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Agricultural Economics
Series 5
BEEF CALF PRODUCTION IN ALABAMA
Costs, Returns, and Improvements
June 1965
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AGRICULTURAL EXPERIMENT STATION
OF AUBURN UNIVERSITY
E. V. SMITH, Director
AUBURN, ALABAMA
.
* I- i/ t~i

Agricultural Economics 
Series 5
BEEF CALF PRODUCTION IN ALABAMA:
COSTS, RETURNS, AND IMPROVEMENTS
T. D. Nolen
by
and J. H. Yeager
Agricultural Experiment Station
of Auburn University
E. V. Smith, Director
June 1965
Auburn, Alabama
CONTJENTS
Page
INTRODUCTION . . . . . . . 0 . 0* 0 ?*.*.* ..*0*.*0*.*.*.90S
How the Study was Made a a " " " 9 9 9 a 9 " " " 9 " " a "
CENTRAL ALABAMA PRODUCERS.. . . .....
Description of Farms .99 .9 .99 .9.h9. "* .
Level of Costs . . . . 9 . . " **.**.**" . * *
Input Comparisons . . 9. . 9. .. .99999999
Output Comparisons . . .i. . . . . " . . 40. . . ". 0
Net Returns. . .
Land Charge . . . . .
Break-Even Point . .
" " "
NORTH ALABAMA PRODUCERS ... .. *.. .. .
Description of Farms 9 9 9 9 9 9 9 9 9 9
Level of Costs ".. ... . r .. ".."
Input Comparisons
Output Compariso.s
9 9 " 9 9 " r 9 9 9 " 9 9 9 " " 9
Net Returns ".". t. w t*!* 49 " .!.! . ! !.w. ". ". "*r. ".!.".
Land Charge !. !. !. !. . i * * * . !0.r."9"9f9"* f* "*
SOUTH ALABAMA PRODUCERS .. 0" s 
s9 *9 s9 "9 "9 "9 "9 " "9 "9 "9 "9 "9 "9 9 9
Description of Farms ... .. . . . f. ... !. .. .
Level of Costs . . . . it . . .. . .0 . 0 . 0 . 0 . .
Input Comparisons . ..
Output Comparisons. . .
Net Returns*. ... .
Land Charge. . . . . . . .
a9 i9 s9 a9 a9 a9 a9 a9 a9 i9 a9 9 a 9 a a
s 9 9 a " . 9 " a 9 a 9 a 9 9 a
9 a a a s . a a 9 " 9 a w a 9 a
"9 a9 "9 a9 a9 a9 "9 9 a 9 a a 9 a f a
IMPROVEMENTS IN BEEF CALF PRODUCTION ." ... .."
Central Alabama .. 9. .. ., ... 999. ** . .. " .
North Alabama ." ." *? *. . . "99 99. 
99w
South Alabama . . ". " . . * . . w * . . .
". w .".. " .
Area Comparisons .. " **. . * . * " *. * 
"
6
10
12
13
15
18
18
19
21
23
26
26
28
29
29
31
33
36
36
38
39
43
45
51
S "
Page
POTENTIAL FOR BEEF CALF PRODUCTION 
... * * * O * a. 
54
SUMMA~RY AND CONCLUSIONS * ... .
.. .. . . . . 60
APPENDICES
A. METHOD AND PROCEDURE USED IN CALCULATING 
COSTS . . . . . 62
B. ESTIMATCED COSTS OF FORAGE CROPS........ 
. . . . 67
C . FERTILIZER COSTS ***. . .. 
... . . . . 83
D . PRICES OF GRAIN, PROTEIN, AND MISCELLANEOUS 
FEEDS . . . . 86
BEEF CALF PRODUCTION IN ALABA A: COSTS,
RETURNS, AND IMPROVEMENTS*
by T. D. Nolen** and J. H. Yeager***
The production of beef calves is an important farm enterprise
in Alabama. Cattle and calves ranked third as a source of farm cash
receipts to Alabama farmers and accounted for 16.5 per cent of 
total
cash farm receipts in 1961.1
In Alabama, the number of brood cows two years old and over
increased from 310,000 head in 1950 to 691,000 head 
in 1962. This
represented an increase of 122.9 per cent for the 12-year period.
Government control programs for agriculture, a declining farm labor
supply, and technological advances in agronomy 
and animal science have
given impetus to the rise of the beef cattle industry in 
Alabama.
Calves accounted for 40.7 per cent of the marketings of beef
cattle from Alabama farms in 1962.2. Few facts are available 
from
The research on which this report is based was executed 
and
financed under terms of a contractual 
agreement with the Southern Rail-
way System, Washington, D. C. Accuracy 
of statements and interpreta-
tions made are solely the responsibility 
of the authors. The authors
acknowledge the cooperation of beef 
cattle farmers and others who
provided information for this study.
**Formerly Graduate 
Assistant, Department 
of Agricultural
Economics.
Head, Department of Agricultural 
Economics.
IAlabama Agricultural Statistics, 
Alabama Department of Agricul-
ture and Industries cooperating 
with United States Department 
of
Agriculture, Bulletin 11, 
1962, p. 82.
2
Farm Production, Disposition, 
and Income, by States 1961-1962,
Statistical Reporting Service, 
United States Department of 
Agriculture, 1963.
studies that point out the relative importance 
of factors that effect
profits in the 
production of beef 
calves in Alabama. 
Basic
cost data are needed to determine the economic feasibility of producing
beef calves.
This study was initiated as part of an overall study on the
economic potential of beef cattle production and feeding in Alabama.
The specific objectives of this phase of the overall project were
as follows:
(1) To determine the resources used inbeef calf produc-
tion and the investment required,
(2) To determine the costs and returns involved,
(3) To determine management practices used and their effect
on costs and returns.
How the Study was Made
In drawing the sample of beef calf producers, the 
State was
divided into three geographical areas: North Alabama, 
Central Alabama
(Black Belt Area), and South Alabama, Figure 1. Counties with less
than 10,000 head of beef cattle were excluded from the possibility of
entering the sample. Counties included in the sample were as follows:
North Alabama: Colbert, Madison, St. Clair, and Tuscaloosa; Central
Alabama: Sumter, Marengo, and Montgomery; and South Alabama: 
Monroe,
Butler, Houston, and Choctaw.
Names and addresses of producers were supplied by the 
county
agricultural agent. A total of 114 usable records 
were obtained:
24 in North Alabama, 47 in Central Alabama, and 43 
in South Alabama.
North Alabama < ' -': J
Central Alabama 19 t
tea , - F"."+?.,
ti?. ,.. ito
~ -,
South Alabama I
* Counties excluded- less
F than 
10,000 beef cattle
4----.?
Fig. 1. Areas of the State and Counties Included in the Sample
with the Number of Records Obtained in Each County.
Basic physical inputs and outputs data were obtained by personal
interviews with beef calf producers. Since many cattlemen did not keep
records of physical inputs used in beef calf production, estimates were
necessitated.
For a description of method and procedure used in calculating
costs, see Appendix A.
Several factors may have influenced the results of this study.
The year 1962, for which physical input data were obtained, included a
severe winter. Several of the sample counties were declared disaster
areas by the Secretary of Agriculture and emergency feed grains were
made available to certain farmers. This may have resulted in unusually
large quantities of grain being fed to the beef herd.
Although lists of beef cattle producers were supplied by the county
agricultural agent, consideration was given to the ability of the pro-
ducer to answer the prepared questions. Thus, the sample of cattlemen
was not a purely random one.
CENTRAL ALABAMA PRODUCERS
The Central Alabama Area, as used in this study, consisted of 14
counties in the central part of the State. It is commonly referred to
as the "Black Belt" farming area.
Black Belt soils range from lime to extremely acid soils. Inter-
spersed throughout the area are large acreages of sandy soils. Nearly
all soils in the area are naturally adapted to growing various legumes
and grasses for use as pasture and hay production.
3
3
Ben T. Lanham, Jr. et al., Alabama Agriculture, Its Characteristics
and Farming Areas, Alabama Agricultural Experiment Station Bulletin, No.
286, May 1953, pp. 106-107.
The area (14 counties) had 23,774 farms in 1959 with an average
size of 193 acres per farm. The farms in the area had an average of
118 acres of pasture per farm. Woodland pasture per farm was 41 per cent
of the acreage in pastures.
4 
Thus with most of the farmland in pasture,
livestock was a major enterprise on a majority of the farms.
Description of Farms
The Central Alabama Area sample consisted of 47 beef calf pro-
ducers with an average of 23 years experience in beef cattle production.
The average age of the producers was 53 years. About 38 per cent of the
producers reported farming as the only source of income.
The 47 sample producers operated an average of 1,033 acres of
farmland in 1962. About 40 per cent of the producers reported renting
from others an average of 473 acres. Five producers rented land to
other farmers. One producer rented all of the farmland operated.
Thirty-five per cent of the producers reported an average of 41
acres of cotton with a range of 4 to 145 acres. Thirty-five per cent of
the producers reported an average of 47 acres of corn with a range of 5
to 150 acres. About 94 per cent of the producers reported an average of
363 acres of woodland. Two producers reported a commercial dairy with
100 and 105 mature milk cows, respectively.
The beef producers had an average of 141 beef brood cows. The
range in the size of herds was from 15 to 674 cows.
4
United States Census of Agriculture 1959 Alabama - Statistics
for Counties, Vol. 1, Part 32, Bureau of the Census, United States
Department of Commerce, Washington, D. C., County Table 1, pp. 130-135.
Level of Costs
Pasture and feed costs accounted for 67.8 per cent of the total
cost per cow, Table I. Fencing and building costs were 
$8.08 per cow
and labor was $4.22 per cow. Interest on investment 
in beef cattle was
$11.05 per cow. Other costs, marketing, feed processing, health,
commission and insurance, water, and property 
tax accounted for only
$6.46 or 7 per cent of the total costs per cow. When the total costs
for each farm were adjusted for breeding stock 
sales, inventory change
and purchases of cattle, the average net cost per cow was $86.38 for 
the
sample.
The cost per hundredweight of beef sold, excluding a land charge,
was $26.63 for the sample farms. Total net cost was divided by total
pounds marketed to determine cost per hundredweight sold.
Input comparisons. Variations in amount and kind of inputs
accounted for the difference between the low and middle cost groups while
variations in inputs and outputs accounted for the difference in cost
between the low and high cost groups.
The difference in pasture costs per cow between 
the low and
middle cost groups accounted for 68 per cent of the difference in the
total cost per cow. Between the low and high cost group, pasture costs
differences accounted for 64 per cent of the overall difference in total
costs per cow.
Feed costs per cow, harvested forage, grain, protein, 
and mis-
cellaneous feed, accounted for 16 per cent of the difference between the
low and middle cost groups and 31 per cent of the difference between the
low and high cost groups. Pasture 
and feed cost per cow accounted for
Table 1. Itemized Costs per Brood Cow as Reported by 47 Producers of
Beef Calves, Central Alabama, 1962
Cost group
Item Less than $25.00 to $35.00 Average
$25.00 $34.99 per cwt. all groups
per cwt. per cwt. and over
Number of farms 17 19 11 47
Average no. brood cows 165 124 132 141
Acres used for beef per
farm 648 613 657 636
Cost per cow:
Pasture $20.37 $ 42.72 $ 46.35 $34.04
Harvested foragea 10.06 12.74 12.18 11.48
Grain 4.40 8.81 16.57 8.64
Protein 8.49 6.85 6.94 7.56
Miscellaneous feed 1.07 .88 .91 .96
Marketing 2.10 2.68 1.92 2.27
Buildings 2.61 3.67 3.27 3.13
Fencing 4.25 4.64 6.81 4.95
Health .94 1.46 .74 1.08
Commission and insurance .11 .03 . . .06
Water .50 .69 .36 .54
Property tax 1.34 1.68 1.70 1.54
Labor 3.51 4.98 4.36 4.22
Interest on beef animal
investment 11.26 11.66 9.63 11.05
Feed processing .87 1.25 .73 .97
Subtotalb $71.88 $104.74 $112.47 $92.49
Less breeding stock
sales, and change in
inventory 22.98 11.13 23.58 18.89
Plus purchasesc 15.44 13.15 7.01 12.78
Adjusted total
costsb $64.34 $106.76 $ 95.90 $86.38
Pounds of beef marketed
per cow 364 365 182 324
Cost per cwt. of beef sold $17.70 $ 29.24 $52.63 $26.63
alncludes purchased hay.
bExcludes land charge.
cPrimarily breeding stock.
8
84 and 95 per cent of the differences between the low and middle and low
and high cost groups, respectively.
