Pasture Rental Agreement by akp25756

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									                                         BEEF COW SHARE AGREEMENT ANALYSIS
                                                            Party No. 1                            Party No. 2
                           Prepared for:                                                                                                 DATE:    11/14/2010
Note: enter your input values in the yellow shaded cells.

VARIABLE INPUTS                                                       Value                                                                           Value
   1. Pasture acres per cow unit                                                       11. Number of cows in the herd
   2. Pasture cash rent value per acre                                                 12. Number of heifers in the herd
   3. Hay fed per cow unit (tons)                                                      13. Number of bulls in the herd
   4. Hay code (raised=1, purchased=2)                                                 14. Female replacement (raised=1, purchased=2)*
                                                                                       15. Average cow value or purchase cost per head
                                                                                       16. Cow cull value per head
                                                                                       17. Average heifer value or purchase cost per head
   8. Bushels of corn fed per cow unit                                                 18. Bull value or purchase cost per head
   9. Corn price per bushel                                                            19. Bull cull value per head
 10. Interest rate on breeding stock investment                                        20. Percent of cow herd culled each year
                                                   Ran g e                Yo u r            % of                 0                   0                   0
               Input Item                         o f Co sts         Estim ates         To tal Co sts     % Co n trib u ted   Co n trib u tio n   Co n trib u tio n
FEED                                                                $/cow unit                                                               $ per cow unit
 Pasture land cost (a./cow x rent/a.)                $50 to 75            $0.00                    0.0%                                  $0.00          $0.00
 Pasture maintenance                                 $30 to 60                                     0.0%                                  $0.00          $0.00
 Salt and mineral                                     $2 to 4                                      0.0%                                  $0.00          $0.00
 Residue grazing                                      $0 to 15                                     0.0%                                  $0.00          $0.00
 Corn (price/bu x bu fed/cow)                         $5 to 12                 $0.00               0.0%                                  $0.00          $0.00
 Supplement                                           $5 to 10                                     0.0%                                  $0.00          $0.00
                                                                           $0.00                   0.0%                                  $0.00          $0.00
 Hay costs per acre (if raised)                                       $/acre
                                                    $40 to 70                                      0.0%                                  $0.00               $0.00
                                                    $15 to 20                                      0.0%                                  $0.00               $0.00
                                                     $5 to 10                                      0.0%                                  $0.00               $0.00
                                                     $5 to 10                                      0.0%                                  $0.00               $0.00
                                                    $30 to 80                                      0.0%                                  $0.00               $0.00
                                                   $50 to 100                                      0.0%                                  $0.00               $0.00
                                                    $30 to 60                                      0.0%                                  $0.00               $0.00
                                                    $50 to 60                                      0.0%                                  $0.00               $0.00
                                                                          $0.00
                                           Subtotal of Feed               $0.00                    0.0%                                  $0.00               $0.00
OTHER CASH EXPENSES                                                   $/cow
  Veterinary and health supplies             $20 to 30                                             0.0%                                  $0.00               $0.00
  Utilities                                   $4 to 6                                              0.0%                                  $0.00               $0.00
  Fuel and repairs                           $10 to 20                                             0.0%                                  $0.00               $0.00
  Marketing, miscellaneous                   $15 to 25                                             0.0%                                  $0.00               $0.00
  A.I. fees, bull rental                     $15 to 35                                             0.0%                                  $0.00               $0.00
  Interest on feed, cash expenses             $5 to 15                    $0.00                    0.0%                                  $0.00               $0.00
                     Subtotal of Other Cash Expenses                      $0.00                    0.0%                                  $0.00               $0.00
FIXED EXPENSES                                                        $/cow
  Interest, insurance, taxes on herd                                      $0.00                    0.0%                                  $0.00               $0.00
  Depreciation on breeding stock                                          $0.00                    0.0%                                  $0.00               $0.00
  Buildings, fences & equipment           $20 to 30                                                0.0%                                  $0.00               $0.00
  Machinery, pickup                       $15 to 25                                                0.0%                                  $0.00               $0.00
                          Subtotal of Fixed Expenses                      $0.00                    0.0%                                  $0.00               $0.00
LABOR & MANAGEMENT                                                    $/cow
  Labor (8-10 hrs./ cow @ $9-10)         $72 to 100                                                0.0%                                  $0.00               $0.00
  Management charge (10% of costs)                                             $0.00               0.0%                                  $0.00               $0.00
                     Subtotal of Labor & Management                            $0.00               0.0%                                  $0.00               $0.00
                                                                                                                                              0                   0
TOTAL OF ALL CONTRIBUTIONS                                                     $0.00                0%                                   $0.00               $0.00
                                                                                                                                            0%                  0%

