2008 Beef Budgets

green line

Projected Beef Cow/Calf Annual Budget for Calves Sold in 2008

                                                  Fall '07   Spring '07
                                                    Calving    Calving  
                          Calf crop, % weaned          88%       84%
                                                     _______   _______
ESTIMATED INCOME/COW
 Steer calf sales: 560 lbs. @ $123/cwt. x 88% x 1/2       --   $289.30
                   560 lbs. @ $128/cwt. x 84% x 1/2  $315.39        --
 Heifer calf sales: 540 lbs. @ $113/cwt. x 88% x 1/2      --    256.28
                    540 lbs. @ $118/cwt. x 84% x 1/2  280.37        --
 Cull cow sales:  1200 lbs. x $54/cwt. x 14%              --     90.72
                  1200 lbs. x $53/cwt. x 14%           89.04        --
                                                     _______   _______
 ESTIMATED TOTAL INCOME/COW                          $684.80   $636.30

ESTIMATED OPERATING COSTS/COW
 Summer Pasture (rental rate)                        $ 88.00   $ 94.40
 Hay and forage                                       179.97    158.84
 Grain                                                 12.68      6.34
 Protein and minerals                                  42.59     30.42
 Labor ($11/hr. x 5.5 hrs.)                            55.00     55.00
 Veterinary, drugs, and supplies                       25.00     25.00
 Marketing                                             17.12     15.91
 Utilities and all machinery costs                     90.32     90.32
 Livestock facility repairs                             8.00      8.00
 Breeding charges:
           Cow replacement (15% of heifer calves)     174.90    174.90
           Bull cost or A.I. charge                    14.50     14.50
           Interest on breeding stock                  88.39     88.39
           Insurance on breeding stock                 11.05     11.05
 Professional fees (legal, accounting, etc.)            1.00      1.00
 Miscellaneous                                          6.00      6.00
 Operating interest (1/2 of selected operating
           costs x 8%)                                 21.83     21.50
                                                     _______   _______
           Total Operating Costs                     $836.35   $800.57

ESTIMATED OWNERSHIP COSTS/COW
 Depreciation on livestock facilities                $  8.48   $  8.48
 Interest on livestock facilities                      10.44     10.44
 Insurance and taxes on capital items                  11.55     11.55
                                                     _______   _______
           Total ownership costs                     $ 30.47   $ 30.47

ESTIMATED TOTAL COSTS/COW                            $866.82   $831.04

________________________________________________________________________

        Income over Operating Costs/Cow              -$151.55  -$164.27
        Income over Total Costs/Cow                  -$182.02  -$194.74
________________________________________________________________________

For more details see website
http://agebb.missouri.edu/mgt/budget/index.htm


Prepared by Melvin Brees, Ag. Economist, FAPRI, and
Joe Horner, Ag. Economist, Dairy and Beef.
________________________________________________________________________

Projected Beef Steer Backgrounding Budget for Cattle Sold 2008

Description of production: Winter backgrounding - steer purchased in fall, sold 4 months later, 236 lb. gain.
Pasture backgrounding - steer purchased in spring, sold 4 months later, 196 lb. gain.
                                                 Winter       Pasture
                                               Backgrounding Backgrounding
                                               __________    __________
ESTIMATED INCOME/ STEER
 Market steer sales: 796 lbs. @ $108/cwt.        $859.68         --
                     756 lbs. @ $110/cwt.          --         $831.60
 Less cost of:
   Fall purchased steer: 560 lbs. @ $123/cwt.     688.80         --
   Spring purchased steer: 560 lbs. @ $128/cwt.    --          716.80

 Less death loss, 1%                                8.60         8.32
                                                 _______      _______
 ESTIMATED TOTAL INCOME/ STEER                   $162.28      $106.48

ESTIMATED OPERATING COSTS/STEER
 Summer Pasture (rental rate)                         --      $ 18.42
 Fescue hay                                        39.98           --
 Grain                                             52.78        22.05
 Soybean meal                                      13.91           --
 Salt, minerals, limestone                          4.73         4.73
 Labor ($11/hr.)                                   27.50        16.50
 Veterinary, drugs, and supplies                   18.00        15.00
 Marketing                                         38.93        31.13
 Utilities and all machinery costs                 46.98        25.40
 Livestock facility repairs                         3.75          .75
 Professional fees (legal, accounting, etc.)        1.00         1.00
 Miscellaneous                                      3.50         3.50
Interest on feeder and 1/2 of operating
      costs x 8%)                                  18.37        17.73
                                                 _______      _______
           Total Operating Costs                 $269.43      $156.21

