Cost per cow --- per year

[Sir Loin]

Cost per cow --- per year

This is a spin off of:
Rate of return ??
viewtopic.php?f=8&t=82184
Again we are only talking beef cattle here.

I think you'll are making this more difficult then it really needs to be.

Here is the historical proven and easies way to compute your cost.

Cost: That which is only directly related to the cattle operation. It does NOT include any expenses related to your personal needs.
But it does include a salary paid to you for your labor @ $10. Per hour.

Now unless you can show me a proven study that disputes this, here is the rule of thumb to compute your cost.

If you have 25 cows or less your cost per year is $500 per cow.
If you have 25 - 50 cows your cost per year is $400 per cow.
If you have more then 50 cows your cost per year is $300 per cow.

Now compute your own cost.

If you keep complete and accurate records of all expenses only directly related to your cattle operation ( not including any of your personal living expenses) ( but including every thing from land costs to labor costs and interest on any borrowed monies) you will find it will fall within the above ranges. This may or may not be what your accountant reports to the IRS.
If it does not, then you need to reevaluate you management decisions.

SL

 

[backhoeboogie]

I need a raise! I want that $10 an hour :lol:

The cows are making land payments. The land is appreciating in value. Specifically, people will pay more for it than what I would pay. I can afford to keep the land since it is ag-exempt on property tax. I am not in the red but I need my day job.

retirement income is where I am heading in the long haul.

 

[Running Arrow Bill]

I think those $300 to $500 costs per cow are definitely underestimated.

To get a "truer" picture of one's costs one needs to include "overhead" expenses of one's ranch operation: insurance, office expenses, depreciation, etc. If, however, a rancher does not have any hay to buy or rent/lease/loan payments, no Vet expenses, no repair & maintenance expenses on equipment or infrastructure (aka overhead on the latter) then it is "possible". Including ALL of one's direct and indirect costs of their operation (not even considering "wages" for oneself) would easily raise the annual cost per 1000# animal between $500 and $800 a year considering today's feed, hay, fuel, etc., costs.

 

[snake67]

I think those $300 to $500 costs per cow are definitely underestimated.

To get a "truer" picture of one's costs one needs to include "overhead" expenses of one's ranch operation: insurance, office expenses, depreciation, etc. If, however, a rancher does not have any hay to buy or rent/lease/loan payments, no Vet expenses, no repair & maintenance expenses on equipment or infrastructure (aka overhead on the latter) then it is "possible". Including ALL of one's direct and indirect costs of their operation (not even considering "wages" for oneself) would easily raise the annual cost per 1000# animal between $500 and $800 a year considering today's feed, hay, fuel, etc., costs.

500 bucks per cow per year = $1.37 bucks a day
400 bucks per cow per year = $1.09 bucks a day
300 bucks per cow per year = $0.82 bucks a day

Sorry - got to call you on this one - no one here is keeping cows this cheap on a daily basis.

If I could get to $0.82 a day per cow I would be jumping for joy.

If you are you need to write a book so others can learn from it.

I am with RAB on this one.

Hey Caustic you old dog - when was the last time you were spending less than a buck thirty seven to keep a cow for a day?

Been a while I bet.

Best to all

Bez

 

[Sir Loin]

Understanding and Managing Costs in Beef Cow-Calf Herds

The 1997 summary includes 45 herds that averaged 99 cows, but ranged in size from 22 to over 300 cows with most having fewer than 200 head. Average cost per cow in 1997 was $331.64 on a financial basis and $433.21 on an economic basis.

Source: http://econ2.econ.iastate.edu/faculty/l ... ePaper.pdf

Here is the latest I can find and I too think it should be higher now.
I think the rule of thumb should be raised by at least $50 per head per year. But who am I?
SL

Edited to remove "1977------- " That was a typo.

 

[snake67]

Understanding and Managing Costs in Beef Cow-Calf Herds
1977-------

The 1997 summary includes 45 herds that averaged 99 cows, but ranged in size from 22 to over 300 cows with most having fewer than 200 head. Average cost per cow in 1997 was $331.64 on a financial basis and $433.21 on an economic basis.

Source: http://econ2.econ.iastate.edu/faculty/l ... ePaper.pdf

Here is the latest I can find and I too think it should be higher now.
I think the rule of thumb should be raised by at least $50 per head per year. But who am I?
SL

Well, a gallon of diesel was probably around one dollar then.

Bez

 

[Sir Loin]

Here are some additional sites for your reading pleasure that may be of interest.
SL

http://www.exnet.iastate.edu/Pages/ansci/beef/spa97.pdf

http://www.exnet.iastate.edu/Pages/ansc ... l-1338.pdf

 

[Aaron]

I don't have time to give a real response to this right now. Still digging myself out of a bad snowstorm that hit yesterday. But from what I am reading, I think I'll have a good laugh at the numbers behind Sir Loin's figures later tonight.

 

[snake67]

I don't have time to give a real response to this right now. Still digging myself out of a bad snowstorm that hit yesterday. But from what I am reading, I think I'll have a good laugh at the numbers behind Sir Loin's figures later tonight.

Which is why I detest the title "GURU" and always change my name when I get close

Have fun digging - it is my turn tonight

Bez

 

[backhoeboogie]

You are a guru. Titles do not matter. Respect does matter and you have mine.

