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			2003 DRY COW PRODUCTION BUDGET  -- SMALL BREED
			60 Day Dry Period
			Grass Hay Ration
											YOUR
	ITEM			QUANTITY		PRICE			TOTAL		BUDGET
RECEIPTS
	Dry Cow			1	/head	$1,100	/head		$1,100
VARIABLE COSTS
	Feed
		Hay Equiv.		0.59	ton	70.00	/ton		41
		Corn		2.4	bu	2.62	/bu		6
		Soybean Meal 48%		22	lb	0.10	/lb		2
		Limestone		4	lb	0.05	/lb		0
		Salt, trace min, vits.		2	lb	0.20	/lb		0
	TOTAL FEED COSTS								50
	Other Variable Costs
		Veterinary and Medicine							2
		Utilities							2
		Bedding		0.50	ton	60	/ton		30
		Misc. and Supplies							2
		Interest on Operating Capital 1			8%				1
	TOTAL OTHER VARIABLE COSTS								37
TOTAL VARIABLE COSTS									87
FIXED COSTS
	Milking cow			1	/head	1000	/head		1000
	Labor Charge			2.5	hours	10.50	/hour		26
	Interest & Insurance on Dry Cow 2								15
	Equipment Charge 3			$95	/head				3
	Building Charge 4			$270	/head				7
	Management Charge 5				5%				55
TOTAL FIXED COSTS									1106
TOTAL COSTS									1193
RETURN ABOVE VARIABLE COSTS									1013
RETURN ABOVE TOTAL COSTS									-93
PER DAY COSTS 6
	FEED COSTS								0.84
	VARIABLE COSTS								1.45
	FIXED COSTS								1.77
	TOTAL COSTS								3.22
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1	Interest on operating capital is calculated using 1/2 of feed costs and all other variable costs
		for 2 months.
2	Interest is based on a 8 percent interest rate and the market value of the dry cow.  The rate for insurance
		is 0.43 percent per dollar of value. $1100 x (8% + 0.43%) x 2 months = 15
3	Equipment charge equals 17.6% of new equipment costs for a two-month period.
		New equipment costs equal $95 per dry cow. Equipment charge = 0.176 x $95 x 2 months.
4	Building charge equals 14.7% of new building costs for a two-month period.
		New building costs equal $270 per dry cow.  Building charge = 0.147 x $270 x 2 months.
5	Management charge is 5% of receipts.
6	Per day costs do not include the cost of the milking cow.