Cost of pasture grazing

[1982vett]

To separate the enterprises, the land operation needs to charge the cattle operation rent.

Some folks are making good money on "free" grazing, and then lose money on the land tax and interest.

Ahh...pppbbbb...ya got 5 bucks in your right pockey and nothing in your left....ya move it from your right pocket to your left ya still got 5 bucks...no more, no less.....

 

[1wlimo]

When calculating enterprise potential returns I would always use "Gross Margins"

These are calculated on a head or per acre basis.

Sales (minuses stock replacment costs)

Minuse Variable costs like Vet, feed, etc dirrectly atributed to that crop, or animal.

The resulting figure the "Gross Margin" is then comparable between different enterprises on the same land. The Gross margin hasto cover the "Fixed costs" which are Rent, Labour, Fencing, interest, machinery, etc.

While there are errors in the system it is a good guide to year to year performance, and a good comparrison tool.

It is a good idea to ensure that the over all margin over fixed costs forfills the profit requiremtens. Profit being required for depreciation, loan repayments, and personal drawings etc.

 

[InvalidID]

Not exactly the answer to your question but with rain I can produce feeder calves from ~100 head of brood cows and market the feeder calves at ~550 lbs for around 25 cents per lb of gain of out-of-pocket expense. (Fuel, fertilizer, seed, machinery maintenance, property tax, utility, medicine, hauling, minerals, fence maintenance). There is no hired labor. The herd is fed exclusively from rotational grazed pasture forage year round, 1.4 acres total allocated land per cow/calf, no grain.

And this is my ultimate goal here in SW Washington. My biggest concern is all the rain I get here plugging up my pastures.