Economic and Marketing Information                                                                                                                                                                                          FOR INDIANA  FARMERS
Prepared by the Agricultural Staff of Purdue University, Lafayette, Indiana      
August  31,   1961
Beef Cow Herds Can Improve Farm Incomes
by Melvin R. Janssen, Farm Economics Division, Economic Research Service. USDA
Beef cow herds in southern Indiana can improve farm incomes. This
does not mean that all beef herds
were profitable in each year of a
recent four-year study. However, most
of these herds made additions to farm
income throughout the study period.
retained for breeding stock, thus reducing the number of calves marketed. A shortage of cattle producing
utility grades of beef also improved
the prospects for good feedlot returns.
Net returns per cow averaged $43.33,
while  prices  received  for  calves  by
producers studied averaged $29.10.
A larger calf crop was produced
in 1959 as buildingup of breeding
herds and low culling rates continued.
Feedlot earnings were small in 1958.
The number of heifers retained for
breeding stock was about the same as
Costs and Returns, 1956 to 1959
Average net returns from a beef
herd vary widely from year to year
as the price of feeder cattle varies
with the cattle cycle (Table 1). A
severe drouth in 1956 forced many
ranchers to sell calves that would
normally have been kept on the range
another year. Fewr heifers were kept
for breeding stock, and many old
cows were sold. With the large number of marketings of feeder cattle
and hreeding stock, the price of feeder calves averaged only $17.82 in
southern Indiana, and net returns
averaged minus $21.66 per cow.
In 1957, range conditions improved
considerably. The smaller breeding
herds produced a smaller total calf
crop. Ranchers kept more heifers for
hreeding stock, held more calves for
yearlings and practically stopped
culling. With the smaller supply of
feeders, producers in the study averaged $22.55 per hundredweight for
their calves and net returns of $16.03
per cow.
The good returns enjoyed by cattle
feeders in the 1957-58 feeding season
a"d the good prices received for
'eeder calves set the stage for higher
Prices  in   1958.   More   heifers   were
Table I. Average annual costs and returns per beef cow 1956-1959 compared with long-time estimated costs and returns.
Item
Period
1956
1957
1958
1959
No. of herds studied
Calves saved per cow
Avg.  wt. of  calf  weaned
Beef produced per cow:
By  the  cow
By the calf
Total
Value of beef per cow:
By the cow
By the calf
Total
Value of manure per cow
Misc. receipts per cow
Total receipts per cow
Variable cost per cow
Variable feed cost
Mach. and equip, cost
Miscellaneous cost
Taxes and interest
Bull cost
Replacement cost
Total variable cost
Fixed cost per cow
Fixed pasture (native, stubble)
Bedding   (home  grown)
Labor  ((g) $1 per hr.)
Building cost
Miscellaneous cost
Total fixed cost
Total cost per cow
Returns over variable cost per cow
Net returns per cow
69
437.6
Percent
72 22
.91 .89
14
.91
Pounds
450.3
447.7
465.3
Longtime
SO
449.1
20.5
22.0
-4.1
15.8
13.6
426.3
437.7
426.2
441.9
433.0
446.8
459.7
422.1
457.7
446.6
Dollars
-3.57
1.54
-1.03
-.21
-.81
75.98
98.68
124.04
121.59
85.52
72.41
100.22
123.01
121.38
84.71
3.33
6.33
5.69
5.60
5.36
.44
.05
—
—
—
76.18
106.60
128.70
126.98
90.07
47.25
37.59
39.75
40.28
37.91
.78
.90
.85
.89
.85
1.66
2.13
1.83
3.14
2.20
9.44
9.54
10.22
10.13
9.83
6.11
3.33
2.14
3.76
3.83
5.43
8.14
4.06
9.32
6.74
70.67
61.63
58.85
67.52
61.36
9.23
8.94
8.11
8.84
8.09
2.61
1.94
1.29
.93
1.69
7.23
8.59
7.40
5.83
7.26
7.60
7.40
7.85
8.00
7.71
.50
2.07
1.87
2.00
1.61
27.17
28.94
26.52
25.60
26.36
97.84
90.57
85.37
93.12
87.72
5.51
44.97
69.85
59.46
28.71
-21.66
16.03
43.33
33.86
2.35