Cop Beef Cow Calf 2008
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Guidelines For Estimating
Cow-Calf Production Costs Based on a 150 Head Cow Herd
Date: September, 2008
This guide is designed to provide you with planning information and a format for calculating costs of production of a cow calf enterprise. Adjustments will be necessary when applying these figures to your own enterprise. The budget estimates are based on a number of assumptions which are clearly defined in the supporting pages. Productivity and performance assumptions are based on data supplied by specialists as well as data collected from certain producers. Input costs are based on recommended practices and/or information obtained from producers. Good management is assumed in that a balanced ration is being fed, livestock are on a herd health program and handling facilities are included. Disclaimer: This budget is only a guide and is not intended as an in depth study of the cost of production of the Manitoba cattle industry. Interpretation and utilization of this information is the responsibility of the user. If you require assistance with developing your individual budget, please contact your local MAFRI Business Development Specialist or Livestock Farm Production Extension Specialist.
2
Guidelines: Cow-Calf Production Costs
Cow-Calf Production Costs September, 2008 Based on a 150 Cow Herd A. Operating Costs 1. Feed Costs 1.01 Grain 1.02 Hay 1.03 Salt & Minerals Total Feed Cost
Cost/Cow
Total Cost
$10.00 $210.50 $19.95 $240.45
$1,500 $31,575 $2,993 $36,068
$25.00 $16.04 $35.87 $30.00 $10.67 $34.39 $10.63 $16.67 $7.36 $42.00 $6.67 $475.75 $15.46 $491.21
$3,750 $2,406 $5,381 $4,500 $1,601 $5,159 $1,594 $2,501 $1,104 $6,300 $1,001 $71,365 $2,319 $73,684
$16.78 $42.67
$2,517 $6,401
4. Investment 4.01 Buildings 4.02 Machinery & Equipment 4.03 Livestock 4.04 Pasture Land & Fencing Total Fixed Costs Total Operating and Fixed Costs
$6.71 $12.80 $34.00 $77.82 $190.78 $681.99
$1,007 $1,920 $5,100 $11,673 $28,618 $102,302
C. Labour Total Cost of Production
$108.00 $789.99
$16,200 $118,502
Breakeven price A. Operating Costs B. Operating & labour Costs C. Operating & Fixed Costs D. Operating, Fixed & Labour Costs
$/cwt $89.92 $109.69 $124.85 $144.62
2. Other Operating Costs 2.01 Straw 2.02 Veterinary Medicine & Supplies 2.03 Breeding Costs 2.04 Fuel, Maintenance & Repairs 2.05 Utilities 2.06 Marketing & Transportation 2.07 Death Loss 2.08 Manure Removal 2.09 Insurance 2.10 Herd Replacement 2.11 Miscellaneous Subtotal Operating Costs 2.12 Operating Interest Total Operating Costs B. Fixed Costs 3. Depreciation 3.01 Buildings 3.02 Machinery & Equipment
Your Cost
Breakeven Price $/cwt = Cost ÷ 95% calf crop ÷ calf weight (5.75cwt) Disclaimer: This budget is only a guide and is not intended as an in-depth study of the cost of production of this industry. Interpretation and utilization of this information is the responsibility of the user. No liability for decisions based on this publication is assumed.
MAFRI, Policy Analysis Branch
Guidleines: Cow-calf Production Costs
Cow-Calf Production Costs - Input Assumptions 1. 2. 3. 4. 5.
This budget outlines the cost of production for a cow-calf operation. Buildings and equipment are valued at new cost. All feed is purchased. Manure haulage is contracted out. Replacement heifers are valued at fair market value
Herd Profile Number of Cows Number of Bulls Calf Crop Average Calf Weight Cow Mortality Rate Calf Market Price Cow Replacement Rate Bull Replacement Rate Feed Costs & Requirements Feed Cost $/unit Barley $4.00 /bu Days/Year on Barley Hay (Good Quality) $65.00 /ton Hay (Low Quality) $40.00 /ton Salt $0.12 /lb Minerals $0.45 /lb
Total 150 head 6 bulls 95.00 % 575 lbs 1.25 % $115.00 /cwt 12.00 % 25.00 %
Feed Requirement /Cow /Bull 2.00 7.00 60 120 2.5 4.00 1.2 0.00 35.00 n/a 35.00 n/a
lbs/day days tons/yr tons/yr lbs/year lbs/year
FOOTNOTE: 1 bushel (bu) barley = 48 lbs = 21.8 kg Other Operating Costs Straw Number of Tons/Cow/Year Number of Tons/Bull/Year Cost/Ton Veterinary Medicine & Supplies Calf Medication Blackleg ( 8 way vaccine )
1.0 1.0 $25.00
$0.53 /head
MAFRI, Policy Analysis Branch
Guidleines: Cow-calf Production Costs
