by
Russell Tronstad & Trent Teegerstrom tronstad@ag.arizona.edu
520-621-2425
The University of Arizona
Dept. of Agricultural and
Resource Economics

Three Legs Supporting Cow-Calf
Industry
Animal Economics
Range

Economic Example: Restocking
• Biological Productivity
• Market Prices
• Initial Cattle Numbers
• Carrying Capacity of Range
• Financial Situation of Ranch

Biological Productivity
Market Prices

Capital Available
Biological Productivity
Initial Herd
Market Prices
Restocking Path

Grazing Capacity
Cumulative Returns

Monthly Cash Flow Summary
Total Cash Income & Expenses
Cash Inflow Cash Outflow
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$0
M onths

Herd Evaluator Worksheet

Herd Planning
-- Multi-Year Restocking Path (5 yrs)
-- 20-year returns in current dollars
-- Available AUYs

Multiyear Budgets
-- Cash production and management costs

Ranch Investments
-- Amortization of assets.

Short Ranch Finance Sheet

Cash Flow Analysis

Net Cash Position Chart

Balance Sheet
-- Change in owners equity.

Herd Production

Costs and Returns
-- Net Farm Income
-- Break-Even Values

Ranch Analysis Worksheet

Ranch Planning/Decision Analysis
-- evaluation of supplementation.
-- early weaning versus drylot

Diagnostic Tree Analysis
-- total ranch and per exposed cow

Herd Productivity by Age Cohort
-- category available to lump cows together if ages are unknown.

Overall Objectives
-- identify economic problem areas!!
-- critical control point analysis

Livestock Records:
Goods records are signals for where protocols/practices need to be altered or kept the same.

Livestock Records
Workbook: Hard copy pencil records
Excel spreadsheet: electronically record on own computer
Online Records: user password protected account.
+ Financial Records
+ Pasture Records / Animal Movements
+ Animal Events

livestockrecords.arizona.edu

Financial Ledger

Purchase Supplies

Modify Categories

Livestock Events

Association Report

Define Pastures

Assign to Pastures

Need Accurate Records from finances, range, and animal to make good management decisions.
Livestock Feed Assistance Programs.
AGR-Lite: Gross Revenue Based Insurance
+ premiums subsidized about 50%
+ 5 years of Schedule F tax returns
+ revenues and not higher expenses