An EEO/Affirmative Action employer, the University of Wisconsin-Extension provides equal opportunities in employment and programming including, Title IX and ADA requirements. ©2007 by Board of Regents of the University of Wisconsin System, doing business as the Division of Cooperative Extension of the University of Wisconsin-Extension Cost of Raising Dairy Replacements S. Huntzicker, T. Kohlman, S. Huntzicker, T. Kohlman, A. Zwald, and P. Hoffman (University of Wisconsin)  2007 by Board of Regents of the University of Wisconsin System, doing business as  the Division of Cooperative Extension of the UW-Extension

An EEO/Affirmative Action employer, the University of Wisconsin-Extension provides equal opportunities in employment and programming including, Title IX and ADA requirements. ©2007 by Board of Regents of the University of Wisconsin System, doing business as the Division of Cooperative Extension of the University of Wisconsin-Extension Contributors Maria Bendixen Adam Hady Lee Milligan Greg Blonde Mark Hagedorn Zen Miller Bob Cropp Abby Huibregtse Aerica Opatik Aliesha Crowe Steve Huntzicker Mahlon Peterson Paul Dyk David Kammel ++,* Ryan Sterry Ronda Gildersleeve Tina Kohlman Sandy Stuttgen Matt Glewen Tom Kreigel ++ Jon Zander Scott Gunderson Matt Lippert ++Center for Dairy Profitability, University of Wisconsin-Madison * Biological Systems Engineering, University of Wisconsin-Madison All other contributing authors are affiliated with the University of Wisconsin-Extension

An EEO/Affirmative Action employer, the University of Wisconsin-Extension provides equal opportunities in employment and programming including, Title IX and ADA requirements. ©2007 by Board of Regents of the University of Wisconsin System, doing business as the Division of Cooperative Extension of the University of Wisconsin-Extension Heifers…An Investment in the Future Dairy Herd Providing high quality replacements for improving genetic progress Providing high quality replacements for improving genetic progress Heifer raising is the 2 nd largest expenditure on a dairy farm Heifer raising is the 2 nd largest expenditure on a dairy farm

An EEO/Affirmative Action employer, the University of Wisconsin-Extension provides equal opportunities in employment and programming including, Title IX and ADA requirements. ©2007 by Board of Regents of the University of Wisconsin System, doing business as the Division of Cooperative Extension of the University of Wisconsin-Extension Intuitive Cost of Production Analysis (ICPA) An analysis system that calculates producer-specific rearing cost and labor efficiencies of rearing dairy herd replacements An analysis system that calculates producer-specific rearing cost and labor efficiencies of rearing dairy herd replacements An economic and labor efficiency benchmark for dairy herd replacements An economic and labor efficiency benchmark for dairy herd replacements

An EEO/Affirmative Action employer, the University of Wisconsin-Extension provides equal opportunities in employment and programming including, Title IX and ADA requirements. ©2007 by Board of Regents of the University of Wisconsin System, doing business as the Division of Cooperative Extension of the University of Wisconsin-Extension Intuitive Cost of Production Analysis (ICPA) ICPA Computer Model ICPA Computer Model Calves Calves Heifers Heifers Evaluates cost, group cost, and labor efficiencies Evaluates cost, group cost, and labor efficiencies 49 Commercial operations - 15 tie-stall barn operations 49 Commercial operations - 15 tie-stall barn operations - 21 free-stall barn operations - 13 custom calf-heifer growers 40 calf enterprises, 44 heifer enterprises 40 calf enterprises, 44 heifer enterprises

An EEO/Affirmative Action employer, the University of Wisconsin-Extension provides equal opportunities in employment and programming including, Title IX and ADA requirements. ©2007 by Board of Regents of the University of Wisconsin System, doing business as the Division of Cooperative Extension of the University of Wisconsin-Extension Calf Enterprise

An EEO/Affirmative Action employer, the University of Wisconsin-Extension provides equal opportunities in employment and programming including, Title IX and ADA requirements. ©2007 by Board of Regents of the University of Wisconsin System, doing business as the Division of Cooperative Extension of the University of Wisconsin-Extension Calf Enterprise ITEM Defined Inputs Calf value $500 per calf Calf age definition Age moved to group housing Labor $12.00 per hour Management $20.00 per hour Interest rate 8.0%

An EEO/Affirmative Action employer, the University of Wisconsin-Extension provides equal opportunities in employment and programming including, Title IX and ADA requirements. ©2007 by Board of Regents of the University of Wisconsin System, doing business as the Division of Cooperative Extension of the University of Wisconsin-Extension Calf Enterprise Continued… Item Defined Inputs Wooden Calf Hutch Wooden Calf Hutch$200 Purchased Calf Hutch Purchased Calf Hutch$300 Greenhouse Barn Greenhouse Barn $10 per square foot Post-Frame Calf Barn Post-Frame Calf Barn $12.00 per square foot

