Title: Beef Research Unit, Florida Agricultural Experiment Stations
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Permanent Link: http://ufdc.ufl.edu/UF00094248/00001
 Material Information
Title: Beef Research Unit, Florida Agricultural Experiment Stations annual costs and returns on various programs
Physical Description: v. : ; 28 cm.
Language: English
Creator: University of Florida -- Dept. of Animal Sciences. -- Beef Research Unit
University of Florida -- Agricultural Experiment Station. -- Dept. of Agricultural Economics
Donor: unknown ( endowment )
Publisher: University of Florida, Florida Agricultural Experiment Stations.
Place of Publication: Gainesville, Fla.
Publication Date: 1969-1970
Copyright Date: 1970
Frequency: annual
regular
 Subjects
Subject: Pastures -- Economic aspects -- Florida   ( lcsh )
Genre: government publication (state, provincial, terriorial, dependent)   ( marcgt )
 Notes
General Note: Description based on: 1969/1970; title from caption.
General Note: Latest issue consulted: 1969/1970.
General Note: 1969/1970 report prepared in the Department of Agricultural Economics, Florida Agricultural Experiment Stations, Gainesville, Florida.
 Record Information
Bibliographic ID: UF00094248
Volume ID: VID00001
Source Institution: University of Florida
Holding Location: University of Florida
Rights Management: All rights reserved by the source institution and holding location.
Resource Identifier: oclc - 426170995
lccn - 2009229366

Full Text


/93


BEEF RESEARCH UNIT
FLORIDA AGRICULTURAL EXPERIMENT STATIONS
ANNUAL COSTS AND RETURNS ON VARIOUS PROGRAMS
OCTOBER 1, 1969 TO SEPTEMBER 30, 1970-1



This experiment is designed to evaluate pasture programs
varying in intensities of fertilization and levels of management
in terms of forage production, soil nutrient balance and rate and
economy of beef production.

The Agricultural Economics Department has the responsibility
of approximating costs and returns on each program. To make the results
applicabedto a commercial operation, the experimental data are supple-
mented wit data from other sources. This is done in order to show
about what it would cost to carry out the programs on a commercial oper-
ation if the level of experimental practices was used.

The present phase of the experiment was started in the fall of
1964. The number of programs was reduced from five to three. This ex-
periment contains one clover-grass program, one clover-grass program
with temporary grazing crops and one clover-grass program about half of
which is irrigated with seepage irrigation. Each program is replicated
twice. Data in Table 1 show the approximate size of each program.


Table 1. Approximate Size of Experimental Programs, Beef Research Unit


Approximate
Program number :Replication : e (ae Forage plants
size (acres)

1 1 31.29 Grass-clover
2 37.58 Grass-clover

2 1 34.51 Grass-clover
temporary grazing
2 32.69 Grass-clover
temporary grazing

3 1 16.61 Grass-clover
seepage irrigation
2 16.81 Grass-clover
seepage irrigation




/This report was prepared in the Department.of.Agriul.tural .,..
Economics, Florida Agricultural Experiment Stat onqsGainesvi Florida.
:G impi 5t S n ^F-.. ; l? ~\j' .;"










In the experiment, it is assumed that the level of experimental
practices followed annually is sufficient to maintain or improve the
pastures. Therefore in calculating costs, the original costs of estab-
lishing the pastures are not depreciated over a stated number of years.
An annual charge is made to cover the cost of capital invested in estab-
lishing improved pasture programs. This figure was $107 per acre for
clover-grass pastures. It is based on the costs of establishing the
pastures in the first phase of the experiment (Table 2). A value of
$100 per acre was added to the establishment costs to cover value for
land and cost of fencing. A value of $100 per acre was used as the
needed investment in a well, equipment and facilities to irrigate
Program 3.


Table 2. Investment Per Acre in Pastures, Beef Research Unit.


Program number

Item 3
1 2
Irrigated Not irrigated

1/
Cost of establishing- $107 $107 $107 $107
Value of land and fences 100 100 100 100
Investment in irrigation
facilities -- -- 100
Total $207 $207 $307 $207


1/
-!Based on cost of establishing
experiment.


below:


pastures in the first phase of the


Method Used in Computing Items of Costs and Returns


Various items of costs were charged to the program as indicated


1. Fertilizer and lime.--The charge for fertilizer and lime
was based on the amount applied to each program. Cost per
ton was the average price paid by the Experiment Station
for those items purchased for use at the Beef Research
Unit during the 1969-70 season.

