Factors%20Affecting%20Cow-Calf%20Costs,%20Production,%20and%20Profits

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Factors Affecting Cow-Calf Costs, Production, and
Profits
Clement E. Ward, Professor Department of
Agricultural Economics Oklahoma State University
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Objectives

• Identify factors affecting cow-calf costs,
  production, and profitability
• Note This research was conducted by Ruslyn
  Ramsey under the direction of Damona Doye with
  assistance from Clem Ward

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Data

• Standardized Performance Analysis (SPA) data
  compiled by Texas AM University
• 394 cowherd observations in Texas, Oklahoma, and
  New Mexico from 1991-2001

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Results Figures

• The following figures show the percentage of
  cowherd observations by various factors

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Cowherd cost per hundredweight(pretax, before
non-calf revenue adjustment)
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Pounds weaned per exposed female
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Percent return on assets
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Cowherd size(beginning fiscal year breeding cow
inventory)
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Real estate investment per cow(land and
improvements)
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Machinery and equipment investment per cow
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Livestock investment per cow
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Purchased or raised feedper breeding cow
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Calving percentage
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Calving death loss(based on exposed females)
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Breeding season length
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Conclusions

• Factors increasing cow-calf costs
• Investments in real estate, machinery and
  equipment, and livestock Pounds of feed fed
  Calf death loss
• Factors leading to lower costs
• Larger cow herds Higher calving percentage
  Shorter breeding season

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Conclusions(continued)

• Factors increasing cow-calf production
• Investments in livestock Higher calving
  percentage
• Factors decreasing production
• Calf death loss Longer breeding season

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Conclusions(continued)

• Factors increasing cow-calf profits
• Larger cow herds Higher calving percentage
• Factors leading to lower returns
• Pounds of feed fed