                                        *If replacements are raised, include feed costs for heifers in budget.
                            Calves or income from the sale of calves should be divided in the same proportion as total costs.
                            Income from the sale of cull breeding stock should be paid to the owner(s) of the breeding stock.
Profit Analysis (optional)
                                       Calves Weaned
EXPECTED REVENUE                          per Cow                Sale Wt. Lbs.       Price / pound             Revenue                     0           0
 Sale of steer calves                                                                                            $0.00                $0.00       $0.00
 Sale of heifer calves                            0%                                                             $0.00                $0.00       $0.00
 Less value of heifers retained or purchased                                                                     $0.00                $0.00       $0.00
 Sale of cull cows                                                                                               $0.00                $0.00       $0.00
                                                                                                                 $0.00                $0.00       $0.00
EXPECTED RETURN TO MANAGEMENT, LABOR AND INVESTMENT PER COW                                                      $0.00                $0.00       $0.00

Developed by Lynn Benson, former Extension Field Specialist, Tim Eggers, Extension Field Specialist, and W illiam Edwards, Extension Economist.
                                         BEEF COW SHARE AGREEMENT ANALYSIS
                                                            Party No. 1                           Party No. 2
                           Prepared for:                       Owner                               Operator                             DATE:     11/14/2010
Note: enter your input values in the yellow shaded cells.

