1. Putting It All Together For 2006 Tim Hewitt University of Florida

2. Information Given: – outlook – budgets (costs) – marketing Putting It Together: – manage costs – know markets – set price objective – evaluate your situation

3. Cattle Revenue: Rank and Value AL2$362 M FL7$358 M GA6$252 M SC6$ 86 M

4. Total Farm and Forestry Receipts, $5.5 B, Alabama, 2004 Percents By Commodity

5. Livestock & Poultry Receipts, $3.4 B, Alabama, 2004

6. Cattle Operations By Herd Size, Alabama, 2002

7. Cattle Inventory By Herd Size, Alabama, 2002

10. Budgeting –planning tool –helps with farm decisions –way of looking at alternatives –helps with price setting

11. 35 Cow Herd Costs Variable $13,700 Fixed $7,500 Total Costs $21,200

12. Asking Price Variable Costs + Fixed Costs + Management + Growth = Asking Price

13. Asking Price Variable Costs$.64 lb Fixed Costs$.40 lb Management/Growth Fee$.20 lb Asking Price$1.24 lb 550 lb. Calf

14. Marketing Problems –uniformity –lack of cattle for group sales –quality –market knowledge

15. Follow Markets –know supply/demand concepts –know cow numbers –obtain outlook information –develop confidence in your abilities –evaluate alternatives

16. Outlook Accuracy –time horizon is important –15 to 20% margin of error –all sources are similar

17. Try to Give Market What It Desires (talk to buyers and market managers) –type –breed –grade

18. Value Determining Factors –sex –frame –weight –condition –muscling –color –horns –vaccinations –breed

19. Production Practices That Pay (have marketing implications) –breed choice –dehorning –castration –de-worming –vaccinations –feeding programs

20. Does It Pay? Research has shown that these practices add $4 to $8 per cwt

21. Cost Comparison of Hay and Winter Grazing HayWinter Grazing Hay Cost $60 per ton Pasture Cost $110 per acre Total cost per/lb D.M. $.055$.04 Total cost per ton D.M. $110$80

22. Hay Feeding Costs Hay costs$60 Storage and feeding cost$10 Losses20% Hay Consumption per ton1600 Total cost per ton$88 Total cost per lb D.M.$.055 Total cost per ton D.M.$110

23. Farm Management –pull a net worth statement –evaluate last year –determine the why’s for the goods and bads –budget for the enterprises considered –study outlooks –look at markets –communicate with lender, market personnel, and suppliers

24. Helping Cow-Calf Producers Manage Price Risk Thank you for your attendance and attention. The floor is now open for questions to any of the speakers. Please remember that the video streaming sites can call (334-844-3504), fax (334-844-3501), or email (prevajw@auburn.edu) your questions to us.prevajw@auburn.edu Also, please remember to compete the evaluation sheet.