Cattle producers across the U.S. have seen an increase in cost of production due mainly to the rise in feed, fuel and fertilizer while seeing weak calf markets. While any rancher knows that production costs are on the rise, how many actually know their own production costs?
How many producers can actually say how much it costs to raise a calf, what their winter feeding cost is, or what their direct expenses are for the year? It is easy to figure out what income a producer is bringing in, but often tougher to formulate direct and overhead expenses per pair.
One of the most detailed tools that producers have to compare cost of production in the state of Minnesota is the Farm Business Management (FBM) Annual Reports put out by the Northland Community College and Central Lakes College in Minnesota. The FBM annual report provides a detailed livestock enterprise analysis for beef operations.
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