An EEO/Affirmative Action employer, the University of Wisconsin-Extension provides equal opportunities in employment and programming including, Title IX and ADA requirements. ©2007 by Board of Regents of the University of Wisconsin System, doing business as the Division of Cooperative Extension of the University of Wisconsin-Extension Table 1 Cost of Raising Calves

An EEO/Affirmative Action employer, the University of Wisconsin-Extension provides equal opportunities in employment and programming including, Title IX and ADA requirements. ©2007 by Board of Regents of the University of Wisconsin System, doing business as the Division of Cooperative Extension of the University of Wisconsin-Extension Changes in Cost of Rearing Calves 1999 vs % Change % Change per Year Variable Liquid Feed Calf Starter Forage Bedding Veterinary Death Loss Interest Labor Paid Mgt Fixed Calf Housing Calf Equipment Present Cost Base Cost + Calf Value Labor & Mgt Efficiency Labor/Mgt Required Calves per hour Calves per day Table 4

An EEO/Affirmative Action employer, the University of Wisconsin-Extension provides equal opportunities in employment and programming including, Title IX and ADA requirements. ©2007 by Board of Regents of the University of Wisconsin System, doing business as the Division of Cooperative Extension of the University of Wisconsin-Extension Proportions of Cost Table 1

An EEO/Affirmative Action employer, the University of Wisconsin-Extension provides equal opportunities in employment and programming including, Title IX and ADA requirements. ©2007 by Board of Regents of the University of Wisconsin System, doing business as the Division of Cooperative Extension of the University of Wisconsin-Extension Daily Calf Rearing Costs by Operation Table 3

An EEO/Affirmative Action employer, the University of Wisconsin-Extension provides equal opportunities in employment and programming including, Title IX and ADA requirements. ©2007 by Board of Regents of the University of Wisconsin System, doing business as the Division of Cooperative Extension of the University of Wisconsin-Extension Cost Per Day To Raise A Dairy Calf Calf Cost per Day* Tie- Stall Free- Stall Custom Grower All Variable Cost Cost$3.45$5.01$2.63$4.20 Fixed Cost $0.19$0.17$0.41$0.20 Opportunity Cost Cost$2.15$0.41$0.11$1.02 Present $5.78$5.59$3.16$5.42 *Does not include calf value Table 3

An EEO/Affirmative Action employer, the University of Wisconsin-Extension provides equal opportunities in employment and programming including, Title IX and ADA requirements. ©2007 by Board of Regents of the University of Wisconsin System, doing business as the Division of Cooperative Extension of the University of Wisconsin-Extension Calf Labor Efficiency All Operation Surveyed Table 1 AverageHighLow Calf per Hour Minutes per Calf

An EEO/Affirmative Action employer, the University of Wisconsin-Extension provides equal opportunities in employment and programming including, Title IX and ADA requirements. ©2007 by Board of Regents of the University of Wisconsin System, doing business as the Division of Cooperative Extension of the University of Wisconsin-Extension What Price Do We Pay For Lack Of Efficiency? Farmer 1: Farmer 1: 2.3 Calves/Hour = 26 Minutes/Calf 2.3 Calves/Hour = 26 Minutes/Calf $12 an hour for labor $12 an hour for labor It costs $5.21 calf/hour!! It costs $5.21 calf/hour!! 18.7 $5.21/calf/hour=$97.43/day 18.7 $5.21/calf/hour=$97.43/day Farmer 2: Farmer 2: 26.8 Calves/Hour = 2.2 Minutes/Calf 26.8 Calves/Hour = 2.2 Minutes/Calf $12 an hour for labor $12 an hour for labor It costs $0.45 calf/hour! It costs $0.45 calf/hour! $0.45/calf/hour=$96.57/day $0.45/calf/hour=$96.57/day Cost Difference= $4.76 calf/hour and calves per day! Cost Difference= $4.76 calf/hour and calves per day!

An EEO/Affirmative Action employer, the University of Wisconsin-Extension provides equal opportunities in employment and programming including, Title IX and ADA requirements. ©2007 by Board of Regents of the University of Wisconsin System, doing business as the Division of Cooperative Extension of the University of Wisconsin-Extension Labor Saving Ideas for Calves Bulk liquid delivery system Bulk liquid delivery system In-line bucket systems In-line bucket systems Batch milk re-placer mixers Batch milk re-placer mixers Automated bottle-filling systems Automated bottle-filling systems Calf starter feeding bottles Calf starter feeding bottles Ergonomic calf pens or hutches Ergonomic calf pens or hutches Liquid-feed mixing room Liquid-feed mixing room Power mixers to mix milk re- placers Power mixers to mix milk re- placers Dedicated calf equipment and feed mixing facility Dedicated calf equipment and feed mixing facility Motorized carts to deliver liquid feeds, starter, water Motorized carts to deliver liquid feeds, starter, water Hand carts to carry supplies Hand carts to carry supplies Source: Compiled by P.C. Hoffman, University of Wisconsin, 2003—”Raising Dairy Replacements” Location of calf housing Location of calf housing Easy gate access to pens Easy gate access to pens Dishwasher Dishwasher Automated bottle filling equipment Automated bottle filling equipment All in all out calf housing All in all out calf housing Water and electric utilities located close to calves Water and electric utilities located close to calves Carts to carry and transport calves Carts to carry and transport calves Locate bedding close to calves Locate bedding close to calves Bedding delivery carts Bedding delivery carts Rear access to calf pens or hutches Rear access to calf pens or hutches Front fence buckets or bottle holders Front fence buckets or bottle holders

