COP Beef Cow-Calf - Province of Manitoba · cow calf production. A balanced ration to minimize cost per head per day is an important step in Risk Management Planning. Knowing your

2021 Cost of Production

Beef Cow-Calf150 Cow Herd - Hay Ration

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Date: September, 2020

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 - Hay Ration

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 and Resource Development 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 and Resource Development office.

The Farm Machinery Custom and Rental Rate Guide

www.manitoba.ca/agricultureManitoba Agriculture and Resource Development office.

https://www.gov.mb.ca/agriculture/farm-management/production-economics/machinery-costs.html

https://www.gov.mb.ca/agriculture/farm-management/production-economics/cost-of-production.html

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

Guidelines: Cow-Calf Production Costs 2

Manitoba Agriculture and Resource Development

A. Operating Costs Cost/Cow Total Cost Your Cost1. Feed Costs Grain and Concentrates $26.52 $3,978 Forages $355.10 $53,265 Salt & Minerals $37.55 $5,632 Extended Grazing Forages $41.52 $6,228Total Feed Cost $460.68 $69,1032. Other Operating Costs Straw $50.00 $7,500 Veterinary Medicine & Supplies $23.60 $3,540 Breeding Costs $37.81 $5,672 Fuel, Maintenance & Repairs $36.72 $5,507 Utilities $11.00 $1,650 Marketing & Transportation $35.23 $5,284 Death Loss $19.69 $2,953 Manure Removal $7.23 $1,084 Insurance $13.30 $1,995 Herd Replacement $86.40 $12,960 Pasture Rental $56.12 $8,418 Pasture Operating $33.10 $4,965 Labour - Hired $0.00 $0 Miscellaneous $6.67 $1,001Subtotal Operating Costs $877.54 $131,632 Operating Interest $19.74 $2,962Total Operating Costs $897.28 $134,594

B. Fixed Costs Livestock $40.09 $6,014 Buildings $32.99 $4,948 Machinery & Equipment $110.18 $16,527 Pasture Land & Fencing $34.05 $5,108Total Fixed Costs $217.31 $32,597

C. Owners - Labour & Living $192.00 $28,800Total Cost of Production $1,306.59 $195,991.00

Profitability and Breakeven AnalysisEstimated Farmgate Per Cow Total

Price ($ per cwt) $212.83Calf weight (lbs) 575Gross Revenue / cow $1,162.58 $174,388

Operating Expense Ratio 77.2%Marginal Returns

Over Feed Costs $702 $105,285Over Operating Costs $265 $39,795Over Operating & Fixed Costs $48 $7,198Over Total Costs (Net Profit) ($144) ($21,602)

PriceBreakeven (Lb. weaned calf) ($/cwt)

Over Feed & Operating Costs $164Over Feed, Operating & Fixed Costs $204Over Total Costs $239

Estimated Return on Investment (ROI) (11.0%)Estimated Return on Asset (ROA) (0.7%)

Summer grazing (based on 135 days) $0.913Extended grazing (based on 35 days) $1.186Winter feed (based on 195 days) $2.146Yardage (based on 230 days) $1.709Total Overwinter Costs (based on 230 days) $3.709

Based on a 150 Cow HerdCow-Calf Production Costs - September, 2020

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



Feed Cost, $461 , 35%

Other Operating

Cost, $437 , 33%

Fixed Cost -Livestock, $40 ,

3%

Fixed Cost -Buildings, $33 ,

3%

Fixed Cost -Machinery, $110 , 8%

Fixed Cost -Pasture Land & Fencing, $34 ,

3%

Owners-Labour &

Living, $192 , 15%

150 Head Beef Cow Calf - Total Production Costs ($/cow)


Straw, $50.00

Veterinary Medicine &

Supplies, $23.60

Breeding Costs, $37.81

Fuel, Maintenance & Repairs, $36.72

Utilities, $11.00

Marketing & Transportation,

$35.23

Death Loss, $19.69

Manure Removal, $7.23

Insurance, $13.30

Herd Replacement,

$86.40

Pasture Rental, $56.12

Pasture Operating,

$33.10

Labour - Hired, $0.00

Miscellaneous, $6.67

Operating Interest, $19.74

150 Head Beef Cow Calf - Other Operating Costs ($/cow)


$0.91$1.19

$1.71

$2.15

$3.71

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

Grazing (135days)

Extendedgrazing (35

days)

Yardage(based on 230

days)

Winter feed(195 days)

TotalOverwinterCosts (230

days)

$/Co

w/d

ay

150 Head Beef Cow Calf - Cost Summary ($/cow/day)


Herd replacement / breeding and summer pasture are the most

significant other cow calf production costs.

