Beef Cow-Calf Analysis Highlights for 2005
The 2005 Beef Cow Summary from the Ontario Farm Management Analysis Program (OFMAP) summarizes income and expenses as well as some production data for 49 cow-calf farms in Ontario. The results show wide variation amongst beef cow farms in scale of enterprise, net income per farm and net revenue per cow (Table 1). While the overall average for Net Farm Income (NFI) was negative (a loss of $305), the top 1/3 group of farms had an average NFI of $35,131, while the bottom 1/3 had an average NFI of -$33,219.
Why the large difference between these groups? An overview of the numbers highlights a few of the probable reasons. As shown in Table 2, the high NFI group had more cows (119) compared to the average (81) and the low NFI group (60 cows). With about twice the number of cows, the high NFI group sold about twice the value of market and feeder animals as the low NFI group. The high NFI group also sold a greater value of breeding livestock, other livestock and other sales. All of these factors contributed to the advantage in NFI associated with the larger scale operations. Interestingly, the number of calves weaned per cow was almost identical for the three groups, indicating that reproductive efficiency and calf survival rate were likely not important factors influencing the differences in NFI among the groups.
The high NFI group generated $106 more per cow in cattle revenues than the average, and $293 more than the low NFI group. In addition to having higher income per cow, the high NFI group also had lower expenses. They had $50 less per cow in variable expenses than the average NFI group, and $158 less than the low NFI group. Feed costs were the biggest single reason for these differences. As well, the fixed expenses for the high NFI group were $8 and $50 per cow lower than the average and low NFI groups respectively.
On the crops side of the operations (Table 3), there was very little difference among groups in expenses per tillable acre. However, the high NFI group produced $27 more per acre than the average group and $47 per acre more than the low group. Most of the crops were fed to the livestock on the farm for all 3 groups.
Table 1: OFMAP Summary for Ontario Beef Cow Farms, Beef Cow Enterprise Basis, 2005*
Net Farm Income Category
Low 16 Farms
|
Avg 49 Farms
|
High 16 Farms
|
|
---|---|---|---|
Average Number of Cows |
60.1
|
81.2
|
118.9
|
Calves Weaned |
52.8
|
70.5
|
102.2
|
Cows per Person (whole farm) |
60.1
|
81.2
|
99.1
|
Low 16 Farms
|
Avg 49 Farms
|
High 16 Farms
|
|
---|---|---|---|
Cattle Sales Less Purchases |
595
|
624
|
648
|
Change in Inventory & Receivables |
-98
|
60
|
141
|
Feed Costs Including Home Grown |
713
|
641
|
595
|
Other Variable Expenses |
327
|
291
|
288
|
Total Fixed Costs |
165
|
133
|
126
|
Beef Enterprise Net Revenue |
-708
|
-382
|
-219
|
Table 2: OFMAP Summary
for Ontario Beef Cow Farms, Whole Farm Basis, 2005*
Net Farm Income Category
Revenue |
Low 16 Farms
|
Average 49 Farms
|
High 16 Farms
|
---|---|---|---|
Market Livestock |
3,300
|
11,690
|
12,322
|
Feeder Livestock |
26,770
|
39,282
|
63,850
|
Breeding Livestock |
4,050
|
4,998
|
11,142
|
Cull Livestock |
2,928
|
1,686
|
1,107
|
Other Livestock |
9,518
|
17,887
|
37,619
|
Crop Sales |
4,143
|
5,623
|
6,578
|
Other Sales |
7,156
|
13,613
|
27,898
|
Total Cash |
57,762
|
94,779
|
160,516
|
Change in Inventory & Receivables |
-5,995
|
6,755
|
19,059
|
Total Farm Revenue |
51,767
|
101,534
|
179,575
|
Expenses
|
Low 16 Farms
|
Average 49 Farms
|
High 16 Farms
|
---|---|---|---|
Purchased Livestock |
5,776
|
9,682
|
14,126
|
Purchased Feed |
6,613
|
7,227
|
10,957
|
Animal Health & Breeding |
2,386
|
2,697
|
3,913
|
Other Livestock Expenses |
1,033
|
4,019
|
10,968
|
Seed |
2,790
|
2,239
|
1,716
|
Fertilizer & Lime |
6,190
|
5,743
|
5,675
|
Other Crop Expenses |
1,584
|
2,316
|
1,943
|
Marketing & Transportation |
3,454
|
4,779
|
8,009
|
Custom Work & Equipment Rental |
2,913
|
4,187
|
7,975
|
Hired Labour |
874
|
1,958
|
2,870
|
Machinery & Equipment - Fuel |
6,554
|
7,688
|
10,654
|
Machinery & Equipment - Repairs |
6,924
|
6,894
|
7,974
|
Motor Vehicle Expenses |
1,586
|
1,801
|
1,818
|
Building, Fence Repairs |
1,505
|
2,967
|
5,310
|
Electricity & Telephone |
2,958
|
3,126
|
4,282
|
Accounting, Office Expenses |
2,074
|
1,650
|
1,866
|
Property Taxes,
Fire & Liability Insurance |
3,688
|
4,196
|
6,254
|
Lease & Rent Payments |
2,027
|
2,835
|
4,712
|
Interest |
4,973
|
5,657
|
8,417
|
Other Cash Operating Expenses |
1,989
|
3,610
|
7,177
|
Depreciation |
16,825
|
16,528
|
17,828
|
Total Farm Expenses |
84,986
|
101,839
|
144,444
|
Net Farm Income |
-$ 33,219
|
-$ 305
|
$35,131
|
Table 3: OFMAP Sumary for Ontario Beef Cow Farms, Crop Enterprise Basis, 2005*
Net Farm Income Category
Low 16 Farms
|
Average 49 Farms
|
High 16 Farms
|
|
---|---|---|---|
Tillable Acres |
397
|
435
|
487
|
Low 16 Farms
|
Average 49 Farms
|
High 16 Farms
|
|
---|---|---|---|
Crops Fed to Livestock |
99
|
110
|
135
|
Crop Sales & Inventory Change |
8
|
16
|
19
|
Crop Variable Expenses |
58
|
59
|
62
|
Crop Fixed Expenses |
41
|
39
|
40
|
Crop Enterprise Net Income |
9
|
29
|
52
|
It's always interesting to look at trends over time. Figure 1 shows a graphical summary of average revenue, expenses and net farm income for OFMAP data collected for 1998 to 2005. Figures 2 and 3 compare the High NFI group with the Ontario average for NFI income and feed costs per cow, respectively for the years 2001 to 2005.
For more information:
Toll Free: 1-877-424-1300
E-mail: ag.info.omafra@ontario.ca
Author: | Brian Lang - Veal Specialist/OMAFRA |
---|---|
Creation Date: | 17 May 2007 |
Last Reviewed: | 13 January 2016 |