2002 FINISHING 100 PURCHASED FEEDER PIGS											16
PRODUCTION BUDGET 1
Low Investment Facilities
		ITEM			QUANTITY/UNIT		PRICE PER		AMOUNT		YOUR
							UNIT				BUDGET
RECEIPTS					18,280
	Market Hogs 2				23,280	lb	$0.40	/lb	$9,312
VARIABLE COSTS
	Feed 3 - Feed quantities can be changed by either altering feed efficiency and/or ration or by individual feed amounts
	Feed conversion Rate =			3.2
	Feed Ration=		85%	Corn;	15%	Supplement
		Corn3			888	bu	2.30	/bu	2042
		Supplement			8,774	lb	0.12	/lb	1053
		Other Feed Item(s)
TOTAL FEED COSTS									3095
	Purchased Feeders 4				5,000	lb	0.50	/lb	2500
	Vet and Med.								167
	Marketing 5								228
	Electricity and Fuel								206
	Miscellaneous								146
	Interest on Feeders 6				4	mo	9%		75
	Int. on Operating Cap. 7			$1,807	4	mo	9%		54
TOTAL VARIABLE COSTS									6471
FIXED COSTS
	Labor Charge				60	hours	8.00	/hr	480
	Equipment Charge 8				$600		17.6	%	106
	Buildings Charge 8				$3,800		14.7	%	559
	Management Charge 9				5%	of gross revenue			466
TOTAL FIXED COSTS									1610
TOTAL COSTS									8081
				Market Hogs @		$35	$40	$45
		RETURN ABOVE VARIABLE COSTS 10				1,677	2,841	4,005
		RETURN ABOVE TOTAL COSTS 10				125	1,231	2,337
1. Budget for 100 purchased pigs fed in low technology facilities							assuming 3 groups are fed each year.
2. With a 3% mortality rate, 97 hogs sold weighing 240 lbs. each
3. Feed conversion is 3.2 pounds of feed per pound of gain.
4. 100 pigs bought at 50 pounds each.
5. Per hog costs equal $2.35.
6. Hogs sold each 2 months, feeder investment used only 4 months at 9%.
7. 50% of all variable costs, except feeders, marketing, and interest for 4 months at 9% interest.
8. Estimated new cost for equipment and buildings per 100 hogs, assuming that three groups are fed per year.
9. Equals percent of gross income minus feeder costs.
10. All costs except management held constant.