COP Beef Cow-Calf - gov.mb.ca · Guidelines for Estimating Beef Cow-Calf Production Costs 2017 in Manitoba

Guidelines for EstimatingBeef Cow-Calf Production Costs 2017

in Manitoba

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Date: September, 2017

This tool is available as an Excel worksheet at: or at your local

is also available to help determine machinery costs.

Guidelines For EstimatingBeef Cow-Calf Production Costs

Based on a 150 Head Cow Herd

This guide is designed to provide you with planning information and a format for calculating costs of production of a cow calf enterprise in Manitoba. General Manitoba Agriculture recommendations are assumed in using feed and veterinary inputs. These figures provide an economic evaluation of the livestock and estimated prices required to cover all costs. Costs include labour, investment and depreciation, but do not include management costs, nor do they necessarily represent the average cost of production in Manitoba.

These budgets may be adjusted by putting in your own figures. As a producer you are encouraged to calculate your own costs of production. Good management is assumed in that a balanced ration is being fed, livestock are on a herd health program and handling facilities are included.

Note: This budget is only a guide and is not intended as an in-depth study of the cost of production of this industry. Interpretation and use of this information is the responsibility of the user. If you need help with a budget, contact your local Manitoba Agriculture office.

The Farm Machinery Custom and Rental Rate Guide

www.manitoba.ca/agricultureManitoba Agriculure office.

http://www.gov.mb.ca/agriculture/business-and-economics/financial-management/machinery-costs.html

http://www.gov.mb.ca/agriculture/business-and-economics/financial-management/cost-of-production.html

http://www.gov.mb.ca/agriculture/contact/index.html

Guidelines: Cow-Calf Production Costs 2

Manitoba Agriculture, Farm Management

A. Operating Costs Cost/Cow Total Cost Your Cost1. Feed Costs 1.01 Grain and Concentrates $22.60 $3,390 1.02 Forages $284.08 $42,612 1.03 Salt & Minerals $18.67 $2,801 1.04 Extended Grazing Forages $29.36 $4,405Total Feed Cost $354.71 $53,2082. Other Operating Costs 2.01 Straw $30.00 $4,500 2.02 Veterinary Medicine & Supplies $19.17 $2,876 2.03 Breeding Costs $34.76 $5,214 2.04 Fuel, Maintenance & Repairs $33.47 $5,020 2.05 Utilities $10.58 $1,587 2.06 Marketing & Transportation $36.95 $5,542 2.07 Death Loss $20.94 $3,141 2.08 Manure Removal $7.23 $1,084 2.09 Insurance $13.04 $1,956 2.10 Herd Replacement $84.30 $12,645 2.11 Pasture Rental $60.13 $9,020 2.12 Miscellaneous $6.67 $1,001Subtotal Operating Costs $711.94 $106,794 2.13 Operating Interest $17.80 $2,670Total Operating Costs $729.74 $109,464

B. Fixed Costs3. Depreciation 3.01 Buildings $21.25 $3,188 3.02 Machinery & Equipment $65.60 $9,8404. Investment 4.01 Buildings $5.84 $877 4.02 Machinery & Equipment $13.53 $2,030 4.03 Livestock $46.06 $6,909 4.04 Pasture Land & Fencing $65.19 $9,779Total Fixed Costs $217.48 $32,623Total Operating and Fixed Costs $947.22 $142,087

C. Labour $160.00 $24,000Total Cost of Production $1,107.22 $166,087

Profitability and Breakeven AnalysisEstimated Farmgate Per Cow Total

Price ($ per cwt) $180.43Calf weight (lbs) 575Gross Revenue / cow $985.60 $147,840

Marginal Returns Over Operating Costs $255.86 $38,379Over Operating & Labour Costs $95.86 $14,379Over Operating & Fixed Costs $38.38 $5,757Over Total Costs (Net Profit) ($121.62) ($18,243)Operating Expense Ratio 74.0%

Breakeven Selling Price ($/cwt)Operating Costs $133.59Operating & Labour Costs $162.88Operating & Fixed Costs $173.40Operating, Fixed & Labour Costs $202.69

Summer grazing (based on 135 days) $0.928Extended grazing (based on 35 days) $0.839Winter feed (based on 195 days) $1.734Yardage (based on 230 days) $1.345Total Overwinter Costs (based on 230 days) $2.943

Based on a 150 Cow HerdCow-Calf Production Costs - September, 2017

Note: This budget is only a guide and is not intended to be an in-depth study of the cost of production of this industry. Interpretation and utilization of this information is the responsibility of the user. No liability for decisions based on this publication is assumed.

