2008 South Dakota Cow Calf Business Report

South Dakota State University 2008 South Dakota Cow-Calf Business Report™

Table of Contents 1.

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Introduction……………………………………………………………………………………………………………………..3 2008 SPA Summary……………………………………………………………………………………………………………7 2008 Cow Cost Summary…………………………………………………………………………………………………10 2008 Financial Summary………………………………………………………………………………………………….12 2008 Heifer Development Cost Summary………………………………………………………………………..16 2008 Feed Cost Summary a. Corn Silage Cost Summary…………………………………………………………………………………18 b. Grass Hay Cost Summary…………………………………………………………………………………..20 c. Alfalfa Hay Cost Summary…………………………………………………………………………………22 d. Small Grain Hay Cost Summary…………………………………………………………………………24 2008 Grazing Cost Summary a. Pasture costs…………………………………………………………………………………………………….26 b. Pasture Rental…………………………………………………………………………………………………..28 2008 Calf Backgrounding Cost Summary…………………………………………………………………………30 2002-2008 SPA Trend Summary………………………………………………………………………………………32 2002-2008 Financial Trend Summary………………………………………………………………………………37 2005-2008 Cow Cost trend Summary………………………………………………………………………………40 2005-2008 Heifer Development Cost Trend Summary…………………………………………………….41 2005-2008 Feed Cost Trend Summary…………………………………………………………………………….42 2005-2008 Grazing Cost Trend Summary………………………………………………………………………..46 2005-2008 Calf Backgrounding Cost Trend Summary………………………………………………………48

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Introduction The SDSU-IRM-SPA program was developed with the intent of providing producers with a useful analysis of their business to improve profitability and sustainability. The program provides eastern South Dakota cow calf producers the opportunity to evaluate their operations on an individual basis as well as the ability to compare their data to the database averages provided in this report. The capacity to know and understand these performance measurements will help producers identify the strengths and weaknesses of their operations and recognize opportunities for change. Furthermore, operators can assess data from their operation over a series of years in order to appraise the effectiveness of management changes aimed at improving profitability.

Materials and methods The data in this report was collected from eastern South Dakota cow-calf producers whom participated in the SDSU-IRM-SPA program. Additional data was collected through individual consultation. Data in this report represents the 2008 production cycle as well as a trend analysis of data collected in the same manner between 2002 and 2008.

Standardized Performance Analysis Summary Standardized Performance Analysis (SPA) data were collected using the SPA system in accordance with the SPA guidelines developed by the IRM Coordinating Committee of the National Cattlemen’s Beef Association. Each herd represents one observation which resulted in a database of 51 observations in the 2008 summary and 210 observations in the 2002-2008 trend summaries.

Total Cow Cost and Calf Cost Breakeven Summary Mean total cow cost refers to the mean of each component of cow cost on a per cow exposed basis over the total number of observations to arrive at a mean cost value for each component. Mean cost values of each component were then summed to arrive at a mean total cow cost per cow exposed.

Mean calf cost breakeven was then calculated by dividing mean total cow cost per cow exposed by the pounds of calf weaned per cow exposed to adjust for weaning percentage. Each herd represented one observation which resulted in a database of 36 observations in the 2008 summary and 143 observations in the 2002-2008 trend summaries.

Financial Ratio Summary Rate of Return on Assets (ROA)

