Calculating Cattle Fixed Costs

[Stocker Steve]

Have you ever calculated and included cow depreciation in your fixed costs ?

 

[1982vett]

Have you ever calculated and included cow depreciation in your fixed costs ?

always.

Schedule F....

 

[TN Cattle Man]

Have you ever calculated and included cow depreciation in your fixed costs ?

always.

Schedule F....

+1!!

 

[James T]

And there is also the Section 179 but read up on the rules.

 

[Stocker Steve]

Cattle fixed cost is not about the 179 nor sch XYZ income tax BS - - it is about what if costs you per year to retain and replace your brood stock.

So if you buy a $2500 heifer, she does not bred back, and you get $1300 for the cull :cry2:

- - your fixed cost w/ 6% simple interest is .06 x $2500 + (2500-1300) = 130 + 1200 = $ 1330 per year per head for that heifer aggravation. Kind of takes a bit out of the calf check. I hate heifers...

- - your fixed cost if she lasted 5 years would be 130 + 1200 / 5 = 130 + 240 = $ 370 per year per head.

 

[TexasBred]

I simply inventory mine. This provides for the valuation of inventories at market price less cost of sales. There is no interest expense.