2002 FINISHING 100 PURCHASED FEEDER PIGS
17
PRODUCTION BUDGET 1
High 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
Corn3 777 bu 2.30 /lb 1787  
Supplement 7,678 lb 0.12 /lb 921    
Other Feed Item(s)
TOTAL FEED COSTS 2708  
Purchased Feeders 4 5,000 lb 0.50 /lb 2500  
Vet and Med. 143  
Marketing 5 228  
Electricity and Fuel 147  
Miscellaneous 94  
Interest on Feeders 6 4 mo 9% 75  
Int. on Operating Cap. 7 $1,546 4 mo 9% 46    
TOTAL VARIABLE COSTS 5942  
FIXED COSTS
Labor Charge 40 hours 8.00 /hr 320  
Equipment Charge 8 $800 17.6% 141  
Buildings Charge 8 $5,100 14.7% 750  
Management Charge 9 5% of gross revenue 466    
TOTAL FIXED COSTS 1676  
TOTAL COSTS 7618  
                       
Market Hogs @ $35 $40 $45
RETURN ABOVE VARIABLE COSTS 10       2206 3370 4534
RETURN ABOVE TOTAL COSTS 10 589 1694 2800
                       
1. Budget for 100 purchased pigs fed in totally enclosed finishing building, assuming 3 groups are fed/year.
2. With a 3% mortality rate, 97 hogs sold weighing 240 lbs. each
3. Feed conversion is 2.8 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 six groups are fed per year.
9. Equals percent of gross income minus feeder costs.
10. All costs except management held constant.