Case StudyInside the numbers of grazing economics

Current Situation

60 acres of pasture with 15 acres of woods

30 cows continuously grazed - with average variable cow cost of $400 (includes pasture cost) and total annual fixed cost of $3,000 (includes facilities and cow replacement).

85% calf crop weighing 500 lbs.

Calves sell for $1.25 per pound or $125/CWT.

Questions

Total annual revenue?Total Annual Variable Costs

(TVC), Total Annual Fixed Costs (TFC), Total Costs (TC)?

Total annual profits?Breakeven calf cost VC? TC?

Possible Choices

Add cross-fencing and rotational grazing.

Consider planting winter annuals and custom hiring baleage.

Plant winter annuals, buy baleage equipment for our farm and do custom work.

Plant legumes or other alternative forages.

Others??