14
			2003 DAIRY COW AND REPLACEMENT BUDGET -- SMALL BREED 1
			Forage= 80% Corn Silage and 20% Hay
				PRICE PER		--- Pounds of Milk Sold Per Cow 2 ---					YOUR
	ITEM			UNIT		12,000	14,000	16,000	18,000		BUDGET
RECEIPTS
	Milk Sales  3			$13.50	/cwt	$1,620	$1,890	$2,160	$2,430
	Bull Calf 4					0	0	0	0
	Heifer  5					26	33	35	38
	Cull Cow 6			30	/cwt	99	99	99	99
TOTAL RECEIPTS						1745	2022	2294	2567
Variable Costs
	Feed 7
		Hay Equiv.		120	/ton	316	319	325	334
		Corn Silage		24.45	/ton	217	227	239	253
		Corn		2.62	/bu	114	122	135	150
		Soybean Meal 48%		0.10	/lb	205	227	257	290
		BiCarb		0.16	/lb	15	15	13	1
		Limestone		0.05	/lb	7	8	7	5
		Mag.Ox.		0.21	/lb	2	2	2	3
		Salt TM		0.12	/lb	12	12	7	12
		DiCal Phos		0.20	/lb	7	7	9	9
		Selenium 90		0.36	/lb	9	9	9	9
		Vitamins A,D,E		0.40	/lb	6	6	6	6
		Feed Additives		0.45	/lb	0	0	78	78
		Milk Replacer		0.85	/lb	10	10	10	10
	TOTAL FEED COSTS					919	964	1097	1160
	Other Variable Costs
		Veterinary & Medicine				75	80	85	90
		Breeding, Milk Testing & Reg.				35	40	45	50
		Utilities				64	66	68	70
		Bedding 8				32	32	32	32
		Misc. & Supplies				106	106	106	106
		Marketing & Hauling Costs		0.50	/cwt	60	70	80	90
		Posilac® (bST) 9		5.80	/dose	0	0	93	93
		Interest on Oper. Capital 10		8	%	49	52	61	64
	TOTAL OTHER VARIABLE COSTS					421	446	570	595
TOTAL VARIABLE COSTS						1340	1409	1667	1755
Fixed Costs
	Labor Charge 11		60 hrs.	10.50	/hr	630	630	630	630
	Interest & Insurance on Cow and Calf 12					69	82	88	93
	Equipment Charge 13			$630	/cow	111	111	111	111
	Building Charge 14			$2,700	/cow	394	394	394	394
	Management Charge 15			5%		87	101	115	128
TOTAL FIXED COSTS						1292	1318	1337	1357
TOTAL COSTS						2632	2727	3004	3112
RETURN ABOVE VARIABLE COSTS						405	612	627	812
RETURN ABOVE TOTAL COSTS						(887)	(705)	(710)	(545)
						------- Per cwt of Milk Produced -------
TOTAL RECEIPTS						14.55	14.44	14.34	14.26
FEED COSTS						7.66	6.88	6.86	6.44
TOTAL VARIABLE COSTS						11.17	10.07	10.42	9.75
TOTAL COSTS						21.93	19.48	18.78	17.29
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			FOOTNOTES TO RIGHT									1	Enterprise budget includes the costs of a one cow lactation plus dry period as well as a replacement heifer.  Dairy cows are
														presumed to be in the herd for three years.  As a result, the dairy cow and replacement budgets include 0.38 of the feed
														requirements of raising a heifer.  Heifer raising costs and feed requirements are given in the heifer budgets.
												2	"Milk Sold" equals the average pounds sold per cow over a 12-month period.  It is about 95 percent of production as
														reported by the DHIA Rolling Herd Average.