Winter feed is a significant cost for cow calf production. A balanced

ration to minimize cost per head per day is an important step in Risk

Management Planning.

Knowing your total overwinter,winter feed and yardage costs are important in making pasture and extended grazing decisions or

determining fair custom feeding rates and are an important step in

Risk Management Planning.



Cow calf profitability is significantly affected by both operating and fixed

production costs.

Managing total debt per cow is a important step to maintain

profitability in a cow calf production enterprise. Total P & I Cost =

$127/cow.

Knowing what you can pay for replacements to maintain your

target profitability is an important step in managing beef cow

enterprises.

Cows, $236

Marginal Pasture Land,

$150

Improved Pasture Land,

$128Machinery & Equipment,

$193

Fencing, $47

Buildings & Facilities, $76

150 Head Beef - Debt per Cow ($830/cow @ 81% Equity)


-$400

-$300

-$200

-$100

$0

$100

$200

$300

$400

$500

$0(100%)

$217(95%)

$434(90%)

$651(85%)

$869(80%)

$1086(75%)

$1303(70%)

$1520(65%)

$1737(60%)

$1954(55%)

$2172(50%)

$/co

w

Debt $/Cow (% equity)

150 Head Beef Cow Calf - Profitability vs. Debt per Cow

Profit (over Operating & Fixed Costs) Profit (over Total Costs)

Total Fixed Costs


$1,858

$726

$0

$500

$1,000

$1,500

$2,000

$2,500

$75 $50 $25 $0 -$25 -$50 -$75

Cow

Val

ue

Target Profit $/Cow

What Can you Profitably Pay for Cows? (15% financed)

Purchase Price (over Operating & Fixed costs) Purchase Price (over Total Costs)



Manitoba Agriculture and Resource Developmentt

Percent Change from Change in Change in Change Per Head Baseline Value Profit/Cow Total Profit

Operating Costs (5.0%) $852 ($45) $45 $6,730Sale Price ($ per cwt) 5.0% $223 $11 $61 $9,178

Calf Weaning Weight (lbs) 5.0% 604 29 $61 $9,178 Calf Crop % 0.0% 95 0 $0 $0

$167 $25,086

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.

Risk Management Analysis

Risk & Sensitivity Analysis (Stress Test)

$0.00

$50.00

$100.00

$150.00

$200.00

$250.00

$300.00

$248 $243 $238 $233 $228 $223 $218 $213 $208 $203 $198 $193

$/Co

w

Market Price ($/cwt)

150 Head Beef Cow Calf - Costs Not Covered (575 lb. avg. steers & heifers)

Operating Costs = $897 Fixed Costs = $217 Labour (Owners Living) Cost = $192


Market prices of $204/cwt and lower do not cover both operating and fixed costs. This can indicate the potential need for WLPIP coverage and is an important step in Risk

Management Planning).

$45$61

$0

$61

$106

$167

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

Cost (-5%)

Production (5% Weaning

Weight)

Production(0% Calf Crop)

Price(5% or $0.11/lb)

Cost & Production Cost, Production &Price

$/Co

w

150 Head Beef Cow Calf - Change to Profit Margin Over Operating & Fixed Costs


Guidelines: Cow-calf Production Costs 6


Assumptions1. 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.)

