Help with Break-even

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ruhtram

Well-known member
Joined
Oct 5, 2008
Messages
2,136
Location
Iowa
My friend is looking to get some cows. He found this break-even worksheet on line for crunching numbers to help with making more accurate decisions. He wants some help filling out the variable cost. He is looking for cows in the 1200-1400 lbs range. He is looking for what other cattlemen's pay for feed and how much they feed per cow.

The worksheet is added as an attachment

If you need more information I'll gladly find out! Thank you
 

Attachments

  • Fall 2012 Cow Breakeven.xls
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rf21970

Well-known member
Joined
Mar 10, 2010
Messages
134
Location
Middle TN
As a banker I can appreciate a good spread sheet and that certainly is a good 1. However, most ventures that won't work on envelop/or napkin break even analysis, certainly won't work when analyzed to the detail of this spread sheet. These costs can be so variable from one operation to the next and certainly geography plays a big role. To me this sheet is more useful to an existing producer that already knows what his real costs are for those inputs in his area. The link below says it costs about $500 to carry a cow 1 year in Coastal SC (first study I ran across). I suggest you find some similar stats for your area extension and start with that.

http://www.clemson.edu/extension/livestock/livestock/beef/beef_cattle_db/fact_sheets/bc_6003.html
 

leanbeef

Well-known member
Joined
Jan 7, 2012
Messages
944
Location
Tennessee
Yep...the $500 per cow is about what I've heard. Obviously, if you count opportunity costs of using the land you're running cows on
& other variable inputs, that figure will vary a lot. To figure a break even, you'll have to figure calf crop percentages, calf sale prices, & other factors you have some influence over, but not total control of. Starting out, I'd try to keep the formula as simple as possible and still account for as much as you can that will affect the bottom line. Extension office in your area would be a good place to start. You need input from people who know about the area where you are.
 
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