Cow production costs continue to escalate

The challenges for cow-calf producers just seem to keep coming. In my November 2007 column, I discussed profitability differences in cow-calf operations across the northern Great Plains. The escalation in input costs that has occurred over the past 10 years or so, has recently been magnified by the rapid escalation in feed costs.

Figure 1 details data on cow production costs in North Dakota. This data was compiled by the North Dakota Farm Business Management program. It indicates a steady increase in both feed costs and total cow herd costs across the state. As you can see, from 2003 to 2007 feed cost per cow increased from $234 to $278 while total costs increased from $361 to $444 per cow. Based on the action we have seen in the corn and soybean markets over the past month or so, you can be certain 2008 costs will be even higher than 2007 figures.

The challenges for cow-calf producers just seem to keep coming. In my November 2007 column, I discussed profitability differences in cow-calf operations across the northern Great Plains. The escalation in input costs that has occurred over the past 10 years or so, has recently been magnified by the rapid escalation in feed costs.

---

---

Figure 1 details data on cow production costs in North Dakota. This data was compiled by the North Dakota Farm Business Management program. It indicates a steady increase in both feed costs and total cow herd costs across the state. As you can see, from 2003 to 2007 feed cost per cow increased from $234 to $278 while total costs increased from $361 to $444 per cow. Based on the action we have seen in the corn and soybean markets over the past month or so, you can be certain 2008 costs will be even higher than 2007 figures.

The challenges for cow-calf producers just seem to keep coming. In my November 2007 column, I discussed profitability differences in cow-calf operations across the northern Great Plains. The escalation in input costs that has occurred over the past 10 years or so, has recently been magnified by the rapid escalation in feed costs.

---

---

Figure 1 details data on cow production costs in North Dakota. This data was compiled by the North Dakota Farm Business Management program. It indicates a steady increase in both feed costs and total cow herd costs across the state. As you can see, from 2003 to 2007 feed cost per cow increased from $234 to $278 while total costs increased from $361 to $444 per cow. Based on the action we have seen in the corn and soybean markets over the past month or so, you can be certain 2008 costs will be even higher than 2007 figures.