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

Calf Crop 95 %Steer Calf Weight 600 lbsSteer Calf Market Price $220 /cwtHeifer Calf Weight 550 lbsHeifer Calf Market Price $205 /cwtAverage Calf Weight 575 lbsWeighted Average Calf Market Price $212.83 /cwt

Herd Replacement (Cows)Average Value/Cow $1,575 (bred cow to steer calf price ratio = 1.19)

(bred cow to steer calf price ratio range is often 1.1 to 1.5 = estimated cow value range of $1,452 to $1,980)Cull Cow Market Price $80 /cwtCow Mortality Rate 1.25 %

Herd Replacement (Cows)Replacement Cost/Heifer $1,800Cull Cow Market Value - $1,080.00

(1350lb cow / 100 x $80/cwt cull price = $1080.00)Cow replacement rate (%) x 12.0

= $86.40 /cow

Breeding Costs Cost Per Cow Feed for Bulls Hay Good Quality (tons/yr) 4.00

Hay Price ($/ton) x 100Number of Bulls x 5

÷ 150 cows = $13.33

Barley Per Bull (lbs/day) 7.00Days/Year on Barley x 120Pounds per bushel ÷ 48Barley Price ($/bu) x $4.40Number of Bulls x 5

÷ 150 cows = $2.57 = Total $15.90

Cow-Calf Production Costs - Herd Input

Cow-Calf Production Costs - Breeding

Cow-Calf Production Costs - Herd Replacement

Cow-Calf Production Costs - Herd Profile



Straw for BullsNumber of Tons/Bull/Year 1.0 tons/bull/yearHay Price ($/ton) x 50 /tonNumber of Bulls x 5 bulls

÷ 150 cows = $1.67 Vet & Medicine for Bulls

Semen Test $60.00Health Management Costs + $10.00Number of Bulls x 5 bulls

÷ 150 cows = $2.33 Herd Replacement (Bulls)

Original Cost/Bull $3,500Price Received/Cull Bull - $2,100Bull Replacement Rate (%) x 25Number of Bulls x 5 bulls

÷ 150 cows = $11.67 Investment in Bulls

Original Cost/Bull $3,500Price Received/Cull Bull + $2,100Average - charged on 1/2 ÷ 2Investment Rate x 2.75Number of Bulls x 5

÷ 150 cows = $2.57 Pasture Costs for Bulls

Pasture Cost ($/season) $110.34 /bull pasture costNumber of Bulls x 5 bulls

÷ 150 cows = $3.68 Other Breeding Alternatives Artificial Insemination

Cost/Cow or Heifer Exposed $0.00Number Inseminated x 0

÷ 150 cows = $0.00 Community Pasture

Cost/Cow or Heifer Exposed $0.00Number of Cows placed in Pasture 0

÷ 150 cows = $0.00 = Total $37.81

Waterers Cows per waterer 100Cost per waterer $2,000 = Total $4,000

Windbreak Fence Feet per Cow 1.5Cost per Foot $20 = Total $4,650

Feedlot Fence/Bunk Feet per Cow 2.0Cost per Foot $15 = Total $4,650

Calf Shelters Calves per shelter 50Cost per shelter $2,750 = Total $8,525

Cow-Calf Production Costs - Facilities



Veterinary Medicine & Supplies Calf Medication Cost Per Cow Blackleg (8 way vaccine) $0.83 /head x 95% calf crop = $0.79 Tags (CCIA & ID) $4.80 /head x 95% calf crop = $4.56 Cow Medication 5-Way fetal protection $2.90 Scourguard $4.75 Internal/external parasite control, antibiotics, etc. $3.25 Vitamin A & D $0.50 Herd Health Program Professional Services 6 hours @ Rate x $150.00 /hour

÷ 150 cows = $6.00 Transportation Total Kilometers (round trip) 80 km Rate x $0.80 /km Number of yearly visits 2

÷ 150 cows = $0.85 = Total $23.60

Other Operating CostsStraw Cost ($/Ton) $50.00 Number of Tons/Cow/Year 1.0

Fuel, Oil, Repairs & Maintenance Machinery Fuel Cost Cost Per Cow Tractor with Loader PTO hp 120 Average HP required ÷ 2.5 Litres fuel / Hour / HP x 0.1665576 Tractor Hours Per Day (avg) x 1.5 Diesel Fuel Cost / litre x $0.90 Days on feed x 195 Annual fuel cost $2,104.62

÷ 150 cows = $14.03 Machinery repair & maintenance Machinery capital cost $145,000 Machinery Repair (% of investment cost) x 1.20 % Oil, repairs & maintenance = $1,740.00

÷ 150 cows = $11.60 Building repair & maintenance Building capital cost $75,575 Building maintenance (% of inv.cost) x 2.20 Repairs & maintenance = $1,662.65

