Cow depreciation is frequently the second or third largest expense to the cow-calf enterprise after feed. Depreciation is a non-cash expense that is often overlooked by cow-calf producers.

Depreciation for a cow is calculated as the following:

Purchase Price or Replacement Cost – Salvage Value/Productive Years in the Herd

To demonstrate how significant this expense can be, examine an example of current bred replacement heifer prices against today's cull cow values.

Common mullein is becoming an increasing concern to grassland managers as the aggressive forb spreads from old fields, abused areas, and rights-of-way to grasslands. Woolly leaves complicate control by discouraging grazers and obstructing herbicide contact. Although seeds are not produced until the second growing season (the first year’s growth is only a vegetative rosette and does not produce a stalk or seed head), this yellowed flowered biennial is a prolific seed producer with each plant producing over 175,000 seeds and each seed remaining viable for over 100 years.

Corn residue is an outstanding forage resource for wintering cows, but is also an option for backgrounding calves or growing heifers. Given the typical rental rates for corn residue and the cost of distillers’ grains, these two feed resources together make one of the lowest cost growing rations. To understand why distillers’ grains are such a good supplement for growing calves, one must first understand a little about how protein is used in ruminant animals.

An economic analysis of annual cow costs in Nebraska shows that feed cost represents approximately 40-70% of all costs when labor and depreciation are included. An economic analysis values owned pasture and raised feed at market value. The cows are asked to pay fair market value for both grazed and fed feed. When pasture, cornstalks and hay are calculated in at market value, feed costs for the cow herd can easily be north of $550 per cow.