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Replacements, buy em or raise em???
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<blockquote data-quote="Brute 23" data-source="post: 630731" data-attributes="member: 6291"><p>I believe this "formula" can be used to calculate roughly what heifers cost you to raise. Try it out, put in your numbers from your operation and see what you get. </p><p></p><p>1) Take an average of what you calves bring and multiple that by the # of calves you sell a year. That should be your gross earning for your operation.</p><p></p><p>Ex: 100-$600 calves means you gross $60K a year</p><p></p><p>2) Then take the number of replacements you keep and times that by the avg you earned off of each calf. That is what you "lost" by not selling them that year.</p><p></p><p>Ex: IF you keep 10% for replacements you keep 10 heifers which is $6,000.</p><p></p><p>3) Take your gross earning, subtract your expences, and divide that (profit) by the number of cattle you have. That says how much you make per calf, per year.</p><p></p><p>Ex: You gross $60K, spend $50K, profit $10K and divide that by 100 momma cows you make $100 per calf. It costs you $500 a year to raise a $600 calf. </p><p></p><p>Now you only calculate until the time that heifer is bred. Once she is bred she starts another calculation like all the other cows in the herd and will fall into Step 3. (You are only responsible to get her to breeding age, then she has to be calculated like all your other bred cattle as an expense)</p><p></p><p>Ex: If you wean at 8 mo old to sell for $600, and breed that heifer at 18mo, if it cost you $500 a year to raise an animal, that heifer cost you $1350 to raise one heifer, $13,500 to raise the ground to breeding age. ($600 + (1.5 x $500) = $1350) </p><p></p><p>Where the risk with heifers comes in is if you raised 10 heifers to breeding age and 8 out of 10 bred and were keepers, your cost of replacement heifers just grew. You have to take you total cost, add in what ever you get from the 2 at the auction <img src="data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7" class="smilie smilie--sprite smilie--sprite8" alt=":D" title="Big grin :D" loading="lazy" data-shortname=":D" />, and divide that by the remaining keepers </p><p></p><p>Ex: At first you divided the total, $13,500, between 10 head. If only 8 pan out, you have to take $13,500, add in what ever two heifer bring at the ring (#800x.7)x2=$1120, and divide that between the remaining 8 heifers.</p><p></p><p>13,500 + $1120 = $14,620 / 8 = $1,827.5</p><p></p><p>Give it a try and see what yall get. It is then up to you to compare what it costs to raise them vs what you pay for heifers. Just about every number and time frame in this is a <em>variable</em> that depends on your area, operation but the way of calculating is the same and it should (maybe <img src="data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7" class="smilie smilie--sprite smilie--sprite8" alt=":D" title="Big grin :D" loading="lazy" data-shortname=":D" />) take into account the different situations. (If you find some thing wrong with this please let me know because I use this <img src="data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7" class="smilie smilie--sprite smilie--sprite9" alt=":eek:" title="Eek! :eek:" loading="lazy" data-shortname=":eek:" /> ... :lol2: )</p></blockquote><p></p>
[QUOTE="Brute 23, post: 630731, member: 6291"] I believe this "formula" can be used to calculate roughly what heifers cost you to raise. Try it out, put in your numbers from your operation and see what you get. 1) Take an average of what you calves bring and multiple that by the # of calves you sell a year. That should be your gross earning for your operation. Ex: 100-$600 calves means you gross $60K a year 2) Then take the number of replacements you keep and times that by the avg you earned off of each calf. That is what you "lost" by not selling them that year. Ex: IF you keep 10% for replacements you keep 10 heifers which is $6,000. 3) Take your gross earning, subtract your expences, and divide that (profit) by the number of cattle you have. That says how much you make per calf, per year. Ex: You gross $60K, spend $50K, profit $10K and divide that by 100 momma cows you make $100 per calf. It costs you $500 a year to raise a $600 calf. Now you only calculate until the time that heifer is bred. Once she is bred she starts another calculation like all the other cows in the herd and will fall into Step 3. (You are only responsible to get her to breeding age, then she has to be calculated like all your other bred cattle as an expense) Ex: If you wean at 8 mo old to sell for $600, and breed that heifer at 18mo, if it cost you $500 a year to raise an animal, that heifer cost you $1350 to raise one heifer, $13,500 to raise the ground to breeding age. ($600 + (1.5 x $500) = $1350) Where the risk with heifers comes in is if you raised 10 heifers to breeding age and 8 out of 10 bred and were keepers, your cost of replacement heifers just grew. You have to take you total cost, add in what ever you get from the 2 at the auction :D, and divide that by the remaining keepers Ex: At first you divided the total, $13,500, between 10 head. If only 8 pan out, you have to take $13,500, add in what ever two heifer bring at the ring (#800x.7)x2=$1120, and divide that between the remaining 8 heifers. 13,500 + $1120 = $14,620 / 8 = $1,827.5 Give it a try and see what yall get. It is then up to you to compare what it costs to raise them vs what you pay for heifers. Just about every number and time frame in this is a [i]variable[/i] that depends on your area, operation but the way of calculating is the same and it should (maybe :D) take into account the different situations. (If you find some thing wrong with this please let me know because I use this :o ... :lol2: ) [/QUOTE]
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