Value

of Feed Efficiency

Tucumcari Bull Test Sale — March 11, 2023

VALUE OF FEED EFFICIENCY ASSUMPTIONS:

• Assuming these bulls (actual data from 2021 test) were steers in feedlot, grown from 700 -1400 lbs (700# Gain)

• Cost of feed $185/ton, 62% DM, yardage at $0.25/head/day

• Bull will sire 100 calves in lifetime, calf crop is 50% his genetics, 40% Heritability of FE

• Assumes a bull at 80% ratio for FE does not add any value, other bulls compared to him

• This does not include value of keeping females who are more feed efficient

Don’t make a

$10,981.06

Bull Buying mistake!

This chart just shows the added value of keeping calves through the feedlot out of proven feed efficient sires. What would be the value of having replacement females that are more efficient in feed conversion? We believe you will see increased weaning weights, improved fertility, increased stocking rates, and lowered supplemental feed costs.

managing a business, but if you want to move to a more regenerative model that intentionally balances people, profit and planet, it’s time to take those goals into consideration with your accounting.

“Your basic financial accounting asks, ‘Are we doing things right?’” Childs says. “What we want to think about next is more managerial accounting. It asks, ‘Are we doing the right things?’”

A net worth statement, also referred to as a balance sheet, considers the bigger picture of your ranch’s financial health. It incorporates assets, liabilities and any shareholder equity.

“Assessing a net worth statement is really the gold standard way of asking, ‘How are we progressing financially?’” Childs says.

He prefers to review this statement at the start of a new year and use it as a vantage point from which to set goals for the year ahead.

Make an honest evaluation of this statement with your CPA, banker, or financial adviser, Childs suggests, “then use that to help forecast a realistic financial goal of X amount of profit for 2023.”

It’s simple, but powerful, the economists note, for business owners to not only set profitability goals, but to write those goals down and keep them in a place where you can regularly review them.

Forbes magazine notes that fewer than 20 percent of people consistently write their goals down, even though “people who very vividly describe or picture their goals are anywhere from 1.2 to 1.4 times more likely to successfully accomplish their goals than people who don’t.”

3. REVIEW CASH FLOW STATEMENT; USE ENTERPRISE ACCOUNTING AS BUILDING BLOCKS

Your cash flow statement, in simplest terms, illuminates where money comes into the business and where money is spent. This measures the business’s ability to generate cash to pay debts, fund operating expenses and more. While your cash flow statement is going to evaluate the ranch’s financial footing as a whole, it can also be used as a starting point for more detailed enterprise accounting.

Your ability to focus on each individual cash-generating opportunity offers a clear picture of which enterprises on the ranch are most profitable.

“This is where you can start looking at your big goals and then ask, ‘Which enterprises on the ranch are going to contribute to hitting that goal?’” Bradley says.

Enterprise accounting allows a manager to ask powerful questions, such as: Can we shave a little off the overheads on this enterprise or can be get better margins on that enterprise? If we got better return here, could we reinvest that to improve over there?

“If you’re really concerned about addressing profitability, this is where you need to go,” Childs says. “Your knowledge of your enterprise profitability is very powerful in building an accurate operational plan.”

The bottom line, Bradley says, is that the best way to achieve success is to plan for it.

“So plan early, and plan often.”