Cost Summary Per Cow Per Day



Percent Market Price Change -10.0%Percent Calf Crop Change -5.0%

Percent Calf Weight Change -5.0%

Per HeadMarket Price ($ per cwt) $162.39

Calf Crop % 90.00 Calf Weight (lbs) 546.25

Stress Test Scenario = Market Price Down 10%, Calf Crop Down 5% and Calf Weight Down 5%Gross Revenue / Cow $798.34Marginal Returns Over Operating Costs $68.60 Over Operating & Labour Costs ($91.40) Over Operating & Fixed Costs ($148.88) Over Total Costs (Net Profit) ($308.88)

Operating Expense Ratio 91.4%

1 Year 2 Years 3 Years 4 Years 5 Years 6 Years 7 Years 8 YearsOperating Expense (per Cow)

Feed Cost $354.71 $354.71 $354.71 $354.71 $354.71 $354.71 $354.71 $354.71Other Operating Cost2 $272.93 $276.68 $280.48 $284.34 $288.25 $292.21 $296.23 $300.30Operating Interest $15.69 $15.78 $15.88 $15.98 $16.07 $16.17 $16.27 $16.38

Total Operating Cost $643.33 $647.18 $651.08 $655.03 $659.04 $663.10 $667.22 $671.39Total Fixed Cost2 $217.48 $220.47 $223.50 $226.57 $229.69 $232.85 $236.05 $239.29Total Operating and Fixed Cost $860.81 $867.65 $874.58 $881.60 $888.73 $895.95 $903.27 $910.69Total Labour (Living) Cost2 $160.00 $162.20 $164.43 $166.69 $168.98 $171.31 $173.66 $176.05Total Cost Per Cow $1,020.81 $1,029.85 $1,039.01 $1,048.29 $1,057.71 $1,067.25 $1,076.93 $1,086.74

Income (per Cow)Calf Market Price ($/cwt) $180.43 $177.00 $185.00 $190.00 $197.00 $208.00 $222.00 $229.00Calf Revenue $985.60 $966.86 $1,010.56 $1,037.88 $1,076.11 $1,136.20 $1,212.68 $1,250.91

Calf Marginal Returns Over Operating Costs $342.27 $319.68 $359.48 $382.84 $417.07 $473.10 $545.46 $579.52 Over Operating & Labour Costs $182.27 $157.48 $195.05 $216.15 $248.09 $301.79 $371.79 $403.47 Over Operating & Fixed Costs $124.79 $99.22 $135.99 $156.27 $187.39 $240.25 $309.41 $340.23 Over Total Costs (Net Profit) ($35.21) ($62.98) ($28.44) ($10.42) $18.40 $68.95 $135.75 $164.18

Cull Cow Market Price ($/cwt) $85.00 $88.50 $92.50 $95.00 $98.50 $104.00 $111.00 $114.50Cull Cow Revenue $1,147.50 $1,194.75 $1,248.75 $1,282.50 $1,329.75 $1,404.00 $1,498.50 $1,545.75

Breakeven Replacement Purchase Value (@ 2.75% annual investment cost)Over Operating Costs $1,449.89 $1,767.56 $2,118.44 $2,461.38 $2,836.01 $3,270.07 $3,767.41 $4,238.73Over Operating & Labour Costs $1,294.18 $1,458.21 $1,657.51 $1,850.90 $2,077.99 $2,366.47 $2,720.18 $3,049.80Over Operating & Fixed Costs $1,238.24 $1,347.08 $1,491.93 $1,631.60 $1,805.68 $2,041.86 $2,343.98 $2,622.69Over Total Costs (Net Profit) $1,082.52 $1,037.73 $1,031.00 $1,021.12 $1,047.65 $1,138.26 $1,296.75 $1,433.76

2 Costs estimates are increased annually by 1.375% inflation rate

Note: This budget is only a guide and is not intended as an in-depth study of the cost of production of this industry. Interpretation and utilization of this information is the responsibility of the user.

Estimated Breakeven Replacement Purchase Values1 - Number of Years Before Culling

Yearly replacement value is calculated by adding the marginal returns from the current and each of the previous years and cull cow revenue in the current year at net present value (based on 2.75% annual investment cost)

1

Risk & Sensitivity Analysis (Stress Test)

Guidleines: Cow-calf Production Costs 4


Assumptions

1. This budget outlines the cost of production for a cow-calf operation.2. Buildings and equipment are valued at new cost.3. All feed is purchased.4. Manure removal is contracted out.5. Replacement heifers are valued at fair market value6. This budget assumes an average weaning weight of 575 lbs. (steer calves 600 lbs and heifer calves 550 lbs.)

