4
			2003 DAIRY COW AND REPLACEMENT BUDGET -- LARGE BREED 1
			Forage = 50% Corn Silage and 50% Hay
				PRICE PER		--- Pounds of Milk Sold Per Cow 2 ---					YOUR
	ITEM			UNIT		18,000	21,000	24,000	27,000		BUDGET
RECEIPTS
	Milk Sales  3			$11.00	/ cwt	$1,980	$2,310	$2,640	$2,970
	Bull Calf 4			80	/ head	36	36	36	36
	Heifer  5					28	34	37	40
	Cull Cow 6			35	/cwt	162	162	162	162
TOTAL RECEIPTS						2206	2542	2875	3207
Variable Costs
	Feed 7
		Hay Equiv.		120	/ton	549	568	588	605
		Corn Silage		24.45	/ton	196	206	216	228
		Corn		2.62	/bu	200	219	241	262
		Soybean Meal 48%		0.10	/lb	209	242	275	308
		BiCarb		0.16	/lb	7	8	8	10
		Limestone		0.05	/lb	5	5	7	5
		Mag.Ox.		0.21	/lb	3	3	3	3
		Salt TM		0.12	/lb	17	17	17	17
		DiCal Phos		0.20	/lb	28	29	29	29
		Selenium 90		0.36	/lb	9	9	9	9
		Vitamins A,D,E		0.40	/lb	8	8	8	8
		Feed Additives		0.45	/lb	0	0	78	78
		Milk Replacer		0.85	/lb	13	13	13	13
	TOTAL FEED COSTS					1243	1327	1491	1574
	Other Variable Costs
		Veterinary & Medicine				75	80	85	90
		Breeding, Milk Testing & Reg.				35	40	45	50
		Utilities				64	66	68	70
		Bedding 8				32	32	32	32
		Misc. & Supplies				106	106	106	106
		Marketing & Hauling Costs		0.50	/cwt	90	105	120	135
		Posilac® (bST) 9		5.80	/dose	0	0	93	93
		Int. on Oper. Capital 10		8	%	62	66	77	81
	TOTAL OTHER VARIABLE COSTS					464	495	626	656
TOTAL VARIABLE COSTS						1708	1822	2116	2231
Fixed Costs
	Labor Charge11		60 hrs.	10.50	/hr	630	630	630	630
	Interest & Insurance on Cow and Calf 12					80	93	99	105
	Equipment Charge 13			$700	/cow	123	123	123	123
	Building Charge 14			$3,000	/cow	438	438	438	438
	Management Charge 15			5%		110	127	144	160
TOTAL FIXED COSTS						1382	1411	1434	1456
TOTAL COSTS						3089	3233	3550	3687
RETURN ABOVE VARIABLE COSTS						498	720	758	977
RETURN ABOVE TOTAL COSTS						(884)	(691)	(675)	(479)
						------- Per cwt of Milk Produced -------
TOTAL RECEIPTS						12.25	12.10	11.98	11.88
FEED COSTS						6.91	6.32	6.21	5.83
TOTAL VARIABLE COSTS						9.49	8.67	8.82	8.26
TOTAL COSTS						17.16	15.39	14.79	13.65
																													5
												1	Enterprise budget includes the costs of a one cow lactation plus dry period as well as a replacement heifer.  Dairy cows are
														presumed to be in the herd for three years.  As a result, the dairy cow and replacement budgets include 0.38 of the feed
														requirements of raising a heifer.  Heifer raising costs and feed requirements are given in the heifer budgets.
												2	"Milk Sold" equals the average pounds sold per cow over a 12-month period.  It is about 95 percent of production as
														reported by the DHIA Rolling Herd Average.
												3	The milk price is stated as the gross per cwt price less promotion and government assessment.
												4	Bull calf receipts assume that 0.45  bulls are sold per cow per year.  The 0.45 is based on a 13 month calving interval, a 2
														percent death loss, and 50 percent of the calf crop (i.e., 0.45 = (12 months in a year / 13 month calving interval)
														x 0.98 calves born live x 0.50 of calves born are bull calves). Bull calf price is $80 per head.  Receipts equal 0.45 x $80.
