Net return per lb of calf produced is based on the information you entered in the calculator and is in the highlighted box in the center of the table. The boxes around the expected return indicate the change in your net return per lb of calf produced Line up the various columns and the rows to determine the impact on the Net return per lb of calf produced for each combination. What has more impact on net return for your operation? A change in price or a change in costs? Net Return per lb of calf produced Cost per lb of calf produced Below Expected Above Sale Price 10% 10% Above 10% 0.05 (0.07) (0.18) Expected (0.03) (0.14) (0.26) Below 10% (0.11) (0.22) (0.34) based on the possible range (ex. + or -10%) you entered for the key variables.