search.noResults

search.searching

dataCollection.invalidEmail
note.createNoteMessage

search.noResults

search.searching

orderForm.title

orderForm.productCode
orderForm.description
orderForm.quantity
orderForm.itemPrice
orderForm.price
orderForm.totalPrice
orderForm.deliveryDetails.billingAddress
orderForm.deliveryDetails.deliveryAddress
orderForm.noItems
MidAmerica Farm Publications


19 N. Main, Perryville, MO 63775 www.mafg.net


573-547-2244 • FAX 573-547-5663 The MidAmerica


Farmer Grower


(ISSN 1040-1423) is published weekly by MidAmerica Farm Publications, Inc., 19 N. Main, Perryville, MO 63775. Periodical postage is paid at Cape Girardeau, MO 63701.


POSTMASTER: Send address changes to Circulation Manager, MidAmerica Farmer Grower, P.O. Box 323, Perryville, MO 63775.


PUBLISHER / EDITOR: John LaRose, Jr. publisher@mafg.net


CUSTOMER SERVICE: Robin Moll rmoll@mafg.net


EDITORIAL DIRECTOR: Barb Galeski editor@mafg.net


SENIOR STAFF WRITER: Betty Valle Gegg-Naeger editor@mafg.net


ASSOCIATE EDITOR: Regina LaRose


GRAPHIC / WEB / PRODUCTION MANAGER: Renee McMahill production@mafg.net


MARKETING STRATEGIST/ Sales Department:


advertising@mafg.net Fax (573) 547-5663


Bonnie Riehn (573) 547-2244 briehn@mafg.net


Cow-Calf And Stocker Cattle Budgets E


DR. ANDREW P. GRIFFITH


KNOXVILLE, TENN.


ach year, we (i.e. me and a col- league under the


umbrella of the Uni- versity of Tennessee Extension) develop a cow-calf and stocker budget. This budget


is developed primarily with Tennessee producers in mind, but the Microsoft Excel versions are flexible enough to meet the needs of most any producer in the United States. Additionally, the stocker budget is such that any mar- gin operator could use it for a profit or loss projection or a break-even analy- sis. Heading into the second month of


the year appears to be a good time to report on general cost and revenue ex- pectations for cow-calf operators while also discussing variability in budgets across producers. In order to lay the groundwork, it should be noted that a budget is generally used for planning purposes and then to evaluate the fi- nancial success of the plan. Addition- ally, it is important to know that the values expressed in the base budget and discussed here are not specific to any operation. They are more of an outline to assist users of the budget to account for all possible expenses and revenues that may be experienced. Given the developed cow-calf budget ( O n


l i n e :


https://arec.tennessee.edu/exten- sion/budgets/), total expenses to carry a cow in 2021 are estimated to be $965 per cow with $624 of those dollars being variable expenses and the remainder being fixed expenses. Of the $624 per cow of variable expenses, $422 per cow is consumed by pasture and hay expenses. Thus, pasture and hay expenses make up nearly 68 per-


cent of expected variable expenses. The remaining variable expenses are made up of supplemental feed, salt and mineral, animal health, labor, marketing fees, and interest. It is im- portant to note that labor is assumed to be $80 per cow, because everybody wants to get paid for the work they do and interest on production expenses is assumed to be 6 percent, which means someone who is not borrowing capital is expecting to earn a 6 percent return on their investment. Fixed expenses in the base budget


example total $341 per cow and are comprised of working facilities and equipment, machinery and associated equipment, and purchased breeding stock. These costs are important to in- corporate into a budget, because all of these items require an initial invest- ment, depreciate, and eventually have to be replaced. And, the last time I checked, money does not grow on trees and $100 bills do not fall out of the south end of a north bound cow. (There is value in trees and what falls out of the south end of the cow, but that is another discussion.) Revenue estimates for 2021 are $630


per cow. This assumes a 90 percent calf crop, a 2 percent death loss, and steers (550 lb) and heifers (520 lb) sold at weaning. Based on the stated rev- enue and expenses, the return to vari- able expenses is $6 per head, but that also means a producer who does not borrow capital and does not pay out of pocket labor expenses would have a return of $103 per cow to labor, capi- tal, and management. This return does not consider fixed expenses. With certainty, there are a number of


producers reading this that are saying their costs are much lower than what is being estimated in the base budget. This thought may or may not be true. The first thing to do is to access the Excel based budget or pdf budget from the weblink listed earlier or the county Extension office and develop a budget to determine the spe- cific costs on an operation. It is clear through the budget we developed that managing pas- ture and hay costs could re- sult in a better return to the cattle operation. Similarly, managing fixed expenses can also contribute positively to the bottom line of the budget. The baseline budget is not