2. Pasture maintenance.--Cost of spreading fertilizer was
charged on a per ton basis. Mowing was charged on a per
hour basis. The rates used were assumed to cover cost
of labor, power and use of equipment.











3. Irrigation.--Costs of irrigation were charged on the basis
of the estimated costs of operating equipment to irrigate
200 acres. The cost of installing such equipment would be
about $20,000 or $100 per acre. Based on the limited data
available, it was estimated that the fixed costs of main-
taining such equipment was 10 percent of the investment.
Operating costs would depend on hours operated. For the
system at the Beef Research Unit, it was estimated that the
operating cost would be 60 cents per hour.

4. Investment charge.--The investment charge was based on six
percent of the estimated cost of establishing pastures in-
cluding land and fences. The charge was made to cover the
cost of capital invested in establishing the pastures.

5. Feed and minerals.--A record was kept of supplemental feeds
and amount of minerals consumed by cows on each program.
Items purchased were charged at the average price paid
during the 1969-70 season by the Experiment Station for
items purchased for use at the Beef Research Unit. Silage
harvested and fed cows was charged at its equivalent value
in terms of the estimated cost to purchase hay.

6. Miscellaneous charges.--To obtain cost estimates comparable
with a commercial unit, charges were included to cover the
estimated costs of breeding fees, labor on cattle, veterinary,
medicines and insurance, taxes, depreciation on cows,
interest on investment in cows, depreciation and repairs on
buildings and fences and other costs.

7. Value of beef.--With the exception of the heifers kept for
breeding, the calves were sold from the pasture in Septem-
ber and October. The average price received for beef was
30.88 cents per pound. This figure was used in calculating
the value of beef produced in the 1969-70 season.




Costs Rates and Prices Used in Calculating
Costs and Returns


Cost rates and prices used in calculating costs and returns
on the various programs for the 1969-70 season are shown in Table 3.










Table 3.- Cost Rates and Prices Used in Calculating Costs and Returns,
Beef Research Unit, October 1, 1969 to September 30, 1970


Item Unit Average rate


Fertilizer


0-10-20 fertilizer

Main

Spreading fertilizer
Mowing

Fee
60 percent protein supplements
Corn silage
Special mineral mix


tenance operations

ton
hour


d and minerals


Cost of operating equipment
Annual cost of maintaining
equipment


Irrigation cost

hour

per dollar invested


.60

10 percent


Miscellaneous costs


Breeding fees
Labor on cattle
Veterinary, medicines and
insurance
Taxes
Depreciation on cows
Interest on investment in
cattle
Depreciation and repairs on
building and fences
Other


animal unit
animal unit


animal
animal
animal


unit
unit
unit


animal unit

animal unit
animal unit


Price of beef


Average price received
for calves in September
and October 1970


hundredweight


$ 33.48


6.00
4.00



80.00
7.50
96.00


6.00
5.00

2.00
5.00
9.00

9.00

3.00
4.00


$ 30.88






-5-


Items of Input


Acres of pasture per cow.--The number of acres in each program,


the number of cows assigned to
per cow are shown in Table 4.
from 1.13 in Program 3 to 1.34


each program, and the acres of pasture
Average acres of pasture per cow varied
in Program 2.


Table 4. Number of Acres, Number of Cows and Acres of Pasture Per Cow,
Beef Research Unit, October 1, 1969 to September 30, 1970


SNumber of Acres of
number Replication re cows assigned: pasture
number acres psu
to program per cow

1 1 31.29 25 1.25
2 37.58 30 1.25
Average 34.44 27.5 1.25

2 1 34.51 27 1.28
2 32.69 23 1.42
Average 33.60 25 1.34

3 1 16.61 14 1.19
2 16.81 15 1.12
Average 16.71 14.5 1.13



Fertilizer.--The amount of fertilizer applied per acre on each
program is shown in Table 5. The nonirrigated clover-grass pastures
were fertilized with 0-10-20 fertilizer at the rate of 300 pounds per
acre. The irrigated clover-grass pastures were fertilized with 500 pounds
of 0-10-20 fertilizer per acre.

Supplemental feeds and minerals.--Table 6 shows the amount of
supplemental feeds and minerals fed the cows on each program. Supplemental
feeds consisted of 60 percent protein concentrates and corn silage.