Tags Cow Medication IBR/PI3/BVD Scourguard Internal external parasite control antibiotics, etc. ADE Herd Health Program Professional Services Total Yearly Hours Rate Transportation Total Kilometers (round trip) Rate Number of yearly visits Breeding Costs Health Management Costs Semen Test Replacement of Bulls Original Cost Salvage Value Pasture Cost Other Breeding Alternatives a) Artificial Insemination Cost/Cow or Heifer Number Inseminated b) P.F.R.A. Community Pasture Cost/Cow or Heifer Number of Cows placed in Pasture Fuel, Oil, Repairs & Maintenance Machinery - fuel costs - repairs Buildings, fences etc. Other Operating Costs Utilities Hydro Telephone
$3.00 /head $2.55 /head $2.95 /head $2.70 /head $0.65 /head
6 hours $135.00 /hour
80 km $0.60 /km 4
$10.00 /bull $55.00 /bull
$2,500.00 /bull $1,200.00 /bull $77.82 /bull
$0.00 0
$0.00 0
$1,900.00 $1,400.00 $1,200.00
$800.00 $800.00
MAFRI, Policy Analysis Branch
Guidleines: Cow-calf Production Costs
Marketing & Transportation (Culls) a) Trucking: Number of Cull Cows Average Weight/Cow Trucking cost b) Selling Commission: MCEC Fee $/Head MCPA Levy $/Head Insurance per Head Commission on Cows Commission on Calves Manure Removal Annual cost for Removal
$2.00 /head $3.00 /head $1.00 /head $16.00 /cow $14.00 /calf
$2,500.00
Operating Interest Rate Investment Rate
6.50 % 4.00 %
Insurance Cost per $100 Capital Invested in a) Livestock b) Building & Equipment Additional coverage for liability
$0.45 $0.35 $49.00 /year
Miscellaneous Total yearly expense
$1,000.00
Herd Replacement (Cows Only) Replacement Cost/Heifer Average Value/Cow Price Received/Cull Cow Capital Costs Buildings & Water System Windbreak Fence Feedlot Fence Calf Shelters Handling Facilities Calving Facility Waterers (3 @ $ 1000) Pasture watering system Pasture water source Gates Round Bale Feeders Well & Pressure System Hydro (6 poles @ $400) Storage Bins
18 cows 1,350 lbs $1.60 /cwt
$1,000.00 $850.00 $650.00
Original Value $4,000 $4,000 $8,000 $5,500 $9,600 $5,000 $4,000 $3,000 $840 $1,500 $6,000 $2,400 $3,500
Salvage Value 0 % 0 % 0 % 0 % 0 % 0 % 0 % 0 % 0 % 0 % 0 % 0 % 0 %
Useful Life 20 years 20 years 20 years 20 years 20 years 20 years 20 years 20 years 20 years 20 years 20 years 20 years 20 years
MAFRI, Policy Analysis Branch
Guidleines: Cow-calf Production Costs
Total Machinery & Equipment Miscellaneous Machinery Tractor & Loader Bale Shredder Stock Trailer Truck ( $40,000@ 50%) Total Total Building, Machinery & Equipment Total Breeding Herd Value Total Capital Investment Pasture Costs Cows on pasture Length of fence Fence price Fence useful life Fence salvage value Number of acres/cow Value Taxes Total fertilizer, chemical, seed & miscellaneous Number of cows/quarter Rental rate
$57,340
0 %
$5,000 $30,000 $13,000 $12,000 $20,000 $80,000
20 20 20 20 10
20 years
% % % % %
10 10 10 10 10
years years years years years
137,340 127,500 264,840 Marginal Land 150 7.000 $3,400 20 $0.00 7 $300.00 $2.00
cows miles /mile years acre/cow /acre /acre
$0.00 /acre
Crop Land 150 4.500 $1,000 20 $0.00 3 $525.00 $5.30
cows miles /mile years
Crown Land 150 9.375 $3,400 20 10
cows miles /mile years %
acre/cow /acre /acre
$0.00 /acre
$0.00 /acre 12 cows $246.00 /quarter
FOOTNOTE: 1 hectare = 2.471 acres P.F.R.A. Community Pasture Grazing Cows Cows on P.F.R.A. Pasture Cost P.F.R.A Grazing Days Calves Calves on P.F.R.A. Pasture Cost Labour Costs Hours/Cow/Year Labour Rate
150 cows $0.40 /cow/day 140 days/year 143 calves $22.00 /calf/season
9.00 hours $12.00 /hour
MAFRI, Policy Analysis Branch
Guidleines: Cow-calf Production Costs
MAFRI, Policy Analysis Branch
Guidleines: Cow-calf Production Costs
MAFRI, Policy Analysis Branch
Guidleines: Cow-calf Production Costs
Lawrence
MAFRI, Policy Analysis Branch
Guidleines: Cow-calf Production Costs
MAFRI, Policy Analysis Branch
3
Guidelines: Cow-Calf Production Costs
Assumptions 1. This budget outlines the cost of production for a cow calf operation with 150 cows, 6 bulls and 95% calf crop weaned. 2. Building and equipment are valued at new cost. 3. All feed is valued at market value. 4. Manure removal is contracted out. 5. Replacement heifers are valued at fair market value. 6. This budget assumes an average weaning weight of 575 lbs. (steer calves 600 lbs and heifer calves 550 lbs.)
