Personalized Risk Management Project

$99 Introductory Offer (free To NCIS Cost Of Production Conference Participants)

Offered By:

Dr. Harlan Hughes
Consulting Livestock Economist
Western Edge Consulting
30 Ramble A Road
Laramie, Wyoming 82070

Email: harlan.hughes®gte.net
Cell Phone: 701-238-9607

Calculating Your 2007 Unit Cost Of Producing A Hundred Weight Of Calf

I. When the BEEF editorial staff decided in 2004 to dedicate their annual, single-focus issue as a how-to-do a cost-and-return analysis on the ranch enterprise, the timing seemed optimal. With good times and great prices projected for the next few years, it seemed the timing was ideal for cow-calf producers to get their ranching enterprises on more efficient footing to better take advantage of the then strong, strong cattle prices and also to withstand the next price dip.

2. Please check out this web site BEEF Web Site for a list of the articles published in that special issue of the BEEF Magazine. Harlan Hughes authored several of these articles and he has elected to use these BEEF articles as the basis for those NCIS Risk Management Conference Participants that elect to participate in Harlan's Personalized Project on "Calculating Your Unit Cost Of Producing A Hundredweight Of Calf (UCOP)." Harlan has elected to focus this economic analysis on the Cost a Returns of your 2007 calves as that is the last complete calf crop that is the most prominent in your minds as you work on this Personalized Project.

This projects consists of five lessons that participants are to complete. Each lesson collects a specific set of input numbers for the participant’s beef cow herd. Each completed lesson is to be sent to Harlan Hughes via email or regular mail. Rather than waiting to complete all lessons, you should send in each lesson as it is completed. Harlan will process each lesson into the computer model and will share back what he can generate from the accumulated lessons. After the fifth lesson is received, Harlan will send the complete computerized Cost & Return Analysis back to the participating rancher via email.

As the rancher reviews his draft Cost & Return Analysis, it is quite common for a rancher to want to revise some of his input numbers. Once he sees a draft analysis, he sees how the numbers are utilized in calculating the Costs & Returns. All the rancher needs to do is to contact Harlan with his revised input numbers and Harlan will generate a revised analysis for the rancher. A typical rancher may want one to two revised runs of his data as he fine tunes the input numbers.

The five lessons are listed below in reverse order – the first lesson is at the bottom of this web page and fifth lesson is at the top. You will need to print out the instructions and blank input forms for each lesson as needed.

Harlan looks forward to working with you on your Cost & Return Analysis of your 2007 beef cow herd.

Lesson 5: Collecting Overhead Costs -- The Final Lesson

You should print out each page represented here by first double clicking the page icon and it will load a larger version into your computer. You can then use your browser's print command to print out that page. Then, click the left arrow on your browser to go back to the previous browser page. You can then double click the next page that you want to print out. Do this for all pages and then you can assemble the pages in order and you will have the input form for lesson 5.

Lesson 5 focuses on the overhead costs associated with your beef cow herd. Capital invested in beef cow assets aredocumented. The debt structure associated with the beef cow herd is also documented.

Lesson 4: Livestock costs (non-feed) For Your Beef Cow Herd

Lesson 4 is designed to collect your non-feed livestock costs associated with the beef cow herd. Double click each page image and a larger picture will load into your computer. Then, use your browser's print command to print each page out. Click the left arrow on your browser to return to the previous browser page. double click the next page that you want to print out and repeat this process until you have all pages printed out. Assemble the printed pages in order and you will have email lesson 4 ready to be filled out.

Most of these livestock costs can be found on your Federal Income Tax From 1040F. Remember, we are after only those costs that are associated with just your beef cow herd. Even haying costs are not to be included. Remember, we are charging your beef cow market price for the ranch-raised feeds fed so we would be double accounting if we also charge the production costs of raising your ranch-raised feeds.

Lesson 3: Annual Feeding Program For Cow Herd

Lesson 3: Double click each page figure to load a larger picture into your computer. Then, use your browser's print command to print each page. Click the left arrow to return to previous browser page and select the next page to print. Arrange your printed pages in the proper order and use this as your input form for lesson 3.

Lesson 2: Calculating Gross Income Of Your Beef Cow Herd

Lesson 2: Print these pages by double clicking on each page icon and it will load a larger version into your computer. You can then use your browser's print command to print that page out. Then, click the left arrow on your browser to go back a page, and you can select the next page. Do this until all pages are printed out.

The bottom of his page presents a description of Lesson 2.

Lesson 2 focuses on calculating gross income for your beef cow herd. Correct economics requires that we go beyondCash Income to an Accrual Adjusted Gross Income value.

Most ranchers stop with the cash flow income. For example, if you start out the year with 225 beef cows and end up the year with 250 cows, your business produced the extra 25 beef cows and your business analysis need to take this non-cash production into account. Cash Accounting ignores all internal production.

The opposite is also true if you start the year with 225 cows and end the year with 200 cows. Proper economic analysis also has to take the 25 cow reduction into account. Again, Cash Accouning failes to do this.

You can print out each figure/page presented above by double clicking the figure and a larger version will load into yourcomputer. Then, use your browsers print command to print the page. After printing all pages, assemble the pages according to page number and you will have lessor 2.

Lesson 1: Introduction To Personalized IRMeasy Cost & Return Analysis

Here is Lesson 1 of the Introduction To The Personalized IRMeasy Cost & Return Analysis. Use the tables presented here to sign up for this IRM Service. You should print out each of the 3 pages presented here. You can do that by double clicking on each page's image and it will automatically load a larger image into your computer. Then, use your browser's print command to print out that page. Repeat this for all 3 pages and then assemble the pages into this introductory document.

If you are not part of the NCIS Workshops conducted in Montana, North Dakota, South Dakota, and Wyoming, you will need to send a check for $99 along with this application form to: Harlan Hughes; 30 Ramble A Road; Laramie, Wy 82070.

I look forward to helping you calculate your beef cow herd's Cost & Return Analysis.