Amount and Value of Beef Produced


In this analysis, production of beef was based on the total
weight of calves when removed from each program. Since each pasture was
stocked with pregnant cows, production of beef was affected by death loss
of calves, but not by cows that were exposed but did not have a calf.
The 1970 weaning percent based on all experimental cows exposed was 77 per-
cent on Program 1, 72 percent on Program 2, and 73 percent on Program 3.
The production of beef as shown also was not adjusted for any shrinkage
that would occur in marketing the calves.










Table 5.. Fertilization Schedule, Beef
September 30, 1970


Research Unit, October 1, 1969 to


Mixed fertilizer
Program :_:_:
number Replication Acres
Analysis "Pounds per acre

1 1 31.29 0-10-20 300
2 37.58 0-10-20 300

2 1 34.51 0-10-20 300
2 32.69 0-10-20 300

3 1 (irrigated) 8.04 0-10-20 500
(nonirrigated) 8.57 0-10-20 300
2 (irrigated) 8.04 0-10-20 500
(nonirrigated) 8.77 0-10-20 300




Table 6. Supplemental Feeds and Minerals, Average Amount Per Program,
Beef Research Unit, October 1, 1969 to September 30, 1970


Program number

1 2 3
Item -- -------------



1/
Pounds per program-
60 percent protein concentrates 2,888 2,625 1,522
Corn silage 166,788 142,675 104,835
Minerals 900 950 825

1/
Pounds per cow-
60 percent protein concentrates 105 105 105
Corn silage 6,065 5,707 7,230
Minerals 33 38 57


1/Based on the number of cows
- Based on the number of cows


assigned to the program.


Table 7 shows the number of calves weaned, average weight per
calf, production of beef on a per cow and a per acre basis, average market
grade score of calves, price per pound of beef and value of beef on a per
calf, per cow and per acre basis. The production of beef on a per acre
basis varied from 299 pounds on Program 2 to 348 pounds on Program 3.
The value of beef produced per acre was $107 on Program 3 and $92 on
Program 2.










Table 7. Amount and Value of Beef Produced, Average Per Program,
Beef Research Unit, October 1, 1969 to September 30, 1970


Calves weaned Pounds of beef Value of beef
:____ :_ Average _
Program: : : market : P :
number: Nu : Average: Per : Per grade :: c : er : Per
Number pound calf cow acre
S: weight : cow : acre :score (cent
(cents)

1 23.5 478 408 326 11.0 30.88 $148 $126 $101
2 20.0 503 402 299 11.0 30.88 155 124 92
3 13.0 447 401 348 11.0 30.88 138 124 107


Summary of Costs and Returns


An average of the various items of costs for the two replications
in each program is given in Table 8. The data are summarized in Table 9
and are expressed on a cost per acre and cost per pound basis. In the
1969-70 season, the total cost of maintaining pastures varied from $19.67
per acre on Program 2 to $30.97 on Program 3. The total cost per acre
varied from $70.47 on Program 2 to $96.08 on Program 3. Cost per pound
of beef was 23.27 cents on Program 1, 23.54 cents on Program 2 and
27.63 cents on Program 3. The cost of irrigating pastures in Program 3
was 2.72 cents per pound of beef.

The net returns for the beef enterprise on each program are
summarized in Table 10. The value of beef was higher than costs on each
of the three programs. The net returns were $25 per acre on Program 1,
$22 on Program 2 and $11 on Program 3. The net returns per cow were $31
on Program 1, $29 on Program 2 and $13 on Program 3.

Tables 11 to 13 contain summaries of cost items for the two
replications for each program for the 1969-70 season.









Table 8. Average Cost Per Program,
to September 30, 1970


Beef Research Unit, October 1, 1969


Program number

e 2 3


Number of acres
Number of cows
Cost of pasture maintenance:
0-10-20 fertilizer
Applying fertilizer
Mowing
Total
Irrigation:
Operating costs
Fixed cost of equipment
Total
Total direct costs
Investment charge
Total cost of maintaining
pastures

Feed and minerals:
60 percent protein concentrates
Corn silage
Minerals
Total

Other:
Breeding fees
Labor on cattle
Vet., med., and ins.
Taxes
Depreciation on cows
Interest on investment in cows
Depreciation and repairs on
buildings and fences
Other
Total

Total costs
Number of calves weaned
Weight of calves (pounds)
Cost per pound of beef (cents)


