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Factors Affecting Cow-Calf Costs, Production, and Profits

Factors Affecting Cow-Calf Costs, Production, and Profits. Clement E. Ward, Professor Department of Agricultural Economics Oklahoma State University. Objectives *. Identify factors affecting cow-calf costs, production, and profitability

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Factors Affecting Cow-Calf Costs, Production, and Profits

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

  2. 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

  3. Data • Standardized Performance Analysis (SPA) data compiled by Texas A&M University • 394 cowherd observations in Texas, Oklahoma, and New Mexico from 1991-2001

  4. Results Figures • The following figures show the percentage of cowherd observations by various factors

  5. Cowherd cost per hundredweight(pretax, before non-calf revenue adjustment)

  6. Pounds weaned per exposed female

  7. Percent return on assets

  8. Cowherd size(beginning fiscal year breeding cow inventory)

  9. Real estate investment per cow(land and improvements)

  10. Machinery and equipment investment per cow

  11. Livestock investment per cow

  12. Purchased or raised feedper breeding cow

  13. Calving percentage

  14. Calving death loss(based on exposed females)

  15. Breeding season length

  16. 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

  17. Conclusions(continued) • Factors increasing cow-calf production – • Investments in livestock; Higher calving percentage • Factors decreasing production – • Calf death loss; Longer breeding season

  18. Conclusions(continued) • Factors increasing cow-calf profits – • Larger cow herds; Higher calving percentage • Factors leading to lower returns – • Pounds of feed fed

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