Cow-Calf Production Worksheet A. Operating Costs 1. Feed Costs 1.01 Barley (processed) x ÷ x =
2.00 60.00 48.00 $4.00 $10.00
lbs barley/cow/day days/year lbs/bu /bushel /cow
1.02 Hay (for cows)
Total
x =
2.50 $65.00 $162.50
x =
1.20 $40.00 $48.00
=
$210.50
tons good quality /ton /cow tons low quality /ton /cow /cow
1.03 Salt and Minerals
Total
x =
35.00 $0.12 $4.20
lbs salt/cow/year /lb /cow
x =
35.00 $0.45 $15.75
lbs mineral/cow/year /lb /cow
=
$19.95
/cow
MAFRI, Policy Analysis Branch
4
Guidelines: Cow-Calf Production Costs
2. Other Operating Costs 2.01 Straw x =
1.00 $25.00 $25.00
2.02 Veterinary Medicine & Supplies Calf Medication $0.53 x 95.00 = $0.51
tons/cow/year /ton /cow
/calf blackleg % calf crop /cow
Cow Medication + + + =
$2.55 $2.95 $2.70 $0.65 $8.85
/cow IBR /cow scourguard /cow parasite control /cow ADE /cow
Herd Health Program x ÷ =
$135.00 6.00 150.00 $5.40
/hour charge hours cows /cow
x x ÷ =
$0.60 80.00 4.00 150.00 $1.28
/km charge kilometres visits cows /cow
=
$16.04
/cow
4.00 $65.00 6.00 150.00 $10.40
tons good quality /ton bulls cows /cow
Mileage
Total
2.03 Breeding Costs Feed for Bulls Hay x x ÷ =
MAFRI, Policy Analysis Branch
5
Guidelines: Cow-Calf Production Costs
Barley
Total
x ÷ x x ÷ =
7.00 120.00 48.00 $4.00 6.00 150.00 $2.80
lbs barley/bull/day days lbs/bu /bushel bulls cows /cow
=
$13.20
/cow
x x ÷ =
1.00 $25.00 6.00 150.00 $1.00
tons/bull/year /ton bulls cows /cow
$55.00 $10.00 6.00 150.00 $2.60
semen test total vet cost/bull bulls cows /cow
$2,500 $1,200 25.00 6.00 150.00 $13.00
bull cost bull salvage value % replacement rate bulls cows /cow
$2,500 $1,200 2.00 4.00 6.00 150.00 $2.96
bull cost bull salvage value average % investment rate bulls cows /cow
Straw for Bulls
Vet & Medicine for Bulls + x ÷ = Replacement of Bulls x x ÷ = Investment in Bulls + ÷ x x ÷ =
MAFRI, Policy Analysis Branch
6
Guidelines: Cow-Calf Production Costs
Pasture Costs for Bulls
Total
x ÷ =
$77.82 6.00 150.00 $3.11
/bull pasture cost bulls cows /cow
=
$35.87
/cow
2.04 Fuel, Oil, Repairs & Maintenance Machinery $1,900 + $1,400 ÷ 150.00 = $22.00
annual fuel cost oil, repairs & maintenance cows /cow
Buildings,Fences etc.
Total
÷ =
$1,200 150.00 $8.00
repairs & maintenance cows /cow
=
$30.00
/cow
÷ =
$1,600 150.00 $10.67
annual cost cows /cow
2.05 Utilities
2.06 Marketing & Transportation Trucking Calves 143 x 575.00 x $1.60 ÷ 100.00 ÷ 150.00 = $8.77 Cull Cows x x ÷ ÷ =
18.00 2.00 1,350.00 $1.60 100.00 150.00 $2.30
calves lbs/calf /cwt (trucking cost) lbs/cwt cows /cow cull cows cows died lbs/cow /cwt (trucking cost) lbs/cwt cows /cow
MAFRI, Policy Analysis Branch
7
Guidelines: Cow-Calf Production Costs
MCEC Levy, MCPA Levy, selling commission & insurance Calves $2.00 MCEC Fee + $3.00 MCPA Levy + $17.00 Commission, Insurance x 143 calves ÷ 150.00 cows = $20.97 /cow Cull Cows
Total
+ x ÷ =
$2.00 $3.00 $17.00 16 150.00 $2.35
MCEC Fee MCPA Levy Commission, MCPA cull cows cows /cow
=
$34.39
/cow
x x =
$850 1.25 $10.63
/cow investment % mortality rate /cow
÷ =
$2,500 150.00 $16.67
annual removal cost cows /cow
x ÷ =
$850 $0.45 100.00 $3.83
$/cow investment /$100 capital /100 /cow
2.07 Death Loss
2.08 Manure Removal
2.09 Insurance
$137,340
Total
x ÷ ÷ =
$0.35 100.00 150.00 $3.20
building and equipment investment /$100 capital /100 cows /cow
÷ =
$49.00 150.00 $0.33
liability cows /cow
=
$7.36
/cow
MAFRI, Policy Analysis Branch
8
Guidelines: Cow-Calf Production Costs
2.10 Herd Replacement x =
$1,000 $650 12.00 $42.00
/replacement heifer /cull cow % replacement rate /cow
$1,000 150.00 $6.67
total office expenses cows /cow
2.11 Miscellaneous ÷ =
2.12 Operating Interest (Operating interest is charged on one half of the subtotal operating costs)
÷ x =
$475.75 2.00 6.50 $15.46
subtotal operating costs average % operating interest /cow
MAFRI, Policy Analysis Branch
9
Guidelines: Cow-Calf Production Costs
Capital Costs Buildings & Water System Windbreak Fence Feedlot Fence Calf Shelters Handling Facilities Calving Facilities Waterers (3 @ $ 1000) Pasture watering system Pasture water source Gates Round Bale Feeders Well & Pressure System Hydro (6 poles @ $400) Storage Bins Total Building Cost
$4,000 $4,000 $8,000 $5,500 $9,600 $5,000 $4,000 $3,000 $840 $1,500 $6,000 $2,400 $3,500 $57,340
Machinery & Equipment Miscellaneous Machinery Tractor & Loader ($100,000 @30%) Bale Shredder Stock Trailer Truck ($30,000 @ 50%) Total Machinery & Equipment Cost
$5,000 $30,000 $13,000 $12,000 $20,000 $80,000
Total Bldg., Mach. & Equip.