÷ 150 cows = $11.08 = Total $36.72

Other Operating Costs Utilities Cost Per Cow Hydro Rate ($/kWh) $0.08730

25 kWh per cow = $327.382 1000 watt waterer $722.84

Total Hydro = $1,050.22÷ 150 cows = $7.00

Telephone $600.00÷ 150 cows = $4.00

= Total $11.00

Marketing & Transportation Cost Per Cow Trucking

Calves: Number marketed per year 143Truck Capacity (lbs/load) 54,000Number of head per load - calves 94Loads = 2.00Distance (miles) x 75Rate / Loaded Mile x $5.50

÷ 150 cows = $5.50

Cow-Calf Production Costs - Operating



Cull cows: Number per year 18.00Number cows died - 2.00Number of head per load - cull cows 40Loads = 1.00Distance (miles) x 75.00Rate / Loaded Mile x $5.50

÷ 150.00 cows = $2.75 MBP Levy, selling commission & insurance

Calves MBP/NCO Levy ($/Head) + $5.50WLPIP Insurance Premium ($/cwt) $0.00Average Calf Weight (cwt) x 5.75

+ WLPIP Insurance Premium = $0.00Insurance per Head + $1.75Commission on Calves $18.00Number marketed per year x 143

÷ 150.00 cows = $24.07

Cull Cows MBP/NCO Levy ($/Head) $5.50Insurance per Head + $1.75Commission on Cows $20.00Number marketed per year x 16

÷ 150.00 cows = $2.91 = Total $35.23

Death Loss Cost Per CowCow investment ($/Head) x $1,575Cow Mortality Rate (%) x 1.25 = $19.69

Manure Removal Cost Per Cow Number winter feeding days 195 Non-confined winter feeding - feed delivere - 130 Non-confined winter feeding - bale grazing - 0 Days confined winter feeding = 65 Manure volume produced (m3/cow/day) x 0.034 Manure volume (m3) = 2.21 Manure volume shrinkage (%) x 75 Conversion - yd3 per m3 x 1.30795 Manure removal & application ($/yd3) x $10.00 = $7.23

Insurance Cost Per Cow Cow Investment ($/Head) $1,575 Cost per $100 Livestock x $0.45

÷ 100.00 = $7.09

Buildings & Equipment Investment $220,575 Cost per $100 Buildings x $0.40

÷ 100.00÷ 150.00 cows = $5.88

Additional coverage for liability $49.00÷ 150.00 cows = $0.33

= Total $13.30

Miscellaneous Cost Per Cow Total office expenses $1,000

÷ 150.00 cows = $6.67

Operating InterestSubtotal operating costs $877.54Average - charged on 1/2 ÷ 2.00Operating Interest Rate x 4.50

= Total $19.74

Labour Costs Cost Per CowLabour Rate ($/hour) $24.00Hired - Labour Hours/Cow/Year 0.00 = $0.00Owner - Labour Hours/Cow/Year 8.00 = $192.00

= Total $192.00



Total Days Per Year 365Pasture Grazing minus 135 days 4.5 monthsExtended Grazing minus 35 daysTotal Winter Feeding (see Ration Worksheet for more detail) = 195 days Non-confined winter feeding (feed delivered to pasture) minus 130 days Non-confined winter feeding (bale grazing) minus 0 days Confined winter feeding - feed delivered = 65 days

365 Total Days

Land BaseMarginal Pasture

Improved Pasture

Crown Lands

Community Pasture

Rented Pasture

Number of cows pastured/season 150 150 150 150 150Number of cows/quarter 32 94 12 - 32Number of pasture acres/head 5.0 1.7 13.3 - 5.0Total Acres Required 750 255 2000 - 750

Rental Rate ($/quarter) - - $662 - $4,150Rate ($/cow/day) - - - $0.80 - Rate ($/calf/season) - - - $45.00 -

Pasture Land Value ($/acre, excl. fence, water, facilities) $600 $1,500 - - - Owned Land Equity 75%Land Financed 25%Land Opportunity Cost (Investment Rate) 0.00%Land cost ($/acre)Finance Rate & Term 4.000% 25 yearsPrinciple & Interest Cost $9.60 $24.00 - - - Owned Land Opportunity Cost $0.00 $0.00 - - - Total Cost ($/acre) $9.60 $24.00 - - -

