Cost

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Caustic Burno
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Re: Cost

Postby Caustic Burno » Sun Dec 17, 2017 11:33 am

ALACOWMAN wrote:
Caustic Burno wrote:I figured the break even price based on my sales at 1.70 .
That number could get crazy high quick.
Lot factors in there depending on debt load operating cost, pricing in your area.
with a herd of longhorns you could cut that cost in half..


But the sale price would go down 80%.
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Re: Cost

Postby Kingfisher » Sun Dec 17, 2017 3:07 pm

How and how much do you calculate labor?
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Re: Cost

Postby Jogeephus » Mon Dec 18, 2017 12:21 pm

Caustic Burno wrote:
ALACOWMAN wrote:
Caustic Burno wrote:I figured the break even price based on my sales at 1.70 .
That number could get crazy high quick.
Lot factors in there depending on debt load operating cost, pricing in your area.
with a herd of longhorns you could cut that cost in half..


But the sale price would go down 80%.


Yeah but consider your savings on income taxes. ;-)
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Re: Cost

Postby ChrisB » Mon Dec 18, 2017 12:38 pm

Thanks to everyone that shared their costs. One question I have is how do you figure the price of equipment? Just depreciate it over 5 or 10 years? And then after that just use the cost of repairs and maintenance?
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Re: Cost

Postby Supa Dexta » Mon Dec 18, 2017 12:58 pm

Just get a job in town and pay for the equipment out of it. Keeps the cost of running the cattle down since it doesnt need to come out of that pot.

:lol:
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Caustic Burno
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Re: Cost

Postby Caustic Burno » Mon Dec 18, 2017 1:31 pm

ChrisB wrote:Thanks to everyone that shared their costs. One question I have is how do you figure the price of equipment? Just depreciate it over 5 or 10 years? And then after that just use the cost of repairs and maintenance?

Hay paid for all my equipment back in the day. Again my new tractor is an 07.
Today they pay for the maintenance and repairs.
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Re: Cost

Postby Bright Raven » Mon Dec 18, 2017 1:33 pm

Supa Dexta wrote:Just get a job in town and pay for the equipment out of it. Keeps the cost of running the cattle down since it doesnt need to come out of that pot.

:lol:


That is exactly what folks do! We had a county extension training session on farm profit. I was amazed at how many in the class did not consider that an expense if they paid for it off the farm.
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Re: Cost

Postby Caustic Burno » Mon Dec 18, 2017 1:35 pm

Bright Raven wrote:
Supa Dexta wrote:Just get a job in town and pay for the equipment out of it. Keeps the cost of running the cattle down since it doesnt need to come out of that pot.

:lol:


That is exactly what folks do! We had a county extension training session on farm profit. I was amazed at how many in the class did not consider that an expense if they paid for it off the farm.



Bet they deducted it off their taxes as an expense.
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Re: Cost

Postby Bright Raven » Mon Dec 18, 2017 1:40 pm

Caustic Burno wrote:
Bright Raven wrote:
Supa Dexta wrote:Just get a job in town and pay for the equipment out of it. Keeps the cost of running the cattle down since it doesnt need to come out of that pot.

:lol:


That is exactly what folks do! We had a county extension training session on farm profit. I was amazed at how many in the class did not consider that an expense if they paid for it off the farm.



Bet they deducted it off their taxes as an expense.


CB, I bet most do, but the county agent was flabbergasted that some who attended did not know you could depreciate fencing for example, etc. Some of the comments indicated a poor understanding of farm accounting and tax preparation. It is a fact, that the general knowledge on this forum, is far advanced than the average farmer in this county.
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Caustic Burno
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Re: Cost

Postby Caustic Burno » Mon Dec 18, 2017 1:59 pm

Bright Raven wrote:
Caustic Burno wrote:
Bright Raven wrote:
That is exactly what folks do! We had a county extension training session on farm profit. I was amazed at how many in the class did not consider that an expense if they paid for it off the farm.



Bet they deducted it off their taxes as an expense.


CB, I bet most do, but the county agent was flabbergasted that some who attended did not know you could depreciate fencing for example, etc. Some of the comments indicated a poor understanding of farm accounting and tax preparation. It is a fact, that the general knowledge on this forum, is far advanced than the average farmer in this county.



That pesky IQ failure can sure be costly in the stupid tax column.
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Re: Cost

Postby Stocker Steve » Mon Dec 18, 2017 2:17 pm

ChrisB wrote:Thanks to everyone that shared their costs. One question I have is how do you figure the price of equipment? Just depreciate it over 5 or 10 years? And then after that just use the cost of repairs and maintenance?


The standard here is to charge 10% of equipment value each year (regardless of how long you have had it) against the appropriate enterprise. That may seem a tad high, but you could have making more than that in the market most years. So I think of the 10% charge as an opportunity cost.

If you have multiple enterprises (like hay making, cow/calf, back grounding...) then you have to prorate shared equipment. Filling out the spread sheet is a little work, but it is a good thought process to go through. Who gets charged for the $ 100,000 loader tractor, the 3/4 ton truck, the horses, and the UTE? :cowboy:
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Re: Cost

Postby sim.-ang.king » Mon Dec 18, 2017 3:57 pm

But what is your cost per calf weaned? It's one thing to have cows standing in your pasture for x amount of dollars, but if they don't weaning a calf, they aren't really being profitable even if you farm shows a profit.
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Re: Cost

Postby TexasBred » Mon Dec 18, 2017 4:22 pm

sim.-ang.king wrote:But what is your cost per calf weaned? It's one thing to have cows standing in your pasture for x amount of dollars, but if they don't weaning a calf, they aren't really being profitable even if you farm shows a profit.

As complicated as some want to make it you can still keep books on a business with a good cigar box. :nod:
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Re: Cost

Postby bball » Mon Dec 18, 2017 4:58 pm

sim.-ang.king wrote:But what is your cost per calf weaned? It's one thing to have cows standing in your pasture for x amount of dollars, but if they don't weaning a calf, they aren't really being profitable even if you farm shows a profit.


I track it slightly differently for the cows. I call it average dollars per day. I take the sale price of the calf and divide by the total number of days until the calf is weaned. I also take the calf weight and divide it by total number of days until weaned. These 2 numbers can really help indicate which cows produce heavier calfs and also higher quality calfs. You can start to see trends pretty quickly like this.

Cows that consistently hang near the bottom are elevated on cull list.
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Re: Cost

Postby ALACOWMAN » Mon Dec 18, 2017 5:25 pm

The cost of the cow should be pretty much the same with the calf... Our job is to provide for the cows needs.. her job is raising that calf...
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