$137,340
Total Breeding Herd Value
$127,500
Total Capital Investment
$264,840
B. Fixed Costs 3. Depreciation
Original Cost - Salvage Value Useful Life
3.01 Buildings & Water System (not including pasture water system) $50,340 original cost 0.00 salvage value ÷ 20.00 years useful life ÷ 150.00 cows = $16.78 /cow
MAFRI, Policy Analysis Branch
10
Guidelines: Cow-Calf Production Costs
3.02 Machinery & Equipment $80,000 $16,000 ÷ 10.00 ÷ 150.00 = $42.67 4. Investment
original cost salvage value years useful life cows /cow
Original Cost + Salvage Value x Investment Rate 2
4.01 Buildings $50,340 $0.00 2.00 4.00 150.00 $6.71
original cost salvage value average % investment rate cows /cow
4.02 Machinery & Equipment $80,000 + $16,000 ÷ 2.00 x 4.00 ÷ 150.00 = $12.80
original cost salvage value average % investment rate cows /cow
+ ÷ x ÷ =
4.03 Livestock x =
$850 4.00 $34.00
/cow % investment rate /cow
x x =
7.00 $300.00 4.00 $84.00
acres/cow /acre % investment rate /cow
4.04 Pasture A. Marginal Land Investment Land
MAFRI, Policy Analysis Branch
11
Guidelines: Cow-Calf Production Costs
Fence + ÷ x ÷ =
$23,800 $0 2.00 4.00 150.00 $3.17
total fence investment salvage value average % investment rate cows /cow
Pasture Water System + ÷ x ÷ =
$7,000 $0 2.00 4.00 150.00 $0.93
system & source salvage value average % investment rate cows /cow
Total Investment =
$88.11
/cow
Depreciation Fence ÷ ÷ = Pasture Water system
Total
total fence investment salvage value years useful life cows /cow
÷ ÷ =
$7,000 $0 20.00 150.00 $2.33
system & dugout salvage value years useful life cows /cow
=
$10.27
/cow
x =
7.00 $2.00 $14.00
acres/cow /acre /cow
=
$112.37
x x =
3.00 $525 4.00 $63.00
Taxes
Total
$23,800 $0 20.00 150.00 $7.93
B. Crop Land Investment Land
/cow
acres/cow /acre % investment rate /cow
MAFRI, Policy Analysis Branch
12
Guidelines: Cow-Calf Production Costs
Fence $4,500 $0 2.00 4.00 150.00 $0.60
total fence investment salvage value average % investment rate cows /cow
+ ÷ x ÷ =
$7,000 $0 2.00 4.00 150.00 $0.93
system & source salvage value average % investment rate cows /cow
Total Investment =
$64.53
/cow
$4,500 $0 20.00 150.00 $1.50
total fence investment salvage value years useful life cows /cow
÷ ÷ =
$7,000 $0 20.00 150.00 $2.33
system & source salvage value years useful life cows /cow
=
$3.83
x =
3.00 $5.30 $15.90
acres/cow /acre /cow
=
$84.00
/cow
+ ÷ x ÷ = Pasture Water System
Depreciation Fence ÷ ÷ = Pasture Water system
Total
/cow
Taxes
Total
MAFRI, Policy Analysis Branch
13
Guidelines: Cow-Calf Production Costs
C. Crown Land: Depreciation Fence
9.38 $3,400 $31,875 $3,188 20.00 150.00 $9.56
miles of fence /mile fence cost salvage value years useful life cows /cow
÷ ÷ =
$7,000 $0 20.00 150.00 $2.33
system & source salvage value years useful life cows /cow
Total Depreciation =
$11.89
/cow
x = ÷ ÷ = Pasture Water system
Investment Fence
$31,875 $3,188 $35,063 2.00 4.00 150.00 $4.68
fence cost salvage value total invested average % investment rate cows /cow
+ ÷ x ÷ =
$7,000 $0 2.00 4.00 150.00 $0.93
system & source salvage value average % investment rate cows /cow
Total Investment =
$5.61
+ = ÷ x ÷ = Pasture Water System
/cow
Land Rental (includes taxes)
Total
÷ =
$246 12.00 $20.50
/quarter, rental rate cows/quarter /cow
=
$38.00
/cow
MAFRI, Policy Analysis Branch
14
Guidelines: Cow-Calf Production Costs
D. P.F.R.A.: Community Pasture Grazing Cows $0.40 cost/cow/day x 140.00 days = $56.00 /cow Calves x x ÷ =
$22.00 142.50 150.00 $20.90
/calf/season calves on pasture cows on pasture /cow
Total
=
$76.90
/cow
Average ( A,B,C,D)
=
$77.82
/cow
x =
9.00 $12.00 $108.00
C. Labour hours/cow/year /hour /cow
For further information contact your local MAFRI office. Prepared by: Peter Blawat Policy Economist
Bob Gwyer Business Development Specialist
Michael Buchen Business Development Specialist Finished Beef
John Popp Farm Production Extension Specialist Beef
Lesley Bond Business Development Specialist
Dennis Beernaert Farm Production Extension Specialist
Benjamin Hamm Farm Production Extension Specialist
MAFRI, Policy Analysis Branch
15
Guidelines: Cow-Calf Production Costs
Cow-Calf Operating Facilities
MAFRI, Policy Analysis Branch
Cow-Calf Production Costs Based on a 150 Head Cow Herd
Date: September, 2008
This guide is designed to provide you with planning information and a format for calculating costs of production of a cow calf enterprise. Adjustments will be necessary when applying these figures to your own enterprise. The budget estimates are based on a number of assumptions which are clearly defined in the supporting pages. Productivity and performance assumptions are based on data supplied by specialists as well as data collected from certain producers. Input costs are based on recommended practices and/or information obtained from producers. Good management is assumed in that a balanced ration is being fed, livestock are on a herd health program and handling facilities are included. Disclaimer: This budget is only a guide and is not intended as an in depth study of the cost of production of the Manitoba cattle industry. Interpretation and utilization of this information is the responsibility of the user. If you require assistance with developing your individual budget, please contact your local MAFRI Business Development Specialist or Livestock Farm Production Extension Specialist.