The distribution between primarily native pastures and other
grasses indicated strong reliance on native plants in Central Alabama,
Table 2. Almost 94 per cent of the pasture land in the low cost group
was composed of native or native grasses and clovers.
5 
The low cost
producers used less temporary crops for hay and pasture, less acres per
cow and had a significantly lower fertilizer cost per acre. The higher
pasture cost per cow for the middle and high cost group was attributed
to lower stocking rate per acre, higher fertilizer cost per acre, and
more expensive pasture crops.
Amounts of corn, hay and crude protein fed per cow by groups are
shown in Table 3. The $5.26 difference in feed cost per cow between
the low and the middle cost groups was primarily the result of feeding
larger amounts of grain per cow. Between the low and high cost groups,
grain cost per cow accounted for $12.17 of the $12.58 difference in
feed cost per cow. Corn was the major grain fed.
Labor cost per cow accounted for the third largest difference
between the low and middle cost groups. The low cost producers reported
an average of 7.1 hours of hired labor per cow while the middle cost
producers reported 10.4 hours per cow. Buying and selling labor accounted
for only $0.30 of the labor cost per cow for both groups. The high cost
producers reported an average of 8.9 hours of hired labor per cow.
5
Dallisgrass was considered a native grass in the Central Alabama
area. Native grasses, as used in this study included those that have to
be established yet tend to persist and do not have to be re-established.
Table 2. Pasture and Hay Crops Used in Producing Beef Calves, 47 Pro-
ducers, Central Alabama, 1962
Cost grouP Average
Item Unit Low 
Middle 
High 
all groups
Producers No. 17 19 11 47
Proportion of land for beef:
Native grasses and native
grasses plus clover Pet. 93.9 85.7 78.1 86.5
Other cropsa Pct. 6.1 14.3 21.9 13.5
Land double cropped, hay
and grazing or grazing
and seed Pct. 7.0 9.1 13.1 
9.4
Pasture per cow Acre 3.7 4.8 5.0 
4.4
Land charged to beef per cow Acre 3.9 4.9 5.0 4.5
Temporary crops per cow Acre .12 .39 .29 
.25
Pasture cost per cow Dol. 20.37 42.72 46.35 34.04
a0ther crops include johnsongrass, 
fescue, bahia, Coastal 
bermuda-
grass , Caley peas, oats, rye, ryegrass, grain sorghum, millets and
combinations of these.
Table 3. Feeds Fed per Cow by 47 Beef Calf Producers, Central Alabama,
1
9
62a
ItemCost group 
Average
Item 
Uit Low 
Middle High 
all groups
Producers No. 17 19 
11 47
Feed:
Corn BiU.. 2.7 4.9 10.6 5.2
Hay Lb. 1,340 1,880 1,595 1,584
Crude proteinb Lb. 63.4 54.6 79.0 
63.7
Feed costC Dol. 24.02 29.28 36.60 28.64
aAmounts fed are averages for the total fed by the group.
bIncludes crude protein from oil meals and 
range pellets only.
Cpeed cost includes the cost of salt, minerals, 
cobs and shucks,
and cottonseed hulls fed per cow.
10
No significant relationship (r = -. 288) was found between size of
herd and hours of labor per cow. This may have resulted from the fact
that producers estimated the time required in connection with the cattle
enterprise. No records on hours used to feed and handle the cow herds
were kept by producers.
Fencing cost differences were greatest between the low and high
cost groups. This was due primarily to the difference in the amount of
fenced woodland per cow, 3.8 acres versus 1.7 acres for the high and low
cost groups, respectively. The low and middle cost groups had a difference
of $0.39 in fencing cost per cow.
Interest on investment in beef cattle was highest in the middle
cost group and lowest in the high cost group. The major reason for this
difference was in inventory values of raised calves, Table 4. The low
cost producers valued their breeding stock at a higher value per head
than either of the other groups.
Output comparisons. The low and middle cost groups sold almost
the same amount of beef per cow, 364 pounds for the low cost group com-
pared to 365 pounds for the middle cost group. The high cost group had
the lowest sales of beef per cow, 182 pounds, Table 5.
The difference in production per cow was the main reason for the
high cost per pound of beef in the high cost group. Net costs per cow
were lower for the high cost group than with the middle cost group.
However, the production of beef sold per cow was twice as great in the
middle cost group. This accounted for the lower cost per hundredweight
of beef sold for the middle cost group.
Table 4. Average Beef Cattle Inventory of 47 Beef Calf Producers, Central Alabama, 1962
Cost groupAverage
Low Middle High all roups
Item Value Value 
Value Value
No. Per Per No. Per Per No. Per Per No. Per Per
head farm head farm head farm head farm
Farms 17 19 11 47
Cattle per farm:
Cows 165 $165 $27.225 124 $150 $18,600 132 $135 $17,820 141 $153 $21,573
Bulls 6 360 2,160 5 345 1,725 5 330 1,650 6 347 2,082
Replacements 10 125 1,250 14 125 1,750 20 110 2,200 14 116 1,624
Raised calves 88 70 6,160 65 105 6,825 53 70 3,710 72 87 6,264
Total investment $36,795 $28,900 $25,380 $31,543
Interest rate .05 .05 .05 .05
Interest on herd
investment $1,839.75 $1,445.00 $1,269.00 $1,577.15
Interest per cow
per yeara 11.15 11.65 9.61 11.19
aInterest as calculated here differs slightly from that in Table 1 as a result of the procedure
used.
12
Table 5. Comparison of Selected Output Factors, 47 Beef Calf Producers,
Central Alabama
Factor 
Unit 
Cost group 
Average
Low Middle High all groups
Calves born per cow No. .89 .88 .65 .83
Calf sales as proportion
of brood cows Pct. 79.8 78.9 42.8 71.4
Calf sales as proportion
of calves born Pct. 90.1 89.2 66.3 85.7
Average weight of calf sold Lb. 455 463 426 454
Average age of calf sold Mo. 8.0 8.0 8.4 8.0
Amount of beef sold per cow Lb. 364 365 182 324
The average high cost producer was increasing the number of animals
available for breeding purposes more than the other two groups. Raised
and purchased replacements per herd exceeded brood cow sales and death
losses by an average of 13.2 animals. The average high cost producer
raised 84 per cent of the replacements. The average middle and low cost
producers increased the number of cows and replacements by 4.8 and 9.2
females respectively during the year. Raised replacements were 70 per
cent of total replacements for the middle and 46 per cent for the low
cost group.
Net Returns
Excluding a charge for land, 14 low cost producers, one middle
cost producer, and none of the high cost producers had a positive net
return to land and management. The middle cost producer who received a
positive return for land and management reported selling his beef calves
at an average price of $27.50 per hundredweight. Only two low cost
13
producers had a positive net return to management after land was charged
at 5 per cent of its fair market value.
When cash expenses were defined to include fertilizer, feed costs
other than pasture, purchases of cattle, veterinary and medical, marketing
and property tax, the net return above cash expenses was $76.51 per brood
cow for the low cost producers and $36.97 per brood cow for the middle
cost producers, Table 6. The high cost producers, as an average, had a
loss of $2..16 per brood cow with cash expenses considered. The average
low cost producer was the only one with a net return above all expenses,
excluding a land charge.
Land Charge
From July 1962 to July 1963, farmland in Alabama increased in
value an average of 7 per cent.
6 
With land appreciating in value, it
was felt that beef calf producers should not be charged an interest
cost for land.
Based on the estimates from beef producers, the market value of
land used for beef ranged from $40 to $1,500 per acre. Location was one
of the major factors that contributed to high acre values in most 
cases.
Generally, the closer the farm to a city, the higher the land value.
With a land charge computed at 5 per cent of the estimated present
market value, the range in land charge per hundredweight of market beef
sold was as follows:
6
Farm Real Estate Market Developments, Economic Research Service,
United States Department of Agriculture, August, 1963, p. 34.
14
Table 6. Net Return per Farm as Reported by 47 Producers of Beef Calves,
Central Alabama, 
1962
Cost group
Item 
Less than $25.00 to 
$35.00
$25.00 $34.99 
per cwt.
per cwt. per cwt. 
and over
Number of farms
Average number of brood 
cows
Acres used for beef per farm
Market beef sold per farm, cwt.
Price received per cwt. for
market beef
Average cost per cwt. of market
beef sold
Cash receipts per farm:
Market beef sales
Breeding stock sales
Inventory change
Total credits per farm
Expenses per farm:
Cash expensesa
Noncash expenses
Purchases
Total expenses per farm
(excludes land charge)
Net return above cash expenses
per farm
Net return above cash expenses
per brood cow
Net return above cash expenses
per cwt. of market beef sold
Net return
expenses
Net return
expenses
Net return
per cwt.
above total
per farm
above total
per brood cow
above total expenses
of market beef sold
17
165
648
599.6
23.17
$ 17.70
$13,891.41
1,550.06
2,417.35
$17,858.82
$ 5,235.01
6,621.87
2,546.29
$14,403.17
$12,623.81
76.51
21.05
$ 3,455.65
20.94
5.76
19
124
613
452.9
11
132
657
239.9
$ 23.93 $ 21.68
$ 29.24 $ 52.63
$10,839.79
2,007.73
-..626.58
$12,220.94
$. 6,631.00
6,361.89
1,632.11
$14,625.00
$ 4,584.41
36.97
10.12
$-2,404.06
-19.39
-5.31
$ 5,165.55
1,000.91
$ 
8,269.64
$.7,632.45
7,172.79
922.72
$15,727.96
$ -285.53
-2.16
-1.08
$-7,458.32
-56.50
-31.09
aDoes not include cash expenses for tractor and machinery 
use,
buildings, fences, and budgeted pasture costs.
15
Cost group Land charge per hundredweight
Low $3.60- $43.10
Middle 4.40 - 20.80
High 2.10 - 31.20
Break-Even Point
The break-even point in beef calf production is where net cost
per cow equals total receipts per cow. Point A in Figure 2 represents
the break-even point for the low cost group in Central Alabama when the
price received for beef calves was $23 per hundredweight.
The slope of the revenue line is determined by the ratio of per
unit change in revenue to per unit change in output. All sales made
above $63 per cow gave a profit for the low cost producers and 
all sales
below this were made at a loss. The percentage that profits were of
sales increased as sales increased beyond $63 per cow.
If we assume that the same relationship existed on the sales and
expense lines beyond $63, the percentage of profit to sales would become
larger as volume continued to increase. This type of relationship pro-
vides a foundation for the idea that increased volume of production per
cow is the key to increasing profits.
Figure 3 illustrates the effect that varying prices received and
output per cow have on the break-even point. As output and price received
increase, the amount of profit increases. As costs per cow decline, the
break-even point moves downward to the left as illustrated by A' to A
and B' to B.
16
Dollars Expense Per Cow
100
i)-:
~ Average,
80Q'~w all farms
A 
r e aA 
v e 
r a 
g e 
,
60 r"- r -' P low-cost60 
~ i ji
.group
40
r
0 23 46 69 
92 115
(100) (200) (300) (400) (500)
Dollar Sales Per Cow (Pounds in Parenthesis)
Fig. 2. Relationship of Varying Dollar 
Sales and Costs per Cow
to the Break-even Point in Producing 
Beef Calves, 47 Producers, Central
Alabama, 1962.
17
all farms
80 -
A B C Average,
low-cost
60 group
40
20
100 200 300 400 500 600
Pounds of Beef Sold Per Cow
Fig. 3 Effect of Varying Prices Received and Production Per Cow
on the Break-even Point in Producing Beef Calves, 47 Producers, Central
Alabama, 1962.
18
NORTH ALABAMA PRODUCERS
The North Alabama Area consisted of 21 counties. The area includes
a portion of three broad farming areas, the Upper Coastal Plains, the
Limestone Valleys, and the Appalachian Plateau. The Limestone or Tennessee
Valley soils are above average in inherent fertility. Cotton, corn, and
hay crops together occupy the majority of the harvested crop acreage in
the Limestone and Tennessee Valley parts of North Alabama.
7
The Appalachian Plateau is commonly known as the Sand Mountain Area.
Nearly all soils of the area are responsive to fertilizers and good
management practices. Cotton is the major cash crop. Except for hogs
and poultry, livestock is kept largely for home use.
Soil types in the Upper Coastal Plains vary with most productive
land generally being in the river terraces and flood plains. Cotton and
corn occupy a majority of the harvested cropland.
8
The area included as North Alabama had 45,436 farms in 1959 with
an average size of 104 acres per farm. The farms in the area had an
average of 31 acres of pasture per farm. Woodland pastured was 38 per
cent of the land pastured.