An EEO/Affirmative Action employer, the University of Wisconsin-Extension provides equal opportunities in employment and programming including, Title IX and ADA requirements. ©2007 by Board of Regents of the University of Wisconsin System, doing business as the Division of Cooperative Extension of the University of Wisconsin-Extension Heifer Enterprise

An EEO/Affirmative Action employer, the University of Wisconsin-Extension provides equal opportunities in employment and programming including, Title IX and ADA requirements. ©2007 by Board of Regents of the University of Wisconsin System, doing business as the Division of Cooperative Extension of the University of Wisconsin-Extension Heifer Enterprise Item Defined Inputs Feed Costs: Legume Silage Legume Silage $100 per ton DM Corn Silage Corn Silage $85 per ton DM Corn Corn $116 per ton DM Weigh-backs Weigh-backs $100 per ton DM Soybean Meal Soybean Meal $200 per ton DM Labor $12.00 per hour Management $20.00 per hour Interest rate 8.0%

An EEO/Affirmative Action employer, the University of Wisconsin-Extension provides equal opportunities in employment and programming including, Title IX and ADA requirements. ©2007 by Board of Regents of the University of Wisconsin System, doing business as the Division of Cooperative Extension of the University of Wisconsin-Extension Heifer Enterprise cont. Item Defined Input Bedded Pack Barn Bedded Pack Barn $15 per square foot Freestall Barn Freestall Barn $20 per square foot Mound System or Dirt Lot Mound System or Dirt Lot $0.09 per square foot Concrete Lot Concrete Lot $3 per square foot

An EEO/Affirmative Action employer, the University of Wisconsin-Extension provides equal opportunities in employment and programming including, Title IX and ADA requirements. ©2007 by Board of Regents of the University of Wisconsin System, doing business as the Division of Cooperative Extension of the University of Wisconsin-Extension Cost of Raising Heifers Table 8

An EEO/Affirmative Action employer, the University of Wisconsin-Extension provides equal opportunities in employment and programming including, Title IX and ADA requirements. ©2007 by Board of Regents of the University of Wisconsin System, doing business as the Division of Cooperative Extension of the University of Wisconsin-Extension Changes in Cost of Rearing Heifers 1999 vs % Change % Change per Year Variable Feed Bedding Veterinary Breeding Electrical and Fuel Interest Death Loss Labor Management Fixed Manure Storage Housing Equipment Present CostBase Cost + Calf Value Labor & Mgt Efficiency Labor/Mgt Required Heifers per hour Heifers per day Table 8

An EEO/Affirmative Action employer, the University of Wisconsin-Extension provides equal opportunities in employment and programming including, Title IX and ADA requirements. ©2007 by Board of Regents of the University of Wisconsin System, doing business as the Division of Cooperative Extension of the University of Wisconsin-Extension Proportions of Cost to Raise Heifers Table 5

An EEO/Affirmative Action employer, the University of Wisconsin-Extension provides equal opportunities in employment and programming including, Title IX and ADA requirements. ©2007 by Board of Regents of the University of Wisconsin System, doing business as the Division of Cooperative Extension of the University of Wisconsin-Extension Daily Heifer Rearing Costs by Operation Table 7

An EEO/Affirmative Action employer, the University of Wisconsin-Extension provides equal opportunities in employment and programming including, Title IX and ADA requirements. ©2007 by Board of Regents of the University of Wisconsin System, doing business as the Division of Cooperative Extension of the University of Wisconsin-Extension Cost Per Day To Raise Heifers Heifer Cost Per Day* Tie- Stall Free- Stall Custom Grower All Variable Cost $1.60$1.69$1.52$1.63 Fixed Cost $0.23$0.27$0.24$0.25 Opportunity Cost Cost$0.30$0.07$0.17$0.17 Present Cost $2.12$2.04$1.93$2.05 *Does not include calf rearing costs Table 7