Herd Profile TotalNumber of Cows 150 headAverage Cow Weight 1,350 lbsNumber of Bulls 5 bulls

Calf Crop 95.00 %Steer Calf Weight 600 lbsSteer Calf Market Price $190.00 /cwtHeifer Calf Weight 550 lbsHeifer Calf Market Price $170.00 /cwtWLPIP Insurance Premium $0.00 /cwtAverage Calf Weight 575 lbsWeighted Average Calf Market Price $180.43 /cwt

Herd Replacement (Cows)Cow Mortality Rate 1.25 %Cow Replacement Rate 12.0 %Average Value/Cow $1,675.00Cull Cow Market Price $85.00 /cwtCull Cow Market Value $1,147.50Replacement Cost/Heifer $1,850.00

Herd Replacement (Bulls)Bull Replacement Rate 25.0 %Original Cost $3,500.00 /bullPrice Received/Cull Bull $2,100.00 /bullPasture Cost $130.14 /bull

Annual Days on Pasture and Winter FeedingPasture Grazing 135 daysExtended Grazing 35 daysTotal Winter Feeding 195 days Non-confined winter feeding - feed delivered 130 days Non-confined winter feeding - bale grazing 0 days Confined winter feeding - feed delivered 65 days

365 Total DaysOther Operating CostsStrawNumber of Tons/Cow/Year 1.0Number of Tons/Bull/Year 1.0Cost/Ton $30.00

Cow-Calf Production Costs - Input



Feed Requirement Per Bull Barley 7.00 lbs/day Days/Year on Barley 120 days Hay (Good Quality) 4.00 tons/yr

Veterinary Medicine & Supplies Calf Medication Blackleg (8 way vaccine) $0.83 /head Tags (CCIA & ID) $4.80 /head Cow Medication 5-Way fetal protection $2.90 /head Scourguard $4.75 /head Internal/external parasite control $3.25 /head antibiotics, etc. Vitamin A & D $0.63 /head

Herd Health Program Professional Services Total Yearly Hours 6 hours Rate $150.00 /hour Transportation Total Kilometers (round trip) 80 km Rate $0.80 /km Number of yearly visits 2

Breeding CostsHealth Management Costs $10.00 /bullSemen Test $60.00 /bull

Other Breeding Alternatives a) Artificial Insemination Cost/Cow or Heifer $0.00 Number Inseminated 0 b) Community Pasture Cost/Cow or Heifer $0.00 Number of Cows placed in Pasture 0

Fuel, Oil, Repairs & Maintenance a) Machinery Fuel Costs - Winter Feeding Tractor with Loader PTO hp 120 Diesel Fuel Cost $0.85 /litre Tractor Hours Per Day (average) 1.5 hours b) Machinery Repair (% of investment cost) 1.2 % c) Building maintenance (% of investment cost) 2.2 %

Other Operating Costs Utilities Hydro - Rate $0.0820 / kWh

25 kWh per cow $307.502 1000 watt waterer $678.96

Total Hydro $986.46 Telephone $600.00



Marketing & Transportation (Culls) a) Trucking: Number of Cull Cows 18 cows Average Weight/Cow 1,350 lbs Trucking Cost $1.70 /cwt b) Selling Commission: MBP/CCA Levy $/Head $4.00 /head Insurance per Head $1.75 /head Commission on Cows $18.00 /cow Commission on Calves $16.00 /calf

Manure Removal Manure volume produced 0.034 m3/cow/day Manure volume shrinkage 75 % Cost for manure removal & application $10.00 /cubic yard

Operating Interest Rate 5.00 % Investment Rate 2.75 %

Insurance Cost per $100 Capital Invested in a) Livestock $0.45 b) Building & Equipment $0.40 Additional coverage for liability $49.00 /year

Miscellaneous Total Yearly Expense $1,000.00

Capital Costs Buildings & Water System Original Value Windbreak Fence $4,000 0 % 20 years Feedlot Fence $4,000 0 % 20 years Calf Shelters $8,000 0 % 20 years Handling Facilities $10,000 0 % 20 years Calving Facility $12,500 0 % 20 years Waterers $6,000 0 % 20 years Pasture Watering System $4,000 0 % 20 years Pasture Water Source $3,000 0 % 20 years Gates $1,450 0 % 20 years Round Bale Feeders $2,400 0 % 20 years Well & Pressure System $8,000 0 % 20 years Hydro (6 poles @ $400) $2,400 0 % 20 years Storage Bins $5,000 0 % 20 years Total $70,750 0 % 20 years

Machinery & Equipment Miscellaneous Machinery $10,000 20 % 10 years Tractor & Loader ($120,000@30%) $36,000 20 % 10 years Bale Shredder $22,000 20 % 10 years Tractor & Feed Wagon (silage rations) $0 20 % 10 years Stock Trailer $25,000 20 % 10 years Truck ($60,000@ 50%) $30,000 10 % 10 years Total $123,000

Useful LifeSalvage Value



Total Building, Machinery & Equipment $193,750 Total Breeding Herd Value $251,250 Total Capital Investment $445,000

Pasture Costs NumberPasture Type of Cows UsageMarginal Pasture 30 20.000 %Improved Pasture 30 20.000 %Crown Lands 30 20.000 %Rented Pasture 30 20.000 %Community Pasture 30 20.000 %