Description of Farms
The North Alabama sample of farms consisted of 26 beef calf pro-
ducers with an average of 18 years experience in beef cattle production.
7
Ben T. Lanham, Jr., et al., Alabama Agriculture, Its Characteristics
and Farming Areas, Alabama Agricultural Experiment Station, Bulletin No.
286, May, 1953, p. 102.
8
lbid.
9
United States Census of Agriculture, 1959, Alabama - Statistics
for Counties, Vol. 1, Part 32, Bureau of the Census, U. S. Department of
Commerce, Washington, D. C., County Table 1, pp. 130-135.
19
The average age of the producers was 49 years. Farming was the only
source of income for 46 per cent of the producers.
The 26 beef calf producers operated 
an average of 883 acres of
farmland. Fifty per cent of the producers reported renting an average
of 364 acres from others. Two producers rented land to farmers. An
average of 270 acres of land was charged to beef by the 26 producers.
This was land that provided the pasture, hay and forage crops for support
of the beef enterprise.
Corn and cotton were the most prevalent row crops. Seventeen pro-
ducers reported raising an average of 81 acres of corn. Fifteen producers
reported growing an average of 193 acres of cotton. Five producers re-
ported growing soybeans.
An average of 105 market hogs were produced by 11 farmers in the
sample. One producer reported a 150-cow dairy. One layer flock of 1,000
birds was reported.
The beef producers had an average of 63 beef brood cows. The range
in size of herds 
was from 17 
to 182 cows.10
Level of Costs
Pasture was the major cost and averaged $48.47 per cow for all
producers, Table 7. Pasture and feed costs accounted for about 67 per
cent of the unadjusted cost per cow. Interest on investment in cattle
was $12.23 per cow. Labor cost per cow was $8.18. Other costs accounted
for 16 per cent of the unadjusted cost per cow with buildings being the
10
The sample consisted of 26 farms, however, 2 farmers had 300 and
350 cows and were eliminated from the analysis since they had over 29 per
cent of the total cows involved.
20
Table 7. Itemized Costs per Brood Cow Reported by 24 Producers of Beef
Calves, North Alabama, 1962
Cost group
Item Less than $25.00 to $35.00 Average
$25.00 $34.99 per cwt. all groups
per cwt. per cwt. and over
Number of farms 5 5 14 24
Average no, brood cows 51 44 75 67
Acres used for beef per farm 170 150 287 234
Cost per cow:
Pasture $36.53 $ 45.17 $ 52.09 $ 48.47
Harvested foragea 8.96 19.44 22.48 19.76
Grain 6.66 17.19 10.60 10.88
Protein 6.32 6.36 4.62 5.15
Miscellaneous feed .98 .43 1.90 1.53
Marketing 3.04 2.94 2.20 2.45
Buildings 4.57 5.14 11.10 9.14
Fencing 6.41 3.68 5.37 5.30
Health 1.21 1.38 2.21 1.92
Commission and insurance . . .09 .02 .03
Water .23 .32 .44 .39
Property tax 1.12 1.17 1.31 1.26
Labor 5.86 7.11 8.98 8.18
Interest on beef animal
investment 11.30 10.69 12.79 12.23
Feed processing .06 .26 2.44 1.73
Subtotalb $93.25 $121.38 $138.55 $128.42
Less breeding stock
sales, and change in
inventory 58.17 23.46 30.12 33.91
Plus purchasesc 27.43 16.74 13.00 15.98
Adjusted total costs $62.51 $114.66 $121.43 $110.49
Pounds of beef marketed
per cow 329 373 249 280
Cost per cwt. of beef soldb $18.99 $ 30.76 $ 48.76 $ 39.41
aIncludes purchased hay.
bExcludes land charge.
cPrimarily breeding stock.
21
largest item in this group. After crediting breeding stock sales 
and
inventory change and adding the cost of purchases, the net cost per cow
was $110.49 excluding a charge for land. The net cost per hundredweight
of market beef sold was $39.41, excluding a charge 
for land.
Input comparisons. The average cost per hundredweight of market
beef sold was $18.99, $30.76 and $48.76 for the low, middle, and 
high
cost groups, respectively. Variations in the amount and kind of inputs
and variations in output accounted for the differences between the groups.
The net cost per cow was $62.51, $114.66 and $121.43 for the low, middle,
and high cost groups, respectively.
Feed cost per cow accounted for the major difference between the
low and middle cost groups, Table 8. Amounts of grain fed per cow
accounted for over half the difference in feed costs; harvested forage
cost accounted for the remaining difference in feed cost. The reason
for the high harvested forage cost was that over 60 per cent of the hay
fed by the middle cost producers was purchased.
The difference in pasture cost per cow between low and middle
cost groups was due to different types of pastures and the associated
budgeted cost per acre, Table 9. The budget cost per acre for the
low cost producers was lower as a result of using less expensive grasses
and double cropping. Fertilizer cost per acre was approximately the
same for the middle and low cost groups.
Feed cost per cow accounted for about a third of the 
difference
in gross cost per cow between the low and high cost 
groups. More hay and
grain were fed by the high cost group while the low cost 
group fed more
22
Table 8. Average Amount of Feeds Fed Per Cow by 24 Beef Calf Producers,
North Alabama, 
1 9 6 2
a
Cost group 
Average
Item 
Unit Low Middle 
High all groups
Producers No. 5 5 
14 24
Feed:
Corn Bu. 5.0 12.2 8.3 
8.3
Hay Lb. 1,200 1,680 2,420 2,100
Crude proteinb Lb. 65.2 63.1 
47.4 52.7
Feed cost
c  
Dol. 22.92 43.42 39.60 37.32
aAmounts fed are averages for the total fed by the group.
blncludes protein from oil meals and range pellets only.
CFeed cost includes the cost of salt, minerals, cobs 
and shucks,
hulls, and other grains fed per 
cow.
protein. The lower protein cost for the high 
cost producers was not
sufficient to offset the higher harvested forage and grain cost.
Pasture cost was $15.56 more per cow in the high 
cost group than
in the low cost group. The high cost group had 
a higher fertilizer cost
per acre which accounted for over 50 per 
cent of the difference in pasture
cost. (The difference in fertilizer cost per acre 
between the low and
high cost group was not statistically significant, 
t = 1.777 with 17 d.f.)
The amount of fenced woodland accounted for 
the differences in
fencing cost. Woodland fenced for beef was 
highest in the low cost group,
4.8 acres as compared to .4 and 2.8 acres 
in the middle and high cost
groups, respectively.
The hours of labor used for feeding and handling 
the beef herd
were highest in the high cost group. The average 
hours of labor per cow
23
Table 9. Kinds of Pasture and Hay Used in Producing Beef Calves, 24
Producers, North Alabama, 1962
Cost group Average
Item Unit 
Low Middle High 
all groups
Producers No. 5 5 14 24
Proportion of land
for beef:
Native grasses Pct. 17.3 5.6 37.7 30.2
Fescue and fescue
with combinations Pct. 27.9 24.2 26.9 26.3
Temporary Pct. 9.9 17.7 20.5 18.4
Other crops Pct. 44.9 52.5 14.9 25.1
Land double cropped,
hay and grazing or
grazing and seed Pct. 24.5 8.8 7.2 9.7
Pasture per cow Acre 2.9 3.0 3.3 3.2
Land charged to beef
per cow Acre 3.3 3.4 3.8 3.7
Temporary crops per
cowa Acre .31 .61 .91 .71
Pasture cost per cow Dol. 36.53 45.17 52.09 48.47
alncludes silage crops raised by two producers.
were 10.8, 13.2 and 17.2 for the low, middle and high cost groups, respec-
tively. There was no significant correlation (r =-.200) between the
hours of labor per cow and the size of herd. Labor cost per cow including
buying and selling labor was $5.86, $7.11 and $8.98 for the low, middle
and high cost groups, respectively.
The high cost producers placed a higher value per head on their
cattle than the other two groups, Table 10. The interest per cow on beef
animal investment was $12.79 for the high cost group as compared to $11.30
and $10.69 for the low and middle cost groups, respectively.
Output comparisons. The middle cost group sold the most pounds of
beef per cow, Table 11. However, the low cost producers, as an average,
Table 10. Average Beef Cattle Inventory of 24 Beef Calf Producers, 
North Alabama, 1962
Costroup 
Aver
Low Middleigh 
_all gr
Item Value Value Value 
Value
No. Per Per No. Per Per No. Per 
Per No. Pe
head farm head farm head farm he
Farms 5 5 14 
24
Cattle per farm:
Cows 51 $143 $ 7,293 44 $141 
$ 6,204 75 $185 $13,875 63 $17
Bulls 2 363 726 2 281 
562 3 389 1,167 2 36372
Replacements 10 120 1,200 2 
93' 186 9 130 1,170 8 125 
1,0
Raised calves 32 71 2,272 40 
62 .. _ 80 40 73 2,920 38 7 
,6
Total investment $11,491 
$ 9,432 $19,132$122
Interest rate.0 
.05 .05 .05
Interest on herd
investment $574.55 $471.60 $956.60$710
Interest per cow per
yeara $ 11.27 
$ 10.72 $ 12.75 $20
alnterest
cedure used.
as calculated here differs slightly from that in Table 7 as 
a result of the pro-
25
Table 11. Comparison of Selected Output Factors for 24 Beef Calf Pro-
ducers, North Alabama, 1962
Cost group 
Average
Factor 
Unit Low Middle 
High all groups
Calves born per cow No. 1.00 .93 .78 .84
Calf sales as proportion
of brood cows Pct. 64.4 78.4 53.9 59.2
Calf sales as proportion
of calves born Pct. 64.6 84.7 68.9 70.5
Average weight of calf
sold Lb. 510 475 462 473
Average age of calf sold Mo. 8.5 8.6 8.3 8.4
Amount of beef sold per cow Lb. 329 373 249 280
sold the heaviest calves, an average of 510 pounds per calf compared to
475 pounds for the middle cost producers. Low-cost producers had more
calves born per cow. The high cost producers had the lowest sales per
cow, sold the lightest calves, and had the smallest calf crop or number
of calves born per brood cow.
The low cost producers sold a lower percentage of calves born
because of two main factors: (1) they held more raised replacements,
and (2) they had higher death losses. The low cost producers had an
average inventory of 10 replacements for 51 brood cows; whereas, the
middle cost producers had 2 replacements for 44 brood cows. Assuming
the same ratio of purchases to increase in inventory as in the middle
cost group, the low cost producers had a credit of $19.73 more per cow
than the middle cost producers. The increase in inventory was partially
attributed to an increase in the number of replacements and raised calves
along with an increase in their value. The high cost producers had an
26
increase in inventory of $18.22 more per cow than the middle cost pro-
ducers using the same assumption.
Calf death losses were highest in the high cost group, 3.9 per
cent of the calves born. The low and middle cost group had calf death
losses of 2.3 and 1.5 per cent, respectively.
Net Returns
Four of the five low cost producers had a positive net 
return to
land and management. None of the middle and high cost producers had 
a
positive net return to land and management in 1962. One producer had 
a
positive net return to management with a land charge calculated at 5 per
cent of the estimated present market value as reported by the producers.
As an average, all producers covered cash expenses, Table 12.
If value is an indication of quality, the high cost producers
were producing the highest quality calves of all three groups. The
average value of a brood cow was $185 per head for the high cost group
and $143 and $141 in the low and middle cost groups. The average price
received for beef calves sold was $25.44 per hundredweight in the
high cost group compared to $21.24 and $21.20 in the low and middle
cost groups.
Land Charge
The land charge per hundredweight of market beef 
sold, computed
at 5 per cent of the estimated present market value, was as follows:
Cost groups Land charge per hundredweight
Low $3.80 - $31.20
Middle 3.10 - 13.90
High 4.60 - 45.60
27
Table 12. Net Return Per Farm as Reported by 24
North Alabama, 1962
Producers of Beef Calves,
Cost grout
Item Less 
than $25.00 to $35.00
$25.00 $34.99 per cwt.
per cwt. per cwt. and over
Number of farms
Average number of brood cows
Acres used for beef per farm
Market beef sold per farm, cwt.