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Mean return on assets serves as an index of business profitability by measuring the efficiency at which business assets are used to generate profit for the business; the higher the ROA, the more profitable the business. Typically, ROA in farm and ranch businesses runs between 1% and 5%. Each business represented one observation which resulted in a database of 36 observations in the 2008 summary and 143 observations in the 2002-2008 trend summaries. This ratio is calculated using the following formula: ROA = (Net Income + Interest Expense – Value of Operators Labor & Management) Total Assets Operating Expense Ratio (OER) The operating expense ratio is a measurement of business efficiency by evaluating the proportion of total business revenue that is used to pay operating expenses. Typically, the OER of a farm or ranch business should run between 50% and 75%. Each business represented one observation which resulted in a database of 36 observations in the 2008 summary and 143 observations in the 2002-2008 trend summaries. This ratio is calculated using the following formula: OER = (Gross Business Expenses – Business Interest Expense – Depreciation Expense) Gross Business Revenue Depreciation Expense Ratio (DER) The depreciation expense ratio is a measurement of how fast the business is wearing out capital invested in depreciable assets and what proportion of Gross business revenue is needed to maintain the capital used by the business. Typically, the DER of a farm or ranch business should run less than 20%. Each business represented one observation which resulted in a database of 36 observations in the 2008 summary and 143 observations in the 2002-2008 trend summaries. This ratio is calculated using the following formula: DER=

(Depreciation) Gross Business Revenue

Interest Expense Ratio (IER) The interest expense ratio is a measurement of the proportion of gross revenue committed to interest payments. Typically, the IER of a farm or ranch business should run less than 20%. Each business represented one observation which resulted in a database of 36 observations in the 2008 summary and 143 observations in the 20022008 trend summaries. This ratio is calculated using the following formula: IER = (Business Interest Expense) Gross Business Revenue Heifer Development Cost Summary

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Mean heifer development cost refers to the mean of each component of heifer development cost on a per heifer exposed basis over the total number of observations to arrive at a mean cost value for each component. Mean cost values of each component were then summed to arrive at a mean total heifer development cost per heifer exposed.

Heifer development costs include the cost of the heifer at the time of weaning calculated as a purchase cost if the heifer was purchased as a heifer calf or as a transfer cost from the cow calf enterprise in the case of retained heifers. Development costs are then tabulated through the development phase until the heifer is checked for pregnancy. Each herd represented one observation which resulted in a database of 32 observations in the 2008 summary and 78 observations in the 2005-2008 trend summaries.

Cost of Production for Feed Crops Mean cost of production refers to the mean of each component of production cost on a per acre basis over the total number of observations to arrive at a mean cost value for each component. Mean cost values of each component were then summed to arrive at a mean cost of production per acre. Mean cost of production was then divided by mean crop yield to arrive at a mean cost of production per unit. For the 2008 summary, each business represented one observation which resulted in a database of 22 observations for mean cost of production for corn silage, 43 observations for mean cost of production for grass hay, 19 observations for mean cost of production of alfalfa hay, and 13 observations for mean cost of production for small grain hay. The 2005-2008 trend summaries represented a database of 53 observations for mean cost of production for corn silage, 104 observations for mean cost of production for grass hay, 51 observations for mean cost of production of alfalfa hay, and 29 observations for mean cost of production for small grain hay.

Pasture Cost Summary Mean pasture cost refers to the mean of each component of pasture cost for both deeded acres and leased acres on a per acre basis over the total number of observations to arrive at a mean cost value for each component. Mean cost values of each component were then summed to arrive at a mean pasture cost per acre for both deeded and leased pasture acres. Mean pasture cost was then divided by mean pasture yield on an AUM basis to arrive at a mean pasture cost per AUM. For the 2008 summary, each business represented one observation which resulted in a database of 41 observations for pasture cost on deeded acres and 33 observations for pasture cost on leased acres. The 2005-2008 trend summaries represented a database of 95

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observations for pasture cost on deeded acres and 75 observations for pasture cost on leased acres.

Calf Backgrounding Cost Summary Mean calf backgrouding cost refers to the mean of each component of calf backgrounding cost on a per head basis over the total number of observations to arrive at a mean cost value for each component. Mean cost values of each component were then summed to arrive at a mean calf backgrounding cost per head.

Calf backgrounding costs include the cost of the calf at the time of weaning calculated as a purchase cost if the calf was purchased or as a transfer cost from the cow calf enterprise in the case of retained calves. backgrounding costs are then tabulated through the backgrounding phase until the calf is marketed. Observations that finished calves or fed longer than 90 days or 900 pounds were not included. Each business represented one observation which resulted in a database of 22 observations in the 2008 summary and 51 observations for the 2005-2008 trend summaries.