												3	The milk price is stated as the gross per cwt price less promotion and government assessment.
												4	It is assumed that no income will be generated from bull calf sales.
												5	Heifer receipts are based on 11 percent cull rate.  Of the 11 percent, 6 percent are sold at birth and
														5 percent are sold at springing.  Heifer calf prices and springing heifer prices are shown below:
																-------------milk production-------------
																12,000	14,000	16,000		18,000
													Heifer Calf			$90	125	$135		$145
													Springing Heifer			$950	1150	$1,250		$1,350
												6	Cull cow receipts are based on a 33 percent cull rate, sale price at $30 per cwt, and culled animals weighing
														1,000 lbs.  Cull cow receipts equal 0.33 x $0.30/lb x 1,000 lb
												7	Feed costs are calculated assuming 10 percent and 3 percent losses for forages and other feeds, respectively. Values
														not in italics give requirement for the cow and replacement.  Values in italics are for the cow only.
														Corn silage priced at cost of production ($19.45/ton) + $5 handling charge.  Corn priced at cost of production.
														Costs of production can be found in the Ohio Crop Enterprise Budgets.  Feed additives were assumed to be fed
														to the two highest production levels and cost $0.45/lb.  Feed additives could consist of any combination
														of supplemental fat, special trace mineral supplements, direct-fed microbials, etc.
													Item		Price	Unit	12,000			14,000			16,000			18,000
													Hay Equiv.		$120	/ton	2.63	1.68		2.66	1.71		2.71	1.76		2.78	1.83
													Corn Silage		24.45	/ton	8.89	7.29		9.27	7.67		9.79	8.19		10.36	8.76
													Corn		2.62	/bu	43	32		47	35		52	40		57	46
													Soybean Meal		0.10	/lb	2053	1925		2270	2142		2572	2444		2905	2777
													BiCarb		0.16	/lb	96	96		96	96		80	80		7	7
													Limestone		0.05	/lb	133	133		154	154		130	130		97	97
													Mag.Ox.		0.21	/lb	10	10		10	10		11	11		13	13
													Salt TM		0.12	/lb	96	82		96	82		56	42		96	82
													DiCal Phos		0.20	/lb	35	21		36	22		43	29		44	30
													Selenium 90		0.36	/lb	24	24		24	24		25	25		25	25
													Vitamins A,D,E		0.40	/lb	16	16		16	16		16	16		16	16
													Feed Additives		0.45	/lb	0	0		0	0		174	174		174	174
													Milk Replacer		0.85	/lb	11			11			11			11
												8	Bedding is assumed to be sand.  Adjust your bedding costs accordingly.
												9	Posilac® used only at 16,000 and 18,000 lb production levels;  1 dose every two weeks for 32 weeks starting
														at 63rd day of lactation.
												10	Interest costs are based on a 8 percent interest rate. Interest costs are calculated on 50 percent of all variable costs
														excluding marketing and hauling.
												11	Part or all of labor may be a variable cost if paid labor varies with cows milked. It’s a fixed cost if labor costs
														do not change with cows milked. Labor charge includes workers compensation, social security, and fringe benefits.
												12	This cost is based on a 8 percent interest rate and a 0.43 insurance rate.  The cow's value is based on an average of the
														springing heifer price (see footnote 5) and the cull cow price (see footnote 6).  The heifer's value is based on an average
														of the calf price and springing heifer price.  Total value on which the interest and insurance charge is based is the cow's
														value plus 0.38 times the heifer's value
												13	Equipment charge equals 17.6% of new equipment costs.  Costs include interest, insurance, depreciation, and repairs.
														New equipment costs equals $630 per cow and heifer. Equipment includes milking parlor ( 8 stalls), feed processing
														and distribution system, manure/waste system, tractor/scraper, 1/2 pickup, and other miscellaneous items.
														Based on "Livestock Building and Equipment Requirements", KSU Farm Management Guide, Rodney Jones and James Murphy
												14	Building charge equals 14.7% of new building costs. New building costs equal $2,700 per cow and heifer.
														Costs include interest, insurance, depreciation, and repairs.  Buildings include free stall barn, heifer barn, calf shelter,
														feed storage, milking facilities and fencing/corrals.
														Based on "Livestock Building and Equipment Requirements", KSU Farm Management Guide, Rodney Jones and James Murphy
												15	Management charge is 5 percent of total receipts.