												5	Heifer receipts are based on  11 percent cull rate.  Of the 11 percent, 6 percent are sold at birth and
														5 percent are sold at springing.  Heifer calf prices and springing heifer prices are shown below:
																---------------milk production---------------
																18,000	21,000	24,000		27,000
													Heifer Calf			$100	$135	$145		$155
													Springing Heifer			$1,000	$1,200	$1,300		$1,400
												6	Cull cow receipts are based on a 33 percent cull rate,  sale price at $35 per cwt, and culled animals weighing
														1,400 lbs.  Cull cow receipts equal 0.33 x $0.35/lb x 1,400 lbs.
												7	Feed costs are calculated assuming 10 percent and 3 percent losses for forages and other feeds, respectively. Values
														not in italics give requirements for the cow and replacement.  Values in italics are for the cow only.
														Corn silage priced at cost of production ($19.45/ton) + $5 handling charge. Corn priced at cost of production.
														Costs of production can be found in the Ohio Crop Enterprise Budgets. Feed additives were assumed to be fed
														to the two highest production levels and cost $0.45/lb  Feed additives could consists of any combination of
														supplemental fat, special trace mineral supplements, direct-fed microbials, etc.
													Item		Price	Unit	18,000		21,000				24,000			27,000
													Hay Equiv.		$120	/ton	4.58	3.27		4.73	3.42		4.90	3.59		5.04	3.73
													Corn Silage		24.45	/ton	8.01	5.71		8.43	6.13		8.83	6.53		9.33	7.03
													Corn		2.62	/bu	76	61		84	68		92	76		100	84
													Soybean Meal		0.10	/lb	2094	1925		2424	2255		2748	2579		3075	2906
													BiCarb		0.16	/lb	41	41		47	47		50	50		60	60
													Limestone		0.05	/lb	94	74		110	90		132	112		95	75
													Mag.Ox.		0.21	/lb	14	14		14	14		14	14		16	16
													Salt TM		0.12	/lb	145	126		145	126		145	126		145	126
													DiCal Phos		0.20	/lb	138	119		143	124		143	124		143	124
													Selenium 90		0.36	/lb	24	24		24	24		25	25		25	25
													Vits. A,D,E		0.40	/lb	20	15		20	15		20	15		20	15
													Feed Additives		0.45	/lb	0	0		0	0		174	174		174	174
													Milk Replacer		0.85	/lb	15			15			15			15
												8	Bedding is assumed to be sand.  Adjust your bedding costs accordingly.
												9	Posilac® used only at 24,000 and 27,000 production levels;  1 dose every two weeks for 32 weeks starting
														at 63rd day of lactation.
												10	Interest costs are based on a 8 percent interest rate. Interest costs are calculated on 50 percent of all variable costs
														excluding marketing and hauling
												11	Part or all of labor may be a variable cost if paid labor varies with cows milked. It’s a fixed cost if labor costs
														do not change with cows milked. Labor charge includes workers compensation, social security, and fringe benefits.
												12	This cost is based on a 8 percent interest rate and a 0.43 insurance rate.  The cow's value is based on an average of the
														springing heifer price (see footnote 5) and the cull cow price (see footnote 6).  The heifer's value is based on an average
														of the calf price and springing heifer price.  Total value on which the interest and insurance charge is based on the cow's
														value plus 0.38 times the heifer's value.
												13	Equipment charge equals 17.6% of new equipment costs.  Costs include interest, insurance, depreciation, and repairs.
														New equipment costs equals $700 per cow and heifer. Equipment includes  feed processing and distribution system,
														manure/waste system, tractor/scraper, 1/2 pickup, and other miscellaneous items.
														Based on "Livestock Building and Equipment Requirements", KSU Farm Management Guide, Rodney Jones and James Murphy
												14	Building charge equals 14.7% of new building costs. New building costs equal $3,000 per cow and heifer.
														Costs include interest, insurance, depreciation, and repairs.  Buildings include free stall barn, feed storage, milking facilities, and fencing/corrals.
														Based on "Livestock Building and Equipment Requirements", KSU Farm Management Guide, Rodney Jones and James Murphy
												15	Management charge is 5 percent of total receipts.