Price received per cwt. of market
beef sold
Average cost per cwt. of market
beef sold
Cash receipts per farm:
Market beef sales
Breeding stock sales
Inventory change
Total credits per farm
Expenses per farm:
Cash expensesa
Noncash expenses
Purchases
Total expenses per farm (excludes
land charge)
Net return above cash expenses
per farm
Net return above cash expenses
per brood cow
Net return above cash expenses
per cwt. of market beef sold
Net return above total expenses
per farm
Net return above total expenses
per brood cow
Net return above total expenses
per cwt. of market beef sold
5
51
170
169.2
$ 21.24
18.99
$3,594.60
945.00
2 045.00
$6,584.60
$2,234.75
2,558.11
1,410.00
$6,202.86
$2,939.85
57.64
17.38
$ 381.74
7.49
2.26
5
44
150
162.6
14
75
287
185.7
21.20 $ 25.24
30.76
$ 3,446.00
595.00
428.00
$ 4,469.00
$ 2,916.90
2,375.28
730.00
$ 6,022.18
48.76
$ 4,725.00
794.86
1,451.07
$ 6,970.93
$ 5,025.24
5,306.53
969.64
$11,301.41
$ 822.10 $ 976.05
18.68
5.06
$-1,553.18
-35.30
-9.55
13.01
5.26
$-4,330.48
-57.74
-23.32
aDoes not include cash expenses for tractor and 
machinery use,
buildings, fences, and budgeted pasture costs.
28
The estimated present market value of land used for beef production
ranged from $50 to $500 per acre. Eighty-three per cent of the producers
stated that land used for beef production had doubled or more than
doubled in value since purchase. Location of farms influenced the value
of the land. Farms located in populous areas or rapidly growing areas
tended to have higher land values.
SOUTH ALABAMA PRODUCERS
The South Alabama Area consisted of the Lower Coastal Plains
section of the State. The soils of the area were formed by marine dew
posits. These deposits weathered to form the soils that are now present.
Most of the soils are gray to red sandy loams or loamy sands. Production
of peanuts, corn, cotton, and hogs constitute the major farming enter-
prises, except in the Gulf Coast Area where potatoes, soybeans, corn,
dairying, poultry, and hogs are important enterprises. Production of
timber products and extensive grazing are important, particularly in
southwestern 
Alabama.11
The area (22 counties) had 34,802 farms with an average of 168
acres per farm in 1960. The farms, as an average, had 70 acres of pastured
land. Woodland pastured was 60 per cent 
of the total pastured land.
12
11
Ben T. Lanham, Jr., et 
al., Alabama Agriculture, 
Its Character-
istics and Farming Areas, Alabama Agricultural Experiment Station, Bulletin
No. 286, May 1953, p. 14.
1 2
United States Census of Agriculture, 1959, Alabama - Statistics
for Counties, Vol. 1, Part 32, Bureau of the Census, U. S. Department of
Commerce, Washington, D. C., County Table 1, pp. 130-135.
29
Description of Farms
The South Alabama sample consisted of 43 beef calf producers 
with
an average of 19 years experience in beef cattle production. The average
age of the producers was 49. Twenty-three per cent of the farmers in
the sample reported farming as the only source of income. Forty-one of
the producers owned an average of 668 acres per farm. Another producer
rented all the farmland operated, while another producer owned 50,000
acres. About 37 per cent of the producers rented an average of 280 acres
from other landowners. Six producers reported renting an average of 152
acres to other farmers. The average size farm operated was 737 acres
with 236 acres used for beef.
Cotton and corn were the crops raised most frequently. Eighteen
producers reported an average of 47 acres of cotton and 26 producers
reported an average of 70 acres of corn. Six producers reported raising
134 acres of peanuts, as an average. Three producers raised an average
of 80 acres of soybeans. Ten producers reported commercial hog enterprises.
The average size beef herd consisted of 72 brood cows, 3 bulls, 13
replacements and 38 calves. The range in size of herd 
was from 10 to 310
brood cows.
Level of Costs
The net cost per cow for the area was $102.95, Table 13. Before
credits for breeding stock sales and inventory change were considered,
pasture cost accounted for 38.4 per cent of the cost 
per cow. Feed costs
were 32.4 per cent of the cost per cow. Pasture 
and feed costs were 70.8
per cent of the costs per cow before adjustments. 
Buildings, fencing,
and marketings were only 10 per cent of the costs 
per cow before
30
Table 13. Itemized Costs per Brood Cow as Reported by 43 Producers of
Beef Calves, South Alabama, 1962
Cost grou
Less than $25.00 to $35.00 Average
Item $25.00 $34.99 per cwt. all groups
per cwt. per cwt. and over
Number of farms
Average no. brood cows
Acres used for beef per
farm
Cost per cow:
Pasture
Harvested foragea
Grain
Protein
Miscellaneous feed
Marketing
Buildings
Fencing
Health
Commission and
insurance
Water
Property tax
Labor
Interest on beef animal
investment
Feed processing
Subtotal
b
Less breeding stock
sales, and change in
inventory
Plus purchasesc
Adjusted total
costsb
Pounds of beef marketed
per cow
Cost per cwt. of beef
soldb
10
88
163
$30.64
6.24
12.34
8.64
4.41
3.37
2.60
3.07
1.26
.29
.63
5.39
10.78
.94
$90.60
17.67
5.27
13
79
244
$ 45.91
11.39
16.55
9.10
1.85
3.29
3.97
4.17
.99
.90
.30
1.05
5.02
12.16
1.54
$118.19
17.83
4.36
20
56
285
$ 56.66
14.07
20.35
7.82
1.19
2.38
5.70
6.86
1.96
.63
1.55
10.04
10.13
1.27
$140.61
30.94
10.33
43
72
236
$ 45.63
10.93
16.79
8.48
2.33
2.97
4.24
4.88
1.43
.30
.42
1.12
7.04
11.00
1.27
$118.83
22.77
6.89
$78.20 $104.72 $120.00 $102.95
348 343 264 315
$22.45 $ 30.50 $ 45.39 $ 32.70
alncludes purchased hay.
bExcludes land charge.
cPrimarily breeding stock.
~~I
31
adjustments. The average cost per hundredweight of beef sold was $32.70
with pasture and feed costs accounting for $26.74 of this total prior to
adjustments for breeding stock sales and inventory changes.
Input comparisons. Variations in inputs per cow account for the
major difference in cost between the low and middle cost groups. Varia-
tions in both output and inputs per cow account for the 
difference be-
tween the low and high cost groups. The cost per hundredweight of 
beef
sold, excluding a charge for land, was $22.45, $30.50 and $45.39 
for the
low, middle, and high cost groups, 
respectively.
Pasture cost per cow accounted for $15.27 of the $27.59 difference
in total cost per cow between the low and middle cost producers. The low
cost producers held pasture cost lower by using less expensive pastures
and a heavier stocking rate, Table 14. Fertilizer cost per 
acre was
approximately the same for all three groups. The low cost Wiregrass Area
producers of the South Alabama sample had a more intensive farming pattern
than the low cost producers from the South Central and Southwestern
Coastal plains. The Wiregrass producers depended more on 
temporary crops
but had a heavier stocking rate per acre 
to offset the higher cost of
temporary crops13
Pasture costs accounted for $26.02 of the $50.01 
difference
between the low and high cost producers. 
The high cost producers had a
lower cost per acre based on budgets 
used for pastures but the lower
stocking rate per acre tended to 
increase pasture costs per cow.
1 3
Forty per cent of the low cost producers, 
none of the middle
cost producers, and 10 per cent 
of the high cost producers were in 
the
Wiregrass farming area.
32
Table 14. Major Kinds of Pasture Used, Stocking Rates and Related Factors
for 43 Beef Calf Producers, South Alabama, 
1962
Item 
Unit 
Cost group 
Average
Low Middle High all groups
Producers No. 10 13 20 43
Proportion of acreage:
Bahia alone and bahia with
combinations Pct. 31.8 25.0 41.7 34.8
Native grasses and native
grasses plus clover Pct. 20.0 17.8 35.2 27.1
Temporary crops Pet. 22.3 28.3 13.2 19.5
Othersa Pct. 25.9 28.9 9.9 18.6
Land double cropped, hay and
grazing, and hay and seed Pct. 19.1 11.8 11.5 13.0
Temporary crops per cow Acre .52 .91 .63 .69
Pasture per cow Acre 2.2 3.0 4.7 3.4
Land charged to beef per cow Acre 1.8 3.1 4.6 3.3
Pasture cost per cow Dol. 30.64 45.91 56.66 45.63
aothers included Coastal bermudagra.ss,
johnsongrass, and combinations of these.
fescue, clovers, dallisgrass,
Fertilizer cost per acre was approximately the same for the low 
and
high cost groups.
The low cost producer had a lower cost per ton of harvested
forages (hay) because of higher yields per acre. One producer in the
low cost group elected to feed peanut hulls and no hay thereby raising
the miscellaneous feed cost and lowering the harvested forage cost. The
middle and high cost producers fed more grain per cow, primarily 
corn,
Table 15, and this accounted for over 50 per cent of the difference 
in
feed cost per cow between these two groups.
Interest on beef animal investment was a major cost per cow. If
value per head is used as an indication of quality, the low cost 
producers
33
Table 15. Feeds Fed Per Cow by 43 Beef Calf Producers, South Alabama,
1 9 6 2
a
Cost group Average
Item Unit 
Low Middle High 
all groups
Producers No. 10 13 20 43
Amount fed per cow:
Corn Bu. 8.6 11.1 14.0 11.5
Hay Lb. 1,145 1,174 1,432 1,264
Crude proteinb Lb. 79.0 88.9 66.3 77.5
Feed cost per cowc Dol. 31.63 38.89 43.43 38.53
aAmounts fed are averages for the total fed by the group.
Includes crude protein from oil meals and range pellets only.
CFeed cost includes the cost of salt, minerals, cobs and shucks,
hulls and other grains fed per cow.
had the highest quality brood cows, Table 16. The middle cost producers
placed a higher value per head on the bulls used for breeding purposes.
Replacement cattle in herds of high cost producers were the highest in
value per head for all three groups.
Labor cost per cow was almost twice as great for the high cost
group as for each of the other groups. Hours of labor for feeding and
handling cattle averaged 10.5, 9.6, and 18.7 for the low, middle, and
high cost producers, respectively. Buying and selling labor cost per
cow was $0.14, $0.22, and $0.69 for the low, middle, and high cost pro-
ducers. No relationship (r = -. 109) between number of cows and hours of
labor used per cow was found as a result of correlating these two
variables.
Output comparisons. Pounds of beef sold per cow averaged 348,
343, and 264 for the low, middle, and high cost producers, respectively,
Table 16. Average Number of Beef Cattle, Value, 
and Interest Charge, 43 Beef Calf Producers, South
Alabama, 1962
Cost group Average
Low Middle High all groups
Item Value Value 
Value Value
No. Per Per No. Per Per No. Per Per No. Per 
Per
head farm head farm head farm head 
farm
Farms 10 13 20 
43
Cattle per farm:
Cows 88 $155 $13,640 79 $145 $11,455 56 $125 $ 
7,000 72 $140 $10,080
Bulls 3 400 1,200 3 525 1,575 2 320 
640 3 410 1,230
Replacements 12 110 1,320 14 140 
1,960 13 145 1,885 13 137 1,781
Raised calves 43 64 2,752 48 85 4,080 30 
70 2,100 38 75 2,850
Total investment $18,912 $19,070 
$11,625 $15,941
Interest rate .05 .05 
.05 ,05
Interest on herd
investment $945.60 $953.50 
$581.25 $797.05
Interest per cow per
yeara 10.75 
12.06 10.38 11.07
alnterest as calculated here differs slightly from 
that in Tablel13 as a result of procedure
used.
w.
35
Table 17. The middle cost group, as an average, sold the 
heaviest calf,
506 pounds, as compared 
to 462 and 454 pounds for the 
low and high cost
groups. The pounds of beef sold per cow varied because of death losses,
number of raised replacements 
and the percentage calf crop. 
Calf death
losses were highest in the high cost group, 2.6 per cent 
of calves born,
as compared to 1.0 per 
cent and 2.0 per cent for 
the low and middle cost
groups.
Table 17. Comparison of Selected Output Factors, 43 Beef Calf Producers,
South Alabama, 1962
Cost g Average
Factor 
Unit Low Middle 
High all groups
Calves born per cow No. .87 .85 .82 .84
Calf sales as proportion
of brood cows Pct. 75 68 
57 66
Calf sales as proportion
of calves born Pct. 87 80 70 78
Average weight of calf
sold Lb. 462 506 454 477
Average age of calf sold Mo. 8.1 9.9 7.7 8.5
Amount of beef sold per cow Lb. 348 343 264 315
All groups were increasing herd size as a result of holding raised
replacements. The average low cost producer increased herd size during
1962 by only 2 females; whereas, the average middle and high cost producer
increased herd size by 10 and 9 females, respectively. The low cost
producers appeared to be following a more rigid culling program with
brood cows.