34.44
27.5

$ 172.94
30.99
70.16
274.09


274.09
427.68

701.77


115.40
625.59
43.20
784.19


165.00
82.50
55.00
137.50
247.50
247.50

82.50
110.00
1,127.50

$2,613.46
23.5
11,230
23.27


33.60
25.0

$ 168.74
30.24
44.50
243.48


243.48
417.31

660.79


105.00
531.42
45.60
682.02


150.00
75.00
50.00
125.00
225.00
225.00

75.00
100.00
1,025.00

$2,367.81
20.0
10,059
23.54


16.71
14.5

$ 110.83
19.86
21.34
152.03


77.55
80.40
157.95
309.98
207.54

517.52


60.90
392.96
39.60
493.46


87.00
43.50
29.00
72.50
130.50
130.50

43.50
58.00
594.50

$1,605.48
13.0
5,811
27.63










Table 9. Average Cost Per Acre and Per Pound of Beef, Beef Research Unit,
October 1, 1969 to September 30, 1970


Program number
Item
1 2 3


Cost per acre

Direct pasture costs $ 7.96 $ 7.25 $ 9.10
Cost of irrigation -- -- 9.45
Investment charge 12.42 12.42 12.42
Total pasture costs 20.38 19.67 30.97
Feed and minerals 22.77 20.30 29.53
Miscellaneous livestock costs 32.74 30.50 35.58
Total costs $75.89 $70.47 $96.08


Cost per pound of beef (cents)

Direct pasture costs 2.44 2.42 2.62
Cost of irrigation -- -- 2.72
Investment charge 3.81 4.15 3.57
Total pasture costs 6.25 6.57 8.91
Feed and minerals 6.98 6.78 8.49
Miscellaneous livestock costs 10.04 10.19 10.23
Total costs 23.27 23.54 27.63







-10-


Table 10. Net Returns from Beef Production, Average Per Program,
Beef Research Unit, October 1, 1969 to September 30, 1970


Program number
Item
1 2 3


Returns per pound
Value of beef
Net costs
Net returns

Returns per calf
Value of beef
Net costs
Net returns

Returns per cow
Value of beef
Net costs
Net returns

Returns per acre
Value of beef
Net costs
Net returns


of beef (cents)


30.88
23.27
7.61


$148
111
37



$126
95
31



$101
76
25


30.88
23.54
7.34


$155
118
37


$124
95
29



$ 92
70
22


30.88
27.63
3.25


$138
123
15


$124
111
13



$107
96
11






-11-


Table 11.


Items of Costs, Program 1, Beef Research Unit, October 1, 1969
to September 30, 1970


Price Pasture 11 Pasture 12
Item
SUnit Cost Amount: Cost Amount' Cost
: nit : ::


Cost of pasture maintenance:
0-10-20 fertilizer
Applying fertilizer
Mowing:
5-21-70
5-22-70
5-26-70
8- 4-70
8- 8-70
8- 9-70
8-10-70
8-11-70
8-14-70
Total direct cost
Investment charge
Total cost of
maintaining pastures
Feed and minerals:
60 pet. protein concentrates
Corn silage
Minerals
Total
Other costs:
Breeding fees
Labor on cattle
Vet., med., and ins.
Taxes
Depreciation on cows
Interest on investment
in cows
Depreciation and repairs
on bldg. and fences
Other
Total


ton
ton

hour
hour
hour
hour
hour
hour
hour
hour
hour

acre

acre


ton
ton
ton


a.u.
a.u.
a.u.
a.u.
a.u.

a.u.

a.u.
a.u.


$33.48 4.69 $ 157.14 5.64 $ 188.73
6.00 4.69 28.16 5.64 33.82


4.00
4.00
4.00
4.00
4.00
4.00


3.75
7.50
2.00


15.00
30.00
8.00


4.00 2.25 9.00
4.00 6.00 24.00
4.00 1.08 4.32
275.62
12.42 31.29 388.62


5.67
1.33
5.50





37.58


664.24


1.31
75.62
.52


80.00
7.50
96.00



6.00
3.00
2.00
5.00
9.00


9.00 25

3.00 25
4.00 25


Total costs


104.80
567.19
50.40
722.39


1.58
91.20
.38


150.00
75.00
50.00
125.00
225.00


225.00 30


75.00
100.00
1,025.00
$2,411.63


22.68
5.32
22.00



272.55
466.74

739.29


126.00
684.00
36.00
846.00


180.00
90.00
60.00
150.00
270.00

270.00

90.00
120.00
1,230.00

$2,815.29


Number of calves weaned
Weight of calves (pounds)
Cost per pound of beef
(cents)


22
11,143


25
11,318


21.64 24.87







-12-


Table 12.


