Ministry of Agriculture, Food and Rural Affairs

Budgets

These budgets focus on the economics of feeding cattle and features such things as calculating the total cost of gain, feed efficiency and net return/animal. The budget programs (which can be downloaded from www.omafra.gov.on.ca/english/busdev/downtown.htm#beefbud) can evaluate past performance as well as projecting ahead. It allows you to look at "what if" scenarios before you purchase cattle. This issue features two Finishing Scenarios.

$$$ Ontario Feedlot Cost of Production Budget $$$
Finishing Scenario

Calf Information

Sale Weight (lb.)	1,445
Purchase Weight (lb.)	640
Days on Feed	258
Death Loss %	1.00

	$/Head	$/lb.
Sale Value	$ 1,691
Purchase Value	$ 1,011
Death Loss Value	$ 14
Margin	$ 666	$ 0.83

Expected Cost of Gain

Feed ($/lb of gain)	$ 0.54
Health & Vet. Expenses ($/hd)	$ 20
Marketing/Trucking ($/hd)	$ 27
Yardage** ($/hd/day)	$ 0.25
Interest Rate %	5.5

	$/Head	$/lb.
Feed	$ 436	$ 0.54
Health & Vet. Expenses	$ 20	$ 0.02
Marketing/Trucking	$ 27	$ 0.03
Yardage	$ 65	$ 0.08
Interest	$ 53	$ 0.07
Expected Cost of Gain	$ 600	$ 0.75
Net Return	$ 66	$ 0.08

Expected Market Situation

Sale Price ($/lb.)	$ 1.17
Purchase Price ($/lb.)	$ 1.58

	$/Head	$/lb.
Breakeven Sale Price	$ 1,625	$ 1.12
Breakeven Purchase Price	$ 1,077	$ 1.68

Total Gain (lbs.)	805
A.D.G. (lbs./day)	3.12

Feed Requirements

	$/tonne	Lbs. per Head/Day	$/Head	Percent DM
Hay	$ 70	2.5	$ 45	90
Haylage	$ -	-	$ -	45
Corn Silage	$ 30	6.0	$ 46	35
Dry Corn	$ 160	7.3	$ 289	86
H.M. Corn	$ -	-	$ -	70
Beef Supplement	$ 400	0.5	$ 52	90
Salt & Mineral	$ 480	0.03	$ 4	100
Other	$ -	-	$ -
Other	$ -	-	$ -

Total Feed Cost	$ 436
Feed Cost per lb. of Gain	$ 0.54
Feed Conversion (lbs. - as fed basis)	11.33
Feed Conversion (lbs. - dry matter basis)	7.67

**Yardage is hydro, telephone, taxes & insurance, bedding, manure removal, housing, equipment repairs

This budget looks at the actual costs and close-out value of a particular group of fancy black Limousin steers. These steers were purchased last April/May, fed to market weight and sold early January, 2003. The ration listed is the average over 258 days. The steers were fed in a stepwise fashion; therefore more roughage was fed in the early stages and mainly corn was fed the last 100 days or so. The net return to the producer was $66.00/head.

$$$ Ontario Feedlot Cost of Production Budget $$$
Finishing Scenario

Calf Information

Sale Weight (lb.)	1,250
Purchase Weight (lb.)	950
Days on Feed	110
Death Loss %	-

	$/Head	$/lb.
Sale Value	$ 1,438
Purchase Value	$ 1,045
Death Loss Value	$ -
Margin	$ 393	$ 1.31

Expected Cost of Gain

Feed ($/lb of gain)	$ 0.69
Health & Vet. Expenses ($/hd)	$ 15
Marketing/Trucking ($/hd)	$ 27
Yardage** ($/hd/day)	$ 0.25
Interest Rate %	5.5

	$/Head	$/lb.
Feed	$ 207	$ 0.69
Health & Vet. Expenses	$ 15	$ 0.05
Marketing/Trucking	$ 27	$ 0.09
Yardage	$ 28	$ 0.09
Interest	$ 21	$ 0.07
Expected Cost of Gain	$ 297	$ 0.99
Net Return	$ 95	$ 0.32

Expected Market Situation

Sale Price ($/lb.)	$ 1.15
Purchase Price ($/lb.)	$ 1.10

	$/Head	$/lb.
Breakeven Sale Price	$ 1,342	$ 1.07
Breakeven Purchase Price	$ 1,140	$ 1.20

Total Gain (lbs.)	300
A.D.G. (lbs./day)	2.73

Feed Requirements

	$/tonne	Lbs. per Head/Day	$/Head	Percent DM
Hay	$ 70	1.0	$ 8	90
Haylage	$ -	-	$ -	45
Corn Silage	$ -	-	$ -	35
Dry Corn	$ 160	10.0	$ 176	86
H.M. Corn	$ -	-	$ -	70
Beef Supplement	$ 400	0.5	$ 22	90
Salt & Mineral	$ 480	0.03	$ 2	100
Corn Screenings	$ -	-	$ -	86
Other	$ -	-	$ -
Other	$ -	-	$ -

Total Feed Cost	$ 207
Feed Cost per lb. of Gain	$ 0.69
Feed Conversion (lbs. - as fed basis)	9.32
Feed Conversion (lbs. - dry matter basis)	8.07

**Yardage is hydro, telephone, taxes & insurance, bedding, manure removal, housing, equipment repairs

This budget was used to determine the feasibility of purchasing crossbred yearling heifers in November, 2002 and selling them in February/March 2003. The bolded numbers are projected costs for an individual producer. This example projects a Net Return of $95/Head and Feed Cost of $0.69/lb of Gain.