150 100 %

Cows on Pasture 30 cows 30 cows 30 cows Length of Fence 7.000 miles 4.500 miles 9.375 miles Fence Price $4,000 /mile $1,000 /mile $4,000 /mile Fence Useful Life 20 years 20 years 20 years Fence Salvage Value $0.00 $0.00 10 % Number of acres/cow 7.0 acre/cow 4.0 acre/cow 13.3 acre/cow Number of cows/quarter 22.9 cows 40.0 cows 12 cows Value $625 /acre $1,250 /acre Taxes $3.50 /acre $7.50 /acre Total Fertilizer, Chemical, Seed & Miscellaneous $0.00 /acre $0.00 /acre $0.00 /acre Rental Rate $275.00 /quarter Cost per cow (135 days pasture) $159.69 /cow $172.39 /cow $40.92 /cow Cost per cow per day (135 days pasture $1.18 /day $1.28 /day $0.30 /day

Cows Cows on Pasture 30 cows 30 cows Cost per cow $0.75 /cow/day Rental Rate $4,150 /quarter Number of quarters 1 quarters Number of cows/quarter 30.0 cows Number of acres/cow 5.3 acre/cow Annual Fence Repair Cost $0 /quarter (average cost) Pasture Grazing Days 135 days/year 135 days/year Calves Calves on Pasture 143 calves Cost $40.00 /calf/season Cost per cow $139.38 /cow $138.33 /cow Cost per cow per day $1.03 /day $1.02 /day

Labour Costs Hours/Cow/Year 8.00 hours Labour Rate $20.00 /hour

Community Pasture Rented Pasture

Marginal Pasture Improved Pasture Crown Lands

Guidelines: Cow-calf Production Costs 8


#1 #2 #3 #4 #5 #6 #7 #8 #9135 0 0 0 0 0 0 0 0

Feed Type $/unit lbs/Unit $/lb Ration - Feed Per Day (lbs based on 1400 lb cow)Alfalfa Hay $100.00 2,000 0.050 0 0 0 0 0 0 0 0 0 0 $0.00Alfalfa Grass Hay $80.00 2,000 0.040 35 0 0 0 16 0 10 0 0 4,556 $182.25Grass Hay $70.00 2,000 0.035 0 0 0 0 0 0 0 0 0 0 $0.00Barley Straw $30.00 2,000 0.015 0 17 19 23 0 23 15 23 0 0 $0.00Barley Greenfeed $75.00 2,000 0.038 0 0 0 0 19 0 0 0 0 0 $0.00Corn Silage $34.00 2,000 0.017 0 0 47 0 0 0 32 0 0 0 $0.00Barley Silage $43.00 2,000 0.022 0 48 0 0 0 0 0 0 0 0 $0.00Barley Grain $3.75 48 0.078 0 0 0 11 0 10 0 0 0 0 $0.0032% Feedlot Suppl. $450 2,205 0.204 0 0.5 0.5 1 0 0 0 0 0 0 $0.0032% Liquid Suppl. $405 2,205 0.184 0 0 0 0 0 2.9 0 0 0 0 $0.0020% Grain Pellets $285 2,205 0.129 0 0 0 0 0 0 0 14 0 0 $0.001:1 Mineral $35.00 55 0.636 0.12 0 0 0 0 0 0 0 0 16 $9.942:1 Mineral $35.00 55 0.636 0 0.06 0.06 0.06 0.12 0.2 0.2 0.06 0 0 $0.00Limestone $5.50 55 0.100 0 0 0 0 0 0.2 0 0.2 0 0 $0.00Blue Salt $7.75 55 0.141 0.07 0.07 0.07 0.07 0.07 0.07 0.07 0.07 0 9 $1.28