NOTICE TO PAID SUBSCRIBERS: NO FREE CLASSIFIEDS ARE ACCEPTED BY TELEPHONE


REGULAR SUBSCRIPTION COST FOR: AR, IL, IN, KS, KY, LA, MO, MS, OK, TN, TX


Outside of the United States $120.00 CALL FOR DISCOUNTED PROMOTION


2 yrs. (104 issues) $33.00 3 yrs. (156 issues) $45.00


1 yr. (52 issues) $19.00


REGULAR SUBSCRIPTION COST FOR ALL OTHER STATES: 1 yr. (52 issues) $24.00 2 yrs. (104 issues) $36.00 3 yrs. (156 issues) $48.00


MAIL SUBSCRIPTION TO: Subscription


MidAmerica Farmer Grower P.O. Box 323


Perryville, MO 63775


meant to represent all produc- ers nor is it likely to represent any single producer. The baseline budget is constructed to lead others through the budget building process such that the budget an individual builds is specific to that oper- ation. Through this process, a producer will be able to evalu- ate costs that need to be man- aged and what price they will need to receive to achieve a desired profit in the cow-calf business. This is a stepping stone to becoming a better fi-


LETTERS TO THE EDITOR Letters to the Editor are requested and encouraged. Please include the writer’s name, address and daytime phone number. Letters should be sent to: Editor, MidAmerica Farmer Grower, P.O. Box 323, Perryville, MO 63775; faxed to 573-547-5663 or e-mailed to editor@mafg.net. Letters will be edited for space and clarity.


4• MidAmerica Farmer Grower www.mafg.net / January 15, 2021


nancial manager of the cattle opera- tion. This is not a unicorn pooping gold coins.


∆ DR. ANDREW P. GRIFFITH: Assistant


Professor, Department of Agricultural and Resource Economics, University of Tennessee


Focus Group Sessions Pinpoint


R


Farming Stressors STARKVILLE, MISS.


esearchers from the Mississippi State University Extension Serv- ice are looking to collect row-crop


farmers’ feedback on stress related to farming. The focus group sessions are part of


the MSU Extension opioid prevention campaign PReventing Opioid Misuse In the SouthEast, or the PROMISE Initia- tive. Participation involves answering a se-


ries of questions about farming, stress related to farming and the opioid epi- demic. If a row-crop farmer agrees to participate in a focus group, the total time commitment will be two hours. The focus group meetings will be held


Jan. 28 at the MSU Extension Coa- homa County office in Clarksdale and the MSU Delta Research and Exten- sion Center in Stoneville, and Feb. 2 at the MSU North Mississippi Research and Extension Center in Verona. The sessions in Clarksdale and Verona will begin at 8:30 a.m. The Stoneville ses- sion starts at 12:30 p.m. A meal will be provided at each loca-


tion. Participants will also receive a Yeti tumbler for their participation. Face coverings and social distancing will be required at each site. The MSU Extension Coahoma


County office is located at 503 East 2nd St. in Clarksdale. The Delta Re- search and Extension Center is at 82 Stoneville Road in Stoneville. The North Mississippi Research and Exten- sion Center address is 5421 Miss. Highway 145 in Verona. To participate in one of the focus


groups or learn more, contact Mary Nelson Robertson, PROMISE Initiative project manager, at 662-325-4447 or mnr72@msstate.edu.


Participants


must be at least 18 years old. This project is supported by the


Rural Health and Safety Education Competitive Grants Program of the U.S. Department of Agriculture’s Na- tional Institute of Food and Agricul- ture, and the Substance Abuse and Mental Health Services Administration Rural Opioids Technical Assistance Grants. MSU is an equal opportunity institu-


tion. For disability accommodation, please


contact Robertson mnr72@msstate.edu.


ARTICLE REPRINTS For reprints of an article, copies of past issues or to obtain permission to reproduce material from MidAmerica Farmer Grower, call 573-547-2244 or email publisher@mafg.net


at ∆


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24