2
Guidelines: Cow-Calf Production Costs
Cow-Calf Production Costs September, 2008 Based on a 150 Cow Herd A. Operating Costs 1. Feed Costs 1.01 Grain 1.02 Hay 1.03 Salt & Minerals Total Feed Cost
Cost/Cow
Total Cost
$10.00 $210.50 $19.95 $240.45
$1,500 $31,575 $2,993 $36,068
$25.00 $16.04 $35.87 $30.00 $10.67 $34.39 $10.63 $16.67 $7.36 $42.00 $6.67 $475.75 $15.46 $491.21
$3,750 $2,406 $5,381 $4,500 $1,601 $5,159 $1,594 $2,501 $1,104 $6,300 $1,001 $71,365 $2,319 $73,684
$16.78 $42.67
$2,517 $6,401
4. Investment 4.01 Buildings 4.02 Machinery & Equipment 4.03 Livestock 4.04 Pasture Land & Fencing Total Fixed Costs Total Operating and Fixed Costs
$6.71 $12.80 $34.00 $77.82 $190.78 $681.99
$1,007 $1,920 $5,100 $11,673 $28,618 $102,302
C. Labour Total Cost of Production
$108.00 $789.99
$16,200 $118,502
Breakeven price A. Operating Costs B. Operating & labour Costs C. Operating & Fixed Costs D. Operating, Fixed & Labour Costs
$/cwt $89.92 $109.69 $124.85 $144.62
2. Other Operating Costs 2.01 Straw 2.02 Veterinary Medicine & Supplies 2.03 Breeding Costs 2.04 Fuel, Maintenance & Repairs 2.05 Utilities 2.06 Marketing & Transportation 2.07 Death Loss 2.08 Manure Removal 2.09 Insurance 2.10 Herd Replacement 2.11 Miscellaneous Subtotal Operating Costs 2.12 Operating Interest Total Operating Costs B. Fixed Costs 3. Depreciation 3.01 Buildings 3.02 Machinery & Equipment
Your Cost
Breakeven Price $/cwt = Cost ÷ 95% calf crop ÷ calf weight (5.75cwt) Disclaimer: This budget is only a guide and is not intended as an in-depth study of the cost of production of this industry. Interpretation and utilization of this information is the responsibility of the user. No liability for decisions based on this publication is assumed.
MAFRI, Policy Analysis Branch
Guidleines: Cow-calf Production Costs
Cow-Calf Production Costs - Input Assumptions 1. 2. 3. 4. 5.
This budget outlines the cost of production for a cow-calf operation. Buildings and equipment are valued at new cost. All feed is purchased. Manure haulage is contracted out. Replacement heifers are valued at fair market value
Herd Profile Number of Cows Number of Bulls Calf Crop Average Calf Weight Cow Mortality Rate Calf Market Price Cow Replacement Rate Bull Replacement Rate Feed Costs & Requirements Feed Cost $/unit Barley $4.00 /bu Days/Year on Barley Hay (Good Quality) $65.00 /ton Hay (Low Quality) $40.00 /ton Salt $0.12 /lb Minerals $0.45 /lb
Total 150 head 6 bulls 95.00 % 575 lbs 1.25 % $115.00 /cwt 12.00 % 25.00 %
Feed Requirement /Cow /Bull 2.00 7.00 60 120 2.5 4.00 1.2 0.00 35.00 n/a 35.00 n/a
lbs/day days tons/yr tons/yr lbs/year lbs/year
FOOTNOTE: 1 bushel (bu) barley = 48 lbs = 21.8 kg Other Operating Costs Straw Number of Tons/Cow/Year Number of Tons/Bull/Year Cost/Ton Veterinary Medicine & Supplies Calf Medication Blackleg ( 8 way vaccine )
1.0 1.0 $25.00
$0.53 /head
MAFRI, Policy Analysis Branch
Guidleines: Cow-calf Production Costs
Tags Cow Medication IBR/PI3/BVD Scourguard Internal external parasite control antibiotics, etc. ADE Herd Health Program Professional Services Total Yearly Hours Rate Transportation Total Kilometers (round trip) Rate Number of yearly visits Breeding Costs Health Management Costs Semen Test Replacement of Bulls Original Cost Salvage Value Pasture Cost Other Breeding Alternatives a) Artificial Insemination Cost/Cow or Heifer Number Inseminated b) P.F.R.A. Community Pasture Cost/Cow or Heifer Number of Cows placed in Pasture Fuel, Oil, Repairs & Maintenance Machinery - fuel costs - repairs Buildings, fences etc. Other Operating Costs Utilities Hydro Telephone
