GB, you asked whats it good for?
Simplest way for me to explain it is this: it allows you to figure the exact cost each cow has while raising a calf. Then you compare that number to calf $ produced.
Example: ADC $1.60
Cow A has a calf on her for 180 days. 180 x $1.60= $288.00 cost to raise this calf
Calf A weighs 490 and sells for $2.20= $1078
1078-288=$790
Cow B has a calf on her for 165 days. 165 x $1.60=$264.00 cost to raise this calf
Calf B weighs 535 and sells for $2.25= $1203.75
1203.75-264=$939.75
Cow B made you $150 more in less time. Thats important to know. The reason i use actual days on cow instead of 365 for this exercise is because, if you just figure the cows yearly maintenace cost, you actually penalize your cows that raise a quality calf in a shorter amount of time. The number of days on mom matter for profitability of each individual cow.
Simplest way for me to explain it is this: it allows you to figure the exact cost each cow has while raising a calf. Then you compare that number to calf $ produced.
Example: ADC $1.60
Cow A has a calf on her for 180 days. 180 x $1.60= $288.00 cost to raise this calf
Calf A weighs 490 and sells for $2.20= $1078
1078-288=$790
Cow B has a calf on her for 165 days. 165 x $1.60=$264.00 cost to raise this calf
Calf B weighs 535 and sells for $2.25= $1203.75
1203.75-264=$939.75
Cow B made you $150 more in less time. Thats important to know. The reason i use actual days on cow instead of 365 for this exercise is because, if you just figure the cows yearly maintenace cost, you actually penalize your cows that raise a quality calf in a shorter amount of time. The number of days on mom matter for profitability of each individual cow.