36
Net Returns
Five low cost producers had a positive net return to land and
management. Three low cost producers had a positive net return to manage-
ment after land was charged at 5 per cent of its fair market value as
reported by producers. None of the middle or high cost producers had a
positive net return to management even though no land charge was included.
The average low and middle cost producer covered all cash expenses,
Table 18. The net return above cash expenses for the average low cost
producer was $44.01 per cow and $29.99 per cow for the average middle
cost producer. The average high cost producer had a loss of $0.16 per
cow over cash expenses. Net return above total expenses, excluding land,
was low, averaging only $4.25 per cow for the low cost producers.
Land Charge
With a land charge computed at 5 per cent of the estimated present
market value, the range in land charge per hundredweight of market beef
sold was as follows:
Cost group Land charge per hundredweight
Low $1.40 - $10.20
Middle 1.60 - 9.00
High 2.80 - 20.80
Land values varied tremendously among groups. The range in the
estimated present market value of land used for beef production was $50
to $300 per acre. Over 90 per cent of the operators reported the land
used for beef at a higher value than the acquisition price. Over 60 per
cent of the producers reported that the land had more than doubled in
37
Table 18. Net Return per Farm as Reported by 43 Producers of Beef
Calves, South Alabama, 
1962
Cost group
Item 
Less than $25.00 to 
$35.00
$25.00 $34.99 per cwt.
per cwt. per cwt. 
and over
Number of farms
Average number of brood cows
Acres used for beef per farm
Market beef sold per farm, cwt.
Price received per cwt. of market
beef sold
Average cost per cwt. of market
beef sold
Cash receipts per farm:
Market beef sales
Breeding stock sales
Inventory change
Total credits per farm
Expenses per farm:
Cash expensesa
Noncash expenses
Purchases
Total expenses per farm (excludes
land charge)
Net return above cash expenses per
farm
Net return above cash expenses per
brood cow
Net return above cash expenses per
cwt. of market beef sold
Net return above total expenses
per farm
Net return above total expenses
per brood cow
Net return above total expenses
per cwt. of market beef sold
10
88
163
307.6
$ 23.67
13
79
244
272.1
20
56
285
155.2
$ 22.19 $ 21.49
$ 22.45 $ 30.50
$7,279.60
1,256.00
304.50
$8,840.10
$4,502.45
3,498.60
465.00
$8,466.05
$3,872.65
44.01
12.59
$ 6,035.92
586.15
826.92
$ 7,448.99
$ 4,734.53
4,630.12
345.38
$ 9,710.03
$ 2,369.08
29.99
8.71
$ 374.05 $-2,261.04
4.25
1.22
-28.62
-8.31
45.39
$ 3,335.55
674.90
1,141.50
$ 5,151.95
$ 4,554.41
3,699.45
606.50
$ 8,860.36
-8.96
.16
-.06
$-3,708.41
-66.22
-23.89
aDoes not include cash expenses for tractor and machinery use,
buildings, fences and budgeted pasture costs.
38
value since purchase. Fourteen per cent of the producers reported that
the land had been inherited.
IMPROVEMENTS IN BEEF CALF PRODUCTION
Analysis of the cost data indicated that returns to beef calf
production were generally low. The average low cost producers in all
areas were the only producers to have a positive net return to land and
management. The average low cost Central Alabama producer had the
highest net return of all the low cost producers in the State.
Based on discussions with animal scientists, agronomists, econo-
mists, and substation superintendents, beef cattle budgets were prepared
to incorporate significant findings of this study and current recommen-
dations of the Alabama Agricultural Experiment Station. The budgets
are presented in two parts, variable and fixed expenses. Variable
expenses are for those expense items that would stop if the herd were
liquidated, Fixed expenses are for those expense items that would
continue regardless of production.
Returns above variable expenses may be more meaningful to the
farm operator than the total cost of production. The beef enterprise
may be economically desirable on the farm even though the total noncash
costs are not fully covered. If there is no alternative use for the
fixed input or there is no alternative use which would yield a higher
return, it would be desirable for the farmer to continue production of
beef calves as long as there is a return above variable expense and no
new investment is required.
Budgets for pasture and hay establishment costs plus annual
expense budgets are shown in Appendix B. The total amount of investment
39
capital required is included in table form. Above average management
would be required for adoption of the budgeted practices as presented.
The beef cattle enterprise was assumed to bear all the expenses
for tractor and machinery shown in the investment tables. Equipment for
establishment of the pasture and hay crops not in the investment tables
was assumed to be owned but the investment was charged to other enter-
prises. Tractor and machinery costs are based on unpublished data from
the Department of Agricultural Economics of Auburn University. Descrip-
tion of the budgets is similar to that of Dr. E. J. Partenheimer and T. H.
Ellis as used in Costs and Returns from Livestock Production in the
Limestone Valley 
Areas of Alabama.1
Central Alabama
The Central Alabama budget, Tables 19, 20, and 21, is based on a
herd of 150 cows weighing 1,000 pounds each, 15 yearling replacement
heifers and 6 bulls. The cows are from one of the beef breeds and the
bulls are performance tested. A bull is purchased every year for about
$600 and is used for six breeding seasons. The first year he is used to
breed heifers and second calf cows, and no calves from first calf heifers
are used as replacements. Also no calves are saved as replacements from
second calf cows. For the next three years he may be used to breed any
of the cows. During the last two years he is used in breeding only older
cows.
14E. J. Partenheimer and T. H. Ellis, Costs and Returns from Live-
stock Production in the Limestone Valley Areas of Alabama, Alabama
Agricultural Experiment Station, Mimeograph, December 1960.
40
Table 19. Estimated Investment Components for a 150 Beef Cow Herd,
Improved Practices, Central Alabama
Cost Average
Item Description 
basis basis
Land (including farmstead)a 314.5 acres at $100 $34,450 $34,450
Building 2,850 1,425
Pasture establishment 275.9 acres at $3.24 894 447
Hay establishment 58.5 acres at $45.46 2,661 1,330
Livestockb 27,600 27,600
Subtotal $68,455 $65,252
Machinery and equipment:c
Tractor 3-plow $ 3,300 $ 1,650
Bottom plow 3-plow 340 170
Disc 8.5-foot 275 138
Rotary mower 7-foot 430 215
Mower 7-foot 350 175
Side delivery rake 8-foot 500 250
Baler Twine 1,750 875
Subtotal $ 6,945 $ 3,473
Total $75,400 $68,725
alncludes source of water and fencing.
bSee Table 20.
cInterest on investment and other machinery and equipment costs
were included in the pasture and hay budgets. Equipment for pasture
establishment was considered owned but the investment costs were charged
to other enterprises.
One hundred and thirty-five calves are weaned per year and fifteen
heifers are kept as replacements. Heifers are bred to calve at 24 months
of age. Most calves are dropped in November and December with the re-
maining ones being born in January. The bull calves are castrated at
birth.
A record of the sire and dam of each calf is kept so the cows may
be performance tested. The calves are sold as stocker and feeder calves
weighing 500 pounds each.
41
Table 20. Estimated Investment Requirements and Annual Costs 
For a 150
Beef Cow Herd, Improved Practices, 
Central Alabama
Value Annual costs
Depre- Taxes
Item Num- New Average Interest ciation and Total
ber and insurance
repairs
Cows 150 $22,500 $22,500 $1,125.00 $1,125.00
Bulls 6 3,600 3,600 180.00 180.00
Replacements 15 1,500 1,500 75.00 75.00
Hay storage and
feeding rack 1 2,200 1,100 66.00 $110.00 $44.00 220.00
Corral, brake
and loading
chute 1 650 325 19.50 32.50 13.00 65.00
Total $30,450 $29,025 $1,465.50 $142.50 $57.00 $1,665.00
Medical and veterinary expense includes drenching the cows and
heifers twice each fall with phenothiazine. Cows which fail to breed
during the three month breeding season are sold each fall with their
calves. Feed requirements are figured on the basis of cow units. A cow
and a calf or a bull is figured as one cow unit and a replacement heifer
is figured as .75 cow unit. Thus the herd consists of 167.25 cow units.
Each cow unit requires 1.65 acres of dallisgrass and white clover
for pasture and .35 acres of johnsongrass and Caley peas for hay and
grazing. The .35 acres of johnsongrass and Caley peas are pastured from
March 1 until the clover and dallisgrass growth is sufficient to meet
the feed requirements of the animals, and then the cows are removed so
that hay can be harvested. The dallisgrass and white clover are pastured
the remaining time. Johnsongrass and Caley peas are cut for hay three
times with a total yield of 3 tons per acre.
42
Table 21. Estimated Costs and Returns from Beef Calf Production, 150
Beef Cows, Improved Practices, Central Alabama
Total for Average
Item Unit Price Quantity herd per cow
Gross returns:
Calves Cwt. $ 23.00
Cull cowsa Cwt.o 13.00
Bulls Cwt. 15.00
Total
Variable expenses:
Pasture (dallis and
white clover) Acre $ 8.70
Pasture and hay
(johnsongrass and
Caley peas) Acre 18.41
Cottonseed meal, 41% Cwt. 3.80
Salt Cwt. 1.75
Deflourinated phosphateCwt., 
4.25
Veterinary and
medical Cow 1.25
Marketing:
Hauling Head .50
Commission Dol. .03
Labor Hour .4 5
Bull Dol. 600.00
Interest on operating
capital Dot. .06
Interest on investment
in beef cattle Dot. .05
Subtotal of variable expenses
Return above variable expenses
600
135
15
$13,800.00
1,755.00
225.00
$15,780.00
275.9 $ 2,400.85
58.5
234.2
41.8
16.7
150.0
134.5
15,780.00
1,065
1
1,120.74
276.00
1,077.72
889.96
73.15
70.98
187.50
67,25
473.40
479.25
600. 00
67.24
1,380. 00
$ 7,767.30
$ 8,012.70
(Continued)
$ 92.00
11.70
1.50
$105.20
$ 16.00
7.*18
5.93
.49
.47
1.25
.45
3.*16
3.20
4.00
.45
9.20
$ 51.78
$ 53.42
Table 21. Continued
Total for Average
Item Unit Price Quantity 
herd per cow
Fixed expenses:
Pasture (dallis and
white clover) Acre $ 1.52 275.96 $ 419.46 $ 2.80
Hay and pasture
(johnsongrass and
Caley peas) Acre 12.85 58.54 752.24 5.01
Operator's labor Hour 1.25 38.5 48.12 .32
Fencing Acre 1.00 334.5 334.50 2.23
Buildingsb 285.00 1,90
Property tax Acre .34 334.5 113.73 .76
Subtotal of fixed expenses $ 1,953.05 $ 13.02
Total expenses $ 9,720.35 $ 64.80
Net return to land and management $ 6,059.65 $ 40.40
aAssumes a one per cent death loss per year.
bSee Table 20.
Hay feeding in the winter is liberal enough to prevent excessive
weight loss. Hay is fed at the rate of 20 pounds per cow unit per day
for a 90 to 100 day feeding period between November 15 and February 28.
Cottonseed meal (41% protein) is fed during this period at the rate of
approximately 1.5 pounds per day per cow unit.
Based on improved practices budget for Central Alabama, variable
expense per hundredweight of all beef sold is $10.36, and total expense
per hundredweight is $12.96. With an initial average investment of
$65,252, excluding machinery and equipment, the net return to land, capital
and management is $7,609.62 or 11.7 per cent of the average capital invest-
ment.
43
North Alabama
The North Alabama budget, Tables 22, 23, and 24, is based on a
herd of 50 cows weighing 1,000 pounds each, 
5 yearling replacement heifers
and 2 bulls. The cows are from one of the 
beef breeds and the bulls are
performance tested. A bull is purchased every 2 years 
for about $600
and is used for four breeding seasons. The first two years 
he is used
to breed heifers and young cows, and no calves are saved 
from first or
second calf cows. For the next 
two years he is used on only older 
cows.
Forty-five calves are weaned each year and 
five heifers are kept
as replacements. Heifers are bred 
to calve t 24 months of age. Most
calves are dropped in November and 
December with the remaining ones
being born in January. The bull 
calves are castrated at birth. 
A
record of the sire and dam of each 
calf is kept so the cows may be 
per-
formance tested. The calves are sold 
as stocker and feeder calves
weighing 500 pounds each.
Medical and veterinary expense includes 
drenching the cows and
heifers twice each fall with phenothiazine. 
