Subscribe to Our Newsletters
BEEF Magazine is the source for beef production, management and market news.
Beef producers should evaluate management practices and determine ways to become more efficient without sacrificing production.
January 6, 2016
With years of all-time high cattle prices in the recent past, it is logical to assume high profitability in the cow-calf sector, says Patrick Gunn, Iowa State University (ISU) Extension cow-calf specialist and Denise Schwab, ISU Extension beef program specialist.
But remember, profit per cow is "return per cow over cash costs.”
Because many operations have reinvested in infrastructure and herd expansion in the past couple of years, fixed costs and in particular depreciation should not be overlooked. These costs include depreciation on machinery, equipment, housing and fences for the cattle operation, as well as interest, insurance and depreciation on the cattle themselves.
ISU Ag Decision Maker estimates that total fixed costs in 2014 were likely upwards of $180 per cow. Standardized Performance Analysis (SPA) in Iowa suggests depreciation alone was upwards of $65 per cow.
You might also like:
You May Also Like
The dollars and sense of sustainabilityFeb 21, 2023
Current Conditions for
Enter a zip code to see the weather conditions for a different location.
USDA reports slightly higher feedlot inventoryFeb 23, 2024
Determining success for yourselfFeb 23, 2024
ABS Global, 605 Sires + Donors announce strategic partnershipFeb 23, 2024
Farm Progress America, February 23, 2024Feb 23, 2024