20
				2003 CHOICE HOLSTEIN STEER BUDGET
				Birth to 1,300 pounds
														YOUR
		ITEM					QUANTITY		UNIT	PRICE		TOTAL		BUDGET
	RECEIPTS
		Steer					1,300		lb	$0.65		$845
	VARIABLE COSTS
		Feed 1
			Hay				0.40		ton	100		40
			Corn Silage 2				1.75		ton	24.45		43
			Corn				78		bu	2.62		204
			Soybean Meal 48%  3				121		lb	0.10		12
			Protein Supplement 4				315		lb	0.25		79
			Milk Replacer				40		lb	0.85		34
		TOTAL FEED COSTS										412
		Other Variable Costs
			Bull Calf 5				1.1		calf	80		88
			Health Program 6									35
			Marketing									15
			Utilities, Supplies, & Misc.									9
			Interest on Operating Capital 7				8%					35
		TOTAL OTHER VARIABLE COSTS										94
	TOTAL VARIABLE COSTS											506
	FIXED COSTS
		Labor Charge					12		hours	10.50		126
		Equipment Charge 8										49
		Building Charge 9										41
		Management Charge 10					5%					42
	TOTAL FIXED COSTS											258
	TOTAL COSTS											764
	RETURN ABOVE VARIABLE COSTS											339
	RETURN ABOVE TOTAL COSTS											81
					Price per pound:				$0.60	$0.65		$0.70
	RETURN ABOVE FEED COSTS								$368	$433		$498
	RETURN ABOVE VARIABLE COSTS								$274	$339		$404
	RETURN ABOVE TOTAL COSTS								$16	$81		$146
																														21
																	1	Feed requirements are calculated the same as for the dairy heifer from birth to six months of age or about
																		400 pounds. Feed requirements from six months to 16.7 months are calculated assuming a 2.81 pound
																		daily gain.  The steer is sold at 16.7 months at 1,300 pounds.
																	2	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.
																	3	Soybean oil meal is used in the calf concentrate from birth to 400 pounds.
																	4	Purchased protein supplement is 50% crude protein and includes minerals and Rumensin® or Bovatec®.
																	5	There is a 10% death loss.  Purchases of 1.1 calves account for the death loss.
																	6	Health program includes veterinary, medicine, and growth implants.
																	7	Interest costs are calculated using a 8 percent interest rate.  Interest is based on one-half of the feed, health, and
																		and utility costs plus the full costs of the bull calf.   The period over which interest costs are calculated is 16.7
																		months.
																	8	Equipment charge is based on an annual charge stated as a percent of new equipment costs.  New equipment costs
																		equal $200 per steer and the annual charge is 17.6 percent.  Equipment charge equal $200 x 0.176 x 16.7 / 12.
																	9	Building charge is based on an annual charge stated as a percent of new building costs.  New building costs
																		equal $200 per steer and the annual charge is 14.6 percent.  Equipment charge equal $200 x 0.146 x 16.7 / 12.
																	10	Management charge equals 5 percent of gross sales.