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Cattle Boards
NCBA, R-CALF, COOL, USDA (No Politics!)
Finally someone sees what is going on!
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<blockquote data-quote="Alberta farmer" data-source="post: 676435" data-attributes="member: 8978"><p>Heres how I see it:</p><p>When we consider expenses and income, we hope to make something at the end of the day. My figures are fairly accurate for my area....yours might be a lot different.</p><p>The cost of a bred cow is about $1000. The $1000 dollar investment carries a 5% interest charge every year she is around...whether it is the banks money or your own...so $50?</p><p>That same cow will bring about $600 when she is culled, hopefully after 8 live calves at an average of 10 years old. Lots of cows go longer than ten years old...a lot never make it to that age! So you lose $400 over 8 calves or $50/year?</p><p>To breed that cow will cost you from $25 to $35 a year, so we will say $30 on average.</p><p>Salt and mineral are about $20/year?</p><p>Vaccine and vet costs another $20?</p><p>Fence and corrals another $20?</p><p>Winter feed and bedding at $1 day for 180 days is $180?</p><p>Pasture costs again at a $1/day for 185 days is $185?</p><p>Cost to deliver the feed and bedding is about $40?</p><p>Selling costs and transportation about $25?</p><p>Total costs excluding labor $620!</p><p></p><p>Income is on an average 600 lb calf(heifers and steers)</p><p>At $1.10/lb it works out to $660.</p><p>However I know very few people raising commercial cattle who get a consistant 100% calf crop so lets lower that to 97%...now your $660 is actually $640.20!</p><p>Your profit potential is now $20.20/cow!</p><p></p><p>A couple of other things should be considered? How about some labor for your efforts? How about the cost of checking cows(fuel, quad, horse...whatever)? How about the lost "opportunity costs"? I would like to think I could get paid at least minimum wage for my work(I could go become a Walmart greeter for that). How many hours do you spend checking cows, calving cows, pulling calves, treating and processing calves, hauling cattle around? Even if you figure that at 10 hours per cow per year it adds up to $70?</p><p>Lost opportunity cost. If I am renting my own land to myself for pasture at the grazing cost of $1/day I figure 180 days gets me $64.29/acre($180 divided by 2.8 acres)? If I can cash rent that same land for $80/acre(just about all of it)then I'm losing another $43.99/cow by grazing it?</p><p>If you like to get paid minimum wage and you like to get paid rent on your property your profit potential is now a negative number...like $93.79/cow! In other words you are actually paying $93.79 for the priveledge of feeding the world with cheap beef! Obviously this is not sustainable.</p><p>I have a cow herd of 160 cows. I will be much better off without them. I wonder if Walmart is hiring?</p></blockquote><p></p>
[QUOTE="Alberta farmer, post: 676435, member: 8978"] Heres how I see it: When we consider expenses and income, we hope to make something at the end of the day. My figures are fairly accurate for my area....yours might be a lot different. The cost of a bred cow is about $1000. The $1000 dollar investment carries a 5% interest charge every year she is around...whether it is the banks money or your own...so $50? That same cow will bring about $600 when she is culled, hopefully after 8 live calves at an average of 10 years old. Lots of cows go longer than ten years old...a lot never make it to that age! So you lose $400 over 8 calves or $50/year? To breed that cow will cost you from $25 to $35 a year, so we will say $30 on average. Salt and mineral are about $20/year? Vaccine and vet costs another $20? Fence and corrals another $20? Winter feed and bedding at $1 day for 180 days is $180? Pasture costs again at a $1/day for 185 days is $185? Cost to deliver the feed and bedding is about $40? Selling costs and transportation about $25? Total costs excluding labor $620! Income is on an average 600 lb calf(heifers and steers) At $1.10/lb it works out to $660. However I know very few people raising commercial cattle who get a consistant 100% calf crop so lets lower that to 97%...now your $660 is actually $640.20! Your profit potential is now $20.20/cow! A couple of other things should be considered? How about some labor for your efforts? How about the cost of checking cows(fuel, quad, horse...whatever)? How about the lost "opportunity costs"? I would like to think I could get paid at least minimum wage for my work(I could go become a Walmart greeter for that). How many hours do you spend checking cows, calving cows, pulling calves, treating and processing calves, hauling cattle around? Even if you figure that at 10 hours per cow per year it adds up to $70? Lost opportunity cost. If I am renting my own land to myself for pasture at the grazing cost of $1/day I figure 180 days gets me $64.29/acre($180 divided by 2.8 acres)? If I can cash rent that same land for $80/acre(just about all of it)then I'm losing another $43.99/cow by grazing it? If you like to get paid minimum wage and you like to get paid rent on your property your profit potential is now a negative number...like $93.79/cow! In other words you are actually paying $93.79 for the priveledge of feeding the world with cheap beef! Obviously this is not sustainable. I have a cow herd of 160 cows. I will be much better off without them. I wonder if Walmart is hiring? [/QUOTE]
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