$3.00 /head $2.55 /head $2.95 /head $2.70 /head $0.65 /head
6 hours $135.00 /hour
80 km $0.60 /km 4
$10.00 /bull $55.00 /bull
$2,500.00 /bull $1,200.00 /bull $77.82 /bull
$0.00 0
$0.00 0
$1,900.00 $1,400.00 $1,200.00
$800.00 $800.00
MAFRI, Policy Analysis Branch
Guidleines: Cow-calf Production Costs
Marketing & Transportation (Culls) a) Trucking: Number of Cull Cows Average Weight/Cow Trucking cost b) Selling Commission: MCEC Fee $/Head MCPA Levy $/Head Insurance per Head Commission on Cows Commission on Calves Manure Removal Annual cost for Removal
$2.00 /head $3.00 /head $1.00 /head $16.00 /cow $14.00 /calf
$2,500.00
Operating Interest Rate Investment Rate
6.50 % 4.00 %
Insurance Cost per $100 Capital Invested in a) Livestock b) Building & Equipment Additional coverage for liability
$0.45 $0.35 $49.00 /year
Miscellaneous Total yearly expense
$1,000.00
Herd Replacement (Cows Only) Replacement Cost/Heifer Average Value/Cow Price Received/Cull Cow Capital Costs Buildings & Water System Windbreak Fence Feedlot Fence Calf Shelters Handling Facilities Calving Facility Waterers (3 @ $ 1000) Pasture watering system Pasture water source Gates Round Bale Feeders Well & Pressure System Hydro (6 poles @ $400) Storage Bins
18 cows 1,350 lbs $1.60 /cwt
$1,000.00 $850.00 $650.00
Original Value $4,000 $4,000 $8,000 $5,500 $9,600 $5,000 $4,000 $3,000 $840 $1,500 $6,000 $2,400 $3,500
Salvage Value 0 % 0 % 0 % 0 % 0 % 0 % 0 % 0 % 0 % 0 % 0 % 0 % 0 %
Useful Life 20 years 20 years 20 years 20 years 20 years 20 years 20 years 20 years 20 years 20 years 20 years 20 years 20 years
MAFRI, Policy Analysis Branch
Guidleines: Cow-calf Production Costs
Total Machinery & Equipment Miscellaneous Machinery Tractor & Loader Bale Shredder Stock Trailer Truck ( $40,000@ 50%) Total Total Building, Machinery & Equipment Total Breeding Herd Value Total Capital Investment Pasture Costs Cows on pasture Length of fence Fence price Fence useful life Fence salvage value Number of acres/cow Value Taxes Total fertilizer, chemical, seed & miscellaneous Number of cows/quarter Rental rate
$57,340
0 %
$5,000 $30,000 $13,000 $12,000 $20,000 $80,000
20 20 20 20 10
20 years
% % % % %
10 10 10 10 10
years years years years years
137,340 127,500 264,840 Marginal Land 150 7.000 $3,400 20 $0.00 7 $300.00 $2.00
cows miles /mile years acre/cow /acre /acre
$0.00 /acre
Crop Land 150 4.500 $1,000 20 $0.00 3 $525.00 $5.30
cows miles /mile years
Crown Land 150 9.375 $3,400 20 10
cows miles /mile years %
acre/cow /acre /acre
$0.00 /acre
$0.00 /acre 12 cows $246.00 /quarter
FOOTNOTE: 1 hectare = 2.471 acres P.F.R.A. Community Pasture Grazing Cows Cows on P.F.R.A. Pasture Cost P.F.R.A Grazing Days Calves Calves on P.F.R.A. Pasture Cost Labour Costs Hours/Cow/Year Labour Rate
150 cows $0.40 /cow/day 140 days/year 143 calves $22.00 /calf/season
9.00 hours $12.00 /hour
MAFRI, Policy Analysis Branch
Guidleines: Cow-calf Production Costs
MAFRI, Policy Analysis Branch
Guidleines: Cow-calf Production Costs
MAFRI, Policy Analysis Branch
Guidleines: Cow-calf Production Costs
Lawrence
MAFRI, Policy Analysis Branch
Guidleines: Cow-calf Production Costs
MAFRI, Policy Analysis Branch
3
Guidelines: Cow-Calf Production Costs
Assumptions 1. This budget outlines the cost of production for a cow calf operation with 150 cows, 6 bulls and 95% calf crop weaned. 2. Building and equipment are valued at new cost. 3. All feed is valued at market value. 4. Manure removal is contracted out. 5. Replacement heifers are valued at fair market value. 6. This budget assumes an average weaning weight of 575 lbs. (steer calves 600 lbs and heifer calves 550 lbs.)