Materials Labour Equipment TotalBarbed Wire (4 strand) $3,378 $1,032 $1,170 $5,581Electric Wire (4 strand) $2,378 $650 $718 $3,746Electric Wire (2 strand) $2,042 $552 $663 $3,257Electric Wire (1 strand) $1,730 $502 $635 $2,867Page Wire (w/optional top wire) $8,222 $1,823 $1,913 $11,958

Marginal Pasture

Improved Pasture

Crown Lands

Barbed Wire (4 strand) 2.00 0.00 1.00Electric Wire (4 strand) 0.00 0.00 0.00Electric Wire (2 strand) 0.00 0.00 0.00Electric Wire (1 strand) 0.00 4.00 0.00Page Wire (w/optional top wire) 0.00 0.00 0.00

Barbed Wire (4 strand) $11,161 $0 $5,581Electric Wire (4 strand) $0 $0 $0Electric Wire (2 strand) $0 $0 $0Electric Wire (1 strand) $0 $11,468 $0Page Wire (w/optional top wire) $0 $0 $0

$11,161 $11,468 $5,581

Pasture Options - Input

Annual Days on Pasture and Winter Feeding

Fence Cost Per Mile

Fence Miles per Quarter (160 ac)

Pasture Fencing - Input

Cost Per Quarter (160 acres)



Total Fence Cost $52,317 $18,277 $69,757Total Fence Investment ($/acre) $70.00 $72.00 $35.00Residual Value (End of Useful Life) 10% 10% 10%Useful Life (years) 20Owned Fence Equity 75%Fence Financed 25%Fencing Cost ($/acre)Finance Rate & Term 4.000% 7 yearsPrinciple & Interest Cost $2.92 $3.00 $1.46Fencing Depreciation Cost $3.15 $3.24 $1.58Owned Fence Opportunity Cost $0.00 $0.00 $0.00Total Cost $6.07 $6.24 $3.03

Fence Maintenance (% of investment cost) 2.00%

A. Operating CostsMarginal Pasture

Improved Pasture

Crown Lands

Community Pasture

Rented Pasture

Land Development ($/acre) $0.00 $16.11 - - - Fertilizer - Annual ($/acre) $0.00 $13.98 - - - Herbicide ($/acre) $1.00 $1.00 $0.00 - $0.00Fence Maintenance ($/acre) $1.40 $1.44 $0.70 - $0.00Pasture Rental - - $4.14 - $25.94Taxes ($/acre) $4.00 $8.00 - - - Miscellaneous ($/acre) $0.00 $0.00 $0.00 - $0.00Total Operating Costs ($/acre) $6.40 $40.53 $4.84 - $25.94

B. Fixed CostsLand ($/acre) $9.60 $24.00 - - - Fencing ($/acre) $6.07 $6.24 $3.03 - - Total Total Fixed Costs ($/acre) $15.67 $30.24 $3.03 - $0.00

Total Operating and Fixed ($/acre) $22.07 $70.77 $7.87 - $25.94Total Operating and Fixed ($/year) $16,551 $18,047 $15,741 $22,635 $19,453

Cost per cow (135 days pasture) $110.34 $120.47 $104.94 $150.90 $129.69Cost per cow per day (135 days pasture) $0.82 $0.89 $0.78 $1.12 $0.96

Carrying CapacityNumber of head pastured/acre 0.200 0.588 0.08 - 0.20Metabolic Animal Unit Value 1.25 1.25 1.25 1.25 1.25

AUM AnalysisTotal Animal Unit Months (AUM's) 844 844 844 844 844Total AUM's - Available Per Acre 1.13 3.31 0.42 1.13Pasture Investment per AUM $533 $453 - - - Total Pasture Cost Per AUM $19.61 $21.38 $18.65 $26.82 $23.05