An EEO/Affirmative Action employer, the University of Wisconsin-Extension provides equal opportunities in employment and programming including, Title IX and ADA requirements. ©2007 by Board of Regents of the University of Wisconsin System, doing business as the Division of Cooperative Extension of the University of Wisconsin-Extension Heifer Labor Efficiency All Operations Surveyed Table 5 AverageHighLow Heifers per Hour Minutes per Heifer

An EEO/Affirmative Action employer, the University of Wisconsin-Extension provides equal opportunities in employment and programming including, Title IX and ADA requirements. ©2007 by Board of Regents of the University of Wisconsin System, doing business as the Division of Cooperative Extension of the University of Wisconsin-Extension What Price Do We Pay For Lack Of Efficiency? Farmer 1: Farmer 1: 47.3 Heifers/Hour = 1.3 Minutes/Heifer 47.3 Heifers/Hour = 1.3 Minutes/Heifer $12 an hour for labor $12 an hour for labor It costs $0.25 heifer/hour It costs $0.25 heifer/hour $0.25/heifers/hour=$94.65/day $0.25/heifers/hour=$94.65/day Farmer 2: Farmer 2: 69.7 Heifers/Hour =.86 Minutes/Heifer 69.7 Heifers/Hour =.86 Minutes/Heifer $12 an hour for labor $12 an hour for labor It costs $0.17 heifer/hour It costs $0.17 heifer/hour $0.17/heifer/hour=$94.79/day $0.17/heifer/hour=$94.79/day Cost Difference= $0.08 heifer/hour and 179 heifers per day! Cost Difference= $0.08 heifer/hour and 179 heifers per day!

An EEO/Affirmative Action employer, the University of Wisconsin-Extension provides equal opportunities in employment and programming including, Title IX and ADA requirements. ©2007 by Board of Regents of the University of Wisconsin System, doing business as the Division of Cooperative Extension of the University of Wisconsin-Extension Labor Saving Ideas for Heifers Hand drawn or powered equipment and feed carts Hand drawn or powered equipment and feed carts Convenient feed storage Convenient feed storage Manure scrapers Manure scrapers Animal handling system Animal handling system Headlocks Headlocks Drive-by feeding Drive-by feeding Equipment storage room Equipment storage room Medication tool belt Medication tool belt Pen or hutch arrangement Pen or hutch arrangement Source: Compiled by P.C. Hoffman, University of Wisconsin, “Raising Dairy Replacements”.

An EEO/Affirmative Action employer, the University of Wisconsin-Extension provides equal opportunities in employment and programming including, Title IX and ADA requirements. ©2007 by Board of Regents of the University of Wisconsin System, doing business as the Division of Cooperative Extension of the University of Wisconsin-Extension Rearing Cost by Heifer Weight Table 9

An EEO/Affirmative Action employer, the University of Wisconsin-Extension provides equal opportunities in employment and programming including, Title IX and ADA requirements. ©2007 by Board of Regents of the University of Wisconsin System, doing business as the Division of Cooperative Extension of the University of Wisconsin-Extension Changes in Cost of Rearing Replacement Heifers 1999 vs. 2007

An EEO/Affirmative Action employer, the University of Wisconsin-Extension provides equal opportunities in employment and programming including, Title IX and ADA requirements. ©2007 by Board of Regents of the University of Wisconsin System, doing business as the Division of Cooperative Extension of the University of Wisconsin-Extension Summary We must take into account each year what our costs are for raising our replacement heifers. If we don’t normal inflation will take over!! We must take into account each year what our costs are for raising our replacement heifers. If we don’t normal inflation will take over!! Always look at costs in the calf enterprise because of liquid feed costs. Always look at costs in the calf enterprise because of liquid feed costs. Raising calves and heifers have no genetic progress to fall back on. Raising calves and heifers have no genetic progress to fall back on.

An EEO/Affirmative Action employer, the University of Wisconsin-Extension provides equal opportunities in employment and programming including, Title IX and ADA requirements. ©2007 by Board of Regents of the University of Wisconsin System, doing business as the Division of Cooperative Extension of the University of Wisconsin-Extension Special Appreciation To… Mike Wildeck Mike Wildeck Zen Miller Zen Miller Pat Hoffman Pat Hoffman For use of slides that were presented with the 1999 ICAP Data!

An EEO/Affirmative Action employer, the University of Wisconsin-Extension provides equal opportunities in employment and programming including, Title IX and ADA requirements. ©2007 by Board of Regents of the University of Wisconsin System, doing business as the Division of Cooperative Extension of the University of Wisconsin-Extension Thank You… For more information please contact: Steve Huntzicker, Agriculture Agent La Crosse County UW-Extension (608) Annette Zwald, UW-Madison Dairy Science Student (608) Tina Kohlman, Dairy and Livestock Agent Sheboygan County UW-Extension (920) Pat Hoffman, UW-Extension Dairy Replacement Specialist (715)