Stocker/Feedlot Example Dr. Randy Harp

Land Cost $60 per acre (custom farming) $20 per acre (lease) Total = $80 per acre

Purchasing of Calves 360 $1.05 = $378/calf Processing costs/head = $20 Wormer Implant Hay/feed Ear tags Antibiotics Etc.

Purchasing of Calves cont. Death loss = $7.50 (2 % of 378#) Interest = $19 (10%of 380 X ½ year) Total cost per head = $ Includes purchase and processing cost Total cost – cost of the calf = $ $378 = cost of production = $126.5

Cost of Gain Cost of production /Total pounds of gain Pounds of gain = 150 days on pasture X 2.0 lbs of gain per day = 300 pounds $126.5/300 = $ cents per lb = cost of gain

Break Even Total cost/sale weight = Break Even Beginning weight + total gain = projected ending weight or pay weight = x.98 (2% shrink) = 647 (sale weight) /647 = $77.98 cwt or $0.78 per lb

Profit per head 647 (sale weight) x $0.90 = $ (projected pay price) $ $ = $77.80 per head If I had 500 head (death loss of 2%) = 490 $77.80 x 490 = $38,122 profit What did we leave out???????

Feedlot Example Purchase 700# $0.90 per lb 700 x 3% shrink = 679 x $0.90 = $ Processing and feedlot expenses = $350 medical, receiving, transportation, death loss interest, feed, yardage, etc. Purchase + costs = $630 + $350 = $980

Feedlot Example cont. Break Even = $980/final weight $980/1204 = $81.40 / cwt or $0.81 per lb Cost of gain = total cost/ total gain $350/504 = $69.44/cwt or $0.70 per lb Assume 3.5 lb per day ADG

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