Guidelines for Estimating Cow-Calf Production Costs 2003 - Manitoba Agriculture, Food and Rural Initiatives

Livestock values in this document may be subject to change as the market responds to the BSE situation. However, it is important to base your decisions not only on market information, but also on the cost of production for your particular operation.

This guide is designed to provide you with planning information and a format for calculating costs of production of a cow calf enterprise. The production costs included in this enterprise budget are not intended as a cost study of the beef industry in Manitoba. Adjustments will be necessary when applying these figures to your own enterprise.

The budget estimates are based on a number of assumptions which are clearly defined in the supporting pages. Productivity and performance assumptions are based on data supplied by specialists as well as data collected from certain producers. Input costs are based on recommended practices and/or information obtained from producers. Good management is assumed in that a balanced ration is being fed, livestock are on a herd health program and handling facilities are included.

The guideline can be useful for comparison purposes. Comparison of costs at different levels of production can be made with other farms; the farm over time to track profits or losses; or comparing the plan with the actual production at the end of the planning period.

Disclaimer: This budget is only a guide and is not intended as an in depth study of the cost of production of the Manitoba cattle industry. Interpretation and utilization of this information is the responsibility of the user. If you require assistance with developing your individual budget, please contact your local MAF Farm Management Specialist or Livestock Specialist.

COW-CALF PRODUCTION COSTS 2003 BASED ON A 150 COW HERD
A .	OPERATING COSTS
1.	Feed Costs		$/Cow	Total	Your Farm
	1.01	Grain	6.25	938	__________
	1.02	Hay	229.00	34,350	__________
	1.03	Salt & Minerals	20.30	3,045	__________
	Total Feed Costs		$255.55	$38,333	__________

2.	Other Operating Costs
	2.01	Straw	22.00	3,300	__________
	2.02	Veterinary Medicine & Supplies	21.96	3,293	__________
	2.03	Breeding Costs	34.62	5,193	__________
	2.04	Fuel, Maintenance & Repairs	26.67	4,001	__________
	2.05	Utilities	9.67	1,451	__________
	2.06	Marketing & Transportation	24.37	3,656	__________
	2.07	Death Loss	9.00	1,350	__________
	2.08	Manure Removal	15.00	2,250	__________
	2.09	Insurance	8.81	1,322	__________
	2.10	Herd Replacement	55.00	8,250	__________
	2.11	Miscellaneous	6.67	1,001	__________
	Subtotal Operating Costs		$489.32	$73,400	__________
	2.12	Operating Interest	13.46	2,018	__________
TOTAL OPERATING COSTS			$502.77	$75,418	__________

B.	FIXED COSTS
3.	Depreciation
	3.01	Buildings	12.72	1,908	__________
	3.02	Machinery & Equipment	40.00	6,000	__________

4.	Investment
	4.01	Buildings	3.18	477	__________
	4.02	Machinery & Equipment	7.50	1,125	__________
	4.03	Livestock	22.50	3,375	__________
	4.04	Pasture Land & Fencing	48.53	7,279	__________
TOTAL FIXED COSTS			$134.43	$20,164	__________
TOTAL OPERATING AND FIXED COSTS			$637.20	$95,582	__________

5.	LABOUR		90.00	13,500	__________
TOTAL COST OF PRODUCTION			$727.20	$109,082	__________

Breakeven Price			$/cwt
	Operating Costs		$94.02		__________
	Operating, Fixed & Labour		$119.16		__________
	Total		$135.99		__________

Breakeven Price $/cwt = Cost � 93% calf crop � calf weight (5.75 cwt) Click here for Detailed Cow Calf Production Cost Worksheet. ASSUMPTIONS This budget outlines the cost of production for a cow calf operation with 150 cows, 6 bulls and 93% calf crop weaned. Building and equipment are valued at new cost. All feed is valued at market value. Manure removal is contracted out. Replacement heifers are valued at fair market value. This budget assumes an 'average' weaning weight of 575 lbs. (steer 'calves' 600 lbs and heifer calves 550 lbs)

Guidelines for Estimating 2003 Cow-Calf Production Costs Based on a 150 Cow Herd

COW-CALF PRODUCTION COSTS 2003 BASED ON A 150 COW HERD

ASSUMPTIONS

Guidelines for Estimating
2003 Cow-Calf Production Costs
Based on a 150 Cow Herd

COW-CALF PRODUCTION COSTS 2003
BASED ON A 150 COW HERD