Answer Key – Updated February 2013
Ag Decision Maker Activity
Livestock Budgeting
KEY
File B1-10
File B1-21
Name____________________________________
Complete the following Activity using information from Files B1-10.
1.
If a producer raises 3000 pigs in 2013, what would the projected range for
gross income be if he sold them at 250 pounds?
3000 pigs x 250 lbs. x $.85 = $637,500
3000 pigs x 250 lbs. x $.90 = $675,000
2.
If a producer plans to raise 3000 pigs in 2014, what would be their
approximate gross income if sold at 250 pounds and they received the
average price in that year?
3000 pigs x 250 lbs. x $.83 = $622,500
3000 pigs x 250 lbs. x $.93 = $697,500
3.
Based on projected barrow and gilt prices, what price could be expected for
sows sold in 2013?
$85 x 70% = $59.50
$90 x 70% = $63.00
Complete the following Activity using File B1-21 (pages 2,5,6,8)
4.
If you were considering purchasing 500 finishing feeder pigs, how many
hours of labor could you expect to spend caring for them?
.2 hours x 500 pigs = 100 hours
5.
If you were considering purchasing 500 feeder pigs, how many bushels of
corn could you expect to feed them?
9.0 bu. corn x 500 pigs = 4,500 bu.
Answer Key – Updated February 2013
Ag Decision Maker Activity Continued…
Livestock Budgeting
6.
File B1-10
File B1-21
Determine the number of sows that one person could care for in a total
confinement farrow-to-finish operation. Assume a 40 hour week, 50 weeks
per year and each sow in confinement farrows 2.2 times per year and each
sow on pasture farrows 1.9 times per year.
40 hours/week x 50 weeks/year = 2000 hours
6 hours per litter x 2.2 litters per sow = 13.2 hours per sow
2000 hours/13.2 hours per sow = 151.51 sows for one person
7.
Using the answer from the previous question, how many people would it take
to operate a 1200 sow farrow to finish operation?
1200 sows / 151.51 sows per person = 7.92 workers
8.
How many people would it take to operate the same 1200 sows in a farrow to
finish operation if it were in a pasture set up?
40 hours/week x 50 weeks/year = 2000 hours
12 hours per litter x 1.9 litters per sow = 22.8 hours per sow
2000 hours/22.8 hours per sow = 87.72 sows for one person
1200 sows / 87.72 = 13.68 workers
9.
How many bushels of corn would be used in a 1200 sow farrow to finish
confinement operation. (Assuming 2.2 litters per sow per year).
105 bushels per litter x 1200 sows x 2.2 litters per sow per year =
277,200 bu. corn
10.
If you have 600 acres of corn with a yield of 150 bushels per acre
and 2.2 litters per sow per year, how many sows in a farrow to finish
confinement operation could your corn acres feed?
600 acres of corn x 150 bushels per acre = 90,000 bushels of corn
90,000 bushels of corn / 105 bushels = 857 litters per year
857 litters per year / 2.2 litters/sow/year = 389 sows
Ag Decision Maker Activity Continued…
Livestock Budgeting
11.
File B1-10
File B1-21
If you have approximately 600 hours of available labor during the year, how
many head of steer calves on silage would you have time to take care of?
600 hours available / 3 hours per head = 200 head of cattle
12.
Based on the answer to the previous question, how many bushels of corn
would it take to feed those cattle?
200 head x 38 bushels per head = 7,600 bushels of corn
13.
How many head cow/calf operation (calves fed) would be considered full time
employment? (Assume 2000 hours available per year)
2000 hours / 10 hours per cow unit = 200 head
14.
What would it cost to build a 200 pig raised deck nursery with a pit?
$112 per pig x 200 pigs = $22,400
15.
What would it cost to build a 200 head double curtain finishing building?
$200 per pig x 200 head = $40,000
16.
If you purchased 30 pound pigs versus 50 pound pigs, how many extra days
will it take to get to market at 250 lbs?
50# hog raised to 250#s in 4 months gains 200 pounds.
4 months x 31 days = 124 days,
200 pounds/124 days = 1.6 pounds per day.
30# hog raised to 250#
250#’s minus 30#’s = 220 #’s, 220#’s / 1.6 #s per day = 138 days
138 days minus 124 days = 14 days
Ag Decision Maker Activity Continued…
Livestock Budgeting
17.
File B1-10
File B1-21
If you purchased 500 - 50 pound pigs and were trying to decide when to
sell them. Compare selling them at 240 pounds versus 260 pounds.
How many extra bushels of corn would it take to raise the group to 260?
9 bushels for 260 lbs. less 7.9 bushels for 240 lbs. = 1.1 bushels
1.1 bushels x 500 pigs = 550 bushels
How many extra tons of total feed would it take?
617 lbs. feed for 260 lbs. hogs less 547 lbs. for 240 lbs. = 70 lbs.
70 lbs. feed x 500 pigs = 35,000 lbs. extra feed
50,000 lbs. / 2000 = 17.5 tons
If feed costs 6.5 cents per pound, how much would the extra feed cost?
35,000 lbs. x 6.5 cents = $2,275 extra feed cost
Sale price is $30, should you sell at 240 or 260 (consider just feed costs)?
260 lbs. x .30 = $78
240 lbs. x .30 = $72
$78 less $72 = $6 per pig added income at 260 pounds
617 lbs. feed - 547 lbs. feed = 70 lbs. feed
70 lbs. x .065 = $4.55 per pig added feed cost at 260 pounds
At what market price should you consider feeding them to 250 pounds
(consider just the added feed cost?
$4.55 per pig added feed cost / 20 pounds = $22.75 per cwt.
What other factors may influence this decision?
market price trend, facility cost, other variable costs, pig flow,
labor availability etc.