Table 1 summarizes estimated costs for a well-managed spring-calving cowherd for Every operation is different, so producers should evaluate and modify these estimates to fit their situation. Calves are assumed to be weaned and sold at an average weight of lbs. Producers who consistently apply larger amounts of fertilizer to pasture ground would see much higher pasture maintenance costs.
The pasture stocking rate is assumed to be 2. Stocking rate impacts the number of grazing days and winter feeding days for the operation i. These spring calving cows will use 2. Breeding stock depreciation and interest are major costs that are often overlooked. They are generally not cash costs that need to be paid on a yearly basis, unless you have a loan on them, but they are real costs that need to be paid at some point. The average yearly depreciation is calculated as follows:.
The actual depreciation will vary across farms. When buying bred replacement heifers, the initial heifer value is clear. With farm-raised replacements, this cost should be the revenue foregone had the heifer been sold with the other calves, plus all expenses incurred feed, breeding, pasture rent, etc. At first glance, this positive return looks impressive, but is also misleading.
A number of costs were intentionally excluded because they vary greatly across operations. Notice also that labor and land costs were also not included. Thus, the gross return needs to be adjusted by these costs to come up with a true return to the farm. Related Beyond the spice rack: Oregano and calves Dairy calves use brushes for more than combing their hair Old heifer-raising ideals may not be the way of the future. Pursuits of passion In early October, I took time off from my regular occupation to help set up Zuleger uses Air Force experience to advocate for dairy policy Integrity first.
Service before self. Excellence in all we do. Sounds like Just dropping by What happened? Serving Dairies Nationwide. Subscribe for free. Dairy Poll. For the profitability of your dairy farm, which of the following is the most important function of your herd's gut health in Progressive Dairy. Mission Statement. The first step in calculating UCOP is to have accurate production and financial records. These records do not have to be complicated, but they need to be accurate and thorough.
If current management and information systems don't provide the data to run this type of analysis, consider making changes that will provide the records needed.
Unit Cost of Production takes into account both product produced and input costs. Knowing UCOP allows a manager to look forward utilizing both present and projected input costs with production numbers to make informed decisions. Cow-calf producers who know UCOP numbers and understand the interaction between costs and production can implement strategies to effectively manage resources to meet business and personal goals.
As with most things in life, the first few times you do something, you make mistakes and through the process learn how to get better. The first time someone learns to drive, there is going to be gears grinding, lurching and jerking, and some killed engines. There also is likely going to be some parent or adult with more gray hair or perhaps less hair in the process! Learning how to calculate UCOP is a similar process for cow-calf producers who have never done it before.
The first few times through the mental gears will be grinding and there will be frustration along the way.
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