Pasture Efficency AnalysisPounds liveweight per acre 270 794 108 - 270

Pasture Investment per Cow on Pasture $3,000 $2,550 - - -

Marginal Pasture

Improved Pasture

Crown Lands

Community Pasture

Rented Pasture Total

Planned number of cows 30 30 30 30 30 150

Acres Required 150 51 400 - 150

Pasture Options - Cost Summary

Pasture Options - Carrying Capacity and AUM Analysis

Pasture Options - Usage Planner



#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 $120.00 2,000 0.060 0 0 0 0 0 0 0 0 0 0 $0.00Alfalfa Grass Hay $100.00 2,000 0.050 35 0 0 0 16 0 10 0 0 4,556 $227.81Grass Hay $90.00 2,000 0.045 0 0 0 0 0 0 0 0 0 0 $0.00Barley Straw $50.00 2,000 0.025 0 17 19 23 0 23 15 23 0 0 $0.00Barley Greenfeed $100.00 2,000 0.050 0 0 0 0 19 0 0 0 0 0 $0.00Corn Silage $35.00 2,000 0.018 0 0 47 0 0 0 32 0 0 0 $0.00Barley Silage $40.00 2,000 0.020 0 48 0 0 0 0 0 0 0 0 $0.00Barley Grain $4.40 48 0.092 0 0 0 11 0 10 0 0 0 0 $0.0032% Feedlot Suppl. $475 2,205 0.215 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 $305 2,205 0.138 0 0 0 0 0 0 0 14 0 0 $0.001:1 Mineral $40.00 55 0.727 0.12 0 0 0 0 0 0 0 0 16 $11.362:1 Mineral $40.00 55 0.727 0.00 0.06 0.06 0.06 0.12 0.2 0.2 0.06 0 0 $0.00Limestone $5.50 55 0.100 0.00 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

$1.85 $1.55 $1.46 $1.85 $1.85 $2.20 $1.59 $2.59 $0.00 $240.46

#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 $120.00 2,000 0.060 0 0 0 0 0 0 0 0 0 0 $0.00Alfalfa Grass Hay $100.00 2,000 0.050 44 0 0 0 20 0 20 15 0 2,546 $127.29Grass Hay $90.00 2,000 0.045 0 0 0 0 0 0 0 0 0 0 $0.00Barley Straw $50.00 2,000 0.025 0 12 12 24 0 23 8 11 0 0 $0.00Barley Greenfeed $100.00 2,000 0.050 0 0 0 0 16 0 0 0 0 0 $0.00Corn Silage $35.00 2,000 0.018 0 0 48 0 0 0 40 0 0 0 $0.00Barley Silage $40.00 2,000 0.020 0 45 0 0 0 0 0 0 0 0 $0.00Barley Grain $4.40 48 0.092 5 12 7 15 5 15 0 0 0 289 $26.5232% Feedlot Suppl. $475 2,205 0.215 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 $305 2,205 0.138 0 0 0 0 0 0 0 15 0 0 $0.001:1 Mineral $40.00 55 0.727 0.18 0 0 0 0 0 0 0 0 10 $7.572:1 Mineral $40.00 55 0.727 0.00 0.18 0.18 0.18 0.18 0.18 0.18 0.18 0 0 $0.00Limestone $5.50 55 0.100 0.00 0.1 0.1 0.1 0 0.3 0 0.1 0 0 $0.00Blue Salt $7.75 55 0.141 0.10 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0 6 $0.82

$2.80 $2.46 $2.37 $2.67 $2.40 $2.77 $2.05 $3.25 $0.00 $162.19

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

Pre Calving - Cows 135 $1.78 $240.46Post Calving - Cows 60 $2.70 $162.19

195 $2.06 $402.65

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

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 and Resource Development 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

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 Number Total lbs

/cow

Total Cost /cow2

Days on Feed



Cows Machinery & Equipment Cow value ($/head) $1,575 Total Investment ($/cow) $967 Owned Cow Equity 85% Residual Value (End of Useful Life) 20% Cows Financed ($236 per head) 15% Useful Life (years) 10 Cow Opportunity Cost (Investment Rate) 0.00% Owned Machinery Equity 80%Cow cost ($/head) Machinery Financed ($193 per head) 20% Finance Rate & Term 4.500% 7 Years Machinery Opportunity Cost (Investment Rate 0.00% Principle & Interest Cost $40.09 Machinery & Equipment Cost ($/cow) Owned Cows Opportunity Cost $0.00 Finance Rate & Term 4.500% 7 Years Total Cost $40.09 Principle & Interest Cost $32.82