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2008 Cow-Calf Business Summary Table 1. Standardized Performance Analysis summary report for cow-calf operations in eastern South Dakota for 2008 (n=51).

Reproduction and production measures:

Average

Pregnancy percentage Weaning percentage

94.0 86.0

Calving distribution: Calves born during 1st 21 Days (%) Calves born during 1st 42 Days (%) Calves born during 1st 63 Days (%)

55.6 28.0 10.1

Production performance measures:

Number of Operations

Average weaning weight (lbs) Pounds of calf weaned per exposed female (lbs)

504.4 438.9

20 18 16 14 12 10 8 6 4 2 0 90%-92.5%

92.6%-94.5%

94.6%-96.5%

96.6%-98.5%

Pregnancy Percentage Figure 1. Distribution of number of operations over pregnancy percentage for cow-calf operations in eastern South Dakota for 2008 (n=51).

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Number of Operations

16 14 12 10 8 6 4 2 0 80%-82.5%

82.6%-85%

85.1%-87.5%

87.6%-90%

90.1%-92.5%

Weaning Percentage

Number of Operations

Figure 2. Distribution of number of operations over weaning percentage for cow-calf operations in eastern South Dakota for 2008 (n=51).

25 20 15 10 5 0 30%-40%

41%-50%

51%-60%

61%-70%

71%-80%

81%-90%

Percentage of Calves Born in the First 21 days of the Calving Season Figure 3. Distribution of number of operations over percent calves born in the first 21 days of the calving season for cow-calf operations in eastern South Dakota for 2008 (n=51).

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Number of Operations

30 25 20 15 10 5 0 400-450

451-500

501-550

551-600

Weaning Weight (lbs)

Number of Operations

Figure 4. Distribution of number of operations over 205-day adjusted weaning weight for cow-calf operations in eastern South Dakota for 2008 (n=51).

20 18 16 14 12 10 8 6 4 2 0 300-350

351-400

401-450

451-500

501-550

Pounds Weaned per Cow Exposed Figure 5. Distribution of number of operations over pounds weaned per cow exposed for cow-calf operations in eastern South Dakota for 2008 (n=51).

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Table 2. Mean total cow cost and mean calf cost breakeven summary for cow-calf operations in eastern South Dakota for 2008 (n=36).

Item Feed Cost

Cost/cow exposed

Pasture Feed Feed Supplements Mineral

140.12 188.42 33.47 23.81

Total Feed Cost

385.82

Operating Costs Breeding Fees Veterinary Supplies Fuel & Oil Repairs Trucking Operating Interest

5.86 23.12 7.78 8.13 8.58 5.62 7.01

Total Operating Cost

66.10

Total Feed & Operating Cost

451.92

Fixed Cost Hired Labor Insurance Utilities Interest Depreciation Miscellaneous

2.91 3.84 4.94 8.71 17.48 3.77

Total Fixed Costs

41.65

Total Cost Calf Cost Breakeven ($/Lb. of weaned calf)

493.57 1.12

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Number of Operations

18 16 14 12 10 8 6 4 2 0 $375-$400

$401-$450

$451-$500

$501-$550

Total Cow Cost ($/cow exposed) Figure 6. Distribution of number of operations over total cow cost for cow-calf operations in eastern South Dakota for 2008 (n=36).

Number of Operations

18 16 14 12 10 8 6 4 2 0 $0.75-$0.85

$0.86-$0.95

$0.96-$1.05

$1.06-$1.15

$1.16-$1.25

Breakeven Calf Cost ($/lb of weaned calf/cow exposed) Figure 7. Distribution of number of operations over breakeven calf cost for cow-calf operations in eastern South Dakota for 2008 (n=36).

