| | If there’s one common bit of wisdom that’s being talked about in the cow/calf business these days, it’s "Know your cost of production." Whether you’re thinking about expanding, cutting back or joining a value chain, you can’t make informed decisions unless you know your costs. The problem has been that until now, cow/calf enterprises have been extremely difficult to analyze, especially if they’re part of a mixed farm operation.
CowProfit$, a new computer software package from Alberta Agriculture, Food and Rural Development (AAFRD), helps cow/calf producers calculate their "cost per pound of calf produced." It will also perform a basic analysis of the feeder, forage, grain, and pasture enterprises that interact with the cow/calf enterprise.
CowProfit$ was written for cow/calf producers but it can be extremely valuable to consultants, lenders and extension workers. It draws on information from your financial and production records to create a series of enterprise and whole farm reports. These reports show your farm's financial performance, enterprise by enterprise.
CowProfit$ helps farm and ranch managers answer some other tough questions including: Is each of my enterprises pulling its weight? Which ones should I expand? Which ones should I downsize or do differently?
CowProfit$ reports help you create your own cost and returns profiles which are directly comparable to AAFRD’s AgriProfit$ program benchmarks. You will be able to compare your operation’s performance to provincial or local (grass type) averages. Your cost and returns profiles will also help you to relate more directly to other AgriProfit$ research and analysis, focused on the cow/calf business.
CowProfit$ uses whole-farm numbers and allocates the various costs and returns to individual enterprises. Adjustments can be made for inventory changes and transfers between enterprises.
Costs per unit of production are calculated for cow/calf enterprises (up to five are supported) as well as for forage, straw, grain and pasture enterprises. The "winners and losers" report shows which enterprises are profitable and which enterprises may need some attention. One of CowProfit$ features is that it can use numbers from your income tax return or the most detailed statements from your accounting system, whichever is available.
Watch this news letter for further CowProfit$ developments such as information sessions and hands-on software training workshops. CowProfit$ is available for $150 from AAFRD’s Home Study branch at (780)427-2404. A free demonstration version is available on "Ropin’ the Web" at. Just follow the links to Department Publications & Products, Home Study and Livestock Production Courses, or use the search engine to find CowProfit$.
| We’d like your comments and questions about the articles featured in this newsletter. Suggestions for future issues are also welcome. Please contact me at: |
E-Mail:
Phone:
or, by mail, at: | Dale Kaliel
(780) 427-5390
302, 7000-113 Street, Edmonton, Alberta T6H 5T6 |
| AgriProfit$ | If you’d like to learn more about and/or participate in our research program, please contact me at the above. |
| Cow Profit$ | If you’re interested in the CowProfit$ software, training or seminars, contact:
Ted Darling at (403) 948-8524 (ted.darling@gov.ab.ca), or Jeff Millang at (403) 556-4220 (jeff.millang@gov.ab.ca) |
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