Machinery Depreciation Cost $77.36 Owned Building Opportunity Cost $0.00

Marginal Pasture Land Total Cost $110.18 Average Land value ($/acre) $600 Pasture acres 150 Buildings & Facilities Owned Land Equity 75% Total Investment ($/cow) $504 Land Financed ($150 per acre) 25% Residual Value (End of Useful Life) 20% Land Opportunity Cost (Investment Rate) 0.00% Useful Life (years) 20Land cost ($/acre) Owned Building Equity 85% Finance Rate & Term 4.000% 25 Years Building Financed ($76 per head) 15% Principle & Interest Cost $9.60 Building Opportunity Cost (Investment Rate) 0.00% Owned Land Opportunity Cost $0.00 Building & Water System Cost ($/cow) Total Cost $9.60 Finance Rate & Term 4.500% 7 Years

Principle & Interest Cost $12.83 Building Depreciation Cost $20.16 Owned Building Opportunity Cost $0.00

Improved Pasture Land Total Cost $32.99 Average Land value ($/acre) $1,500 Pasture acres 51 Fencing Owned Land Equity 75% Total Investment ($/cow) $187 Land Financed ($375 per acre) 25% Residual Value (End of Useful Life) 10% Land Opportunity Cost (Investment Rate) 0.00% Useful Life (years) 20Land cost ($/acre) Owned Fence Equity 75% Finance Rate & Term 4.000% 25 Years Fence Financed ($47 per head) 25% Principle & Interest Cost $24.00 Fence Opportunity Cost (Investment Rate) 0.00% Owned Land Opportunity Cost $0.00 Fencing Cost ($/cow) Total Cost $24.00 Finance Rate & Term 4.000% 7

Principle & Interest Cost $7.79Total Principle & Interest Cost ($/cow) $127.14 Fence Depreciation Cost $8.42Total Principle & Interest Cost (150 cows) $19,071 Owned Fence Opportunity Cost $0.00

Total Cost $16.22

Market MarketBuildings & Facilities Value Usage % Allocation Machinery & Equipment Value Usage % Allocation

Windbreak Fence $4,650 100% $4,650 Miscellaneous Machinery $10,000 100% $10,000Feedlot Fence $4,650 100% $4,650 Tractor & Loader $120,000 50% $60,000Calf Shelters $8,525 100% $8,525 Bale Shredder $20,000 100% $20,000Handling Facilities $15,000 100% $15,000 Tractor & Feed Wagon (silage) $0 100% $0Calving Facility $12,500 100% $12,500 Stock Trailer $25,000 100% $25,000Waterers $4,000 100% $4,000 Truck $60,000 50% $30,000Pasture Watering System $4,000 100% $4,000 $0 100% $0Pasture Water Source $3,000 100% $3,000 $0 100% $0Gates $1,450 100% $1,450 $0 100% $0Feeders $2,400 100% $2,400 $0 100% $0Well & Pressure System $8,000 100% $8,000 $0 100% $0Hydro (6 poles @ $400) $2,400 100% $2,400 $0 100% $0Storage Bins $5,000 100% $5,000 $0 100% $0

$0 100% $0 $0 100% $0$0 100% $0 $0 100% $0$0 0% $0 $0 100% $0

Total Inv. = $75,575 ($504/cow) Total Inv. = $145,000 ($967/cow)

Fixed Costs

Capital ValueCow-calf Cow-calf



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

Corn Grazing

Stockpiled Forage

Swath Grazing

Crop Residue

Standing Forage Cost ($/lb) n/a $0.025 n/a $0.015

Input Costs ($/acre)Seed $92.80 $16.88Fertilizer (incl. applic.) $98.00 $52.41Herbicide $12.00 $12.00Custom tillage $8.00 $8.00Custom seeding $15.00 $15.00Custom spraying $8.00 $8.00Miscellaneous $7.75 $7.75Land taxes $10.00 $10.00Land Costs $67.06 $67.06Labour $18.00 $18.00Subtotal $336.61 $50.00 $215.10 $7.50

Fencing CostsEstimated miles of fence required 0.250 1.475 0.638 5.775

Fence Investment Cost/acre $0.99 $0.99 $0.99 $0.99Fence Depreciation Cost/acre $1.79 $1.79 $1.79 $1.79

Total cost per acre $339.39 $52.78 $217.88 $10.28

Grazing Yield (wet tons/acre) 15.00 1.00 6.00 0.25% moisture 65 10 65 8

Yield (tons dry matter/acre) 5.25 0.9 2.1 0.23Total # cow grazing days/acre 259.3 44.4 103.7 11.4Acres Req'd for Option 20 118 51 462

