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<blockquote data-quote="dcara" data-source="post: 594996" data-attributes="member: 473"><p>Was curious about cost and profiability calculation techniques used by various folks. One way would be to add up all the costs and divide by the number of head which would give cost per head. Then divide by the number of calves produced for average cost per calf. Then considering proceeds from calf sales wouyld yield an average profitability per cow. However, this way is a pretty broad brush and doesn't consider various things. For instance, if you increased (or decreased) your herd size then your per head costs would be higher (or lower respectively) since the purchase (or sale) proceeds gets amortized over the whole herd. Also, it is not as easy to identify the less profitable cows (on paper).</p><p></p><p>Alternately, you could keep track of each cow's cost (and profit from calf sales). In this case you might subtract the cows sale/salvage price from the purchase price and divide that by the number of calves she produced. However, in this case you don't know how profitable the cow was until you sell her.</p><p></p><p>Then there is the whole "what do you consider costs" issue. In my case, that answer is whatever Uncle Sam lets me consider as cost (including washing my truck).</p></blockquote><p></p>
[QUOTE="dcara, post: 594996, member: 473"] Was curious about cost and profiability calculation techniques used by various folks. One way would be to add up all the costs and divide by the number of head which would give cost per head. Then divide by the number of calves produced for average cost per calf. Then considering proceeds from calf sales wouyld yield an average profitability per cow. However, this way is a pretty broad brush and doesn't consider various things. For instance, if you increased (or decreased) your herd size then your per head costs would be higher (or lower respectively) since the purchase (or sale) proceeds gets amortized over the whole herd. Also, it is not as easy to identify the less profitable cows (on paper). Alternately, you could keep track of each cow's cost (and profit from calf sales). In this case you might subtract the cows sale/salvage price from the purchase price and divide that by the number of calves she produced. However, in this case you don't know how profitable the cow was until you sell her. Then there is the whole “what do you consider costs” issue. In my case, that answer is whatever Uncle Sam lets me consider as cost (including washing my truck). [/QUOTE]
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