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Figure 1. Financial ratio summary for A) mean return on assets, B) mean operating expense ratio, C) mean depreciation expense ratio, and D) mean interest expense ratio for cow-calf operations in eastern South Dakota for 2008 (n=36).

A) Mean Rate of Return on Assets (ROA) Avg. = 7.03%

-20%

-10%

0%

10%

20%

Good Acceptable Trouble

B) Mean Operating Expense Ratio (OER) Avg. = 87%

0

25%

50%

75%

100%

Good Acceptable Trouble

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C) Mean Depreciation Expense Ratio (DER) Avg. = 16%

0

10%

15%

20%

25%

20%

25%

Good Acceptable Trouble

D) Mean Interest Expense Ratio Avg. = 17%

0

10%

15%

Good Acceptable Trouble

Number of Operations

25 20 15 10 5 0 0%-5%

5.1%-10%

10.1%-15%

15.1%-20%

Return on Assets Figure 8. Distribution of number of operations over return on assets for cow-calf operations in eastern South Dakota for 2008 (n=36).

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Number of Operations

18 16 14 12 10 8 6 4 2 0 50%-60%

61%-70%

71%-80%

81%-90%

91%-100%

101%+

Operating Expense Ratio Figure 9. Distribution of number of operations over operating expense ratio for cow-calf operations in eastern South Dakota for 2008 (n=36).

Number of Operations

30 25 20 15 10 5 0 0%-10%

11%-20%

21%-30%

31%-40%

41%-50%

Depreciation Expense Ratio Figure 10. Distribution of number of operations over depreciation expense ratio for cow-calf operations in eastern South Dakota for 2008 (n=36).

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Number of Operations

30 25 20 15 10 5 0 0%-10%

11%-20%

21%-30%

31%-40%

41%-50%

Interest Expense Ratio Figure 11. Distribution of number of operations over interest expense ratio for cow-calf

operations in eastern South Dakota for 2008 (n=36).

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Table 3. Heifer development cost summary for cow-calf operations in eastern South Dakota for 2008 (n=32).

Item Transfer cost (from cow-calf enterprise)

Cost/heifer exposed 510.00

Feed Cost Grain Roughage Feed Supplements Mineral

157.07 89.77 5.39 4.15

Summer Pasture

114.75

Total Feed Costs

371.13

Operating Costs Breeding (Including clean-up) Veterinary Supplies Fuel & Oil Repairs Trucking (Open heifers) Marketing (Open heifers) Operating Interest

37.95 11.82 3.89 5.34 3.88 9.53 39.56 30.60

Total Operating Cost

142.57

Total Development Cost

513.70

Total Cost (Including value of heifer at weaning)

1023.70

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Number of Operations

9 8 7 6 5 4 3 2 1 0 $500-$600 $601-$700 $701-$800 $801-$900

$901$1000

$1001$1100

$1101$1200

Heifer Development Cost ($/heifer exposed) Figure 12. Distribution of number of operations over heifer development cost for cowcalf operations in eastern South Dakota for 2008 (n=32).

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Table 4. Mean cost of production for corn silage for cow-calf operations in eastern South Dakota for 2008 (n=22).

Item Operating Costs Seed Fertilizer Chemicals Crop Insurance Fuel & Oil Repairs Custom Hire Hired Labor Operating Interest Miscellaneous Total Operating Costs

Cost/acre 57.41 61.24 28.76 21.98 51.68 38.28 41.51 0.47 4.76 4.11 310.20

Fixed Costs Hired Labor Insurance Utilities Property Taxes Interest Depreciation Miscellaneous

26.34 4.12 5.22 8.59 8.36 28.38 6.12

Total Fixed Costs

87.13

Total Cost

397.33

Average yield per acre (T)

14.57

Cost of Production ($/T)

27.27

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Number of Operations

10 9 8 7 6 5 4 3 2 1 0 $15-$20

$21-$25

$26-$30

$31-$35

$36-$40

$40+

Dollars per Ton Figure 13. Distribution of number of operations over mean cost of production of corn silage for cow-calf operations in eastern South Dakota for 2008 (n=22).