Total Extended Grazing Cost $6,787.75 $6,227.73 $11,111.75 $4,748.16Cost per cow $45.25 $41.52 $74.08 $31.65Cost/cow/day (based on 35 days) $1.29 $1.19 $2.12 $0.90

Corn Grazing

Stockpiled Forage

Swath Grazing

Crop Residue Total

Planned extended grazing days 0 35 0 0 35

Cost per cow $0.00 $41.52 $0.00 $0.00 $41.52Cost/cow/day (based on 35 days) $1.19

Extended Grazing Costs & Requirements Worksheet

Extended Grazing - Usage Planner

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.

Extended Grazing Options - Yields & Cost Comparison

Extended Grazing Options - Costs



2. Building and equipment are valued at new cost.3. Feed cost is a combined value of market price and on-farm production costs.4. Manure removal is contracted out.5. Replacement heifers are valued at fair market value.6. This budget assumes an average weaning weight of 575 lbs. (steer calves 600 lbs and heifer calves 550 lbs.)

Capital Summary $/cow Total Debt Summary $/cow TotalBreeding Herd Value $1,692 $253,750 Cows $236 $35,438Marginal Pasture Land $600 $90,000 Marginal Pasture Land $150 $22,500Improved Pasture Land $510 $76,500 Improved Pasture Land $128 $19,125Machinery & Equipment $967 $145,000 Machinery & Equipment $193 $29,010Fencing $187 $28,070 Fencing $47 $7,018Buildings & Facilities $504 $75,575 Buildings & Facilities $76 $11,340Total Capital Investment $4,459 $668,895 Total Debt $830 $124,430

Cow Calf Equity 81%

Gross Revenue = calf weight (lbs) x $/lb x % calf crop (eg. 575 x $2.13/lb x 95% = $1162.58)

Summer Grazing Cost Per Cow Per Day = pasture cost ÷ days (eg. $123.27 ÷ 135 = $0.91)Extended Grazing Cost Per Cow Per Day = grazing cost ÷ days (eg. $41.52 ÷ 35 = $1.19)Winter Feed Cost Per Cow Per Day = feed cost ÷ days (eg. $418.55 ÷ 195 = $2.15)

Created and maintained by September, 2020For more information, contact your local Benjamin Hamm Greg Fedak Roy ArnottFarm Management Specialist Farm Management Specialist A/Manager Farm Management

Tod WallaceIndustry Development Specialist, Beef

Assumptions

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

Breakeven Price $/cwt = Cost ÷ % calf crop ÷ calf weight cwt (eg. $1306.59 ÷ 95% ÷ 5.75 = $239)

Cost Summary:

Yardage Cost Per Cow Per Day = ($51.67 straw + $36.72 fuel & repair + $5.88 building insurance + $11.00 utilities + $7.23 manure removal + $20.16 building depreciation+ $77.36 machinery depreciation + $12.83 building investment + $32.82 machinery investment + $13.92 operating interest + $4.21 misc. + $120.00 labour) ÷ 230 days = $1.709

Capital and Debt Summary

Profitability and Breakeven Analysis:

Return on Investment (ROI) = (Gross Revenue - Total Cost) / Total Cost(eg. ($1,162.58 - $1,306.59) / $1306.59 = -11.0%Return on Asset (ROA) = (Margin Over Operating - Owners Labour - Building Depreciation - Machinery Depreciation - Fence Depreciation) / ((Building, Machinery & Equipment Investment + Pasture Investment + Breeding Herd Investment) / Herd Size) (eg. ($265.30 - $192.00 - $20.16 - $77.36 - $8.42) / (($248,645 + $166,500 + $253,750) / 150) = -0.7%Operating Expense Ratio = (operating cost ÷ gross revenue) x 100 (eg. ($897.28 ÷ $1162.58 ) x 100 = 77%)

Manitoba Farm ManagementManitoba Agriculture and Resource Development office or:

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Cow-Calf Operating Facilities

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Documents

COP Beef Cow-Calf - Province of Manitoba · cow calf production. A balanced ration to minimize cost per head per day is an important step in Risk Management Planning. Knowing your