$1.49 $1.44 $1.23 $1.46 $1.44 $1.82 $1.31 $2.22 $0.00 $193.47

#1 #2 #3 #4 #5 #6 #7 #8 #960 0 0 0 0 0 0 0 0

Feed Type $/unit lbs/Unit $/lb Ration - Feed Per Day (lbs based on 1400 lb cow)Alfalfa Hay $100.00 2,000 0.050 0 0 0 0 0 0 0 0 0 0 $0.00Alfalfa Grass Hay $80.00 2,000 0.040 44 0 0 0 20 0 20 15 0 2,546 $101.83Grass Hay $70.00 2,000 0.035 0 0 0 0 0 0 0 0 0 0 $0.00Barley Straw $30.00 2,000 0.015 0 12 12 24 0 23 8 11 0 0 $0.00Barley Greenfeed $75.00 2,000 0.038 0 0 0 0 16 0 0 0 0 0 $0.00Corn Silage $34.00 2,000 0.017 0 0 48 0 0 0 40 0 0 0 $0.00Barley Silage $43.00 2,000 0.022 0 45 0 0 0 0 0 0 0 0 $0.00Barley Grain $3.75 48 0.078 5 12 7 15 5 15 0 0 0 289 $22.6032% Feedlot Suppl. $450 2,205 0.204 0 0 2 2.5 0 0 0 0 0 0 $0.0032% Liquid Suppl. $405 2,205 0.184 0 0 0 0 0 3.5 0 0 0 0 $0.0020% Grain Pellets $285 2,205 0.129 0 0 0 0 0 0 0 15 0 0 $0.001:1 Mineral $35.00 55 0.636 0.18 0 0 0 0 0 0 0 0 10 $6.632:1 Mineral $35.00 55 0.636 0 0.18 0.18 0.18 0.18 0.18 0.18 0.18 0 0 $0.00Limestone $5.50 55 0.100 0 0.1 0.1 0.1 0 0.3 0 0.1 0 0 $0.00Blue Salt $7.75 55 0.141 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0 6 $0.82

$2.28 $2.22 $2.09 $2.18 $1.92 $2.32 $1.73 $2.84 $0.00 $131.87

Total Days on Feed1 Average Cost/Day Feed Cost per Cow2

Pre Calving - Cows 135 $1.43 $193.47Post Calving - Cows 60 $2.20 $131.87

195 $1.67 $325.35

1. Total Days on Feed Must = 195 Days (as calculated on Input worksheet)2. Feed Cost Per Cow Based on 1350 lb Cow

Enter your days on feed for each selected ration number in the "blue" numbers in the "gray" shaded area

Total lbs

/cow

Total Cost /cow2

Ration NumberTotal lbs

/cow

Total Cost /cow2

Days on Feed

Note: The suggested feed rations above were formulated using Cowbytes Beef Ration Balancer software with no included allowance for wastage during feeding. Feed ration quantity and costs should be adjusted accordingly. If you need help with a budget, contact your local Manitoba Agriculture office.

Winter Feed Summary

Ration Number

Winter Feed Costs & Requirements Worksheet

Pre Calving - Cows

Post Calving - Cows

Total Winter Feeding = 195 days

$/head/day

Days on Feed

$/head/day

Guidelines: Cow-calf Production Costs 9


Extended Grazing Days 35Number of Cows 150Number of Cow Grazing Days 5,250

Corn Grazing

Stockpiled Forage

Swath Grazing

Crop Residue Total

Extended Grazing useage - % 0 75 0 25 100(total must = 100%)

Grazing Yield (wet tons/acre) 12.00 1.00 6.00 0.25% moisture 65 10 65 8

Yield (tons dry matter/acre) 4.2 0.9 2.1 0.23Total # cow grazing days/acre 207.4 44.4 103.7 11.4Acres Req'd (@ 100% each) 25 118 51 462

Planned extended grazing acres 0 89 0 116

Extended Grazing Costs $/acre $/pound $/acre $/pound

Standing Forage Cost n/a $0.022 n/a $0.005

Input CostsSeed $81.20 $15.00Fertilizer $81.07 $45.82Herbicide $18.67 $23.75Custom tillage $8.00 $8.00Custom seeding $15.00 $15.00Custom spraying $8.00 $8.00Miscellaneous $7.75 $7.75Land taxes $12.00 $12.00Land Investment Costs $68.75 $68.75Labour $15.00 $15.00Subtotal $315.44 n/a $219.07 n/a

Fencing CostsEstimated miles of fence required 0.000 1.113 0.000 1.450

Fence Investment Cost/acre $0.00 $0.34 $0.00 $0.34Fence Depreciation Cost/acre $0.00 $0.63 $0.00 $0.63

Total cost per acre $0.00 $44.97 $0.00 $3.47

Total Extended Grazing Cost $0.00 $4,002.22 $0.00 $402.38

Corn Grazing

Stockpiled Forage

Swath Grazing

Crop Residue Total Cost

Cost per cow $0.00 $26.68 $0.00 $2.68 $29.36Number of Days 26.25 8.75Cost / cow / day $1.02 $0.31 $0.84

Extended Grazing Costs & Requirements Worksheet

Cost Summary

Note: This budget is only a guide and is not intended as an in-depth study of the cost of production of this industry. Interpretation and utilization of this information is the responsibility of the user.



2. Building and equipment are valued at new cost.3. All feed is valued at market value.4. Manure removal is contracted out.5. Replacement heifers are valued at fair market value.

