Production Costs Hints
UW Extension Livestock Team
Statewide Cow/Calf Seminars 2008
Production Cost Hints

Cow-calf Profitability is influenced by 4
factors

1. Yearly cost of keeping a cow

2. Number of cows exposed at breeding that calf

3. Weaning or yearling weight of calves

4. Price received for calves and cull cows
Production Cost Hints

Feed costs are the biggest expense a
cow-calf producer has to wean a calf
Production Cost Hints


Feed costs are the biggest expense a
cow-calf producer has to wean a calf
In most studies of cow-calf operations
feed cost range from 55% to 80% of
total costs
Production Cost Hints



Feed costs are the biggest expense a
cow-calf producer has to wean a calf
In most studies of cow-calf operations
feed cost range from 55% to 80% of
total costs
Of total feed cost the biggest variation
between operations was in winter feed
charges
Production Cost Hints

Our “CHALLENGE” is to reduce feed
charges without affecting cow body
condition and future reproductive
performance
Production Cost Hints


In Wisconsin the period of time we have
to winter feed is December 1st –May15th
or 165 days.
Production Cost Hints

In Wisconsin the period of time we
have to winter feed is December –April
or 165 days.

During this period we have frozen
ground and often have snow cover or
mud
Production Cost Hints

Ask Yourself these questions:




Do I have adequate feed in storage for
winter feeding?
Have I pre-purchased feed when prices
were low?
Have I looked at energy and protein costs
of various feeds and compared them for
value?
Have I stockpiled forage for winter
Grazing?
Production Cost Hints
We enter spring with excess soil moisture
Production Cost Hints

Reduce Inventory Early





Sell Older Cows
Sell heavier feeders
Early Wean Calves
This reduces pressure
on pastures
Do this before your
neighbor since prices
decline rapidly in dry
areas where forced
inventory reduction
occurs
Production Cost Hints

Market Stockers Early





Reduce by choice
Animals still gaining
Price is still favorable
Buyers attitudes still good
Sort off cattle by weight


Let current price determine the
ones to sell (light vs. heavy
Early Wean Calves



Reduces Cows Forage Needs
Calves more efficient if fed direct
Gives you larger window to
market calves
Production Cost Hints

Have A Written Plan


Include the Actions
you need to take to
deal with Rising
production costs or
drought
Keep it Simple and
easy to implement
Production Cost Hints
Know Your Hay Needs
30 lbs per day x 165 days=4,950 lbs
4,950lbs/850 lbs=6 round bales per cow
Production Cost Hints
Winter Grazing to Reduce Feed Cost:
1. Corn Stalk Grazing
a. Average 5000 lbs. of residue in
irrigated corn fields
b. Average 2500 lbs. of residue in
dryland corn fields
c. Primary difference is leaf loss
Production Cost Hints
Rotational Grazing
1. Pastures are subdivided into
smaller areas (paddocks)
2. A portion of the pasture is grazed
Lane
while the remainder “rests”
Rest allows pasture to:
• Recover from grazing,
• Rebuild energy reserves & plant
vigor
• Increase forage production by 30%
Strip Grazing in Fall
Production Cost Hints
Graze stockpiled Forage:
Alfalfa-hay fields for last harvest
Rested cool season grasses (July-Oct rest)
Warm season grasses
Wheat, oats,rye, or barley planted in Aug/Sept
Sudan grass, pearl millet, forage sorghum seeded
in July
Date
August 1
Species
1993
1994
Mean
Buckwheat
2165
1340
1753
Sorghum-sudan
496
2917
1707
Annual ryegrass
2394
1206
1800
Forage brassica
4065
2588
3327
Oat
1867
3013
2440
2197
2213
2205
Buckwheat
1778
1716
1747
Sorghum-sudan
650
2934
1792
Annual ryegrass
1994
2918
2456
Forage brassica
2895
3026
2961
Oat
2365
2471
2418
1936
2613
2276
Buckwheat
0
368
184
Sorghum-sudan
0
0
0
Annual ryegrass
1179
1245
1212
Forage brassica
561
1826
1194
Oat
1161
2050
1606
580
1098
839
306
598
Mean:
August 15
Mean:
September 1
Mean:
LSD (0.05)*
Production Cost Hints

Stand Ability for various forages






Tall Fescue-good
Timothy-good
Orchard grass-fair
Brome grass-poor
Alfalfa-fair
Red clover-poor
Big Bluestem-good
Little Bluestem-good
Switchgrass-good
Indian grass-fair
Production Cost Hints

