# Calculating Interest in Excel by rav16913

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```									This table approximates the breakeven purchase price for calves and yearlings at different corn and selling prices given
a set of assumptions about cattle performance and other input cost. Enter the information in column B that represents your
feeding situation for the type of cattle you plan to feed.

Feeder Cattle Break Even Purchase Price for a Steer Calf
Corn                            Fed Cattle Selling Price
Price       \$68.00           \$70.00    \$72.00       \$74.00        \$76.00
In weight                    550          \$1.80        86.51        90.48       94.44       98.41       102.37
Out weight                  1150          \$2.00        84.28        88.25       92.21       96.17       100.14
Target ADG                  2.85          \$2.20        82.05        86.01       89.98       93.94       97.91
Death loss                1.50%           \$2.40        79.82        83.78       87.75       91.71       95.68
Corn (bu)                   63.0          \$2.60        77.59        81.55       85.52       89.48       93.44
Hay (ton)                    0.5          \$2.80        75.36        79.32       83.28       87.25       91.21
Hay Price (\$/t)         \$100.00           \$3.00        73.12        77.09       81.05       85.02       88.98
Supplement (\$/hd)        \$23.00           \$3.20        70.89        74.86       78.82       82.79       86.75
Interest                  9.50%           \$3.40        68.66        72.63       76.59       80.55       84.52
Yardage                   \$0.25           \$3.60        66.43        70.39       74.36       78.32       82.29
Vet-Med                  \$14.00           \$3.80        64.20        68.16       72.13       76.09       80.06
Trucking                  \$9.00           \$4.00        61.97        65.93       69.90       73.86       77.82
Other                     \$5.00           \$4.20        59.74        63.70       67.66       71.63       75.59
Target Return             \$0.00           \$4.40        57.50        61.47       65.43       69.40       73.36

Feeder Cattle Break Even Purchase Price for a Yearling Steer
Corn                      Fed Cattle Selling Price
Price      \$68.00      \$70.00    \$72.00       \$74.00              \$76.00

In weight                    750          \$1.80        79.45        82.66       85.86       89.06        92.27
Out weight                  1250          \$2.00        77.81        81.01       84.21       87.42        90.62
Target ADG                   3.2          \$2.20        76.16        79.36       82.56       85.77        88.97
Death loss                0.75%           \$2.40        74.51        77.71       80.92       84.12        87.32
Corn (bu)                   63.0          \$2.60        72.86        76.07       79.27       82.47        85.68
Hay (ton)                   0.35          \$2.80        71.22        74.42       77.62       80.83        84.03
Hay Price (\$/t)         \$100.00           \$3.00        69.57        72.77       75.98       79.18        82.38
Supplement (\$/hd)        \$10.00           \$3.20        67.92        71.13       74.33       77.53        80.74
Interest                  9.50%           \$3.40        66.28        69.48       72.68       75.88        79.09
Yardage                   \$0.25           \$3.60        64.63        67.83       71.03       74.24        77.44
Vet-Med                   \$8.00           \$3.80        62.98        66.18       69.39       72.59        75.79
Trucking                 \$11.00           \$4.00        61.33        64.54       67.74       70.94        74.15
Other                     \$5.00           \$4.20        59.69        62.89       66.09       69.30        72.50
Target Return             \$0.00           \$4.40        58.04        61.24       64.45       67.65        70.85

Change in Feeder Cattle Bid Price for a Given Change in Selected Variables
Calf Yearling
Profit                          \$10                  \$1.77       \$1.31
Average Daily Gain              ###                  \$1.38       \$0.81
Feed Efficiency @ \$2.60 corn    ###                  \$3.43       \$2.42
Death Loss                      ###                  \$0.10       \$0.05
Feeder Cattle Budget Worksheet (Central Iowa)
Prepared by Iowa State University Extension Economics (515-294-6290)

Date:                          23-Oct-97
BackGround        Steer      Steer     Heifer
Purchase Weight                           500#        550#       750#       700#
Finished Weight                           775#       1150#      1250#      1050#
Days on Feed                               125         210        156        136
Projected Marketing Date             25-Feb-98  21-May-98   28-Mar-98  08-Mar-98
====================== =========== ========== ========== ========== ==========
Feeder Price/cwt                        \$90.00      \$87.50     \$80.00     \$77.00
Feeder Cost                           \$450.00     \$481.25    \$600.00    \$539.00

FEED COSTS:
Corn Price per bu.                               \$2.50
Corn Bu. Fed                                                         26.5              63.0               63.0               47.0
Corn Cost                                                         \$66.25           \$157.50            \$157.50            \$117.50

Alfalfa-Brome Hay Price \$/ton                 \$100.00
Hay fed (as fed tons)                                                0.30               0.50               0.35               0.25
Hay Cost                                                          \$30.00             \$50.00             \$35.00             \$25.00

Supplement Price/lb.                                                \$0.15              \$0.13              \$0.08              \$0.08
Supplement Used - in lbs.                                             125                181                117                102
Supplement Cost                                                   \$18.75             \$23.53              \$9.36              \$8.16
TOTAL FEED COSTS:                                                \$115.00            \$231.03            \$201.86            \$150.66
OTHER COSTS:
Vet medical & operating costs                                      \$10.00             \$18.70             \$13.80             \$12.75
Interest - Feeder                                9.50%             \$14.64             \$26.30             \$24.36             \$19.08
- Feed/Operating                           9.50%              \$2.03              \$6.82              \$4.38              \$2.89
Labor Cost per hour                              \$7.00              \$9.00             \$21.00             \$14.00             \$10.50
Death Loss % of purchase price                                      1.50%              1.50%              0.75%              0.75%
- Cost                                                        \$6.75              \$7.22              \$4.50              \$4.04
Transportation/Marketing Cost                                       \$6.50              \$8.80             \$10.80              \$9.80
TOTAL OTHER COSTS                       \$48.92     \$88.85     \$71.84     \$59.06
====================== =========== ========== ========== ========== ==========
TOTAL VARIABLE COSTS (per head)        \$613.92    \$801.13    \$873.70    \$748.72
TOTAL FIXED FACILITY COSTS              \$11.30     \$18.90     \$14.20     \$12.30

TOTAL COST TO FINISH ANIMAL            \$625.22    \$820.03    \$887.90    \$761.02
====================== =========== ========== ========== ========== ==========
Necessary Selling Price/cwt:
1.) To Cover Variable Costs             \$79.22     \$69.66     \$69.90     \$71.31
2.) To Cover Total Costs                                           \$80.67             \$71.31             \$71.03             \$72.48
Futures Price as of                         23-Oct-97              \$78.75             \$70.42             \$72.57             \$72.57
Estimated Basis                                                     (\$1.00)             \$1.31             (\$0.48)            (\$1.21)
-------------------------------------- ------------------- ------------------ ------------------ ------------------ ------------------
Expected Price/cwt by Hedging                                      \$77.75             \$71.73             \$72.09             \$71.36
Est. Return over Var. Costs/head                                  (\$11.36)            \$23.77             \$27.43               \$0.56
Est. Return over Total Costs/head                                 (\$22.66)              \$4.87            \$13.23            (\$11.74)
Value of corn marketed through cattle after all cost                 \$1.64              \$2.58              \$2.71              \$2.25

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