By Scout Nelson
Each spring, many ranchers, like other business owners, look for ways to reduce expenses—especially with rising input costs. K-State beef cattle specialists recently shared cost-saving tips on the Cattle Chat podcast.
“To answer the question of where to cut costs on the operation, first you have to know what your costs are,” said K-State extension specialist Jason Warner. “You also need to look at current calf prices and cow prices to understand where the enterprise is to make an accurate determination of cost levels and overall profitability.”
An important but often overlooked factor is depreciation. K-State agricultural economist Dustin Pendell explained, “Depreciation is an asset that is becoming worth less over time. In the case of a cow, if she stays in the herd another year, that has a different cost calculation than buying a replacement heifer, for example.”
K-State veterinarian Brad White added, “When it comes to depreciation, we often talk about equipment because that is coming off our taxes, but managing cow depreciation costs is important to the operation’s bottom line.”
To help reduce cow maintenance costs, Warner suggests matching calving season to forage availability. “Producers should aim to select a calving date that puts her at peak lactation when the forage quality is at its best,” he said.
K-State nutritionist Phillip Lancaster emphasized the importance of extended grazing: “Hay is one of the most expensive feedstuffs on the ranch. If we can let the cow harvest as much of that forage as possible, it is a good way to reduce the ranch expenses without hurting productivity.”
Veterinarian Bob Larson recommends hay testing to avoid overspending on supplements. “If your hay is adequate in protein, you can save money by using a lower protein supplement and just provide energy to the cows,” he said.
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Categories: Kansas, Crops, Hay & Forage