16
				2003 DAIRY HEIFER PRODUCTION BUDGET  -- SMALL BREED
				BIRTH TO FRESHENING (24 Months)
								----------- Breakdown by Month -----------							YOUR
		ITEM		QUANTITY		PRICE		1 to 2	3 to 12	13 to 23	24		TOTAL		BUDGET
	RECEIPTS
		Bred Heifer		1		$1,150	/head						$1,150
	VARIABLE COSTS
		Feed 1
			Hay Equiv.	2.5	ton	120	/ton	18	111	156	15		300
			Corn Silage	4.3	ton	24.45	/ton	0	42	58	5		105
			Corn	31	bu	2.62	/bu	2	32	44	4		81
			Soybean Meal 48%	338	lb	0.10	/lb	2	13	17	2		34
			Salt	38	lb	0.12	/lb	0	2	2	1		5
			Dical Phosphate	38	lb	0.20	/lb	0	3	3	0		8
			Milk Replacer	30	lb	0.85	/lb	26	0	0	0		26
		TOTAL FEED COSTS						47	203	280	27		558
		Other Variable Costs
			Veterinary and Medicine					8	4	9	1		22
			Breeding and Registration					0	0	25	0		25
			Utilities					2	6	7	1		15
			Bedding	1	ton	60	/ton	6	24	24	6		60
			Misc. and Supplies					2	7	8	1		17
			Interest on Operating Capital 2			8%		9	24	14	0		48
		TOTAL OTHER VARIABLE COSTS						26	66	86	9		187
	TOTAL VARIABLE COSTS							74	269	366	36		745
	FIXED COSTS
		Heifer Calf 3		1.1	head	125	/head	138	0	0	0		138
		Labor Charge		25	hours	10.50	/hour	53	84	100	26		263
		Interest & Insurance on Heifer 4						2	11	14	1		28
		Equipment Charge 5			$100	/head		3	15	16	1		35
		Building Charge 6			$300	/head		7	37	41	4		88
		Management Charge 7				5%		5	24	26	2		58
	TOTAL FIXED COSTS							206	171	197	35		609
	TOTAL COSTS							280	439	563	71		1354
	RETURN ABOVE VARIABLE COSTS												405
	RETURN ABOVE TOTAL COSTS												(204)
	PER DAY COSTS 8							------------------------- Costs Per Day ------------------------
		FEED COSTS						0.78	0.67	0.83	0.90		0.76
		VARIABLE COSTS						1.21	0.88	1.09	1.19		1.02
		FIXED COSTS						1.13	0.56	0.59	1.14		0.64
		TOTAL COSTS						2.34	1.44	1.68	2.33		1.66
																															17
																	1	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.
																	2	Interest on operating capital is based on a 8 percent interest rate.  Interest costs for each period are calculated on all
																		variable costs during that period.   For the 1 to 2 month breakdown, interest costs are calculated for 23 months.   The 23
																		months represents the average time that costs incurred during the 1 to 2 month must be held before the heifer freshens.
																		For the 1 to 2 month period, interest costs equal $9  ($65 of variable costs during the period x 0.08 interest rate
																		/ 12 months x 23 months).   Interest costs are calculated for 23, 16, 6, and 1 months for the 1 to 2, 3 to 12, 13 to 23, and
																		24 month breakdowns, respectively.
																	3	Based on a 10% death loss on heifers, therefore purchases of 1.1 heifers account for this death loss.
																	4	Interest is based on a 8 percent interest rate and the purchase price of the heifer.  For the 1-2 month period, interest costs
																		equal $138 x 0.08 interest rate / 12 months x 2 months.  Interest costs for the remaining  periods are based on the purchase price
																		price plus interest and insurance costs of previous periods.  The rate for insurance costs is 0.43 percent per dollar of value.
																		Values per period are $135, $400, $800, and $1,000 for the 1 to 2, 3 to 12, 13 to 23, and 24 month periods, respectively.
																	5	Equipment charge equals 17.6% of new equipment costs for a two-year period. New equipment costs equal $100 per heifer.
																		Equipment charge = 0.176 x $100 x 2.
																	6	Building charge equals 14.7% of new building costs for a two-year period.  New building costs equal $300 per
																		heifer.  Building charge = 0.147 x $300 x 2.
																	7	Management charge is 5 percent of receipts.
																	8	Per day costs do not include the cost of the heifer calf.