Stocktalk Calculating Profitability in Manitoba Cattle Industry May - - PowerPoint PPT Presentation

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Stocktalk Calculating Profitability in Manitoba Cattle Industry May - - PowerPoint PPT Presentation

Mar 20, 2023 408 likes •879 views

Stocktalk Calculating Profitability in Manitoba Cattle Industry May Ben Hamm Farm Enterprise Management Specialist November 2018 Cow-Calf COP - Input Assumptions 1. This budget outlines the cost of production for a cow-calf operation. 2.

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May

Stocktalk

Calculating Profitability in Manitoba Cattle Industry

Ben Hamm Farm Enterprise Management Specialist

November 2018

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Cow-Calf COP - Input Assumptions

1. This budget outlines the cost of production for a cow-calf operation. 2. Buildings and equipment are valued at new cost. 3. All feed is purchased. 4. Manure removal is contracted out. 5. Replacement heifers are valued at fair market value 6. This budget assumes an average weaning weight of 575 lbs. (steer calves 600 lbs and heifer calves 550 lbs.)

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274.96

  • 202.63

239.27

  • 30.90
  • 250
  • 150
  • 50

50 150 250 350 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 DOLLARS PER CALF YEAR

MANITOBA BEEF CATTLE BACKGROUNDING 500-900lb STEERS, ESTIMATED RETURNS, 1997-2017E

Margin after Operating and Labour Average

Data Source: Canfax, Manitoba Agriculture

  • 30.90

Manitoba Agriculture, Market Intelligence 2018-02-05

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Input Assumptions

  • This budget outlines the cost of production for

backgrounding cattle.

  • 500 hd steers
  • Buildings and equipment are valued at new cost.
  • All feed is purchased in at fair market value- allows

costs to only be allocated to backgrounding enterprise

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Cost Breakdown

  • Operating
  • Fixed costs

– Depreciation – Investment

  • Labour
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Feeding Options

  • Barley Silage
  • Corn Silage
  • Alfalfa Grass
  • Rate of Gain options
  • 1.5
  • 2
  • 2.5
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Corn Silage Ration

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Feed Prices

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Take Home Message

  • Take out the risk with BRM Programs

– Western Livestock Price Insurance – Agristability and Agriinsurance

  • Doing your cost of production for your own farm is the starting point for profitability-These

tools will Calculate

  • Total cost, Breakeven purchase price, Breakeven selling price, and cost per lb of

gain sold

  • Get a nutritionist to balance a ration to get the desired gains
  • Each year is different! Profitability and risk is dependent on the relationship between

yield/price/costs with your financial situation. (Plan for Prosperity)

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Tools and Calculators https://www.gov.mb.ca/agriculture/farm-management/production-economics/cost-of-production.html

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Questions?

Contact me:

Ben Hamm Farm Enterprise Management Specialist 204-392-9350 benjamin.hamm@gov.mb.ca https://www.gov.mb.ca/agriculture/farm-management/farm-business- management-contacts.html