2008 Dairy Budgets

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Projected 2008 Conventional Dairy Budget
(125 cow herd, replacements raised)

                                                Production Level              
                                 17,500 lbs. milk sold   22,000 lbs. milk sold
                                  per cow    per cwt.     per cow    per cwt.
ESTIMATED INCOME/ COW
  Milk sales @ $17.17/cwt.       $3,004.81      $17.17   $3,777.33      $17.17
  Government payment                     0                       0
  Calf sales: 48% x $100/hd.         47.50         .27       47.50         .22
  Cull cow sales:
    1400 lbs. x 28% x $47/cwt.      184.24        1.05      184.24         .84
  ESTIMATED TOTAL INCOME/COW     $3,236.55      $18.49   $4,009.07      $18.23

ESTIMATED OPERATING COSTS/COW
  Feed                           $1,962.38      $11.21   $2,200.99      $10.00
  Labor @ $11.00/hr.                344.83        1.97      344.83        1.57
  Veterinary, drugs, and supplies   100.00         .57      110.00         .50
  Utilities and water                50.00         .29       50.00         .23
  Fuel, oil, and all vehicle expense 61.59         .35       61.59         .28
  Milk hauling and promotion        131.25         .75      165.00         .75
  Building and equipment repair     157.20         .90      157.20         .71
  Breeding/genetic charges:
    Semen, A.I. services, supplies   45.00         .26       45.00         .20
    Interest on breeding herd       160.00         .91      160.00         .73
    Insurance on breeding herd       20.00         .11       20.00         .09
  Professional fees
    (legal, accounting, etc.)        22.00         .13       22.00         .10
  Miscellaneous                      20.00         .11       25.00         .11
  Operating interest
    (1/2 of operating costs x 8%)   111.32         .64      121.46         .55

      Total Operating Costs      $3,185.57      $18.20   $3,483.07      $15.82

ESTIMATED OWNERSHIPS COSTS/COW
  Depreciation on bldgs.
    and equipment                  $281.87      $ 1.61     $281.87      $ 1.28
  Interest on land, bldgs.,
    and equipment                   197.57        1.13      197.57         .90
  Insurance and taxes on land,
    bldgs., equip.                   69.21         .40       69.21         .31

    Total Ownership Costs          $548.65       $3.14     $548.65       $2.49

  ESTIMATED TOTAL COSTS/COW      $3,734.22      $21.34   $4,031.72      $18.31
______________________________________________________________________________

    Income over Operating Costs    $ 50.98      $  .29     $526.00      $ 2.40
    Income over Total Costs      - $497.67   - $  2.85   - $ 22.65    - $  .08
______________________________________________________________________________

For more details see website http://agebb.missouri.edu/mgt/budget/index.htm

Prepared by Melvin Brees, Ag. Economist, FAPRI, and Joe Horner,
Economist, Dairy and Beef.
______________________________________________________________________________

Projected 2008 Rotational Grazing Dairy Budget
(125 cow herd, replacements raised)


                                                Production Level              
                                 12,000 lbs. milk sold   15,000 lbs. milk sold
                                  per cow    per cwt.     per cow    per cwt.
ESTIMATED INCOME/ COW
  Milk sales @ $17.17/cwt.       $2,060.46      $17.17   $2,575.42      $17.17
  Calf sales:
    bulls and surplus heifers       170.00        1.42      170.00        1.13
  Cull cow sales:
    1100 lbs. x 18%x $47/cwt.        93.06         .78       93.06         .62
  Government payments:                0                       0            
  ESTIMATED TOTAL INCOME/COW     $2,323.52      $19.37   $2,838.48      $18.92

ESTIMATED OPERATING COSTS/COW
  Feed                           $1,097.46       $9.15  $1,229.26       $ 8.20
  Labor @ $11.00/hr.                291.67        2.43     291.67         1.94
  Veterinary, drugs, and supplies    80.00         .67      90.00          .60
  Utilities and water                50.00         .42      50.00          .33
  Fuel, oil, and all
    vehicle expense                  50.63         .42      50.63          .34
  Milk hauling and promotion         90.00         .75     112.50          .75
  Building and equipment repair     110.23         .92     110.23          .73
  Breeding/genetic charges:
    Semen, A.I. services, supplies   39.00         .32      39.00          .26
    Interest on breeding herd        96.00         .80      96.00          .64
    Insurance on breeding herd       12.00         .10      12.00          .08
  Professional fees
    (legal, accounting, etc.)         5.50         .05       5.50          .04
  Miscellaneous                      20.00         .17      25.00          .17
  Operating interest
    (1/2 of operating costs x 8%)    70.26         .59      76.13          .51
  Total Operating Costs          $2,012.75      $16.79  $2,187.92       $14.59

ESTIMATED OWNERSHIPS COSTS/COW
  Depreciation on bldgs.
    and equipment                  $105.26      $  .88   $105.26        $  .70
  Interest on land, bldgs.,
    and equipment                   193.17        1.61    193.17          1.29
  Insurance and taxes on
    land, bldgs., equip.             32.03         .27     32.03           .21
    Total Ownership Costs          $330.46      $ 2.76   $330.46        $ 2.20

  ESTIMATED TOTAL COSTS/COW      $2,343.21      $19.55 $2,518.38        $16.79
______________________________________________________________________________

    Income over Operating Costs    $310.77      $ 2.58   $650.56        $ 4.33
    Income over Total Costs      - $ 19.69    - $  .16   $320.10        $ 2.13
______________________________________________________________________________

For more details see website http://agebb.missouri.edu/mgt/budget/index.htm

Prepared by Melvin Brees, Ag. Economist, FAPRI, and
Joe Horner, Economist, Dairy and Beef.
______________________________________________________________________________



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