Case Study Inside the numbers of grazing economics.

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Presentation transcript:

Case Study Inside the numbers of grazing economics

Current Situation 60 acres of pasture with 15 acres of woods 30 cows continuously grazed - with average variable cow cost of $400 (includes pasture cost) and total annual fixed cost of $3,000 (includes facilities and cow replacement). 85% calf crop weighing 500 lbs. Calves sell for $1.25 per pound or $125/CWT.

Questions Total annual revenue? Total Annual Variable Costs (TVC), Total Annual Fixed Costs (TFC), Total Costs (TC)? Total annual profits? Breakeven calf cost VC? TC?

Possible Choices Add cross-fencing and rotational grazing. Consider planting winter annuals and custom hiring baleage. Plant winter annuals, buy baleage equipment for our farm and do custom work. Plant legumes or other alternative forages. Others??