Timely Topic


2006 Costs and Returns for U.S. Cow-Calf Producers

Cattle-Fax® recently published its annual Cow-Calf and Stocker Survey, which was conducted in January, 2007. Following is a brief summary.

• Average cow-calf profit was down slightly in 2006 from the peak in 2005. However, it was the eighth year in a row in which the majority of the respondents were profitable. Profit on calves sold at weaning was $100 or more for 51% of producers, $25 to $100 for 35% of producers, and $25 or less for 14% of producers.

• Annual average cash cost to run a cow increased by $15/head, from $351 in 2005 to $366 in 2006.

• Feed costs accounted for approximately 62% of total cash costs at $226/cow.

• Operating costs which include labor, vet/medicine, interest expense (excluding land), and other supplies were $1/head lower than in 2005 at $136/head.

• An operation with an average cow cost of $366/head and a weaning percentage of 85% equates to a breakeven calf price of $78/cwt.

• Average steer weaning weight was 563 lb, which was 17 lb lower than in 2005, largely due to dry conditions and short forage supplies throughout a large portion of the U.S.

[August 28th, 2007]


Dr. Rick Rasby, Professor of Animal Science
Animal Science, University of Nebraska - Lincoln, Lincoln, NE

 
Visitors' comments
The article did not provide enough data to tell if these profits were capable of being increased by better management or marketing. For the figures to mean anything to the reader the source[s] of the profits are required and a breakdown of the costs- I have been in the cow/calf business off and on for 20+ years and have never shown a profit.

John D. Basinger from AR, 2007-09-07 16:41:10
Since about 85-90% of the cattlemen in the US have 40 head or less, we need to consolidate our calves after pre-conditioning and grade and sell in lots at special sales. If this does not happen, then we will be out of business except for those that want a tax deduction. I am surprised that the Cattlemen Associations have not promoted this in a more meaningful manner.

John D. Basinger from AR, 2007-09-11 09:07:15
Print this article Post your comment Home     Back    


RSS Feed University of Nebraska - Lincoln Institute of Agriculture and Natural Resources Maintenance University of Nebraska - Lincoln Institute of Agriculture and Natural Resources