COW RECORDS AND COST OF PRODUCTION KEEP IT SIMPLE! Records.pdf · COST OF PRODUCTION KEEP IT...

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Aaron BergerNebraska Extension Educator

aberger2@unl.edu

COW RECORDS AND

COST OF PRODUCTION

KEEP IT SIMPLE!

QUESTIONS TO ASK WHEN KEEPING RECORDS

• Why do we keep these records?

• What value does it provide?

• Does value exceed cost & effort?

• Could it be made more simple?

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Aaron BergerNebraska Extension Educator

aberger2@unl.edu

INDIVIDUAL COMMERCIAL COW PRODUCTION RECORDS

• Individual Id. Visual/Electronic

• Way to Record Information

–Cow Carries Record

–Electronic or Paper Option

COW CARRIES RECORD

• Individual Identification

• Color codes, Number sequence

• Tags, Tag Notches, Ear Notches,

Clips, etc.

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Aaron BergerNebraska Extension Educator

aberger2@unl.edu

PAPER OR DIGITAL RECORD

• Cow Record Software

• Cloud Based Software

• Spreadsheet Tools

• Clipboard and Paper

DATA THAT IS OFTEN RECORDED

Cow Age

Cow Location

Calf Birth Date

Calf Delivery Score

Sex of Calf

Calf Birth Weight

Calf Delivery Score

Calf Weaning Weight

Health Issues

Udder Score

Cow Attitude @ Calving

Breeding Date

Pregnancy Status

Cow BCS at Weaning

Cow Weight at Preg Test

Calf Weight as a % of

Cow Weight @ Weaning

Shedding Score

Location

Etcetera

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Aaron BergerNebraska Extension Educator

aberger2@unl.edu

QUESTIONS TO ASK WHEN KEEPING RECORDS

• Why do we keep these records?

• What value does it provide?

• Does value exceed cost & effort?

• Could it be made more simple?

INDIVIDUAL COW RECORDS

YOUR THOUGHTS?

Photo Credit – Troy Walz

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Aaron BergerNebraska Extension Educator

aberger2@unl.edu

WHOLE HERD RECORDS

• Cow Inventory

– Breeding, Weaning, Pregnancy Testing,

Calving, Herd Moves, Death Loss

• Pregnancy Rates

• Pregnancy Loss

• Calf Death Loss

COW RECORDS AND

COST OF PRODUCTION

Photo Credit Troy Walz

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Aaron BergerNebraska Extension Educator

aberger2@unl.edu

TIME TO RECORD INDIVIDUAL RECORDS

VERSUS VALUE TO THE BUSINESS

Accrual cost accounting by enterprise,

financial analysis and business planning

often has much greater value per hour

spent for commercial cow calf producers

than the keeping of detailed individual

cow records.

ECONOMIC ANALYSIS VS.

FINANCIAL ANALYSIS

Economics asks is it profitable?

Finance looks at the money and asks

how does it flow?

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Aaron BergerNebraska Extension Educator

aberger2@unl.edu

ECONOMICS ANALYSIS

Where is value being created?

Where do costs occur?

How could I capture more value?

Commodities are valued at market price

when they move between enterprises.

Takes into account opportunity costs.

FINANCIAL ANALYSIS

“It costs what it costs.” – Dick Whittman

Everything is tracked and booked at cost.

Enterprise analysis is done on a cost basis.

Commodities and goods move between

enterprises at cost.

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Aaron BergerNebraska Extension Educator

aberger2@unl.edu

UNIT COST OF PRODUCTION

• Combines both input costs and

production

• Measures impact/benefit of inputs

Unit Cost of Production

UCOP = Cost

Units Produced

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Aaron BergerNebraska Extension Educator

aberger2@unl.edu

TWO TYPES OF COSTS

• Direct Costs (Variable Costs)

• Health Products

• Feed and Supplements

• Overhead Costs (Fixed Costs)

• Labor

• Equipment

• Horses

• Buildings

WHAT ARE THE TOP 3 COSTS FOR MOST RANCHES?

Photo from agrisk.tamu.edu/agrisk/quickbooks/index.php

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Aaron BergerNebraska Extension Educator

aberger2@unl.edu

TOP 3 COSTS FOR

MOST RANCHES?

• Feed

• Labor and Equipment

• Cow Depreciation

$$ Revenue

Direct Costs

OverheadCosts

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Aaron BergerNebraska Extension Educator

aberger2@unl.edu

Most Management Decisions Influence UCOP!!!

Photo courtesy of USDA NRCSPhoto courtesy of USDA NRCS

Photo courtesy of USDA ARS

DIRECT COSTS AND THE POINT OF DIMINISHING RETURNS

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Aaron BergerNebraska Extension Educator

aberger2@unl.edu

EVERY DIRECT COST DOLLAR INTO THE COWS, SHOULD

RETURN MORE THAN A DOLLAR!

MOST OPERATIONS HAVE MORE THAN ONE ENTERPRISE.

WHAT ENTERPRISES ARE PART OF YOUR OPERATION?

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Aaron BergerNebraska Extension Educator

aberger2@unl.edu

Break the Ranch into Enterprises

Photo courtesy of USDA NRCS Photo courtesy of CaseIH.comPhoto courtesy of USDA NRCS

Photo courtesy of USDA NRCS

Photo courtesy of USDA NRCS

Photo courtesy of USDA NRCS

VALUE IN KNOWING UCOP

Planning and Projecting

• What are my costs going to be?

• What are prices expected to be?

• What can I influence and

change?

• Where are points of leverage?

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Aaron BergerNebraska Extension Educator

aberger2@unl.edu

UCOP SUMMARY THOUGHTS

• UCOP is valuable for decision making

• Most decisions influence UCOP

• Production records and enterprise

analysis is needed for UCOP

• UCOP should be used with a systems

approach to decision making

2020 UCOP WORKSHOPS

ARE BEING SCHEDULED

Photo Credit Troy Walz

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Aaron BergerNebraska Extension Educator

aberger2@unl.edu

CONTACT INFORMATION

Aaron Berger

308-249-6605

aberger2@unl.edu

Extension is a Division of the Institute of Agriculture and Natural Resources at the University of Nebraska–Lincoln cooperating with the

Counties and the United States Department of Agriculture.

University of Nebraska–Lincoln Extension educational programs abide with the nondiscrimination policies of the University of Nebraska–

Lincoln and the United States Department of Agriculture.