July 2003

Guidelines for Estimating Beef Grassing Costs Based on 500 Head

The following budget is an estimate of the costs of production associated with pasturing 500 feeder cattle. The purpose of this budget is to assist Manitoba livestock producers in calculating their own costs and take into consideration the factors that should be included when budgeting to determine break-even prices.

Manitoba has an abundance of suitable land for pasturing cattle (ie. PFRA Community pastures, Agricultural Crown Lands, private pastures, etc.). Because of this abundance the cost of raising cattle on pasture in Manitoba is very competitive when compared to other provinces. In this budget it is assumed that feeders are purchased in the spring, put in a feedlot for 60 days prior to going out on pasture for an additional 115 days.

The assumptions on which costs are calculated are clearly defined in the supporting pages. When interpreting these costs for an individual situation, adjustments may be required. Note that on-farm feed costs are based on market prices at the farm. It is assumed that all the feed is grown on the farm, except for supplements. Each assumption must be examined and adjustments made, where necessary, to apply to the farmer's own situation.

Disclaimer: 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. No liability for decisions based on this publication is assumed. If you require assistance with developing your individual budget, please contact your local MAF Farm Management Specialist or the Farm Management Section in Winnipeg at (204) 945-4937.