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Managing Your Cowherd: Strategies To Lower Cow-Calf Production Costs

Summary

The cash production expenses of U.S. cow-calf producers during the past two decades have nearly quadrupled. In order to cover this level of cash expenses per-exposed-cow with average calf-weaning weights of 550 pounds, the average producer would need to receive average calf-market prices of about $75 per hundredweight. When adjustments for weaning percent and allocations for depreciation, unpaid family labor and management, and the use of equity capital are included, the producer would need to receive average calf-market prices substantially greater than $75 per hundredweight. Therefore, when calf prices are well below $75 per hundredweight, it is absolutely essential that cow-calf producers know their production costs accurately and seek ways to control, manage, and reduce them.