Bull Expense Calculator - Virginia Tech

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Bull Expense Calculator

Farm Business Management Update, May 2007

By Bill Whittle of the Department of Agricultural and Applied Economics, Virginia Tech

The purpose of the calculator is to assist beef producers in determining actual or expected costs associated with keeping a herd bull for differing numbers of cows. This information will provide a farmer with the basis for comparing the cost/benefit of a purchasing herd bulls at different prices or for comparing the cost/benefit of natural service versus artificial insemination for all or a portion of the cow herd.

The Bull Expense Calculator consists of three sheets: 1) Introduction, 2) Bull Expense Calculator (includes Input Form and Expense/Result Form), and 3) Ration Cost Calculator. The Result Form on the Bull Expense Calculator reports the costs of keeping one bull in three formats:

1. Total Yearly Expense
2. Per Cow Exposed Expense
3. Per Pregnancy Expense

Inputs are

1. Bull purchase price
2. Breeding life expectancy
3. Salvage value
4. Yearly breeding soundness exam fees and other veterinarian expenses
5. Interest rate/opportunity costs on initial amount of purchase
6. Yearly maintenance costs, including fence repair, fly control, pasture, etc.
7. Feed cost/year
8. Number of cows in the herd – you can enter up to six herd size scenarios.

The input for feed cost per year is determined by using the Ration Cost Calculator. The Ration Cost Calculator allows you to put in the bull’s specific ration, costs of feed stuffs, percent feed wastage, and the length of the feeding period. We recommend that you develop a balanced ration for your herd bulls based on NRC requirements for weight, frame, age, and farm environmental conditions. You can use the Ration Cost Calculator to change

1. the number of days the bull is fed
2. the name of a feed stuff (except corn grain)
3. price of a feed stuff
4. pounds of feed fed per day
5. percentage of waste of a particular feed

The following example shows the cost for a $1,850 bull with an example set of inputs. The spreadsheet may be obtained by downloading the attachment by selecting this link, Bull Expense Calculator, or by contacting the author.

Bull Expense Calculator

Inputs:	Enter Your Values Here:
Purchase Price:	$1,850.00
Breeding Life in Herd-Years:		4
Salvage Value:	Expected market weight at the end of breeding herd life herd life:						1700
Sale Price/Pound		$0.35
BSE-Vet Charge:	Includes Rectal Evaluation, Semen Testing and trip charge						$75.00
Interest Rate:	Opportunity Cost: What else can you do with the purchase price dollars?
If you borrow the money then the rate is the interest rate charged.						5.75%
Feed Costs/Year:	Use Ration Cost Calculator on sheet to determine input.						$256.65
Maintenance:	Includes fence repair, fly control, labor, truck, etc.					$50.00
Percent Pregnant:	Typical pregnancy rate after exposure to bull					90%
Number of Cows in the Herd: You can put in up to six herd size scenarios.
4	10	16	20	30	40
.
Number of Cows
Bull Expenses	4	10	16	20	30	40
Purchase Price:	$1,850.00	$1,850.00	$1,850.00	$1,850.00	$1,850.00	$1,850.00
Salvage Value	$595.00	$595.00	$595.00	$595.00	$595.00	$595.00
Effective Cost	$1,255.00	$1,255.00	$1,255.00	$1,255.00	$1,255.00	$1,255.00
Herd Life of Bull	4	4	4	4	4	4
Prorated Effective Purchase Price	$313.75	$313.75	$313.75	$313.75	$313.75	$313.75
BSE/Vet Cost	$75.00	$75.00	$75.00	$75.00	$75.00	$75.00
Maintenance	$50.00	$50.00	$50.00	$50.00	$50.00	$50.00
Feed	$256.65	$256.65	$256.65	$256.65	$256.65	$256.65
Opportunity Cost	$106.38	$106.38	$106.38	$106.38	$106.38	$106.38
Results
Total Yearly Expense	$722.00	$722.00	$722.00	$722.00	$722.00	$722.00
Per Cow Exposed Expense	$180.50	$72.20	$45.12	$36.10	$24.07	$18.05
Percent Pregnant	90%	90%	90%	90%	90%	90%
Per Pregnancy Expense	$200.55	$80.22	$50.14	$40.11	$26.74	$20.06

Bull Ration Cost Calculator

Days on feed =	285
Pounds
Feed Stuff	Price/ton	Feed/Day	Waste	Total Tons	Price
CORN SILAGE	$25.00	0.00	15%	0.00	$0.00
ALFALFA HAY	$110.00	0.00	10%	0.00	$0.00
GRASS HAY	$50.00	29.50	10%	4.62	$231.21
CORN GRAIN *	$2.50	2.00	0.29	$25.45
SBOM 48%	$148.00	0.00	0.00	$0.00
OTHER FEED	1.00	0.14	$0.00
OTHER FEED	0.00	0.00	$0.00
* Corn Price is expressed as price per bushel					Total Feed	$256.65
Feed Cost Per Day		$0.90

Contact the author at [email protected] .

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