2018-2022 economic, productive and nancial performance of Alberta cow/calf operations
This report presents the multi-year business performance of Alberta’s cow/calf producers participating in the AgriProfit Business Analysis Program. The research was undertaken by the Alberta Ministry of Agriculture and Irrigation with the cooperation of producers across the province. The AgriProfit Program provides participating producers with cost of production (COP) analysis and benchmark reports based on actual farm records. Participating cow/calf producers received customized business analyses of their operations for comparison to this multi-year benchmark report.
Benchmarking allows comparisons of P based on production practices and marketing strategies and can help drive efficiency and financial performance. The information helps improve decisions about what, when and how much of a commodity to sell. The benchmarking process has two key time perspectives. The first is historical analysis, involving comparisons over time. The second is a within-the-year comparison, focusing on how operations performed, responded to, or weathered the challenges they faced.
The AgriProfit Program is free, and individual participant information remains confidential. This report presents the aggregated results of the cow/calf producers participating in the AgriProfit Business Analysis Program. This consists of a series of tables and figures with average historic provincial data showing the sales, production costs, and selected production and financial indicators for the past five years.
The value of the cost of production analysis is not in the figures themselves, but in gaining a better understanding of the farm business in order to pinpoint areas for improvement. Profitability can vary widely from year to year, but keeping thorough records of costs and returns can help control profitability. ach year is different and dependent on the relationships between yield, price and costs, as well as the producers’ financial situation. Proactive cost management makes businesses better able to weather periods of uctuation.
The following benchmarks summarize all sources of income and expenses related to cow/calf enterprises and covers all the activities related to producing and
raising calves until weaning in a given fiscal year. The main sources of income for a cow/calf enterprise are sales of weaned calves, cull cows, heifers, and bulls. The main expenses are winter feeding and grazing cost, veterinary services, buildings and machinery maintenance and repair, paid and unpaid labour, and more.
The economic performance indicators in this report are presented in the form of dollars per unit of production (dollars per pound weaned and dollars per cow wintered). Physical performance indicators are presented based on breeding and feeding information, as well as other physical measures such as conception, calving, weaning and calf crop rates and pounds weaned per cow (exposed and wintered). The financial performance indicators provide a snapshot of the sector’s li uidity ability to meet financial obligations as they come due); solvency (ability to meet long-term financial obligations and profitability (the returns generated by the cow/calf business). Finally, this report includes a glossary providing definitions of the terms and performance indicators used in the tables.
Definitions and explanations to accompany the cow calf enterprise overview
Production stock sales – revenues associated with the sale of weaned calves and other non-breeding stock related sales.
Value of production (VOP) – the value of what was produced by the cow calf enterprise over the course of the production year. Includes cash and non-cash values of cull and breeding stock sales, revenues from miscellaneous sources e.g. program payments, patronage refunds, etc. as allocated to the cow calf enterprise, inventory adjustments relating changes in the number and value of stock included in the enterprise, an adjustment for livestock purchases value is added only from the point of purchase forward .
Winter feed costs – the cost of all feeds used by the cow calf enterprise, purchased or homegrown, based on the market value of these feeds not the cost of raising the feeds .
Pasture costs – the value of gra ing used by the cow calf enterprise exclusive of any other retained ownership backgrounding uses . Pasture is valued into the cow calf enterprise at market value not cost and is treated as a “cash” cost.
Labour costs – a sum of paid and contributed labour, as allocated to the cow calf enterprise. Paid labour is valued at cost, while unpaid labour is valued at a standard or base cost.
Depreciation and capital lease payments – the sum of depreciation and machinery e uipment building lease payments on assets allocated to the cow calf enterprise. Other fixed costs – the total cash overheads, as allocated to the cow calf enterprise share lease cattle payments, property taxes, insurances, licenses and term loan interest .
Total cash costs – the sum of enterprise cash costs, considering home grown feeds, bedding and pasture as cash costs.
Total production costs – the sum of all variable and fixed production costs.
Contribution margin – P less variable costs.
Gross margin – P less total cash costs.
Return to investment – P less total production costs plus term capital interest paid.
Net return – P less total production costs.
Investment – sum of assets allocated to the enterprise. Includes breeding stock, machinery, e uipment, buildings facilities and building site only .
Breeding performance rates adjusted for sales and purchases of bred cattle .