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Table 5. Grass hay cost summary for cow-calf operations in eastern South Dakota for 2008 (n=43).

Item Cost/acre Operating Costs Fertilizer Chemicals Fuel & Oil Repairs Custom Hire Operating Interest Miscellaneous

11.75 0.85 17.55 15.87 7.12 1.89 4.15

Total Operating Costs

59.18

Fixed Costs Hired Labor Insurance Utilities Property Taxes Interest Depreciation Miscellaneous

5.01 1.72 0.93 5.03 5.85 9.60 3.12

Total Fixed Costs

31.26

Total Cost

90.44

Average yield per acre (T)

1.27

Cost of Production ($/T)

71.21

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Number of Operations

14 12 10 8 6 4 2 0 $50-$60

$61-$65

$66-$70

$71-$75

$76-$80

$81

Dollars per Ton Figure 14. Distribution of number of operations over mean cost of production of grass hay for cow-calf operations in eastern South Dakota for 2008 (n=43).

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Table 6. Alfalfa hay cost summary for cow-calf operations in eastern South Dakota for 2008 (n=19).

Item Operating Costs Seed Fertilizer Chemicals Crop Insurance Fuel & Oil Repairs Custom Hire Hired Labor Operating Interest Miscellaneous Total Operating Costs

Cost/acre 1.39 17.18 5.24 1.43 36.23 21.51 12.18 2.41 6.12 4.49 108.18

Fixed Costs Hired Labor Insurance Utilities Property Taxes Interest Depreciation Miscellaneous

7.21 2.31 2.11 8.12 7.79 25.62 5.65

Total Fixed Costs

58.81

Total Cost Average yield per acre Cost of Production ($/T)

166.99 3.23 51.69

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Number of Operations

9 8 7 6 5 4 3 2 1 0 $40-$45

$46-$50

$51-$55

$56-$60

$61-$65

$66+

Dollars per Ton Figure 15. Distribution of number of operations over mean cost of production of alfalfa hay for cow-calf operations in eastern South Dakota for 2008 (n=19).

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Table 7. Small grain hay cost summary for cow-calf operations in eastern South Dakota for 2008 (n=13).

Item Operating Costs

Cost/Acre

Seed Fertilizer Fuel & Oil Repairs Operating Interest Miscellaneous

23.20 24.20 23.86 12.69 5.61 2.10

Total Operating Costs

91.66

Fixed Costs Hired Labor Insurance Utilities Property Taxes Interest Depreciation Miscellaneous

4.56 3.01 1.66 7.22 9.52 11.60 0.86

Total Fixed Costs

38.43

Total Cost Average yield per acre Cost of Production ($/T)

130.09 1.98 65.70

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Number of Operations

7 6 5 4 3 2 1 0 $50-$55

$56-$60

$61-$65

$66-$70

$71-$75

$76+

Dollars per Ton Figure 16. Distribution of number of operations over mean cost of production of small grain hay for cow-calf operations in eastern South Dakota for 2008 (n=13).

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Table 8. Deeded pasture cost summary for cow-calf operations in eastern South Dakota for 2008 (n=41).

Item Operating Costs

Cost/acre

Fertilizer Fuel & Oil Repairs Miscellaneous

0.78 3.01 1.56 1.15

Total Operating Costs

6.50

Fixed Costs Hired Labor Insurance Utilities Property Taxes Interest Miscellaneous

0.93 1.12 1.88 5.66 6.61 0.87

Total Fixed Costs

17.07

Total Cost

23.57

Average yield per acre (AUM/A)

1.15

Cost of Production ($/AUM)

20.49

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Number of Operations

14 12 10 8 6 4 2 0 $10-$15

$16-$20

$21-$25

$26-$30

$31+

Dollars per AUM Figure 17. Distribution of number of operations over mean cost per AUM for deeded pasture for cow-calf operations in eastern South Dakota for 2008 (n=41).