Cow-Calf Production Worksheet A. Operating Costs 1. Feed Costs 1.01 Barley (processed) x ÷ x =
2.00 60.00 48.00 $4.00 $10.00
lbs barley/cow/day days/year lbs/bu /bushel /cow
1.02 Hay (for cows)
Total
x =
2.50 $65.00 $162.50
x =
1.20 $40.00 $48.00
=
$210.50
tons good quality /ton /cow tons low quality /ton /cow /cow
1.03 Salt and Minerals
Total
x =
35.00 $0.12 $4.20
lbs salt/cow/year /lb /cow
x =
35.00 $0.45 $15.75
lbs mineral/cow/year /lb /cow
=
$19.95
/cow
MAFRI, Policy Analysis Branch
4
Guidelines: Cow-Calf Production Costs
2. Other Operating Costs 2.01 Straw x =
1.00 $25.00 $25.00
2.02 Veterinary Medicine & Supplies Calf Medication $0.53 x 95.00 = $0.51
tons/cow/year /ton /cow
/calf blackleg % calf crop /cow
Cow Medication + + + =
$2.55 $2.95 $2.70 $0.65 $8.85
/cow IBR /cow scourguard /cow parasite control /cow ADE /cow
Herd Health Program x ÷ =
$135.00 6.00 150.00 $5.40
/hour charge hours cows /cow
x x ÷ =
$0.60 80.00 4.00 150.00 $1.28
/km charge kilometres visits cows /cow
=
$16.04
/cow
4.00 $65.00 6.00 150.00 $10.40
tons good quality /ton bulls cows /cow
Mileage
Total
2.03 Breeding Costs Feed for Bulls Hay x x ÷ =
MAFRI, Policy Analysis Branch
5
Guidelines: Cow-Calf Production Costs
Barley
Total
x ÷ x x ÷ =
7.00 120.00 48.00 $4.00 6.00 150.00 $2.80
lbs barley/bull/day days lbs/bu /bushel bulls cows /cow
=
$13.20
/cow
x x ÷ =
1.00 $25.00 6.00 150.00 $1.00
tons/bull/year /ton bulls cows /cow
$55.00 $10.00 6.00 150.00 $2.60
semen test total vet cost/bull bulls cows /cow
$2,500 $1,200 25.00 6.00 150.00 $13.00
bull cost bull salvage value % replacement rate bulls cows /cow
$2,500 $1,200 2.00 4.00 6.00 150.00 $2.96
bull cost bull salvage value average % investment rate bulls cows /cow
Straw for Bulls
Vet & Medicine for Bulls + x ÷ = Replacement of Bulls x x ÷ = Investment in Bulls + ÷ x x ÷ =
MAFRI, Policy Analysis Branch
6
Guidelines: Cow-Calf Production Costs
Pasture Costs for Bulls
Total
x ÷ =
$77.82 6.00 150.00 $3.11
/bull pasture cost bulls cows /cow
=
$35.87
/cow
2.04 Fuel, Oil, Repairs & Maintenance Machinery $1,900 + $1,400 ÷ 150.00 = $22.00
annual fuel cost oil, repairs & maintenance cows /cow
Buildings,Fences etc.
Total
÷ =
$1,200 150.00 $8.00
repairs & maintenance cows /cow
=
$30.00
/cow
÷ =
$1,600 150.00 $10.67
annual cost cows /cow
2.05 Utilities
2.06 Marketing & Transportation Trucking Calves 143 x 575.00 x $1.60 ÷ 100.00 ÷ 150.00 = $8.77 Cull Cows x x ÷ ÷ =
18.00 2.00 1,350.00 $1.60 100.00 150.00 $2.30
calves lbs/calf /cwt (trucking cost) lbs/cwt cows /cow cull cows cows died lbs/cow /cwt (trucking cost) lbs/cwt cows /cow
MAFRI, Policy Analysis Branch
7
Guidelines: Cow-Calf Production Costs
MCEC Levy, MCPA Levy, selling commission & insurance Calves $2.00 MCEC Fee + $3.00 MCPA Levy + $17.00 Commission, Insurance x 143 calves ÷ 150.00 cows = $20.97 /cow Cull Cows
Total
+ x ÷ =
$2.00 $3.00 $17.00 16 150.00 $2.35
MCEC Fee MCPA Levy Commission, MCPA cull cows cows /cow
=
$34.39
/cow
x x =
$850 1.25 $10.63
/cow investment % mortality rate /cow
÷ =
$2,500 150.00 $16.67
annual removal cost cows /cow
x ÷ =
$850 $0.45 100.00 $3.83
$/cow investment /$100 capital /100 /cow
2.07 Death Loss
2.08 Manure Removal
2.09 Insurance
$137,340
Total
x ÷ ÷ =
$0.35 100.00 150.00 $3.20
building and equipment investment /$100 capital /100 cows /cow
÷ =
$49.00 150.00 $0.33
liability cows /cow
=
$7.36
/cow
MAFRI, Policy Analysis Branch
8
Guidelines: Cow-Calf Production Costs
2.10 Herd Replacement x =
$1,000 $650 12.00 $42.00
/replacement heifer /cull cow % replacement rate /cow
$1,000 150.00 $6.67
total office expenses cows /cow
2.11 Miscellaneous ÷ =
2.12 Operating Interest (Operating interest is charged on one half of the subtotal operating costs)
÷ x =
$475.75 2.00 6.50 $15.46
subtotal operating costs average % operating interest /cow
MAFRI, Policy Analysis Branch
9
Guidelines: Cow-Calf Production Costs
Capital Costs Buildings & Water System Windbreak Fence Feedlot Fence Calf Shelters Handling Facilities Calving Facilities Waterers (3 @ $ 1000) Pasture watering system Pasture water source Gates Round Bale Feeders Well & Pressure System Hydro (6 poles @ $400) Storage Bins Total Building Cost
$4,000 $4,000 $8,000 $5,500 $9,600 $5,000 $4,000 $3,000 $840 $1,500 $6,000 $2,400 $3,500 $57,340
Machinery & Equipment Miscellaneous Machinery Tractor & Loader ($100,000 @30%) Bale Shredder Stock Trailer Truck ($30,000 @ 50%) Total Machinery & Equipment Cost
$5,000 $30,000 $13,000 $12,000 $20,000 $80,000
Total Bldg., Mach. & Equip.
