Nevil Speer Operating and Overhead Costs of CowCalf Operations

Industry At A Glance: Cow Maintenance Costs

Cow-maintenance costs are extremely elusive within the industry. Moreover, they’re highly variable depending upon the type of operation. Nonetheless, there’s a key underlying principle that holds true in the cow-calf sector similar to all other industries: economies of scale provide an important advantage. USDA data reveals that as operations become larger, costs decline from both an operating standpoint (e.g., feed, vet, repairs) and overhead allocated to the cow-calf enterprise (e.g., labor, machinery, equipment).

Are you tracking your costs for the operation? Where does your operation fit with respect to these benchmarks? Leave your comments in the section below.  

TAGS: Cow-Calf
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