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Table 9. Rented pasture cost summary for cow-calf operations in eastern South Dakota for 2008 (n=33).

Item Operating Costs

Cost/Acre

Fertilizer Fuel & Oil Repairs Land Cost Miscellaneous

0.32 1.97 0.52 36.77 2.78

Total Operating Costs

42.36

Fixed Costs Hired Labor Miscellaneous

0.43 1.83

Total Fixed Costs

2.26

Total Cost Average yield per acre (AUM/A) Cost of Production ($/AUM)

44.62 1.15 38.80

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Number of Operations

14 12 10 8 6 4 2 0 $25-$35

$36-$45

$46-$55

$56-$65

$66+

Dollars per AUM Figure 18. Distribution of number of operations over mean cost per AUM for leased pasture for cow-calf operations in eastern South Dakota for 2008 (n=33).

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Table 10. Calf backgrounding cost summary for cow-calf operations in eastern South Dakota for 2008 (n=22).

Item Feed Cost Corn Distillers Roughage Feed Supplements Mineral Total Feed Cost Operating Costs Veterinary Supplies Fuel & Oil Repairs Trucking Marketing Operating Interest

Cost/head 33.87 18.06 21.52 8.81 9.78 92.04 1.82 2.32 7.72 5.54 6.89 5.32 6.77

Total Operating Cost

36.38

Total Feed & Operating Cost

128.42

Fixed Cost Hired Labor Insurance Utilities Interest Depreciation Miscellaneous Total Fixed Costs

3.12 1.87 3.59 4.01 4.57 3.66 20.82

Total Cost

148.42

Average start weight (lb) Average days on feed (days) Average end weight (lb) Average daily gain (lb/day) Cost of gain ($/lb)

558 78 773 2.76 0.69

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Number of Operations

9 8 7 6 5 4 3 2 1 0 $50-$60

$61-$70

$71-$80

$81-$90

$91-$100

$100+

Cost of Gain ($/cwt) Figure 19. Distribution of number of operations over mean cost of gain on backgrounded calves for leased pasture for cow-calf operations in eastern South Dakota for 2008 (n=22).

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Trend Summary Report Standardized Performance Analysis Trend Summary 2002-2008 98 97

Pregnancy %

96 95 94 93 92 91 2002

2003

2004

2005

2006

2007

2008

Year

Number of Operations

Figure 20. Mean pregnancy percentage and standard deviation for cow-calf operations in eastern South Dakota for 2002 – 2008 (n=210).

160 140 120 100 80 60 40 20 0 80%-85%

86%-90%

91%-95%

96%-100%

Percent Figure 21. Distribution of number of operations over mean pregnancy percentage for cow-calf operations in eastern South Dakota for 2002-2008 (n=210).

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80 70

Percent Born

60 50

Day 1-21

40

Day 22-42 Day 43-63

30 20 10 0 2002

2003

2004

2005

2006

2007

2008

Year

Figure 24. Mean percent (%) of calves born day 1 – 21, day 22-42, and day 43-63 of the calving season and standard deviation for cow-calf operations in eastern South Dakota for 2002 – 2008 (n=210).

Number of Operations

120 100 80 60 40 20 0 40%-50%

51%-60%

61%-70%

71%-80%

Percent Figure 25. Distribution of number of operations over mean percent (%) of calves born day 1-21 of the calving season for cow-calf operations in eastern South Dakota for 20022008 (n=210).

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96 94 92

Wean %

90 88 86 84 82 80 2002

2003

2004

2005

2006

2007

2008

Year

Figure 22. Mean weaning percentage and standard deviation for cow-calf operations in eastern South Dakota for 2002 – 2008 (n=210).

Number of Operations

120 100 80 60 40 20 0 60%-70%

71%-80%

81%-90%

91%-100%

Percent Figure 23. Distribution of number of operations over mean weaning percentage for cowcalf operations in eastern South Dakota for 2002-2008 (n=210).

