2003 DAIRY HEIFER PRODUCTION BUDGET  -- LARGE BREED
BIRTH TO FRESHENING (24 Months)
								-------- Breakdown by Month ----------							YOUR
		ITEM		QUANTITY		PRICE		1 to 2	3 to 12	13 to 23	24		TOTAL		BUDGET
	RECEIPTS
		Bred Heifer		1		$1,200							$1,200
	VARIABLE COSTS
		Feed 1
			Hay Equiv.	3.45	ton	120	/ton	25	153	215	21		414
			Corn Silage	6.0	ton	24.45	/ton	0	59	81	7		147
			Corn	41	bu.	2.62	/bu.	2	42	58	5		107
			Soybean Meal 48%	444	lb.	0.10	/lb.	3	17	22	2		44
			Salt TM	50	lb.	0.12	/lb.	0	2	2	1		6
			Dical Phosphate	50	lb.	0.20	/lb.	0	5	5	1		10
			Milk Replacer	40	lb.	0.85	/lb.	34	0	0	0		34
		TOTAL FEED COSTS						64	278	383	37		763
		Other Variable Costs
			Veterinary and Medicine					8	4	9	1		22
			Breeding and Registration					0	0	25	0		25
			Utilities					2	6	7	1		15
			Bedding	1	ton	60	/ton	6	24	24	6		60
			Misc. and Supplies					2	7	8	1		17
			Interest on Operating Capital 2			8.0%		12	32	18	0		62
		TOTAL OTHER VARIABLE COSTS						29	73	90	9		201
	TOTAL VARIABLE COSTS							93	351	474	46		964
	FIXED COSTS
		Heifer Calf 3		1	head	135	/head	149	0	0	0		149
		Labor Charge		25	hours	10.50	/hour	53	84	100	26		263
		Interest & Insurance on Heifer 4						2	11	15	2		30
		Equipment Charge 5				$100		3	15	16	1		35
		Building Charge 6				$300		7	37	41	4		88
		Management Charge 7						5	25	28	2		60
	TOTAL FIXED COSTS							218	173	199	35		624
	TOTAL COSTS							311	524	673	81		1588
	RETURN ABOVE VARIABLE COSTS												236
	RETURN ABOVE TOTAL COSTS												-388
	PER DAY COSTS 8							------------------------- Costs Per Day ------------------------
		FEED COSTS						$1.05	$0.91	$1.14	$1.22		$1.04
		VARIABLE COSTS						$1.52	$1.15	$1.41	$1.52		$1.32
		FIXED COSTS						$1.14	$0.57	$0.59	$1.15		$0.65
		TOTAL COSTS						$2.66	$1.72	$2.00	$2.67		$1.97
	1	Corn silage priced at cost of production ($19.45/ton) + $5 handling charge. Costs of production can be found
			in the Ohio Crop Enterprise Budgets.
	2	Interest on operating capital is based on a 8 percent interest rate.  Interest costs for each period are calculated on all
			variable costs during that period.   For the 1 to 2 month breakdown, interest costs are calculated for 23 months.   The 23
			months represents the average time that costs incurred during the 1 to 2 month must be held before the heifer freshens
			For the 1 to 2 month period, interest costs equal $12  ($82 of variable costs during the period x .08 interest rate
			/ 12 months x 23 months).   Interest costs are calculated for 23, 16, 6, and 1 months for the 1 to 2, 3 to 12, 13 to 23, and
			24 month breakdowns, respectively.
	3	Based on a 10% death loss on heifers, therefore purchases of 1.1 heifers account for this death loss.
	4	Interest is based on a 8 percent interest rate and the purchase price of the heifer.  For the 1-2 month period, interest costs
			equal $149 x .08 interest rate / 12 months x 2 months.  Interest costs for the remaining  periods are based on the purchase price
			price plus interest and insurance costs of previous periods.  The rate for insurance costs is .43 percent per dollar of value.
			Values per period are $135, $400, $800, and $1,200 for the 1 to 2, 3 to 12, 13 to 23, and 24 month periods, respectively.
	5	Equipment charge equals 17.6% of new equipment costs for a two-year period. New equipment costs equal $100 per heifer.
			Equipment charge = .176 x $100 x 2.
	6	Building charge equals 14.7 % of new building costs for a two-year period.  New building costs equal $300 per heifer.
			Building charge = .147 x $300 x 2.
	7	Management charge is 5 percent of receipts.
	8	Per day costs do not include the cost of the heifer calf.