A. Operating Costs1. Feed Costs Your Cost

1.01 Grain and Concentrates (for cows)Barley Grain 6 units/cow

x $3.75 /unit= $22.60 /cow

32% Feedlot Suppl. 0 units/cowx $450.00 /unit= $0.00 /cow

32% Liquid Suppl. 0 units/cowx $405.00 /unit= $0.00 /cow

20% Grain Pellets 0 units/cowx $285.00 /unit= $0.00 /cow

Total = $22.60 /cow

1.02 Forages (for cows)Alfalfa Hay 0 units/cow

x $100.00 /unit= $0.00 /cow

Alfalfa Grass Hay 4 units/cowx $80.00 /unit= $284.08 /cow

Grass Hay 0 units/cowx $70.00 /unit= $0.00 /cow

Barley Straw 0 units/cowx $30.00 /unit= $0.00 /cow

Barley Greenfeed 0 units/cowx $75.00 /unit= $0.00 /cow

Corn Silage 0 units/cowx $34.00 /unit= $0.00 /cow

Barley Silage 0 units/cowx $43.00 /unit= $0.00 /cow

Total = $284.08 /cow

Assumptions

1. This budget outlines the cost of production for a cow-calf operation with 150 cows, 5 bulls and 95% calf crop weaned.

6. This budget assumes an average weaning weight of 575 lbs. (steer calves 600 lbs and heifer calves 550 lbs.)

Cow-Calf Production Worksheet



1.03 Salt and Minerals1:1 Mineral 0 units/cow

x $35.00 /unit= $16.57 /cow

2:1 Mineral 0 units/cowx $35.00 /unit= $0.00 /cow

Limestone 0 units/cowx $5.50 /unit= $0.00 /cow

Blue Salt 0 units/cowx $7.75 /unit= $2.10 /cow

Total = $18.67 /cow

1.04 Extended Grazing ForagesCorn Grazing $0.00 /cow

Stockpiled Forage $26.68 /cow

Swath Grazing $0.00 /cow

Crop Residue $2.68 /cow

Total = $29.36 /cow

2. Other Operating Costs2.01 Straw

1.00 tons/cow/yearx $30.00 /ton= $30.00 /cow

2.02 Veterinary Medicine & SuppliesCalf Medication

$0.83 /calf blacklegx 95.00 % calf crop= $0.79 /cow

Cow Medication$2.90 /cow IBR

+ $4.75 /cow scourguard + $3.25 /cow parasite control+ $0.63 /cow AD= $11.53 /cow

Herd Health Program$150.00 /hour charge

x 6.00 hours÷ 150.00 cows= $6.00 /cow

Mileage$0.80 /km charge

x 80.00 kilometresx 2.00 visits÷ 150.00 cows= $0.85 /cow

Total = $19.17 /cow



2.03 Breeding CostsFeed for Bulls

Hay4.00 tons good quality

x $80.00 /tonx 5.00 bulls÷ 150.00 cows= $10.67 /cow

Barley 7.00 lbs barley/bull/dayx 120.00 days÷ 48.00 lbs/bux $3.75 /bushelx 5.00 bulls÷ 150.00 cows= $2.19 /cow

Total = $12.86 /cow

Straw for Bulls1.00 tons/bull/year

x $30.00 /tonx 5.00 bulls÷ 150.00 cows= $1.00 /cow

Vet & Medicine for Bulls$60.00 semen test

+ $10.00 total vet cost/bullx 5.00 bulls÷ 150.00 cows= $2.33 /cow

Replacement of Bulls$3,500 bull cost

- $2,100 bull salvage valuex 25.00 % replacement ratex 5.00 bulls÷ 150.00 cows= $11.67 /cow

Investment in Bulls$3,500 bull cost

+ $2,100 bull salvage value÷ 2.00 averagex 2.75 % investment ratex 5.00 bulls÷ 150.00 cows= $2.57 /cow

Pasture Costs for Bulls$130.14 /bull pasture cost

x 5.00 bulls÷ 150.00 cows= $4.34 /cow

Total = $34.76 /cow



2.04 Fuel, Oil, Repairs & MaintenanceMachinery fuel cost

120 PTO hp÷ 2.5 avg HP requiredx 0.1665576 litres fuel/hour/hpx 1.5 hours per dayx $0.85 diesel / litrex 195 days on feed

$1,987.70 annual fuel cost÷ 150.00 cows= $13.25 /cow

Machinery repair & maintenance$123,000 machinery capital cost

x 1.20 % repair rate= $1,476.00 oil, repairs & maintenance÷ 150.00 cows= $9.84 /cow

Building repair & maintenance$70,750 building capital cost

x 2.20 % repair rate= $1,556.50 oil, repairs & maintenance÷ 150.00 cows= $10.38 /cow

Total = $33.47 /cow

2.05 Utilities$1,586 annual cost

÷ 150.00 cows= $10.58 /cow

2.06 Marketing & TransportationTrucking

Calves 143 calvesx 575.00 lbs/calfx $1.70 /cwt (trucking cost)÷ 100.00 lbs/cwt÷ 150.00 cows= $9.32 /cow