VARIABLE INPUTS                                                          Value                                                                        Value
   1. Pasture acres per cow unit                                          2.5         11. Number of cows in the herd                                   100
   2. Pasture cash rent value per acre                                  $30.00        12. Number of heifers in the herd                                 25
   3. Hay fed per cow unit (tons)                                         2.0         13. Number of bulls in the herd                                    4
   4. Hay code (raised=1, purchased=2)                                      1         14. Female replacement (raised=1, purchased=2)*                    1
                                                                                      15. Average cow value or purchase cost per head               $1,000
   6. Hay yield, tons per acre (if hay is raised)                         4.0         16. Cow cull value per head                                     $500
   7. Years hay is in production after seeding                              3         17. Average heifer value or purchase cost per head              $700
   8. Bushels of corn fed per cow unit                                    4.0         18. Bull value or purchase cost per head                      $2,000
   9. Corn price per bushel                                             $2.20         19. Bull cull value per head                                  $1,000
 10. Interest rate on breeding stock investment                           6.0%        20. Percent of cow herd culled each year                         20%
                                                   Ran g e                Yo u r           % of               Ow n er             Ow n er           Op erato r
               Input Item                         o f Co sts           Estim ates      To tal Co sts     % Co n trib u ted    Co n trib u tio n   Co n trib u tio n
FEED                                                                   $/cow unit                                                         $ per cow unit
 Pasture land cost (a./cow x rent/a.)                $50 to 75              $75.00             12.0%                100%               $75.00            $0.00
 Pasture maintenance                                 $30 to 60              $50.00              8.0%                 50%               $25.00          $25.00
 Salt and mineral                                     $2 to 4                 $2.00             0.3%                 50%                $1.00            $1.00
 Residue grazing                                      $0 to 15              $12.00              1.9%                100%               $12.00            $0.00
 Corn (price/bu x bu fed/cow)                         $5 to 12                $8.80             1.4%                 50%                $4.40            $4.40
 Supplement                                           $5 to 10                $6.00             1.0%                 50%                $3.00            $3.00
                                                                              $0.00             0.0%                  0%                $0.00            $0.00
 Hay costs per acre (if raised)                                          $/acre
 Seed for establishment                             $40 to 70               $45.00                1.2%                  0%               $0.00              $7.50
 Machinery for establishment                        $15 to 20               $18.00                0.5%                  0%               $0.00              $3.00
 Labor for establishment                             $5 to 10                 $9.00               0.2%                  0%               $0.00              $1.50
 Lime, annual cost                                   $5 to 10                 $5.00               0.4%                  0%               $0.00              $2.50
 Annual fertilizer and pesticides                   $30 to 80               $50.00                4.0%                  0%               $0.00             $25.00
 Harvesting machinery                              $50 to 100               $75.00                6.0%                  0%               $0.00             $37.50
 Harvesting labor                                   $30 to 60               $38.00                3.0%                  0%               $0.00             $19.00
 Hay land rent (before seeding)                     $50 to 60               $50.00                4.0%                  0%               $0.00             $25.00
 Total hay production cost per acre                                        $290.00
                                      Subtotal of Feed                     $274.80             43.9%                                 $120.40             $154.40
OTHER CASH EXPENSES                                                      $/cow
  Veterinary and health supplies             $20 to 30                      $25.00              4.0%                 50%               $12.50              $12.50
  Utilities                                    $4 to 6                        $5.00             0.8%                100%                $5.00               $0.00
  Fuel and repairs                           $10 to 20                      $10.00              1.6%                  0%                $0.00              $10.00
  Marketing, miscellaneous                   $15 to 25                      $20.00              3.2%                 50%               $10.00              $10.00
  A.I. fees, bull rental                     $15 to 35                                          0.0%                                    $0.00               $0.00
  Interest on feed, cash expenses              $5 to 15                     $10.04              1.6%                                    $4.44               $5.61
                     Subtotal of Other Cash Expenses                        $70.04             11.2%                                   $31.94              $38.11
FIXED EXPENSES                                                           $/cow
  Interest, insurance, taxes on herd                                        $86.45             13.8%                100%              $86.45                $0.00
  Depreciation on breeding stock                                            $13.33              2.1%                100%              $13.33                $0.00
  Buildings, fences & equipment           $20 to 30                         $25.00              4.0%                100%              $25.00                $0.00
  Machinery, pickup                       $15 to 25                         $18.00              2.9%                  0%               $0.00               $18.00
                          Subtotal of Fixed Expenses                       $142.78             22.8%                                 $124.78               $18.00
LABOR & MANAGEMENT                                                       $/cow
  Labor (8-10 hrs./ cow @ $9-10)         $72 to 100                         $81.00             12.9%                     0%            $0.00             $81.00
  Management charge (10% of costs)                                          $56.86              9.1%                    50%           $28.43             $28.43
                     Subtotal of Labor & Management                        $137.86             22.0%                                  $28.43            $109.43
                                                                                                                                      Owner             Operator
TOTAL OF ALL CONTRIBUTIONS                                                 $625.49                100%                               $305.55            $319.94
                                                                                                                                         49%                51%

                                        *If replacements are raised, include feed costs for heifers in budget.
                            Calves or income from the sale of calves should be divided in the same proportion as total costs.
                            Income from the sale of cull breeding stock should be paid to the owner(s) of the breeding stock.
Profit Analysis (optional)
                                       Calves Weaned
EXPECTED REVENUE                          per Cow                Sale Wt. Lbs. Price / pound                   Revenue               Owner        Operator
 Sale of steer calves                            92%                       585          $1.12                  $301.39             $147.23        $154.16
 Sale of heifer calves                           92%                       550          $1.05                  $265.65             $129.77        $135.88
 Less value of heifers retained or purchased                                                                   -$115.50            -$115.50          $0.00
 Sale of cull cows                                                                                             $100.00             $100.00          $0.00
                                                                                                               $551.54             $261.50        $290.04
EXPECTED RETURN TO MANAGEMENT, LABOR AND INVESTMENT PER COW                                                    $138.01              $58.48         $79.54

Developed by Lynn Benson, former Extension Field Specialist, Tim Eggers, Extension Field Specialist, and W illiam Edwards, Extension Economist.

								
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