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580

Weaning Weight (lbs.)

560 540 520 500 480 460 440 2002

2003

2004

2005

2006

2007

2008

Year

Number of Operations

Figure 26. Mean weaning weight and standard deviation for cow-calf operations in eastern South Dakota for 2002 – 2008 (n=210).

80 70 60 50 40 30 20 10 0 400-450

451-500

501-550

551-600

601-650

651-700

Average Weaning Weight (lb) Figure 27. Distribution of number of operations over average weaning weight for cowcalf operations in eastern South Dakota for 2002-2008 (n=210).

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600

Lbs Calf Weaned/Cow Exposed

500 400 300 200 100 0 2002

2003

2004

2005

2006

2007

2008

Year

Figure 28. Mean pounds of calf weaned per cow exposed and standard deviation for cow-calf operations in eastern South Dakota for 2002-2008 (n=210).

Number of Operations

120 100 80 60 40 20 0 400-450

451-500

501-550

551-600

Average Pounds Weaned per Cow Exposed Figure 29. Distribution of number of operations over average pounds of calf weaned per cow exposed for cow-calf operations in eastern South Dakota for 2002-2008 (n=210).

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Financial Trend Summary 2002-2008 1.2

Breakeven Calf Cost

1 0.8 0.6 0.4 0.2 0 2002

2003

2004

2005

2006

2007

2008

Year

Figure 30. Mean breakeven calf cost and standard deviation for cow-calf operations in eastern South Dakota for 2002-2008 (n=143).

Number of Operations

80 70 60 50 40 30 20 10 0 $0.50-$0.60 $0.61-$0.70 $0.71-$0.80 $0.81-$0.90 $0.91-$1.00

$1.00+

Calf Cost Breakeven ($/lb) Figure 31. Distribution of number of operations over mean breakeven calf cost for cowcalf operations in eastern South Dakota for 2002-2008 (n=143).

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18

Percent Return on Assets

16 14 12 10 8 6 4 2 0 2002

2003

2004

2005

2006

2007

2008

Year

Figure 32. Mean percent return on assets and standard deviation for cow-calf operations in eastern South Dakota for 2002-2008 (n=143).

Number of Operations

50 45 40 35 30 25 20 15 10 5 0 0%-3%

3.1%-6%

6.1%-9%

9.1%-12%

12.1%-15%

15.1%+

Percent Return on Assets (%) Figure 33. Distribution of number of operations over percent return on assets for cowcalf operations in eastern South Dakota for 2002-2008 (n=143).

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1 0.9

Percent (%)

0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 2002

2003

2004

2005

2006

2007

2008

Year

Number of Operations

Figure 34. Mean operating expense ratio and standard deviation for cow-calf operations in eastern South Dakota for 2002-2008 (n=143).

80 70 60 50 40 30 20 10 0 50%-60% 60.1%-70% 70.1%-80% 80.1%-90%

100%+

Percent Figure 35. Distribution of number of operations over operating expense ratio for cowcalf operations in eastern South Dakota for 2002-2008 (n=143).

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Total Cow Cost Trend Summary 2002-2008

Figure 36. Mean total cow costs for cow-calf operations in eastern South Dakota for 2002-2008 (n=143).

Figure 37. Distribution of number of operations over total cow cost for cow-calf operations in eastern South Dakota for 2002-2008 (n=143).

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Dollars/heifer exposed

Heifer Development Cost Trend Summary 2005-2008 1040 1020 1000 980 960 940 920 900 2005

2006

2007

2008

Year

Number of Operations

Figure 38. Mean heifer development costs for cow-calf operations in eastern South Dakota for 2005-2008 (n=78).

25 20 15 10 5 0 $500$600

$601$700

$701$800

$801$900

$901$1000

$1001$1100

$1101- $1201+ $1200

Heifer Development Cost ($/heifer exposed) Figure 39. Distribution of number of operations over mean heifer development cost for cow-calf operations in eastern South Dakota for 2005-2008 (n=78).

