KEY FACTORS CONTRIBUTING TO COW/CALF COSTS, PROFITS AND PRODUCTION

Abstract

Summary and Conclusions In this study, cow/calf Standardized Performance Analysis data was used to analyze cow/calf operations and how costs, production, and profitability were affected by management variables. Three models were estimated. All variables were significant in the cost model. Variables associated with increasing costs were pounds of feed fed, calf death loss, and investments in real estate, livestock, and machinery and equipment. Costs per hundredweight were negatively related to herd size, calving percentages, and length of breeding season. Thus, production and financial management both contribute significantly in explaining total costs. It was also shown that economies of size increased at a decreasing rate. For the percent return on assets model, only three variables had a significant effect. The beginning fiscal year breeding cow inventory and calving percentage increased the return on assets, while an increase in pounds of feed fed decreased return on assets. Though not statistically significant, a negative sign on investment in livestock was not expected. Pounds weaned per exposed female were significantly affected by four factors. Investment in livestock and higher calving percentages had positive impacts on pounds weaned while death losses and longer breeding seasons had negative impacts. While not statistically significant, unexpected results were that herd size had a positive impact on pounds weaned and that pounds of feed fed had a negative impact on pounds weaned. Overall, hypothesized variables best explained cow-calf production, followed by cost of production. There was less success in explaining returns to assets. SPA date thus