Consider Windrowing late in season



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
Allows you to windrow graze
Cows will harvest the crop in the field
Manure will remain in the field
Requires electric fencing or snow cover
Provide only what the cows will eat in a
week
Production Cost Hints

What about direct feeding



Must meet the cows energy and protein
requirements
Can be done with hay, silage and various
grains including byproducts
Need to make sure you have adequate
bunk or feeder space
Production Cost Hints

Consider Byproduct Feedstuffs


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Distillers Grain
Brewers Grains
Wheat Mids
Grain Screenings
Cannery Waste(Sweetcorn,carrots)
Potatoes
Production Cost Hints

Take advantage of lowest commodity
prices based on energy and protein




Corn at $5.00/bushel is 9 cents per lb
(one lb of corn has the energy of 2 lbs of hay)
Oats at $3.50/bushel is 10 cents per lb
Round bales at $40 each(assume 3/ton
equals $120 per ton) are 6 cents per lb at
$200 per ton the cost is 10 cents per lb or
$65 per bale
Soybeans are $12 per bu. or 20 cents per
lb
Production Cost Hints

Needs of 1100 lb cow last 1/3 of
pregnancy


10.3 Mcals of energy
1.6 lbs of crude protein
Production Cost Hints

Needs of 1100 lb cow last 1/3 of
pregnancy


10.3 Mcals of energy
1.6 lbs of crude protein
Needs of 1100 lb cow first 4 months
after calving


15 Mcals of energy
2.6 lbs of crude protein
Production Cost Hints
Feed Values of Common Feeds
% DM
Mcal/#
% Protein
Alfalfa
90
.94
16
Brome
89
.80
11
Orchard
88
.85
11
Straw
91
.70
4
Oats
89
1.3
12
Corn
88
1.5
9
Production Cost Hints


For our examples we will use 1100 lb
cow
If your cows are lighter or heavier you
will need to reduce or add addition
feed
Production Cost Hints

Balance a ration using values from
table and cow needs for energy and
protein

Ration 1: corn, alfalfa hay

8 lbs of corn provides-8.2 Mcals and .7 lb
protein
Production Cost Hints

Balance a ration using values from
table and cow needs for energy and
protein

Ration 1: corn, alfalfa hay


8 lbs of corn provides-8.2 Mcals and .7 lb
protein
Still need energy and protein from hay
Production Cost Hints

Needs:
10.3 Mcal
Have:
Need
1.6 lb protein
8.2 Mcal
.7 lbs protein
2.1 Mcal
.8 lbs protein
Production Cost Hints

Alfalfa Hay: Provides= .94 Mcal and 16
%

Need: 2.1 Mcal and .8 lbs protein
To meet Energy needs we need 2.3
lbs of hay(2.1divided by .94) but this
will be short protein(2.3 x .16=.1/3 lb)
so we feed 3 lbs of hay

Production Cost Hints

Alfalfa Hay: Provides= .94 Mcal and 16
%

Need: 2.1 Mcal and .8 lbs protein
Balance for protein
.8 divided by 16%=5 lbs of hay
This will meet protein needs and
exceed energy(5 lbs x .94=4.7 Mcal)

Production Cost Hints

COST on a Daily Basis



8 lbs corn at $.09=$..72
5 lbs hay at $.06===.30
Total cost
$1.02 per day
Allow for 10% waste and DM conversion
$1.02 x 110%= $1.12 per day
Production Cost Hints

If daily feed charges are $1.12 and we
feed for 165 days our winter feed costs
are:

165 x $1.12= $184 for the feeding
period

We still need to add the cost of mineral
and salt but we have accomplished our
goal with winter feed costs
Production Cost Hints

All Hay diet:


Standard cow winter ration
Feed 20 lbs of alfalfa/grass hay per
day(.85Mcal of energy and 13 5 protein)
Provides 17 Mcal or energy
Provides 2.6 lbs protein

However, feed free choice most cows
consume 30-35 lbs of hay per day
Production Cost Hints

Hay exceeds needs for energy and protein
even allowing for waste

Cost at $120/ton is $.06 per lb or $1.20 per
day or $198 for the winter feeding season.

However, fed free choice cows consume 30
lbs or more per day

The secret limiting consumption to 20 lbs
Production Cost Hints
Cows Waste by eating over the top
and throwing hay out
Keep Feeders as high as possible
Production Cost Hints

Use round bale feeders or cone
feeders

Weigh your hay bales and limit amount
fed to 20 lbs

Limit access to free choice hay to 8
hours per day