41

Feed Cost Trend Summary 2005-2008

Dollars per Ton

40 35 30 25 20 15 2005

2006

2007

2008

Year

Number of Operations

Figure 40. Mean cost of production for corn silage for cow-calf operations in eastern South Dakota for 2005-2008 (n=53).

30 25 20 15 10 5 0 $15-$20 $21-$25 $26-$30 $31-$35 $36-$40

$40+

Dollars per Ton Figure 41. Distribution of number of operations over mean cost of production of corn silage for cow-calf operations in eastern South Dakota for 2005-2008 (n=53).

42

Dollars per Ton

75 70 65 60 55 50 2005

2006

2007

2008

Year

Number of Operations

Figure 42. Mean cost of production for grass hay for cow-calf operations in eastern South Dakota for 2005-2008 (n=104).

120 100 80 60 40 20 0 $40-$45 $46-$50 $51-$55 $56-$60 $61-$65 $65+ Dollars per Ton Figure 43. Distribution of number of operations over mean cost of production for grass hay for cow-calf operations in eastern South Dakota for 2005-2008 (n=104).

43

Dollars per Ton

55 50 45 40 35 30 2005

2006

2007

2008

Year

Number of Operations

Figure 44. Mean cost of production for alfalfa hay for cow-calf operations in eastern South Dakota for 2005-2008 (n=51).

20 15 10 5 0 $30-$35 $36-$40 $41-$45 $46-$50 $51-$55

$56+

Dollars per Ton Figure 45. Distribution of number of operations over mean cost of production for alfalfa hay for cow-calf operations in eastern South Dakota for 2005-2008 (n=51).

44

Dollars per Ton

100 90 80 70 60 50 40 30 20 2005

2006

2007

2008

Year

Number of Operations

Figure 46. Mean cost of production for small grain hay for cow-calf operations in eastern South Dakota for 2005-2008 (n=29).

10 8 6 4 2 0 $20-$30 $31-$40 $41-$50 $51-$60 $61-$70

$70+

Dollars per Ton Figure 47. Distribution of number of operations over mean cost of production for small grain hay for cow-calf operations in eastern South Dakota for 2005-2008 (n=29).

45

Grazing Cost Trend Summary 2005-2008

Dollars per AUM

45 40 35

Deeded

30

Leased

25 20 15 2005

2006

2007

2008

Year

Number of Operations

Figure 48. Mean cost per AUM for deeded and leased acres for cow-calf operations in eastern South Dakota for 2005-2008 (n=95).

50 40 30 20 10 0 $10-$15

$16-$20

$21-$25

$25-$30

$31+

Cost per AUM Figure 49. Distribution of number of operations over mean cost per AUM for deeded pasture for cow-calf operations in eastern South Dakota for 2005-2008 (n=95).

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Number of Operations

30 25 20 15 10 5 0 $25-$30

$31-$35

$36-$40

$41-$45

$46+

Cost per AUM

Figure 50. Distribution of number of operations over mean cost per AUM for leased pasture for cow-calf operations in eastern South Dakota for 2005-2008 (n=75).

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Calf Backgrounding Cost Trend Summary 2005-2008

Dollars per Head

200 150 100 50 0 2005

2006

2007

2008

Year Figure 51. Mean calf backgrounding cost for cow-calf operations in eastern South Dakota for 2005-2008 (n=51).

Dollars per cwt

100 80 60 40 20 0 2005

2006

2007

2008

Year Figure 52. Mean cost of gain for backgrounding calves for cow-calf operations in eastern South Dakota for 2005-2008 (n=51).

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Number of Operations

25 20 15 10 5 0 $45-$55

$56-$65

$66-$75

$76-$85

$86-$95

$95+

Cost of Gain Figure 53. Distribution of number of operations over mean cost of gain for cow-calf operations in eastern South Dakota for 2005-2008 (n=51).

49