The purpose of this article is to examine cow-calf profitability for a spring calving herd that sold weaned calves in the fall of and provide an estimate of profitability for the upcoming year.
Table 1 summarizes estimated costs for a well-managed spring-calving cowherd for Every operation is different, so producers should evaluate and modify these estimates to fit their situation.
Calves are assumed to be weaned and sold at an average weight of lbs. Producers who consistently apply larger amounts of fertilizer to pasture ground would see much higher pasture maintenance costs. The pasture stocking rate is assumed to be 2. Stocking rate impacts the number of grazing days and winter feeding days for the operation i.
These spring calving cows will use 2. Breeding stock depreciation and interest are major costs that are often overlooked. They are generally not cash costs that need to be paid on a yearly basis, unless you have a loan on them, but they are real costs that need to be paid at some point. The average yearly depreciation is calculated as follows:.
The actual depreciation will vary across farms. When buying bred replacement heifers, the initial heifer value is clear. The first step in calculating UCOP is to have accurate production and financial records. These records do not have to be complicated, but they need to be accurate and thorough.
If current management and information systems don't provide the data to run this type of analysis, consider making changes that will provide the records needed. Unit Cost of Production takes into account both product produced and input costs. Knowing UCOP allows a manager to look forward utilizing both present and projected input costs with production numbers to make informed decisions.
Cow-calf producers who know UCOP numbers and understand the interaction between costs and production can implement strategies to effectively manage resources to meet business and personal goals. As with most things in life, the first few times you do something, you make mistakes and through the process learn how to get better.
The first time someone learns to drive, there is going to be gears grinding, lurching and jerking, and some killed engines. The September price tends to average 2. This seasonal price pattern for fed cattle results in a fairly predictable pattern in the feeder cattle price spread. For example, in late summer, mid-weight feeders in the range of to pounds may have a small price per pound discount compared to feeder calves in the to pound weight range.
If placed in a finishing feedlot at the beginning of September, a pound steer would finish in about days, around the end of March when slaughter cattle prices tend to be seasonally strong.
Alternatively, a pound steer, if placed in a finishing feedlot at the beginning of September, would not finish until the end of April. Perhaps after fed cattle prices have peaked. As we move through the fall, to pound feeders become less desirable to buyers for two reasons: 1 If placed in a feedlot in late November at pounds, they will not finish until mid-June, when fed cattle prices tend to be seasonally weaker. The to pound feeder at the end of April would not be as desirable for the "grasser" market.
If placed in a finishing feedlot, it would be ready for slaughter about mid-August, when prices tend to be seasonally lower. However, a pound steer in late November could be backgrounded through the winter and sent to grass in the spring. Alternatively, it could be placed into a finishing feedlot as a pound feeder. It would then be ready for slaughter in October, when prices are typically starting to improve from their summer lows.
Figure 2 shows how relative prices change during the year for different weight classes. The chart shows an eight year seasonal index price comparison between lb blue bars and lb red bars feeder cattle for Alberta. Much of the relative price difference can be explained by a combination of:. Moving from winter into spring, the supply of pound calves becomes less. Bred heifers cost a little more than 1.
The most popular beef cow in the United States is Black Angus. They require little maintenance during calving season. Check out these varieties. Charolais : Heavier cattle, coat thickens in the winter. Hereford: Early maturity, great fattening abilities, docile, good milkers also. Simmental: Easy during calving season, fattening ability. Highlands: Thick coats, do well in very cold climates, lean and marbled meat.
This range depends on the cost of a yearly to the cost of a proven-family cow. Calves or yearlings are much cheaper to purchase than full-grown cows. Additionally, a cow that has been bottled or hand raised will cost more because they are people friendly and better to have around the family.
You have many options on where to purchase a cow. Local farmers may be willing to sell you a cow for less than market prices. In addition to finding a local farmer ready to sell, you can also order and purchase a cow online. Several places offer cow sales including the following websites:. This includes their feed and care.
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