Cull Cows 18.00 cull cows- 2.00 cows diedx 1,350.00 lbs/cowx $1.70 /cwt (trucking cost)÷ 100.00 lbs/cwt÷ 150.00 cows= $2.45 /cow

MBP Levy, selling commission & insurance Calves + $4.00 MBP Levy+ + $0.00 WLPIP Insurance Premium

+ $19.75 Commission, Insurancex 143 calves÷ 150.00 cows= $22.64 /cow



Cull Cows $4.00 MBP Levy+ $19.75 Commission, Insurancex 16 cull cows÷ 150.00 cows= $2.53 /cow

Total = $36.95 /cow

2.07 Death Lossx $1,675 /cow investmentx 1.25 % mortality rate= $20.94 /cow

2.08 Manure Removal195 winter feeding days

- 130 Non-confined winter feeding - feed delivered- 0 Non-confined winter feeding - bale grazing= 65 days confined winter feedingx 0.034 m3/cow/day= 2.21 m3 manure volumex 75 % volume shrinkx 1.30795 yd3 per m3

x $10.00 yd3 manure removal cost= $7.23 /cow

2.09 Insurance$1,675 $/cow investment

x $0.45 /$100 capital÷ 100.00 /100= $7.54 /cow

$193,750 building and equipment investment

x $0.40 /$100 capital÷ 100.00 /100÷ 150.00 cows= $5.17 /cow

$49.00 liability÷ 150.00 cows= $0.33 /cow

Total = $13.04 /cow

2.10 Herd Replacement$1,850 /replacement heifer

- $1,148 /cull cowx 12.00 % replacement rate= $84.30 /cow

2.11 Pasture RentalA. Crown Land Rental (includes taxes)

$275 /quarter, rental rate÷ 12.00 cows/quarter= $22.92 /cowx 20 % pasture usage

Total = $4.58 /cow



B. Community Pasture Grazing: Cows

$0.75 cost/cow/dayx 135.00 days= $101.25 /cow

Calvesx $40.00 /calf/seasonx 143.00 calves on pasture÷ 150.00 cows= $38.13 /cow

= $139.38 /cowx 20 % pasture usage

Total = $27.88 /cow

C. Rented Pasture: $4,150 /quarter, rental rate

+ $0 /quarter, fence repairx 1 quarters÷ 30 cows= $138.33 /cowx 20 % pasture usage

Total = $27.67 /cow

Total (A,B,C) = $60.13 /cow

2.12 Miscellaneous$1,000 total office expenses

÷ 150.00 cows= $6.67 /cow

2.13 Operating Interest (Operating interest is charged on one half of the subtotal operating costs)

$711.94 subtotal operating costs÷ 2.00 averagex 5.00 % operating interest= $17.80 /cow

Buildings & Water System Windbreak Fence $4,000 Feedlot Fence $4,000 Calf Shelters $8,000 Handling Facilities $10,000 Calving Facilities $12,500 Waterers (3 @ $ 1000) $6,000 Pasture watering system $4,000 Pasture water source $3,000 Gates $1,450 Round Bale Feeders $2,400 Well & Pressure System $8,000 Hydro (6 poles @ $400) $2,400 Storage Bins $5,000 Total Building Cost $70,750

Capital Costs



Machinery & Equipment Miscellaneous Machinery $10,000 Tractor & Loader ($120,000@30%) $36,000 Bale Shredder $22,000 Tractor & Feed Wagon (silage rations) $0 Stock Trailer $25,000 Truck ($60,000@ 50%) $30,000 Total Machinery & Equipment Cost $123,000

Total Bldg., Mach. & Equip. $193,750

Total Breeding Herd Value $251,250

Total Capital Investment $445,000

B. Fixed Costs3. Depreciation

3.01 Buildings & Water System (not including pasture water system)$63,750 original cost

- 0.00 salvage value÷ 20.00 years useful life÷ 150.00 cows= $21.25 /cow

3.02 Machinery & Equipment$123,000 original cost

- $24,600 salvage value÷ 10.00 years useful life÷ 150.00 cows= $65.60 /cow

4. Investment2

4.01 Buildings$63,750 original cost

+ $0.00 salvage value÷ 2.00 averagex 2.75 % investment rate÷ 150.00 cows= $5.84 /cow

4.02 Machinery & Equipment$123,000 original cost

+ $24,600 salvage value÷ 2.00 averagex 2.75 % investment rate÷ 150.00 cows= $13.53 /cow

4.03 Livestock$1,675 /cow

x 2.75 % investment rate= $46.06 /cow

Original Cost + Salvage Value x Investment Rate

Original Cost - Salvage ValueUseful Life



4.04 Pasture

A. Marginal PastureInvestment Land 7.00 acres/cow

x $625.00 /acrex 2.75 % investment rate= $120.31 /cow

Fence$28,000 total fence investment

+ $0 salvage value÷ 2.00 averagex 2.75 % investment rate÷ 150.00 cows= $2.57 /cow

