Previously in this column I have discussed calf revenue, which is principally driven by 1) the number of calves marketed 2) sale weight of calves and 3) price received. Now I would like to examine the other component of the profit equation (Revenue – Expenses = Profit) and discuss production expenses/costs and more specifically “What does it cost to produce a calf (in Kansas)?” The Kansas Farm Management Association (KFMA) Enterprise Reports, which may be accessed at https://www.agmanager.info/kfma, are an excellent resource for production cost data in Kansas. This information may be used by cattle producers to benchmark their operations with other comparable enterprises (Spring vs. Fall calving etc.). The total feed and operational costs (total of all non-feed costs) per cow from 2018 to 2022 for all KFMA cow-calf operations is illustrated below.
Figure 1. Total feed and non-feed costs (operational) of Kansas cow-calf producers
This figure demonstrates that both feed and non-feed costs have increased over the last five years and that non-feed costs are often greater than or equal to feed costs. The average cost to produce a calf in 2018 was $1041/cow and was $1,239/cow in 2022. When expressed as a percentage the total cost to produce a calf in Kansas increased 19% from 2018-2022. Further increases in production costs may be expected in 2023 given current economic conditions and the persistence of drought conditions.
For more information, contact Justin Waggoner at jwaggon@ksu.edu