Enough looking back. Today the economics are in the dairyman’s favor. It is all in the presentation what happens from here on your farm. Below is the first year of a lease Plan 1 from Springing Acres for 40 cows. Look to the bottom for imputed milk price, cull rate feed expense ect. This example raises the heifers sells the bulls as calves and replaces the cows culled.
20.25 % gross to lease target <18%
41.97 % gross to feed Target <50%
39.45 % ROI Cows Target > 36%
A | B | |
---|---|---|
1 | Income | Year 1 |
2 | Milk | 116853 |
3 | Cull cow\ bull calves | 5940 |
4 | Springing Heifer Sales | 0 |
5 | Total Income | 122793 |
6 | ||
7 | Expenses | |
8 | Feed | 51539 |
9 | Heifer raising costs | 4738 |
10 | Interest Bank | 0 |
11 | Lease payment | 24869 |
12 | Other variable expenses | 11090 |
13 | Total Exp | 92236 |
14 | ||
15 | Income-Expenses | 30557 |
16 | Fam Living | 0 |
17 | Cattle purchase | 13200 |
18 | Total Dispur | 105436 |
19 | ||
20 | Debt Financ | |
21 | And Repaymt | |
22 | Bank Pmt | 0 |
23 | Total Pmts | 0 |
24 | ||
25 | Net Cash Income | 17357 |
26 | Borrow Bank | 44000 |
27 | Bank Debt | 0 |
28 | Heifers owned yr 1 | 18.05 |
29 | Heifers owned yr 2 | 36.10 |
30 | Heifers owned yr 3 | 44.65 |
31 | ||
32 | fill lines 26b-46b not red | |
33 | # cows | 40.00 |
34 | #cows in milk | 35.20 |
35 | # cows dry | 4.80 |
36 | Milk price net | 14.00 |
37 | # milk/cow | 65.00 |
38 | $/cow purch | 1100.00 |
39 | cull rate% | 30.00 |
40 | cows culled/pur/mo | 1.00 |
41 | cull price/cow | 400.00 |
42 | heifer calves born /mo | 1.58 |
43 | bull calves sold/mo | 1.58 |
44 | $ bull calves sold | 60.00 |
45 | feed cost/cow milking | 3.70 |
46 | Feed cost/cow dry | 2.30 |
47 | lease rate/$1000 | 47.10 |
48 | loan payment/$1000 | 0.00 |
49 | loan % | 9.00 |
50 | other expenses/day/cow | 0.76 |
This Worksheet has been a thorn in our side for the last 8 months or so. Not now when 2 of the 3 ratios are in line we are ready to go. Are your barns full? I will let you ruminate on this article for today. Feel free to comment.