Page 24 - MWC 2-3-2022s

The Midwest Cattleman · February 3, 2022 · P24
DIFFERENCES BETWEEN HIGH, MEDIUM, AND LOW-PROFIT COW-CALF PRODUCERS
An Analysis of 2016-2020 Kansas Farm Management Association Cow-Calf Enterprise

By Aaron Berger, Nebraska Extension Beef Educator
Dr. Dustin Pendell and come per cow, $176.09, than $459.90 difference! Over this competitors and generated
Kevin Herbel published a low-profit operations. five-year period, on average, more gross revenue per cow
paper in November of 2021 •Differences in costs all farms had a negative re- were more profitable. Good
that highlighted the differ- between high-profit and turn to management from production with cost control,
ences between 81 different low-profit herds were found the cow-calf enterprise. differentiated the most prof-
producers with cow-calf en- in feed expense. High-profit The Kansas Farm Man- itable producers from those
terprises that are part of the herds spent a total of $444.19 agement Association cow- that were the least profitable.
Kansas Farm Management per cow on grazed and har- calf enterprise data provides This study by Dustin L.
Association. The paper ex- vested feed, while low-profit insights into the differences Pendell Ph.D. and Kevin L.
amined both returns over herds spent $573.61. This is between high-, medium- and Herbel can be found at the
variable costs and returns a difference of $128.70 per low-profit producers. Partic- Kansas State University Ag-
over total costs in 2016-2020. cow! ipants in the data set have Manager.info website. Re-
The authors broke out partic- •Labor, depreciation, ma- the necessary production and view and summary by Aaron
ipants in the study into three chinery and interest expens- financial records to know Berger, Nebraska Extension
groups of high-, medium- and es were all lower on a per what their production costs Educator.
low-profit producers. Here cow basis for the high-profit are and then can use that
are differences that stood out operations than the low-prof- information to
between producers from the it operations. High-profit make manage-
data when looking at returns producers spent on average ment decisions
over total costs. $116.43 less on these items to improve
•Differences in costs be- than low-profit producers. profitability. In
tween operations significant- •High-profit operations this data set,
ly outweighed revenue differ- had a negative net return to producers who
ences. High-profit operations management of -$107.99 per aggressively
spent $283.81 less per cow cow over the five-year peri- controlled costs
than low-profit operations in od, while low-profit opera- while producing
this study. tions had a negative return more pounds of
•High-profit operations of -$567.88 to management calf to sell per
generated more gross in- over the five-year period. A cow than their

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