$137,340
Total Breeding Herd Value
$127,500
Total Capital Investment
$264,840
B. Fixed Costs 3. Depreciation
Original Cost - Salvage Value Useful Life
3.01 Buildings & Water System (not including pasture water system) $50,340 original cost 0.00 salvage value ÷ 20.00 years useful life ÷ 150.00 cows = $16.78 /cow
MAFRI, Policy Analysis Branch
10
Guidelines: Cow-Calf Production Costs
3.02 Machinery & Equipment $80,000 $16,000 ÷ 10.00 ÷ 150.00 = $42.67 4. Investment
original cost salvage value years useful life cows /cow
Original Cost + Salvage Value x Investment Rate 2
4.01 Buildings $50,340 $0.00 2.00 4.00 150.00 $6.71
original cost salvage value average % investment rate cows /cow
4.02 Machinery & Equipment $80,000 + $16,000 ÷ 2.00 x 4.00 ÷ 150.00 = $12.80
original cost salvage value average % investment rate cows /cow
+ ÷ x ÷ =
4.03 Livestock x =
$850 4.00 $34.00
/cow % investment rate /cow
x x =
7.00 $300.00 4.00 $84.00
acres/cow /acre % investment rate /cow
4.04 Pasture A. Marginal Land Investment Land
MAFRI, Policy Analysis Branch
11
Guidelines: Cow-Calf Production Costs
Fence + ÷ x ÷ =
$23,800 $0 2.00 4.00 150.00 $3.17
total fence investment salvage value average % investment rate cows /cow
Pasture Water System + ÷ x ÷ =
$7,000 $0 2.00 4.00 150.00 $0.93
system & source salvage value average % investment rate cows /cow
Total Investment =
$88.11
/cow
Depreciation Fence ÷ ÷ = Pasture Water system
Total
total fence investment salvage value years useful life cows /cow
÷ ÷ =
$7,000 $0 20.00 150.00 $2.33
system & dugout salvage value years useful life cows /cow
=
$10.27
/cow
x =
7.00 $2.00 $14.00
acres/cow /acre /cow
=
$112.37
x x =
3.00 $525 4.00 $63.00
Taxes
Total
$23,800 $0 20.00 150.00 $7.93
B. Crop Land Investment Land
/cow
acres/cow /acre % investment rate /cow
MAFRI, Policy Analysis Branch
12
Guidelines: Cow-Calf Production Costs
Fence $4,500 $0 2.00 4.00 150.00 $0.60
total fence investment salvage value average % investment rate cows /cow
+ ÷ x ÷ =
$7,000 $0 2.00 4.00 150.00 $0.93
system & source salvage value average % investment rate cows /cow
Total Investment =
$64.53
/cow
$4,500 $0 20.00 150.00 $1.50
total fence investment salvage value years useful life cows /cow
÷ ÷ =
$7,000 $0 20.00 150.00 $2.33
system & source salvage value years useful life cows /cow
=
$3.83
x =
3.00 $5.30 $15.90
acres/cow /acre /cow
=
$84.00
/cow
+ ÷ x ÷ = Pasture Water System
Depreciation Fence ÷ ÷ = Pasture Water system
Total
/cow
Taxes
Total
MAFRI, Policy Analysis Branch
13
Guidelines: Cow-Calf Production Costs
C. Crown Land: Depreciation Fence
9.38 $3,400 $31,875 $3,188 20.00 150.00 $9.56
miles of fence /mile fence cost salvage value years useful life cows /cow
÷ ÷ =
$7,000 $0 20.00 150.00 $2.33
system & source salvage value years useful life cows /cow
Total Depreciation =
$11.89
/cow
x = ÷ ÷ = Pasture Water system
Investment Fence
$31,875 $3,188 $35,063 2.00 4.00 150.00 $4.68
fence cost salvage value total invested average % investment rate cows /cow
+ ÷ x ÷ =
$7,000 $0 2.00 4.00 150.00 $0.93
system & source salvage value average % investment rate cows /cow
Total Investment =
$5.61
+ = ÷ x ÷ = Pasture Water System
/cow
Land Rental (includes taxes)
Total
÷ =
$246 12.00 $20.50
/quarter, rental rate cows/quarter /cow
=
$38.00
/cow
MAFRI, Policy Analysis Branch
14
Guidelines: Cow-Calf Production Costs
D. P.F.R.A.: Community Pasture Grazing Cows $0.40 cost/cow/day x 140.00 days = $56.00 /cow Calves x x ÷ =
$22.00 142.50 150.00 $20.90
/calf/season calves on pasture cows on pasture /cow
Total
=
$76.90
/cow
Average ( A,B,C,D)
=
$77.82
/cow
x =
9.00 $12.00 $108.00
C. Labour hours/cow/year /hour /cow
For further information contact your local MAFRI office. Prepared by: Peter Blawat Policy Economist
Bob Gwyer Business Development Specialist
Michael Buchen Business Development Specialist Finished Beef
John Popp Farm Production Extension Specialist Beef
Lesley Bond Business Development Specialist
Dennis Beernaert Farm Production Extension Specialist
Benjamin Hamm Farm Production Extension Specialist
MAFRI, Policy Analysis Branch
15
Guidelines: Cow-Calf Production Costs
Cow-Calf Operating Facilities
MAFRI, Policy Analysis Branch
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