Transcript Integrated Resource Management

Cow/Calf Cost of
Production Goals
Oklahoma State University
Goal setting starts with an evaluation
of ranch performance….
 Determine profitability of the ranch
 Identify areas where the ranch business
has excelled
 Identify opportunities for improvement
IRM-SPA
Why Evaluate Ranch Performance?
 Provide for more informed decisions!
IRM-SPA
Benchmarks from SPA Data
Standardized Performance Analysis (SPA) is...
A management tool to integrate production and
financial data in performance measures.
Cow-Calf SPA ...
helps identify possibilities for change in the cow-calf
enterprise.
It is not a record-keeping program!
IRM-SPA
Building Standardized Performance Analyses
Financial
Records
QUICKEN
Accrual
Adjustments
SPA-F
SPA
Production
Records
SPA-P
Why is standardization
needed?
IRM-SPA
Calving %
April 1, 2000
81 calves/96 cows =
84.4 calving %
Right or wrong?
IRM-SPA
Calving %
How many females were
exposed at breeding?
96 cows now, culled 8
since breeding, one died...
IRM-SPA
What We Are Learning
From SPA Data
Production is important...
Marketing is important...
Managing production costs
is critical!
IRM-SPA
Production Performance
%
100
90
80
70
60
50
40
30
20
10
0
87
TX, NM, OK
4
Calving %
1991-98
83
Weaning %
Death Loss %
Production Performance
550
522
500
lb
TX, NM, OK
434
450
400
350
300
Avg. Weaning Weight
1991-98
Lb. Weaned/Exp. Female
What are the
differences
between the most
and least profitable
herds?
1991-98
TX, NM, OK
291 herds
IRM-SPA
SPA Statistics
Weaning Percent
Percent
90
85
85
Top 25%
2nd 25%
81
82
3rd 25%
Low 25%
60
30
0
Income Quartile
SPA Statistics
Average Weaning Weight
600
539
528
523
500
Top 25%
2nd 25%
3rd 25%
Low 25%
Lb.
500
400
300
200
100
0
Income Quartile
SPA Statistics
Pounds Weaned Per Exposed Cow
500
456
442
426
413
Top 25%
2nd 25%
3rd 25%
Low 25%
Lb.
400
300
200
100
0
Income Quartile
SPA Statistics
Cost of Production Per Cow
Dollars
$500
$500
$400
$300
$200
$100
$0
$308
Top 25%
$357
$384
2nd 25%
3rd 25%
Income Quartile
Low 25%
SPA Statistics
Grazing & Feed Cost Per Cow
Dollars
$250
$202
$200
$150
$136
$160
$166
2nd 25%
3rd 25%
$100
$50
$0
Top 25%
Income Quartile
Low 25%
SPA Statistics
Net Income ($/Cow )
Dollars
$200
$140
$100
$38
$0
($30)
-$100
-$200
($181)
Top 25%
2nd 25%
3rd 25%
Income Quartile
Low 25%
SPA Statistics
ROA Market Value (%)
Percent
10
7.56
5
2.50
0
-0.43
-5
-5.26
-10
Top 25%
2nd 25%
3rd 25%
Income Quartile
Low 25%
What are the
differences in
production and
financial statistics
for small vs. large
herds?
IRM-SPA
SPA Statistics
Pounds Weaned Per Exposed Cow
by Herd Size
500
431
416
426
1-49
50-99
100-199
450
448
441
428
434
200-299
300-499
500-999
1000+
Average
Lb.
400
300
200
100
0
Number of Head
SPA Statistics
Cost of Production Per Cow
by Herd Size
Dollars
$500
$461
$372
$400
$393
$384
$408
$396
$387
$317
$300
$200
$100
$0
1-49
Data for TX, OK,
NM
50-99 100-199 200-299 300-499 500-999 1000+ Average
Number of Head
SPA Statistics
Grazing & Feed Cost Per Cow
by Herd Size
Dollars
$250
$226
$197
$200
$190
$144
$150
$145
$166
$133
$127
$100
$50
$0
1-49
50-99
100-199 200-299 300-499 500-999
Number of Head
1000+
Average
SPA Statistics
Net Income ($/Cow)
by Herd Size
Dollars
$50
$27
$25
$6
$42
$6
$0
($25)
($19)
($31)
($50)
($8)
($75)
($100)
($80)
1-49
50-99
100-199
200-299 300-499 500-599 1000+
Number of Head
Average
What We Are Learning
From SPA Data
Production is important...
Marketing is important...
Managing production costs
is critical!
IRM-SPA
 To be continued..… with your
assistance!
IRM-SPA
Projections for one or more years lead
to better management decisions.
Planning
Control
IRM-SPA
Implementation