Cows which fail to breed
during the three month breeding 
season are sold each fall with 
their
calves. Feed requirements are figured 
on the basis of cow units. A cow
and calf or a bull is figured as one 
cow unit and a replacement heifer
is figured as .75 cow unit. Thus 
the herd consists of 55.75 cow units.
Each cow unit requires 1.5 acres 
of orchardgrass and white clover
for pasture and 1.4 tons of 
Coastal bermuda hay. The 
hay for the herd
is grown on 15.6 acres with 
an average yield of five tons 
per acre. The
pasture supplies the feed requirements 
of the animals from April 15 
to
44
Table 22. Estimated Investment Components for a 50 Beef Cow Herd,
Improved Practices, North Alabama
Cost Average
Item Description basis basis
Land (including farmstead)a 99.2 acres at $125 $12,403 $12,403
Buildings 1,314 657
Pasture establishment 83.6 acres at $41.56 348 174
Hay establishment 15.6 acres at $49.55 773 386
Livestockb 9,200 9,200
Subtotal $24,038 $22,820
Machinery and equipment:c
Tractor (20%) 3-plow $ 660 $ 330
Rotary mower 7-foot 430 215
Mower 7-foot 350 175
Fertilizer spreader 12-foot 340 170
Side delivery rake 8-foot 500 250
Baler Twine 1,750 875
Subtotal $ 4,030 $ 2,015
Total $28,068 $24,835
alncludes source of water and fencing.
bSee Table 23.
cInterest on investment and other machinery and equipment costs
were included in the pasture and hay budgets. Equipment for pasture
establishment was considered owned but the investment costs were charged
to other enterprises.
November 1. In addition to the pasture and hay, cattle will glean corn,
cotton, small grain and hay fields.
Hay feeding in the winter is liberal enough to prevent excessive
weight loss. Hay is fed at the rate of 20 pounds per cow unit per day
for a 120 to 140 day feeding period in the winter. Cottonseed meal (41%
protein) is fed during the feeding period at the rate of approximately 1.5
pounds per day per cow unit.
45
Table 23. Estimated Investment Requirements and Annual Costs for a 50
Beef Cow Herd, Improved Practices, North Alabama
Value Annual costs
Depre- Taxes
Item Num- New Average Interest ciation and Total
ber and insurance
repairs
Cows 50 $ 7,500 $7,500 $375.00 $375.00
Bulls 2 1,200 1,200 60.00 60.00
Replacements 5 500 500 25.00 25,00
Hay storage and
feeding rack 1 1,014 507 30.42 $50.70 $20.28 101.40
Corral, brake,
and loading
chute 1 300 150 9.00 15.00 6.00 30.00
Total $10,514 $9,857 $499.42 $65.70 $26.28 $591.40
The improved practices budget for North Alabama does not appear as
favorable as the Central Alabama budget. Variable expense per hundred-
weight of all beef sold is $13.77; total expense per hundredweight of
all beef sold is $18.13. Assuming the stated prices for the beef sold
and an average investment of $22,820, excluding machinery and equipment
(see footnote c, Table 22) the net return to land, capital and management
is $1,406.70 or 6.2 per cent.
South Alabama
The South Alabama budget, Tables 25, 26, and 27, is based on a
herd of 100 cows weighing 1,000 pounds each, 10 yearling replacement
heifers and 4 bulls. The cows are from one of the beef breeds and the
bulls are performance tested. A bull is purchased every year and used
for four breeding seasons. The first year he is used only on heifers
46
Table 24. Estimated Costs and Returns From Beef Calf 
Production, 50
Beef Cows, Improved Practices, 
North Alabama
Total for Average
Item Unit Price 
Quantity herd per cow
Gross returns:
Calves Cwt. $ 23.00
Cull cowsa Cwt.w 13.00
Bulls Cwt. 15.00
Total
Variable expenses:
Pasture Acre $ 8.96
Hay Acre 
65.36
Salt Cwt. 1.75
Cottonseed meal (41%) Cwt. 
3.80
Veterinary and medical Cow 
1.25
Marke t ing :
Hauling Head 
.50
Commission Dol. 
.03
Labor (feeding and
hauling) 
Hour .50
Bull Head 
600.00
Interest on operating
capital Dol. 
.06
Interest on investment
in beef cattle Dol. 
.05
Subtotal of variable expenses
Return above variable expenses
200
45
7.5
83.62
15.6
13.*9
100.4
50.0
$4,600.00
585.00
112.50
$5,297.50
$ 749.28
1,019.62
24.32
381.52
62.50
45 22.50
5,297.50 158.92
540.0 270.00
*5 300.O0
462.58 27.75
9,200.00 460.00
$3,476.41
$1,821.09
(Continued)
$ 92.00
11.70
2.25
$105.95
$ 14.98
20.39
.49
7.*63
1.2 5
.45
3.*18
5.40
6.*00
.56
9.20
$ 69.53
$ 36.42
- - - --- -- ----OMW
47
Table 24. Continued
Total for Average
Item Unit Price Quantity herd per cow
Fixed expenses:
Pasture (orchardgrass
and white clover) Acre $ 5.99 83.6 $ 500.91 $ 10.02
Hay (Coastal bermuda-
grass) Acre 20.00 15.6 312.00 6.24
Operator's labor Hour 1.25 18.4 23.00 .46
Fencing Acre 1.00 99.2 99.22 1.9
Buildings 131.40 2.63
Property tax Acre .34 99.2 33.74 
.67
Subtotal of fixed expenses $1,100.27 $ 22.00
Total expenses $4,576.68 $ 91.53
Net return to land and management $ 720.82 $ 14.42
aAssumes a one per cent death loss.
bSee Table 23.
and no replacements are saved from first calf heifers. 
For the next two
years he may be used on any cows and the fourth year he is used 
only on
older cows.
Ninety calves are weaned each year and ten calves are kept as re-
placements. Heifers are bred to calve at 24 months of age. Most 
calves
are dropped in November and December with the remainder being born 
in
October and January. The bull calves are castrated at birth. A record
of the sire and dam of each calf is kept so the cows may be performance
tested. The calves are sold as stocker and feeder 
calves weighing 475
pounds each.
48
Table 25. Estimated Investment Components for a 100 Beef Cow Herd,
Improved Practices, South 
Alabama
Cost Average
Item 
Description basis 
basis
Land (including farmstead)a 175 acres at $100 $17,500 $17,500
Buildingsb 1,950 975
Pasture establishment 142.7 at $44.90 6,408 3,204
Hay establishment 22.3 at $44.90 1,001 501
Livestockb 18,400 18,400
Subtotal $45,259 $40,580
Machinery and equipment:c
Tractor 2-plow $ 2,500 $ 1,250
Mower 7-foot 350 175
Side delivery rake 8-foot 500 250
Hay baler Twine 1,750 875
Rotary mower 7-foot 430 215
Fertilizer spreader 8-foot 275 138
Sod seeder 8-foot 675 338
Subtotal $ 6,480 $ 3,240
Total $51,739 $43,820
alIncludes 
source of 
water and 
fencing.
bSee Table 26.
clnterest on investment and other machinery and equipment costs
were covered in the pasture and hay budgets. Equipment for pasture
establishment was considered owned but the investment costs were charged
to other enterprises.
Medical and veterinary expense includes drenching the cows and
heifers twice each fall with phenothiazine. Cows that fail to breed are
sold with their calves. Cow units are used in figuring feed requirements.
A cow and calf, or a bull, is figured as one cow unit and a replacement
heifer is figured as 0.75 cow unit. Thus the herd consists of 111.5 cow
units.
49
Table 26, Estimated Investment Requirements and Annual Costs for a 100
Beef Cow Herd, Improved Practices, South Alabama
Value Annual costs
Depre- Taxes
Item Num- New Average Interest ciation 
and Total
ber and insurance
repairs
Cows 100 $15,000 $15,000 $750.00 
$ 750.00
Bulls 4 2,400 2,400 120.00 120.00
Replacements 10 1,000 1,000 50,00 
50.00
Hay storage and
feeding rack 1 1,450 725 43.50 $72.50 $29.00 
145.00
Corral, brake
and loading
chute 1 500 250 15.00 25.00 10.00 
50.00
Total $20,350 $19,375 $978.50 $97.50 $39.00 $1,115.00
Each cow unit requires 1.48 acres of Coastal bermuda for 
hay and
pasture. Thus 165.0 acres of Coastal bermuda are 
required. Of the
165.0 acres, 111.5 acres are over seeded with vetch in 
late October or
early November with a sod seeder. Of the 
remaining 53.5 acres, 22.3
acres are used for hay production. Each cow unit requires 
one ton of
hay.
Hay feeding in the winter is liberal enough to prevent 
excessive
weight loss. Hay is fed at the rate of 20 pounds 
per cow unit from the
middle of November to February 20, at which time 
the cattle graze the
vetch until the Coastal bermuda begins 
to furnish forage. Cottonseed
meal (41% protein) is fed at the rate of 
1.5 pounds per day per cow unit
while the cows are fed hay.
Again, the net return to land and management 
is not as favorable
as the Central Alabama budget. Variable 
expense per hundredweight of all
50
Table 27. Estimated Costs and Returns From Beef Calf Production, 100
Beef Cows, Improved Practices, South Alabama
Total for Average
Item Unit Price Quantity herd per cow
Gross returns:
Cwt.
Cwt.
Cwt.
$23.00
13.00
15.00
380
90
15
S8,740.00
1,170.00
225.00
$ 87.40
11.70
2.25
$10,135.00 $101.35
Variable expenses:
Pasture (Coastal and
vetch)
(Coastal)
Hay
Cottonseed meal (41%)
Salt-trace mineralized
Deflourinated phosphate
Ve ter inary and medical
Acre
Acre
Acre
Cwt.
Cwt;
Cwt.
Cow
$21.77
21.20
59.*14
3.80
1.90
4.25
1.25
1115
31.2
22.*3
156.1
27. 9
11.2
100
$ 2,427.36
661.86
1,318.82
593.18
53.01
47.60
125.00
Marketing:
Hauling
Commiss ion
Labor (feeding and
haul ing)
Bull
Interest on investment
in beef cattle
Interest on operating
capital
Head
Dol.
Hour
Head
Dol.
Dol.
.50
.03
90
10,135.00
.50 1,050
.05 18,400
s06 8461
45.00
304.05
525.00
600.00
920.00
.42 50.79
Subtotal of variable expenses
Return above variable expenses
$ 7,671.67 $ 76.72
$ 2 ,463.33 $ 24.63
(Continued)
Calves
COWSa
Bulls
Total
$24.27
6,9 62
13.19
5.93
.53
.48
1.25
.45
3.04
5.25
6.00
9.*20
.51
51
Table 27. Continued
Total for Average
Item Unit Price Quantity 
herd per cow
Fixed expenses:
Pasture (Coastal and
vetch) Acre $ 5.89 111.5 $ 656.74 $ 6.57
(Coastal) Acre 5.43 31.2 169.52 
1.69
Hay Acre 15.59 22.3 347.66 3.48
Fencing Acre 1.00 165.0 165.02 
1.65
Buildingsb 195.00 1.95
Property tax Acre .34 165.0 56.11 .56
Operator's labor
(buying and selling) Hour 1.25 11.2 14.00 .14
Subtotal of fixed expenses 
$ 1,604.05 $ 16.04
Total expenses $ 9,275.72 $ 92.76
Net return to land and management $ 859.28 $ 8.59
aAssumes a one per cent death loss.
bsee Table 26.
beef sold is $15.82; total expense per hundredweight of all beef sold is
$19.13. Assuming the stated prices and an average investment of $40,580,
excluding machinery and equipment, (see footnote c, Table 25) the net
return to land, capital and management is $2,229.41 or 5.5 per cent.
Area Comparisons
The improved practices budgets suggest some minor changes when
compared with actual data for the average low cost producers, Table 28.
The fact that the average low cost producers were operating a similar
program suggests that the management potential for profitable
beef calf production is present. The higher net return as indicated in
Table 28. Comparisons of Budgeted Input and Output Factors with the Average Low Cost Producer and the
Average Producer of Beef Calves, Central, North, and South Alabama, 1962
Central Alabama North Alabama South Alabama
Average Average Average
Item Unit low 
cost Average Budgeted low cost Average 
Budgeted low cost Average
producer for area producer 
for area producer for area
Number of records . . 17 47 . . 5 24 . . 10 43
Weight of calf
sold Lb. 500 455 454 500 510 473 475 462 477
Market beef sold
per cow Lb. 400 364 324 400 329 280 380 348 315
Proportion of
calves born
sold Pct. 88.9 90.1 85.7 88.9 64.6 79.5 88.9 87.0 78.0
Land used per
beef cow Acre 2.2 3.9 4.5 2.0 3.3 3.7 1.6 1.8 3.3
Feed and pasture
cost per cow Dol. 37.88 44.39 62.68 59.75 59.45 85.79 62.76 62.27 84.16
Total cost per
cow Dol. 64.80 71.88 92.49 91.53 93.25 128.42 92.76 90.60 118.83
Price received
per cwt. for
market beef
sold Dol. 23.00 23.17 23.27 23.00 21.24 23.80 23.00 23.67 22.43
Net return above
all expenses
per cow Dol. 40.40 20.94 -10.44 14.42 7.49 -43.76 8.59 4.25 -32.52
Ln
r".