ESTIMATED OWNERSHIP COSTS/STEER
 Depreciation on livestock facilities            $  3.87      $   .62
 Interest on livestock facilities                   4.76         1.02
 Insurance and taxes on capital items               6.73          .18
                                                 _______      _______
           Total ownership costs                 $ 15.36      $  1.82
                                                 _______     ________
ESTIMATED TOTAL COSTS/STEER                      $284.79      $158.05
________________________________________________________________________

         Income over Operating Costs/Steer      -$107.15     -$ 49.73
         Income over Total Costs/Steer          -$122.51     -$ 51.57
________________________________________________________________________

           Cwt. of gain per steer purchased         2.28         1.88
           Feed cost per cwt. of gain            $ 48.85      $ 23.99
           Breakeven market steer price per cwt. $123.54      $116.89
________________________________________________________________________

For more details see website
http://agebb.missouri.edu/mgt/budget/index.htm

Prepared by Melvin Brees, Ag. Economist, FAPRI, and
Joe Horner, Ag. Economist, Dairy and Beef.
________________________________________________________________________

Projected Budget for Raising Replacement Beef Heifers in 2008

Description of Production: Buy 540 lb. heifer calves, sell bred heifers at 1200 lbs. Heifers owned for 13 months.
Pasture-based operation for growing a quality beef replacement cow.
                                                         Your Estimate
ESTIMATED INCOME/COW
 Heifer sales:
  Bred heifer, springer (0.88 head x 1,200/hd) $1,056.00  $____________
  Cull heifer (0.05  head x $540/hd.)              27.00   ____________
  Yearling heifer (0.075 head x $750/hd)           56.25   ____________
 Less cost of purchased heifer calf
          (540 lbs. @ $105/cwt.)                  567.00   ____________
 Less death loss (1% of market animals)            11.39   ____________
                                               _________
   ESTIMATED TOTAL INCOME/COW                    $560.86  $____________

ESTIMATED OPERATING COSTS/COW
 Summer Pasture (5.58 AUMs @ $8/AUM)               44.64   ____________
 Mixed hay (2,925 lbs. @ $75/T.)                  109.69   ____________
 Corn (5.89 bu. @ $3.92/bu.)                       23.09   ____________
 Protein supplement (330 lbs. @ $260/T.)           42.90   ____________
 Minerals and salt (104 lbs. @ $400/T.)            20.80   ____________
 Labor (5 hrs. @ $11/hr.)                          55.00   ____________
 Veterinary, drugs, and supplies                   25.00   ____________
 Marketing                                         34.00   ____________
 Breeding cost                                     30.00   ____________
 Utilities and all machinery costs                 90.01   ____________
 Livestock facility repairs                         8.00   ____________
 Professional fees (legal, accounting, etc.)        2.00   ____________
 Miscellaneous                                      4.00   ____________
 Operating interest (1/2 of selected
      operating costs @ 8%)                        68.39   ____________
                                               _________
           Total Operating Costs                  557.52  $____________

ESTIMATED OWNERSHIP COSTS/COW
 Depreciation on livestock facilities            $  8.45  $____________
 Interest on livestock facilities                  11.11   ____________
 Insurance and taxes on capital items              11.09   ____________
                                                 _______
      Total ownership costs                      $ 30.65  $____________
                                               _________
ESTIMATED TOTAL COSTS/COW                        $588.17  $____________

________________________________________________________________________

    Income over Operating Costs                  $  3.34  $____________
    Income over Total Costs                    - $ 27.31  $____________
________________________________________________________________________

    Total cost per head per day                    $1.51  $____________
    Springer heifer breakeven price, $/head    $1,231.03  $____________

________________________________________________________________________

For more details see website
http://agebb.missouri.edu/mgt/budget/index.htm

Prepared by Melvin Brees, Ag. Economist, FAPRI, and
Joe Horner, Ag. Economist, Dairy and Beef.
________________________________________________________________________

green line

[ AgEBB ] - [ Farm Management ]