Embed Size (px)
Citation preview
1
Aaron BergerNebraska Extension Educator
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?
2
Aaron BergerNebraska Extension Educator
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.
3
Aaron BergerNebraska Extension Educator
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
4
Aaron BergerNebraska Extension Educator
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
5
Aaron BergerNebraska Extension Educator
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
6
Aaron BergerNebraska Extension Educator
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?
7
Aaron BergerNebraska Extension Educator
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.
8
Aaron BergerNebraska Extension Educator
UNIT COST OF PRODUCTION
• Combines both input costs and
production
• Measures impact/benefit of inputs
Unit Cost of Production
UCOP = Cost
Units Produced
9
Aaron BergerNebraska Extension Educator
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
10
Aaron BergerNebraska Extension Educator
TOP 3 COSTS FOR
MOST RANCHES?
• Feed
• Labor and Equipment
• Cow Depreciation
$$ Revenue
Direct Costs
OverheadCosts
11
Aaron BergerNebraska Extension Educator
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
12
Aaron BergerNebraska Extension Educator
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?
13
Aaron BergerNebraska Extension Educator
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?
14
Aaron BergerNebraska Extension Educator
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
15
Aaron BergerNebraska Extension Educator
CONTACT INFORMATION
Aaron Berger
308-249-6605
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.
