What did it cost to run a cow on your operation this year?  

As the 2026 calf crop is weaned and the calendar year winds down, this is a good time for operations with spring calving herds to review what it cost them to produce a calf in the past year. What did it cost to run a cow? How do you calculate the costs? How do you value raised feed, labor, equipment, as well as replacement females grown on the ranch? These questions are frequently asked when the conversation of annual cow costs comes up. 

The Estimated Annual Cow Costs for Nebraska 2026 is a one-page sheet that producers can look at to compare their costs and see the resulting total to produce a weaned calf under current market conditions in 2026. This budget values all feed at market value, as well as labor, equipment, capital investment, and the market value of replacement heifers at weaning. The Center for Ag Profitability's Cattle Budgets are another interactive budget tool that producers can download in Excel and use to calculate their own cost of production based on location and herd size within the state.  When either of these tools is used and all expenses are tallied, the total surprises many cow-calf producers.  

Feed 

Upon examining this budget, feed is the first and most significant expense. For many cow-calf operations, grazed and harvested feed makes up 40 to 70% of annual cow costs. The value for grazed feed was higher in 2026, while the market value of harvested feed prices decreased if it was purchased in the fall of 2025 or early in 2026.  For harvested feed purchased when drought conditions developed, hay prices were double or triple what they were in 2026. In this budget, when all pasture and feed are valued at market price, including what is needed for replacement heifers and bulls, annual feed costs are well over $800 per cow unit! Current hay and protein prices will impact 2027 annual cow costs. 

Labor and Equipment 

Labor and equipment are steady to higher again in 2026.  When labor is valued at what it would cost to hire someone to do the work, and depreciation and expenses related to equipment ownership and operations are calculated, it frequently makes up 15 to 30% of the total annual cow costs. Insurance, repairs, maintenance, and operating expenses trended higher in 2026. 

Cow Depreciation or Replacement 

Whether replacements are raised or purchased, the costs associated with getting a bred female into the herd are significant.  The economic cost of getting a bred replacement into the herd in 2026 is higher than it was in 2025. When heifers are valued at market price at weaning and all costs from weaning to entering the herd as a bred female are calculated, this total frequently comes in as the third most significant cost in a cow-calf budget. In a typical herd where open or old cows are sold and then replaced with bred heifers, the cost to do this often is 15 to 30% of total annual cow costs.  A quick way to gauge the significance of cow depreciation is to examine the relationship between the market value of bred replacements entering the herd and the total value of cull cows leaving the herd, as well as those that died.  Assuming the cow herd maintains a constant head count, this value difference, divided by the number of cows in the herd, yields a current depreciation relationship value.     

Interest and Breeding Costs in 2026 

Interest, breeding, veterinary, marketing, and other costs often add up to 10 to 30% of total cow costs. Although often not as large as other cost categories, they still require monitoring and analysis. Interest rates have been generally steady over the last year to slightly higher. The Bank Prime Loan Interest Rate reported by the St. Louis Federal Reserve as of October of this year was 7.0%. This rate is what commercial banks typically charge customers who are deemed to be the lowest risk when lending money. The reported prime loan rate from March 2008 through July 2022 was never higher than 5.5%. For several years during that period, it was 4% or less. In terms of breeding expenses, bull sale average prices were generally higher on average in 2026 than they were in 2025. These increases impact breeding costs per cow not only in 2026 but in future years as well. 

Annual cow costs in Nebraska increased in 2026 and because of higher values for hay and protein supplements purchased this year to feed the cow herd in 2027, costs will likely be higher again next year. Cattle prices have been excellent for several years now. However, cow costs are rising rapidly as well. Margins are still good for the cow-calf sector, but continually increasing costs are concerning when looking at what it costs to produce a weaned calf today. 

Interviews with the authors of BeefWatch newsletter articles are available throughout the month of publication and can be accessed at https://go.unl.edu/podcast.  You can subscribe to the BeefWatch newsletter here: http://go.unl.edu/Beefwatch_subscribe. 

Estimated Annual Cow Costs for Nebraska 2026