 

[Sir Loin]

Aaron,
Re:

I think I'll have a good laugh at the numbers behind Sir Loin's figures later tonight.

Uhh! They ain't my numbers, they are"John D. Lawrence and Daryl R. Strohbehn, Iowa Beef Center, Iowa State University" numbers.
You might want to read all my posts and links before you embarrass yourself even more.
SL

 

[James T]

Understanding and Managing Costs in Beef Cow-Calf Herds
1977-------

The 1997 summary includes 45 herds that averaged 99 cows, but ranged in size from 22 to over 300 cows with most having fewer than 200 head. Average cost per cow in 1997 was $331.64 on a financial basis and $433.21 on an economic basis.

Source: http://econ2.econ.iastate.edu/faculty/l ... ePaper.pdf

Here is the latest I can find and I too think it should be higher now.
I think the rule of thumb should be raised by at least $50 per head per year. But who am I?
SL

Am I wrong or does this study just run through 1994?

 

[plumber_greg]

I think Sir Loin needs some cows to raise, instead of reading books. JMHO gs

 

[js1234]

Seems way, way too low.
We break our mother cows down into 650 cow units for accounting purposes as counting fence guy, cowboys etc we have one salary per 650 head and labor is our single biggest non-land cost. This is hired men, not returns to ownership which is not counted. So land, hay, meds, salt, minerals, hired man salary/ins/bens, his truck fuel and maintenance, horse care, road/fence/h2o maintenance, bull cost and misc. would come up to around $650 per cow. I'm in my truck on my iPad so I could certainly be off by $50, and if I'm forgetting something big, I'll edit my post. None the less, I run a few more than 50 cows and I couldn't get 6 months in the books for $300/cow. Would be nice though.

 

[Sir Loin]

js1234

In the real-estate business and also the cattle business, location, location and location are the three most important things.
Where are you located?
SL

 

[Sir Loin]

plumber_greg

Re:

I think Sir Loin needs some cows to raise, instead of reading books. JMHO gs

And I think there are some in the cattle business that should try reading some books.

Ya know, if you do things the same way for 10 years you don't have ten years of experience, you have 1 year of experience ten times over!
SL

 

[B&M Farms]

My total cost per head last year was $366.57 per cow on 28 mamas. That number changes from year to year depending on repairs and what my payments are on equipment, ect. That's counting everything I wouldn't be spending without the cows. I'm not putting my total equipment payments against the cows because I was baling hay for others before I bought the first cow. My situation is different from some because I have no land payments. That would drive my cost up considerably.

 

[SRBeef]

The number I've heard several times in recent years from a couple midwestern university folks is $500/cow/year to maintain a beef cow. So if you sell her 600 lb calf around weaning time for $1.65 (recent price here) = $990. Your net income per year per cow is approx. 990-500 = 490/yr ?

This is also something you can probably generate a broad range of numbers to fit your views.

In this case, cost to maintain a cow for a year, I'd rather err a bit on the high side. I use $500. Not sure that it changes all that much with herd size numbers though.

Jim

 

[Caustic Burno]

My total cost per head last year was $366.57 per cow on 28 mamas. That number changes from year to year depending on repairs and what my payments are on equipment, ect. That's counting everything I wouldn't be spending without the cows. I'm not putting my total equipment payments against the cows because I was baling hay for others before I bought the first cow. My situation is different from some because I have no land payments. That would drive my cost up considerably.

Mine came out to 492, those are going to be skewed higher due to purchasing 19 SS heavies.
Some of the girl's I broke even on lost on some going back to slaughter but I made money on all 19 calves.
All the heavies where calfed out split and resold in the fall along with my resident cow's calfs through the year.
That is everything spent in the operation charged against the cow's.

 

[Aaron]

Cost per cow --- per year

This is a spin off of:
Rate of return ??
viewtopic.php?f=8&t=82184
Again we are only talking beef cattle here.

I think you'll are making this more difficult then it really needs to be.

Here is the historical proven and easies way to compute your cost.

Cost: That which is only directly related to the cattle operation. It does NOT include any expenses related to your personal needs.
But it does include a salary paid to you for your labor @ $10. Per hour.

Now unless you can show me a proven study that disputes this, here is the rule of thumb to compute your cost.

If you have 25 cows or less your cost per year is $500 per cow.
If you have 25 - 50 cows your cost per year is $400 per cow.
If you have more then 50 cows your cost per year is $300 per cow.

Now compute your own cost.

If you keep complete and accurate records of all expenses only directly related to your cattle operation ( not including any of your personal living expenses) ( but including every thing from land costs to labor costs and interest on any borrowed monies) you will find it will fall within the above ranges. This may or may not be what your accountant reports to the IRS.
If it does not, then you need to reevaluate you management decisions.

SL

At a rate of $10/hour for labor and the associated costs for each cow, my cost per cow was $1,414.70 in 2011.

I do think I need to re-evaluate my management decisions. I think I need to hire you as a full time worker. Apparently you can do a 70+ hour work week, from April-November, in 10 hours. Not sure if even one of those Central or South American imports can do that!

:lol2: :lol2:

I was right. This was good for a laugh.