Average Cow cost

[Jeanne - Simme Valley]

"Based on data from the Kansas Farm Management Association (KFMA), one of the largest farm management association programs in the country.
Between 2005 and 2017, the average cow cost was $748, $858, and $1,046 for the top, middle and low profit groups, respectively. That represents a $298 difference between the high and low categories (or 40%).

Meanwhile, the marketing rate varied only 2% among the three groups with the top third actually possessing the lowest rate (82% vs. 84% for the bottom third profitability group). And last, marketing weights were 593, 580, and 571 pounds for the top, middle and low groups, respectively. "

I read this article and thought "wow, that's a lot of money". I haven't calculated mine for a while (obviously a long while). Last time, my costs were around $450/cow. Feed, hay, fuel, fertilizer, repairs, vet, breeding, supplies, show & sale expenses - pretty much everything I will claim as an expense with IRS. Came to $816/cow.
So, my average steer income just paid for their dam + maybe $100.

I found this interesting. Thought I would share.
https://www.beefmagazine.com/marketing/ ... 532e494f8d

 

[backhoeboogie]

It is pretty easy to take you entire cost and divide it amongst the number of head and take your entire profit and do the same. But I never took that route. I like the individual cow. Some are money makers and improve your bottom line. Some are just liability and they need to go to cut your losses.

If you are needing more cows (expanding) you tend to hang on to liabilities in hopes the bull will make a difference. That seems to be a recurring problem. On years you are cutting back, things get simplified.

 

[Jogeephus]

I'm not a rancher so I look at things differently and my cost per cow isn't anywhere near these but cattle are but one facet of what I do with the land so I prefer to look at things from a per acre cost/profit and by doing it this way I'm able to compare apples to apples when comparing the best use of the land.

Was talking with a friend this weekend who is looking at possibly getting out of "cattle" and it quickly became apparent that he was going to incur a significant cost if he didn't have cattle to keep things "groomed". Granted there were alternatives but none of them seemed as appealing as keeping the cattle.

Not arguing with the numbers posted because I'm well aware you can spend all you want to on a cow and a cow will eat all the feed and mineral you can afford to feed it but it doesn't have to be that way - just saying cattle can be a cheap grounds crew.

 

[Jeanne - Simme Valley]

Basically, cattle are my only income. But, just having cattle allows me to be able to live a life I love. Reduces land taxes, reduces income taxes, let alone my own personal fishing & hunting preserve. I have fairly new truck (2014), but very little equipment and what I have is very old.
Steers are my "cash flow", easy money. Keep them alive, precondition them & sell them. Every cow raises a great steer. Females are my money makers, but require more labor, input, marketing. But, I am able to spend that money for my females and still make money on my steers, some years more than others - market based.

 

[Jogeephus]

In my state, you don't need cattle to reduce land taxes so this plays no part in my owning cattle. In my situation, cattle are simply a compliment to existing practices and offer another potential income source from the land. Granted, cattle can be a pain at times but the cost of not having cattle far exceeds their inconvenience. To me, cattle are pretty easy income but I run a closed herd with two calving seasons and don't try to push limits or maximize anything other than profit. Best way I've found to do this is to let cows be cows and stay out of their business as much as possible.

 

[True Grit Farms]

In my state, you don't need cattle to reduce land taxes so this plays no part in my owning cattle. In my situation, cattle are simply a compliment to existing practices and offer another potential income source from the land. Granted, cattle can be a pain at times but the cost of not having cattle far exceeds their inconvenience. To me, cattle are pretty easy income but I run a closed herd with two calving seasons and don't try to push limits or maximize anything other than profit. Best way I've found to do this is to let cows be cows and stay out of their business as much as possible.

I need to buy my cows a mask and some flippers. Cows work really well with deer, if you can find the time to hunt. :tiphat:

 

[Jogeephus]

Mine need flippers too. Put some hay out today and the ground is so saturated that the fire ants had climbed all over the bales to get out of the water so when I cut the wrap off the hay I got showered in fire ants. This was this morning and I just killed one at 6 pm. This is the side of cattle I don't like.

 

[Jeanne - Simme Valley]

No fire ants here - thank goodness. But, mud mud mud.
In NY, if you have an agriculture income of (I think) $10,000/year, you get agriculture rates for your land & school taxes. Plus, an active farm gets all their School taxes back when we file NYS taxes if qualified.

 

[Son of Butch]

Based on data from the Kansas Farm Management Association (KFMA), one of the largest farm management association programs in the country.
Between 2005 and 2017, the average cow cost was $748, $858, and $1,046 for the top, middle and low profit groups, respectively. That represents a $298 difference between the high and low categories (or 40%).

Meanwhile, the marketing rate varied only 2% among the three groups with the top third actually possessing the lowest rate (82% vs. 84% for the bottom third profitability group). And last, marketing weights were 593, 580, and 571 pounds for the top, middle and low groups, respectively. "


I found this interesting. Thought I would share.
https://www.beefmagazine.com/marketing/ ... 532e494f8d

Yes very interesting, to break it down using the chart they provided 2005 - 2017 is 13 marketing years
with 5 profitable years 7 losing years 1 breakeven year

Top cost $1,046 weaning 593 lbs x 1.3870 = $822.49 = 13 year average $223.51 Net Loss per cow

Mid cost $858 weaned 580 x 1.4025 = $813.45 = 13 yr average $44.55 Net Loss per cow

Lowest cost $748 weaned 571 lbs x 1.3570 = $775 = 13 yr ave NET PROFIT $27 per cow

The 1/3 most profitable cow/calf commercial herds averaged $27 per cow x 100 cows = $2700 year :banana:

Means there's a lot of farm folks fooling themselves about their profits and are actually living off farm equity.