Items of Costs, Program 2, Beef Research Unit, October 1, 1969
to September 30, 1970


Price Pasture 21 Pasture 22
Item
SUnit : Cost Amount: Cost : Amount: Cost
: ni : : :


Cost of pasture maintenance:
0-10-20 fertilizer
Applying fertilizer
Mowing:
8- 1-70
8- 2-70
8- 3-70
8-14-70
8-15-70
8-16-70
Total direct costs
Investment charge
Total cost of
maintaining pastures


Feed and minerals:
60 pet. protein concentrates ton
Silage ton
Minerals ton
Total


Other costs:
Breeding fees
Labor on cattle
Vet., med., and ins.
Taxes
Depreciation on cows
Interest on investment
in cows
Depreciation and repairs
on bldg. and fences
Other
Total
Total costs

Number of calves weaned
Weight of calves (pounds)
Cost per pound of beef (cents)


ton
ton

hour
hour
hour
hour
hour
hour

acre


$33.48 5.18 $
6.00 5.18


173.31 4.90
31.06 4.90


4.00
4.00
4.00
4.00 3.25 13.00
4.00 3.83 15.32
4.00 2.25 9.00
241.69
12.42 34.51 428.61


2.75
4.67
5.50





32.69


670.30


80.00
7.50
96.00


1.42
70.54
.52


6.00
3.00
2.00
5.00
9.00


a.u.
a.u.
a.u.
a.u.
a.u.

a.u.

a.u.
a.u.


9.00 27

3.00 27
4.00 27


113.40
529.03
50.40
692.83


1.21
71.17
.42


162.00
81.00
54.00
135.00
243.00


243.00 23


81.00
108.00
1,107.00

$2,470.13


22
11,420
21.63


$ 164.17
29.42

11.00
18.68
22.00



245.27
406.01

651.28


96.60
533.80
40.80
671.20


138.00
69.00
46.00
115.00
207.00

207.00


69.00
92.00
943.00

$2,265.48


18
8,698
26.05







-13-


Table 13.


Items of Costs, Program 3, Beef Research Unit, October 1, 1969
to September 30, 1970


S Price Pasture 31 Pasture 32
Item
SUnit Cost Amount: Cost : Amount: Cost
Uni : : :


Cost of pasture maintenance:
Nonirrigated pasture:
0-10-20 fertilizer
Applying fertilizer
Mowing:
8-16-70
8-17-70
Total
Irrigated pasture:
0-10-20 fertilizer
Applying fertilizer
Mowing:
8-16-70
8-17-70
Total
Irrigation costs:
Operating costs
Fixed cost of equipment
Total
Total direct costs
Investment charge
Total cost of
maintaining pastures

Feed and minerals:
60 pet. protein concentrates
Silage
Minerals
Total

Other costs:
Breeding fees
Labor on cattle
Vet., med., and ins.
Taxes
Depreciation on cows
Interest on investment
in cows
Depreciation and repairs
on bldg. and fences
Other
Total

Total costs

Number of calves weaned
Weight of calves (pounds)
Cost per pound of beef (cents)


ton
ton

hour
hour


ton
ton

hour
hour


hour
acre


acre


$33.48 1.28 $
6.00 1.28


4.00
4.00


2.67


43.04 1.32
7.71 1.32


44.04
7.89


10.68


61.43


33.48 2.01
6.00 2.01

4.00 2.67
4.00


.60 129.25
10.00 8.04


16.61


2.83


67.29 2.01
12.06 2.01


10.68


2.50


90.03


11.32
63.25

67.29
12.06


10.00
89.35


77.55 129.25 77.55
80.40 8.04 80.40
157.95 157.95
309.41 310.55
206.30 16.81 208.78


515.71


80.00
7.50
96.00


.74
51.14
.45


6.00
3.00
2.00
5.00
9.00


a.u.
a.u.
a.u.
a.u.
a.u.

a.u.

a.u.
a.u.


9.00 14

3.00 14
4.00 14


58.80
383.56
43.20
485.56


519.33


.79
53.65
.38


84.00
42.00
28.00
70.00
126.00


126.00 15


42.00
56.00
574.00

$1,575.27

13
5,843
26.96


63.00
402.36
36.00
501.36


90.00
45.00
30.00
75.00
135.00


135.00

45.00
60.00
615.00

$1,635.69

13
5,779
28.30




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