Conception rate (%) – bred exposed females.
Calving rate (%) – livebirths bred females.
Weaning rate (%) – Weaned xposed Females.
Calved in first two cycles (%) – alved ycle Total alved.
lb. weaned/cow exposed – Total lb. weaned females exposed.
lb. weaned/cow wintered – Total lb. weaned opening inventory of bred cows and heifers.
Weaned weight. as % of cow weight. – lb. weaned mature cow weight adjusting bred heifer weights. .
Weight per day of age (lb.) – lb. weaned weighted wean age. Cows wintered – pening inventory of bred cows and heifers.
Cows/bulls – ows and heifers exposed bulls used. Labour hours/cow – Total labour hrs cows wintered.
AUMs/cow wintered – Total enterprise aums cows wintered.
Days on feed – Days less length of gra ing period in days.
Tonnes fed per cow – Tonnes total feed as-fed cows wintered.
Dry matter – Tonnes total feed dry matter cows wintered.
GOLD indicators:
Growth (wean weight.) – Total lb. weaned calves weaned.
Open cows (%) – pen cows and heifers exposed females.
Length of calving period – Days from first to last calf. Death loss of calves (%) – alves died live births.
TABLE 3: PHYSICAL PERFORMANCE INDICATORS
TABLE 4: FINANCIAL PERFORMANCE INDICATORS
AGRICULTURE AND IRRIGATION, GOVERNMENT OF ALBERTA
Anatoliy Oginskyy
Senior Production Economist
Phone: 780-427-5390
anatoliy.oginskyy@gov.ab.ca
Ian Ryan
Senior Livestock Economist
Phone: 780-422-5027
ian.ryan@gov.ab.ca
Economics Section
Intergovernmental and Trade Relations Branch #300, 7000-113 Street, Edmonton, Alberta T6H 5T6
Fax: 780-427-5220
For more information regarding this content visit: alberta.ca/aboutagriprofits
This publication is issued under the Open Government Licence – Alberta (http://open.alberta.ca/licence).
Ag Minister Announces Funds For Genetic Evaluation
Agriculture and Agri-Food Canada
Canadian cattle industry genetics are sought around the world and are expected to benefit from a June 7 federal government announcement that $1,627,270 will be provided to the Canadian Angus Association to improve genetic evaluation tools for Canadian beef and dairy cattle.
Genetic selection tools allow producers to increase their return on investment, while accurately predicting traits that benefit the environment and respond to consumer preferences.
Development of these tool created challenges in collecting and managing large amounts of complex data.
With federal support, the Angus association will leverage cutting-edge technologies such as artificial intelligence, machine learning, camera and computer vision systems to capture large volumes of accurate data on traits that impact producer profitability, animal health and welfare, and environmental sustainability.
This research work is expected to provide beef and dairy producers with valuable knowledge on genetic selection and support development of new systems and technologies to further advance breeding tools.
“Canada’s world-class cattle industry contributes significantly to our country’s economy,” said federal agriculture minister Lawrence MacAulay.
“By investing in new innovations and technologies, we can enhance the industry’s economic and environmental sustainability – putting more money in the pockets of producers, and more top-quality Canadian products on tables around the world.”
Myles Immerkar, CEO of the Canadian Angus Association, expressed gratitude for the funds.
“Through this project, and in partnership with Holstein Canada, our goal is to leverage cuttingedge camera and artificial intelligence (AI) technology to develop new ways to measure traits for Angus and Holstein cattle,” he said.
“These traits impact producer profitability, animal health and welfare and carcass quality.”
Cattle Directory
Excel Ranches
Ron & Barb Miller, Cody & Amy Miller Westlock, AB 780-349-0644
Fourth Creek Angus Ranch
Lazy B Livestock
Trevor Binks & Melanie Klassen Grande Prairie, AB 780-539-7128 / 780-518-0630
Dale & Judy Smith & Family, Valleyview, AB 780-558-9337 / 780-524-2790
Wolfe Farms
Tony Wolfe, Valleyview, AB 780-524-9322
Wolfe Lake Farms Inc.