53
the budget for Central Alabama, as compared to the average low cost pro-
ducer, was primarily the result of a lower feed cost per cow and a greater
amount of market beef sold per cow.
The higher budgeted net return in North Alabama above the average
return of the low cost producer was due in part to a higher price re-
ceived and to the larger marketings per cow. The higher net return for
the budget as compared to the average low cost producer in South Alabama
was due to the increased marketings per cow.
In all instances the land used per beef cow was lower in the
budget than in practice as reported by the beef calf producers. Higher
stocking rates have two advantages: (1) they decrease the investment in
land per cow, and (2) in most cases, they lower pasture cost per cow.
The average low cost producer in South Alabama had the highest stocking
rate reported, 1.8 acres per cow, and was approaching the budgeted
stocking rate of 1.6 acres per cow.
In the budgets for all areas, market beef sales per cow were in-
creased to about 400 pounds. This increase was possible by increased
weaning weights and by increasing the proportion of calves born that
were sold. The only exception to the latter reason for the increased
marketings per cow was the average for low cost producers in Central
Alabama.
The Central Alabama budget showed a decidedly higher net return as
compared to other areas. One major reason for this advantage was lower
pasture and feed cost per cow. Pasture and feed cost were lower in
Central Alabama because of the prevalence of native grasses and the lower
hay costs. Beef calf producers in Central and South Alabama had a
54
shorted feeding period than those in North Alabama. However, pasture
and feed costs were lower in North Alabama than in South Alabama.
POTENTIAL FOR BEEF CALF PRODUCTION
Any discussion of potential must consider the principle of com-
parative advantage. In general this principle directs that a producer
or area produce the product for which the greatest advantage or the least
disadvantage exists. The Alabama farmer must consider other 
beef calf
producing areas in planning for future production. According 
to
Aricultural Statistics: 1963,15 Alabama ranked 21 in the number of
calves born in United States and 14 in the number of calves marketed
in 1962.16 Major competition in number of calves marketed is from
Wisconsin, New York, Pennsylvania, Texas and bordering 
states.
As a basis for comparing the cost of producing beef calves in
Alabama and other areas, budgets prepared by experiment station 
personnel
in other areas and cost studies from other areas were used. 
An Oklahoma
study,
1 7 
which should be applicable to Texas and the other 
states of
the Range Livestock Region, indicated that the net return 
to land, labor,
capital, management and risk was $80.88 per cow. The net return 
to
land and management per cow was $41.97. This represents 
a return to 13
1 5
United States Department of Agriculture, 
Agricultural Statistics:
1963, (Washington: Government Printing Office, 1963), p. 314.
16bid., pp. 316-17.
1 7
Alfred L. Barr, et al., Beef Cattle Systems and Range Improvement
Alternatives: Estimated Production, Income, and 
Costs, (Oklahoma State
University, 1960) Processed Series 358, pp. 6 and 
45.
55
acres of land. While the Oklahoma budget showed a higher net return to
land and management than the Central 
Alabama budget, beef calf
production in Oklahoma with improved practices required almost six times
as much land per cow.
Total cost per cow in the Oklahoma budget, excluding 
land and
management, was $53.91. Pasture cost for the budget was zero. Feed cost
per cow was $10.83. The Central Alabama improved practices budget had a
total cost, excluding land and management, of $64.80 per cow. Alabama
producers can market a heavier calf and more beef per cow. This would
substantially reduce per unit costs of producing beef calves. It appears
that Central Alabama producers can compete favorably with those in the
Range Livestock Region of the United States. The other areas of Alabama
do not provide as favorable competitive position.
A study of beef cow herd costs and returns in Southern Indiana
1 8
based on 1956-59 physical data and long-run price relationships reported
the long run total cost per cow to be $87.72. The Central Alabama low
cost producers had a cost of $71.88 in 1962. The South and North Alabama
low cost producers had total costs of $90.60 and $93.25 per cow, respec-
tively. The average weaning weight of calves in the Indiana 
study was
449 pounds. The low cost producers in Alabama all sold a heavier 
calf.
It would appear that Alabama producers should be able to compete 
with
Southern Indiana producers.
18
M. R. Janssen, Beef Cow Herd Costs and Returns in Southern
Indiana, Agricultural Experiment Station, Purdue University, 
1961,
Research Bulletin 725.
56
A Southeastern Ohio studyl9 indicated that net returns to 
beef
producers were low. The average producer 
in 1955 lost $24.99 per cow;
however, using the same physical inputs 
and outputs with 1960 prices,
the loss was $18.49 per cow. 
A comparison with the Alabama study 
was not
advisable since a complete description 
of the costing method was not
given. In general, the hay, grain, 
and silage cost per cow was almost
twice the cost of that for 
the average Alabama producer. 
Pasture cost
was not as high as those for Alabama 
producers, but the method of charging
pasture was not definite.
Location of production centers for feeder calves 
in relation to
markets for feeder calves must be 
considered when evaluating the competi-
tive position of an area. The feeding 
and finishing phase of Alabama
beef production has started 
to develop but is far behind 
the more
established feeding areas of 
the Corn Belt, Arizona and California. 
The
demand for feeder cattle by 
Alabama feedlot operators 
is not great
enough to utilize the supply. 
Therefore, Alabama beef calf 
producers
must look to markets for feeder cattle 
in other sections of the United
States. Present marketing channels 
allow buyers or middlemen between
feedlot operators and feeder calf 
producers to handle distribution 
of
calves to meet the demand.
The price a feeder is willing 
to pay for an Alabama feeder 
calf
is the price of a local feeder 
calf less the transportation charges,
assuming equal performance 
in the feedlot for feeder 
calves available.
Some feedlot operators in 
the Corn Belt and West have 
reported that they
19E. T. Shaudys and J. H. Sitterley, 
Costs, Returns and Profit-
ability of the Beef Cow-Calf 
Enterprise in Southeastern Ohio 
by Systems of
Management, Ohio Agricultural 
Experiment Station, 1963 Research 
Bulletin
937.
57
prefer feeder calves from the Southeast because of good performance in
the feedlot.
In a Louisiana study, truck transportation costs were predicted
for live cattle and calves from various shipping points in the Southeast
to various receiving points.20 Montgomery was the shipping point in
Alabama. Transportation costs to Chicago, Des Moines and Denver were
$1.23, $1.40 and $2.82 per hundredweight, respectively. Assuming a homo-
geneous calf from all areas, the Denver feedlot operator would be willing
to pay $2.82 less per hundredweight for an Alabama calf in Alabama than
for a similar calf in Denver.
The overall question as to supply of feeder calves has not been
considered in this study due to the vast amount of data required for a
thorough analysis of potential with respect to all factors in interregional
competition for the feeder calf market.
Even though Alabama producers may be able to compete with other
areas for a share of the feeder calf market, beef calf production may not
be the most profitable enterprise for a given farm. 
Budgets that incor-
porated current recommendation of the Alabama Agricultural 
Experiment
Station for the Wiregrass and Limestone Valley Areas of the State indi-
cated that most row crops gave higher net return to land and management
than the improved practices budgets for beef calves 
in North and South
Alabama.
2 1 
The crops showing a higher net return to land 
and management
2 0
j. D. Goodwin, The Competitive Position of the Southeast 
in the
Distribution of Feeder Cattle, Unpublished Ph. D. 
Dissertation, Louisiana
State University, 1965.
2 1
G. W. Clark and E. J. Partenheimer, Costs and Returns 
from Crop
Production in the Wiregrass Area (Lower Coastal Plains) 
of Alabama,
Alabama Agricultural Experiment Station, 1961, and 
E. J. Partenheimer
and T. H. Ellis, Costs and Returns from Crop Production 
in the Limestone
Valley Areas of Alabama, Alabama Agricultural Experiment 
Station, 1960.
58
in the Limestone Valley area were cotton, corn, soybeans for oil, soybean
hay, oats for grain, wheat for grain, grain sorghum, alfalfa hay, sericea
hay and annual lespedeza hay. The crops showing a higher net return
per acre in the Wiregrass area were cotton, peanuts, corn, grain sorghum,
soybeans for oil, oats for grain and Coastal bermudagrass 
hay.
Budgets have not been completed for the Central Alabama area.
However, beef calf production is in a more competitive position in this
area because of the higher net return per acre and the soil characteristics
of the area. A high percentage of the soils in Central Alabama are not
adapted to row-crop production. The heavy clays of the area are sticky
when wet and hard when dry. Grasses and legumes are best adapted to these
soils.
The break-even chart, Figure 4, illustrates the competitiveness
among producers in the three areas in Alabama. Point A is the break-
even point for Central Alabama producers. With 
a $23 per hundredweight
selling price and 285 pounds of market beef sold per cow, 
a Central
Alabama producer using improved practices would cover all 
costs, excluding
a charge for land and management. The North Alabama 
producer, using
improved practices and a $23 per hundredweight selling 
price, would re-
quire about 395 pounds of market beef sold per cow to 
cover total costs
excluding land and management. Using the same assumption, 
the South
Alabama producer would require 405 pounds of market 
beef sold per cow to
cover total costs as budgeted.
As the price received per hundredweight decreases, 
the amount of
market beef sales per cow required to cover total 
budgeted costs in-
creases, but the Central Alabama producer would have 
the advantage
assuming the same selling price per hundredweight 
in all areas.
Dollars Expense Per Cowj
1Profit Are1
M Z 7.7"T ' t. IL I L L7 t L 2.T h.Z
Loss Areaj 4f
00
1-- -7-- I-Z 2 77
/
South 
Ala.
North Ala.
Central Ala.
23 46 69 92115 1
(100) (200) (300) (400) (500)
Dollar Sales Per Cow (Pounds in Parenthesis)
Fig. 4. Relationship of Varying Dollar Sales and 
Budgeted Total
Expenses Per Cow to the Break-even Point in Producing 
Beef Calves, North,
Central and South Alabama.
59
100
80
0
4
2
60
Summary and Conclusions
Production of beef calves is an important farm 
enterprise in
Alabama. This study was made to determine costs 
involved, differences
in costs among areas of the State, and to suggest improvements 
that
might be made by cattle producers to enhance their 
competitive position.
Cost and return data were obtained from 114 beef calf producers and from
other sources.
The average net cost per hundredweight of market beef 
sold, ex-
cluding a charge for land, was $26.63, $39.41, and $32.70 
in Central,
North, and South Alabama, respectively. Low cost producers 
in each area
were $9.00 to $11.00 per hundredweight 
below the average cost for all
producers. The major cost item per cow 
was pasture. A high degree of
dependence on native grasses by producers 
in Central Alabama made
possible the lower production costs in this area.
The number of pounds of market beef sold per cow was also highest
in the Central Alabama area. In Central Alabama beef calf producers
sold an average of 324 pounds of market 
beef per cow compared with 280
pounds for North and 315 pounds for South 
Alabama producers. Major
factors that influenced pounds of beef 
sold per cow were percentage
calf crop, death losses, replacement 
rate, and weight of calf sold.
Comparisons of actual cost and returns 
data with budgets that
incorporated improved practices indicated 
that net returns from beef
calf production could be increased 
substantially. Improvements would
include higher stocking rates, production 
of heavier calves, lower
replacement rates, and improved quality 
in breeding stock.
61
Data for the three major areas of Alabama were compared with in-
formation from comparable beef calf cost studies in other regions of the
United States. The Central Alabama beef calf producer is in a favorable
competitive position. Producers in North and South Alabama generally
are not in as strong competitive position as a result of the relatively
higher levels of net returns to land and management for crops such as
cotton, peanuts, soybeans, and corn.
Alabama cattlemen can, by adopting better management practices,
improve net returns from beef calf production. As the feeding and
finishing phase of the cattle industry develops in Alabama and the
South, increased competition for feeder and stocker calves from local
cattlemen and those in other states should be a factor in increased net
returns for beef calf production.
