Running a cow-calf operation costs money, a lot of money. Understanding more about the details of the costs producers incur may help veterinary teams and suppliers reposition their value and likewise support producer profitability. Elizabeth Hodges shares the different economic categories Aaron Berger shared with young farmers and ranchers.
Commentary
Although one might argue that veterinary expertise should be an overhead cost, animal health care and products fall into Berger’s direct cost category. We noted Berger’s cow depreciation cost related to replacements as one area where animal health pros can improve their value, support proactive animal health management, and likely improve producer returns.
Cow depreciation is a real expense . . . an important consideration when planning for cow replacement and bull costs.”
Source: Nebraska Farmer, June 18, 2024. Link.
INSIGHTS: About 20 percent of the total revenue of a cow herd comes from cull animals. Cull cow weight and cull cow price have long been keys to profitability for beef producers <Link>.
Photo courtesy of Neidig Farms, Battle Creek, Nebraska