Olin and Sarah Rosvold, La Glace, AB Tarril and Kare Rosvold, La Glace, AB 780-518-1997
Wolfes Fleckvieh
Shane & Shannon Wolfe, Sundre, AB 403-556-0729
VJV Livestock Marketing Group Office, Dawson Creek, BC 250-782-3766 Office, Beaverlodge, AB 780-354-2423 Office, Westlock, AB 780-349-3153 Office, Ponoka, AB 403-783-5561 Office, Rimbey, AB 403-843-2439
Wembley Livestock Exchange
Glen Mayer & Nolan Mayer, Wembley, AB G 780-897-9570 / N 780-518-0709
FEEDER ASSOCIATIONS
Barrhead FeederAssociation Ltd.
Admin - Ann Gerhardt, Barrhead, AB 780-674-2456
Fort Feeder's Co-op Association
Admin - Cathy Axley, Two Hills, AB 780-290-0293
Grande Prairie Feeders' Association Ltd.
Admin - Dawn Hollins, Grande Prairie, AB 780-538-1263
North Peace FeederAssociation Ltd.
Admin - Donna Haakenson, Berwyn, AB 780-338-2270
Prairie River Feeders Co-op Ltd.
Admin - Tammy Roberts, High Prairie, AB 780-523-4887
Grazing Plan Can Make the Most of Available Forage
Beef Cattle Research Council
grazing plan has potential to aid grazing management and reduce the cost of production. A plan that matches animal numbers to predicted forage should be done before turn out. Key steps include setting objectives, resource inventory and evaluation, balancing forage supply and demand, cost-benefit and risk assessment, implementation and monitoring.
GOALS & OBJECTIVES
Defining the goals and objectives for the entire graing operation includes lifestyle choices such as how much time a producer wants to spend moving livestock each week, profitability measures and biological outcomes such as forage production, soil health, animal performance and ecosystem impacts.
RESOURCE INVENTORY & EVALUATION
A resource inventory is crucial for developing and implementing a successful grazing system. It can answer questions such as:
• How much forage is available and at what times of the grazing season?
• Is the forage source able to meet the animals’ required nutritional requirements?
• How long is the intended grazing season?
• What physical infrastructure is available or needed?
BALANCING FORAGE SUPPLY & DEMAND
Ensuring the forage supply and demand are balanced is critical. Whether managing
native rangeland or a tame forage species, it is important that four basic principles of management are applied:
• the number of animals is balanced with the orage supply;
• there is uniform distribution of animals over the landscape;
• periods of grazing and rest are alternated to maintain vegetation; and
• the kind of livestock most suited to that forage and management are used.
COST-BENEFIT & RISK ASSESSMENT
Effective grazing management on a pasture ensures high forage yield, sustainability and animal health and productivity, all of which impact the cost of production. Completing a risk assessment in addition to looking at the cost-benefits can help an operation improve its grazing management.
IMPLEMENTATION
Different grazing systems exist due to variance in climate, plant species, soil and livestock. These systems include but are not limited to rotational grazing, forward grazing, creep grazing, limit grazing, stockpile grazing and extended grazing.
MONITORING
After the grazing plan has been implemented, monitor the pasture to make sure the objectives and goals are met. Keeping accurate and up-to-date pasture records will inform future grazing plans by
providing information such as an accurate assessment of the pasture’s carrying capacity.
PLAN UPDATE
If the current plan did not meet the goals and objectives, update it to better aim for these goals next season. Gra ing plans should be exible to accommodate changing conditions such as uctuations in livestock numbers or drastic swings in precipitation.
Alberta Issues Rural Community Grants
Alberta Agri-News
Indigenous and small communities play a vital role in Alberta’s economic landscape. Working with non-profits, they address uni ue challenges to help develop local economies and grow the economic footprint in rural Alberta.
To support local projects that promote innovation and sustainable economic growth, Alberta established the Small Community Opportunity Program. Through Budget 2023, it has awarded grants between $20,000 and $100,000 to 43 community-led projects that build capacity in agriculture, small business supports and local economic development.
“By providing financial backing, our mall ommunity Opportunity Program grants are empowering Indigenous and small communities to develop their local economies by building capacity in the agriculture and small business sectors. The fact is, when these communities succeed, all of Alberta is made stronger,” said provincial agriculture minister RJ Sigurdson.
Each project aligns with the Economic Development in Rural Alberta Plan, which aims to ensure rural Albertans and Indigenous communities have economic opportunities. Grant recipients have two years to complete their projects and make a measurable impact supporting, improving or enhancing economic development in rural and Indigenous communities and/or the agriculture industry.