Pasture Water System$7,000 system & source


Total Investment = $123.52 /cow

Depreciation Fence $28,000 total fence investment

- $0 salvage value÷ 20.00 years useful life÷ 150.00 cows= $9.33 /cow

Pasture Water system$7,000 system & dugout


Total = $11.67 /cow

Taxes 7.00 acres/cowx $3.50 /acre= $24.50 /cow


Total = $31.94 /cow

B. Improved PastureInvestment Land 4.00 acres/cow

x $1,250 /acrex 2.75 % investment rate= $137.50 /cow

Fence$4,500 total fence investment







Depreciation Fence $4,500 total fence investment


Pasture Water system$7,000 system & source


Total = $3.83 /cow

Taxes4.00 acres/cow

x $7.50 /acre= $30.00 /cow


Total = $34.48 /cow

C. Crown Land:Depreciation Fence 9.38 miles of fence

x $4,000 /mile= $37,500 fence cost- $3,750 salvage value÷ 20.00 years useful life÷ 150.00 cows= $11.25 /cow

Pasture Water system$7,000 system & source


Total Depreciation = $13.58 /cow

Investment Fence $37,500 fence cost

+ $3,750 salvage value= $41,250 total invested÷ 2.00 averagex 2.75 % investment rate÷ 150.00 cows= $3.78 /cow







Total = $3.60 /cow

Subtotal (A,B,C) $70.02x 135 days on pasture÷ 145 benchmark grazing days

Total (A,B,C) = $65.19 /cow

C. Labour8.00 hours/cow/year

x $20.00 /hour= $160.00 /cow

Gross Revenue = calf weight cwt x $/cwt x % calf crop (eg. 5.75 x $180.43/cwt x 95% = $985.60)

Summer Grazing Cost Per Cow Per Day = pasture cost ÷ days (eg. $125.32 ÷ 135 = $0.93)Extended Grazing Cost Per Cow Per Day = grazing cost ÷ days (eg. $29.36 ÷ 35 = $0.84)Winter Feed Cost Per Cow Per Day = feed cost ÷ days (eg. $325.35 ÷ 195 = $1.73)

Created and maintained by September, 2017For more information, contact your local Benjamin Hamm Roy Arnott Ray BittnerFarm Management Specialist Farm Management Specialist Farm Production Extension

Greg Fedak Bob Gwyer Wayne TomlinsonFarm Management Specialist Farm Management Specialist Extension Veterinarian

Operating Expense Ratio = (operating cost ÷ gross revenue) x 100 (eg. ($729.74 ÷ $985.60 ) x 100 = 74.0%)

Yardage Cost Per Cow Per Day = ($31.00 straw + $33.47 fuel & repair + $5.17 building insurance + $10.58 utilities + $7.23 manure removal + $21.25 buiding depreciation+ $65.60 machinery depreciation + $5.84 building investment + $13.53 machinery investment + $11.39 operating interest + $4.21 misc. + $100.00 labour) ÷ 230 days = $1.345

Cost Summary:

Profitability and Breakeven Analysis:

Breakeven Price $/cwt = Cost ÷ % calf crop ÷ calf weight cwt (eg. $1107.22 ÷ 95% ÷ 5.75 = $202.69)

Manitoba Agriculture Farm ManagementManitoba Agriculture office or:

mailto:[email protected]#






http://www.gov.mb.ca/agriculture/business-and-economics/farm-business-management-contacts.html

http://www.gov.mb.ca/agriculture/contact/index.html



Cow-Calf Operating Facilities

Guidelines: Cow-Calf Production Costs


Feed Cost, $355 , 32%

Other Operating Cost, $375 , 34%

Fixed Cost -Depreciation, $87 , 8%

Fixed Cost -Investment, $131 , 12%

Labour, $160 , 14%

2017 Beef Cow Calf - Total Production Costs(cost/cow)

Manitoba Agriculture

Straw, $30.00

Veterinary Medicine & Supplies, $19.17

Breeding Costs, $34.76

Fuel, Maintenance & Repairs, $33.47

Utilities, $10.58

Marketing & Transportation, $36.95

Death Loss, $20.94Manure Removal, $7.23

Insurance, $13.04

Herd Replacement, $84.30

Pasture Rental, $60.13

Miscellaneous, $6.67Operating Interest,

$17.80

2017 Beef Cow Calf - Other Operating Costs(cost/cow)

Manitoba Agriculture

For more information• Contact your local Manitoba Agriculture Office.• Visit us at manitoba.ca/agriculture.

ESR-021987 December 2017

http://www.manitoba.ca/agriculture

Documents

COP Beef Cow-Calf - gov.mb.ca · Guidelines for Estimating Beef Cow-Calf Production Costs 2017 in Manitoba