“Mackenzie County has been exploring ways to expand irrigation initiatives to strengthen and diversify our agriculture sector,” said reeve Josh Knelsen.
“The Small Community Opportunity Program grant will enable us to continue this work and build on early irrigation adopters’ knowledge and experiences to advance economic development in the county.”
Small Community Opportunity Program projects align with one or more of these strategic directions:
• Rural business supports and entrepreneurship
• Support for labour force and skills development
• Marketing and promoting rural tourism
• Rural economic development capacity building
Each project also addresses one or more of these priority areas:
• Entrepreneurship and mentorship
• Skills development
• Small business supports
• Partnerships, interconnectivity and collaboration
Results Driven Agriculture Research is delivering $2.2 million to Livestock Gentec in funding that is cost-shared by the federal and provincial governments under the Sustainable Canadian Agricultural Partnership.
The investment is designed to drive adoption of tools that will improve genetic selection of beef cattle and power economic and environmentally positive changes within Alberta’s livestock sector.
The technology produced by Livestock Gentec includes selection tools based on extensive genomic, feed efficiency and meat quality data collected from commercial cattle across Canada.
Livestock Gentec will work with beef producers, industry service providers and regional producer associations to transform genomic data information that producers can use.
Over 60 Alberta producers and more than 10,000 animals are committed to this project, with selected traits being feed efficiency, disease resistance, female fertility and longevity.
“Alberta’s high quality, sustainable beef is in high demand around the world,” said federal agriculture Lawrence MacAulay, in making the announcement.
“This investment in genetic technologies will help producers improve their sustainability and their bottom line, allowing them to grow their business and increase their competitiveness.”
RJ Sigurdson, Alberta’s agriculture minister, said he supports the goal.
“Alberta’s government is committed to maintaining our province’s reputation for producing and exporting safe, sustainable, great-tasting beef. With this investment, farmers will be able to use real-time genetic data to improve the performance of their cattle and the profitability of their operation,” said Sigurdson.
Improved hybrid vigour is worth $160 per cow per year, according to genomic validation studies done on Alberta’s commercial cows. Improving hybrid vigour for Canada’s 3.56 million beef cattle would equate to more than $200 million for the beef sector.
“Data-driven genetic decisions and the adoption of genetic technologies will benefit the whole Canadian beef production value chain,” said Dr. David Chalack, chair of RDAR’s board of directors.
“Using accurate genetic data is essential to ensuring Alberta beef continues to be known worldwide as the best. This genomic technology will drive sustainable growth across the cattle industry.”
Dr. John Basarab, CEO of Livestock Gentec and University of Alberta professor, said genomics are key to beef industry competitiveness and sustainability.
“This four-year project … provides beef producers with an incentive to start or continue their journey of using genomics and data-driven genetic decisions to improve their profit and environmental sustainability in a changing climate,” he said.
8ft-x-16ft single-axle trailer. 12" high for moving sheds or small buildings. Asking $3000 OBO. 780-296-5010.
&
SRI HOMES (FSJ,BC) 16ft, 20ft, 22ft Single-Wides now on Sale. Email salesfsj@pineridgemodular.c Sales(Warren Martin) 250262-2847.
SRI HOMES (FSJ,BC) accepting orders for 24ft and 32ft Double-Wides. Email salesfsj@pineridgemodular.c Sales(Warren Martin) 250262-2847.
Built right sheds. Building quality shelters. Call John 780-835-1908 for your quote today.
Custom built livestock shelters, windbreak panels and rig mats built to order Delivery options. 780-5187469.
1978 Ford F350. Tree fell on box. Lots of new parts. Asking $2500. 780-5389115. Crossbred Commercial Bulls for Sale. SemenTested. Vet-Inspected. Vaccinated. Free Delivery 780-836-2125 or 780-8360117.
Windbreak panels for sale with 2-7/8-inch pipe and 1.5-inch thick slabs. Delivery available. Call 403-894-7633.
Looking for a Jersey cow to milk by hand. Call 780-6852169.
Looking for a bumper-pull 3-horse stock trailer. Call Bob at 250-759-4956.
2017 Ford F150 Platinum truck, 68,000 kms. Original owner. Excellent condition, $47,000. 780-864-0422.
(3) Border Collie cross cattle working dogs for sale. Used on pasture, $500 OBO. 780-834-6548.
2009 John Deere T670 combine for sale. 2692 eng, 1710 sep. Field ready, $120,000. 780-864-0422.
Horses Various Saddles Trucks
Cattle - Black
Antique Miscellaneous
Cattle - Red Angus
Trucks - Grain
Autos, Trucks & Trailers
Buildings - Farm
Cattle - Simmental
Trucks - Semi Cars, Vans & SUVs
EVERY FARMER COUNTS BESAFE
CATD6NLGPwith ripper for hire. Located in Birch Hills County. Call Eugene at 780-835-0601.
CATskidsteer for hire. Located in Birch Hills County. Call Eugene at 780835-0601.
Dismantling cultivator, disc, and plows for parts. Some air drills. 780-831-6747.
Looking for parts for a GT 370 grain dryer. Call 780841-4740.
Looking for an older skidder for farmuse. $15 – 20,000. Call Jonathen 780-2851299.
Hobart 400 welder with Perkins diesel. $4000 OBO. Call Odell at 780-618-1650.
DAMAGED GRAIN BUYING:
Appliances for sale: Dishwasher, microwave, refrigerator, stove, clothes dryer and much more. Call 780-359-2268. For sale: Cultivator, harrows, packers, augers, combine with straight cut header. Call 780-323-4364.
Looking for John Deere 535 Mower Conditioner (discbine) for parts or #635/735/835/C35/S350, 250-759-4797.
Looking for John Deere 535 Mower Conditioner (discbine) for parts or #635/735/835/C35/S350, 250-759-4797.
2016 Wheatheart heavy hitter Trlr/Model Post Pounder. Shedded. Mint. Call for Price. 780-8314233 or 780-766-2538.
Selling 7.5 miles of 4-strand barb wire fence, taking offers. Call 780-274-0810.
Ears to Hear, your local hearing aid provider, serving Athabasca and outlying areas. High Prairie Clinic, 1st Wednesday of every month at the Golden Age Club 10am-1pm. Athabasca Clinic, 3rd Tuesday of every month at the United Church 10am-1pm. Hearing tests, hearing aid cleaning and home visits. 780-228-5965, 587-746-0540. Call for info.
Full Grizzly Bear mount for sale/trade for guns. Made record book. Call for details 250-615-1583.
Alberta Grains has appointed Jeremy Boychyn as director of research, agronomy and extension.
Since joining the group in 2018, the University of Guelph alumnus has made significant contributions to the agricultural research and extension communities in Alberta.
Boychyn has helped develop key initiatives like Plot2Farm on-farm research trials and field days, the spring wheat production manual, and The Growing Point newsletter and podcast.
“Jeremy’s proven history of delivering impactful research and agronomy programs will be crucial in propelling the success of Alberta Grains and ensuring our farmers have access to the necessary tools and knowledge to thrive,” said Devin Hartzler, second vice-chair and Region 2 director.
Plot2Farm, an initiative distributed through Alberta Grains, brings agronomic research directly to farmers. Building off small plot research findings, this program provides farm-ready research protocols that can be implemented with the help of an agronomist.
This approach ensures that research findings are practically applied in realworld farming scenarios.
“Jeremy’s continuous contributions to agricultural research are noted and highly valued across the province of Alberta and beyond,” said Dean Hubbard, chair of the Alberta Grains research committee and Region 1 director.
Boychyn also manages The Growing Point brand, which includes a podcast and newsletter that provide agronomic information to Alberta farmers and agronomists. Drawing from science-based research and Alberta Grains-funded projects, The Growing Point offers insights, management perspectives and practical agronomic advice to help farmers make informed decisions and optimize their operations.
“I am honoured to take on this additional role with Alberta Grains and to have the opportunity to continue serving Alberta’s farmers,” said Boychyn.
“I am excited to continue collaborating with our dedicated staff and farmer-led board of directors to provide impactful research, agronomy and extension programs that support the success and sustainability of grain farmers throughout the province.”
Michael Flynn, executive director for Alberta Grains, said Boychyn was a clear choice.
“His knowledge and expertise in the research and agronomic world are truly invaluable, and the respect he has within the Alberta agriculture community is a testament to the work he’s done to better our farmers. We look forward to showcasing his talents in Alberta and beyond for years to come.”