62
APPENDIX A
METHOD AND PROCEDURE USED IN CALCULATING COSTS
Basic data, primarily physical inputs used in raising
beef calves were secured by personal interview. Information from pub-
lished reports
1 
that provided pasture, harvestedforage, 
and other cost
data for the Limestone Valley and Wiregrass Areas of Alabama were used
as a guide in determining costs. For Central Alabama, pasture and
harvested forage costs were estimated from conferences with agronomists,
animal scientists, and agricultural economists of the Alabama Agricul-
tural Experiment Station. Fertilizer costs were varied to conform with
kinds and amounts actually used by farmers.
For each kind of pasture, hay raised, and silage crop, budgets
were prepared that included all costs except fertilizer, 
taxes on land,
a land charge, and management. (See Appendix B, Sections A through 
G).
The budget cost data plus the cost of the fertilizer used, as reported
by producers, were entered on a prepared cost 
summary form. Fertilizer
prices paid were determined primarily by interviews 
with fertilizer
dealers. Fertilizer prices used in calculating costs 
in all areas are
reported in Appendix C.
When a crop was used for grazing and grain or seed, only 
half of
the budgeted costs and fertilizer was charged to beef cattle. 
When a
IT. H. Ellis and E. J. Partenheimer, Costs 
and Returns from
Livestock Production in the Limestone Valley 
Areas of Alabama, Alabama
Agricultural Experiment Station, mimeograph, 
1960, and E. J. Partenheimer
and G. W. Clark, Costs and Returns from Livestock 
Production in the
Wiregrass Area (Lower Coastal Plains) of 
Alabama, Alabama Agricultural
Experiment Station, mimeograph, 1961.
63
crop was used for hay and grazing, half of the budgeted costs and ferti-
lizer was charged to pasture costs and the other half plus the cost of
harvesting the hay, which was based on the number of cuttings, was
charged to hay. The cost of hay per ton was found by dividing the cal-
culated total costs by the tons produced. When a crop was used strictly
for hay, the budgeted costs, fertilizer costs, and the costs of harvest-
ing were included in the cost of producing the hay. In the case of
peanut hay, only the costs of baling were charged to beef cattle.
The quantity of grain, protein, and other feeds fed to beef cattle,
as reported, were charged on an opportunity cost basis. If grain was
raised, the average price received by farmers in each area was charged.
If the grain was purchased, the average price paid by farmers in each
area was charged. (For a list of the prices charged, see Appendix D.)
Tractors and farm machinery used on pastures and in growing grain
and forage crops were charged as set forth in the crop budgets used as a
guide. However, for tractor use in preparing, hauling and handling
feed for beef cattle, the following rates per hour were used in each area:
(1) medium-size tractor, less than 25 drawbar horsepower, $1.05, (2)
large-size tractor, greater than 25 drawbar horsepower, $1.38.
Vehicles used in hauling feed to cattle and hauling cattle to
market were charged at $.15 per mile if % to 12-ton capacity. If
greater than 1%-ton capacity, including trailer trucks, the vehicle
charge was $.20 per mile. Hired hauling was charged as reported by the
producer.
Man-hours of labor on pastures and forage crops were included on
the budgets used as a guide in determining costs. Other labor costs
64
were based on data from farmers. Cattlemen were asked what they paid
for hired labor. Based on the answers given, labor was charged at a
rate of $0.50 per hour in North and South Alabama and $0.45 per hour in
Central Alabama. Labor by the farm operator in connection with buying
and selling cattle was charged at $1.25 per hour.
The cattlemen were asked the total man-hours per year required in
checking and handling cattle and in feeding cattle. The hours per year
were multiplied by the wage rate to determine the labor cost. The oper-
ator reported the total operator man-hours per year spent buying and
selling cattle. The number of hours times $1.25 was the labor cost for
buying and selling cattle.
The kind of feed processing equipment used was reported by the
producer with the original cost, size, source of power, and the propor-
tion of use that should be charged to the beef cattle enterprise. The
original cost was multiplied by 15 per cent to obtain the annual costs
for feed processing equipment. The annual cost included depreciation,
repairs, interest, taxes, lubrication, gasoline, and electricity used.
If feed was ground and mixed on a custom basis, the charge was
$0.175 per bushel for grain and $0.35 per hundredweight for hay.
Livestock investment costs were determined by charging a five per
cent interest rate on the average inventory. The average inventory was
found by addition of the beginning of year and ending of year values and
dividing by two. Interest was charged on cows, bulls, replacements,
and calves.
The original or replacement cost of buildings used for feed
storage, housing or feed processing equipment, and for beef cattle 
was
65
reported by producers. The original or replacement cost times a 10
per cent rate gave the estimated annual building cost chargeable to beef
cattle. The 10 per cent rate included four per cent for depreciation,
three per cent for interest (equivalent of six per cent on half the
original or replacement cost), two per cent for taxes and insurance,
and one per cent for repairs.
Producers reported the acres of land fenced with the prorata share
of fencing chargeable to beef. Annual fencing costs charged were $1.00
per acre in North and South Alabama and $0.85 per acre in Central Alabama.
Fencing for woodland pasture used for beef cattle was charged at $0.50
per acre in all areas.
If a producer used artificial breeding, the actual cost was re-
ported and used in calculating the cost per pound of beef produced. The
cost of bulls used for breeding purposes was included in the inventory
adjustment. Other bull costs such as pasture and feed were included along
with like costs for cows and young stock.
Medical and veterinarian costs were included based on the actual
amount reported paid by the cattle producer. This cost included the cost
of insecticides used for beef cattle.
Commission and yardage costs were charged according to the actual
amount paid as reported by the producers.
For farms that reported natural sources of water, no water charge
was included in calculating costs. When wells or ponds 
were reported,
the initial cost of the well, water system, and pond 
was obtained from
the producer. These initial costs were prorated among 
beef cattle and
other water uses. The initial cost portion of water 
from wells chargeable
66
to beef was multiplied by five per cent and that from ponds was mul-
tiplied by one per cent to determine annual water costs.
Producers reported the estimated present market value per acre of
farmland used for beef production and the average cost of land per acre
if the farm was purchased. A land charge at five per cent of the present
market value was calculated to determine the annual land costs. For land
double cropped with a cash crop and used for beef cattle, it was assumed
that the cash crop rather than beef cattle would bear the land charge.
Property taxes on land used for beef cattle were charged at $0.34
per acre, the average rate for Alabama in 1962. Taxes on buildings,
machinery, and equipment were included in their respective cost cate-
gories and charged to beef cattle.
Losses due to death of animals automatically were accounted for in
the methods used in calculating costs. For raised or purchased 
animals
that died, the cost of pasture and other feed was included as a cost
and no sales resulted as a credit.
Credits.--Beef used for home consumption was credited the beef
enterprise at $0.20 per pound. Beef sales were credited as reported by
producers.
Inventory changes and breeding stock sales of brood cows and
bulls used for breeding purposes were credited against total 
costs to
get an adjusted net cost of market beef sold. Cost 
per pound of beef
sold was derived by dividing the adjusted net cost by 
the total pounds
of market beef sold.
67
APPENDIX B
ESTIMATED COSTS OF FORAGE CROPS1
A. Estimated Annual Costs Per Acre of Permanent 
Pasture and Hay Crops,
Central Alabama, 1962
Tractor and machinery 
$1.07
Interest on operating capital (estimate) 
.30
Labor .45
1 ton of lime (prorated over 6 
yrs.) (custom spread) 1.00
Subtotal $2.82
Annual share of establishment cost
Bahiagrass, 12-year life $3.45 
$6.27
Johnsongrass, 8-year life 
5.88 8.70
Sericea, 10-year life 
4.06 6.88
White clover and lespedeza, 10-year life 
4.09 6.91
Fescue, 12-year life 
4.02 6.82
Fescue and alsike clover, 10-year life 3.90 
6.72
White clover, 5-year life 
7.00 9.82
Bahiagrass and white clover, 
12-year life 4.00 
6.82
Coastal bermudagrass, 10-year life 
6.01 8.83
If Caley peas are used, 
charge additional $.52 for 
seed (20#/A @
13?, 5-year life)
.09 for labor
$.61 total yearly charge
If clover and native grass, use 
one-half of $9.82 or $4.91.
Dallisgrass and common bermuda 
are considered native grasses.
1
These estimated costs were 
prepared from secondary data 
and from
conferences with agronomists 
and animal scientists of the 
Alabama Agri-
cultural Experiment Station. 
The budget costs do not 
include the cost
of fertilizer applied annually. 
Amounts of fertilizer applied 
to forage
crops annually were obtained 
from farmer interviews 
and charged at
prevailing cost rates.
68
Estimated Establishment Costs 
Per Acre
Machinery cost:
2
Cash 
$ 3.55
Noncash 
2.93
Labor 3.8 hrs. @ $.45 
1.71
Lime 1 ton custom spread 
6.00
0-16-8 500#/A. @ $1.73/cwt. 
8.65
Land $65/A. @ 5% plus 30/A. taxes 
3.55
Subtotal 
$26.39
Bahia 15# @ $0.29 
$ 4.35
NH
4
N0
3 
200# @ $3.90/cwt. 
7.80
tnt. on oper. capital @ 5% 
12.88
Total $41.42
Johnsongrass 25# @ $0.20 $ 5.00
NH
4
NO
3 
2001P@ $3.90/cwt. 
7.80
Int. on opera capital @ 5% 7.88
Total $47.07
Sericea 30# @ $0.20 $ 6.00
tnt. on oper. capital @ 5% 
8.24
Total 
$40.63
White clover 6# @ $0.85
(reseed every 3 years) 
$ 5.10
Lespedeza 10# @ $0.20 2.00
tnt. on opera capital @ 5% 
7.37
Total $40.86
Fescue 12.5# @ $0.17 
$ 2.12
NH
4
N0
3 
200# @ $3.90/cwt. 
7.80
tnt. on oper. capital @ 5% 
11.98
Total 
$48.29
Fescue 9' @ $0.17 
$ 1.53
Alsike clover 8# @ $0.40 3.20
tnt. on oper. capital @ 5% 
7.84
Total $38.96
White clover 6# @ $0.85 
$ 5.10
tnt. on opera capital @ 5% 
3.50
Total 
$34.99
3-plow tractor used 
1,000 hrs. per year
12' fertilizer spreader used 300 hrs. 
per year
7' rotary mower used 3 00 hrs. 
per year
69
B. Estimated Annual Costs Per Acre of Temporary Pasture, 
Hay, and Grain
Crops, Central Alabama, 1962
Machinery cost:
Cash $ 3.55
Noncash 2.93
Labor 3.8 hours @ $0.45 
1.71
Total $ 8.19
Caley peas 20# @ $0.13 $ 2.50
Oats 2 bu. @ $1.53 3.06
tnt. on oper. capital
3  
.25
Total $14.10
Caley peas 10#P @ $0.13 $ 1.30
Vetch 101 @ $0.15 
1.50
Tnt. on oper. capital
3
*21
Total.$11.20
Oats 1.5 bu. @ $1.53 
$ 2.30
Wheat .75 bu, @ $2.15 1*62
Int. on oper. capital
3  
.23
Total $12.34
Oats 1.5 bu. @ $1.53 
$ 2.30
Rye 45#b @ $0.04 
1.80
Crimson clover 10# @ 0.29 
2.90
Int. on oper. capital..27
Total $15.46
Crimson clover l0# @ $0.29 
$ 2.90
Ryegrass 15# @ $0.111.*65
tnt. on oper. capital
3  
.24
Total 
$12.98
Oats 2 bu. @ $1.53 
$ 3.06
Vetch l0#P @ $0.15 1.50
Crimson clover l07#G@ 0.29 
2.90
Int. on oper~ capital 
.27
Total $15.92
Oats 3 bu. @ $1.53 $ 4.59
tnt. on oper. capital
3  
*24
Total $ 13.02
70
Millet or Sudax 25# @ $0.12 $ 3.00
Int. on oper. capital
3  
.21
Total $11.41
Ryegrass 25# @ $0.11 $ 2.75
Int. on oper. capital
3  
.21
Total $11.15
Oats and Crimson clover $14.42
Rye and ryegrass $12.17
Oats and vetch $13.02
Vetch $11.40
Additional costs for ha
(Per cutting per acre)
Machinery cost $ 4.90
Labor 1.94
Total $ 6.84
Additional cost for combining grains or seeds
(Per acre)
Combining (based on custom rate) $ 8.00
Hauling (including labor and truck) 2.00
Total $10.00
C. Estimated Annual Costs Per Acre of Permanent Pasture and Hay Crops,
South Alabama, 1962
Tractor and machinery $ 1.31
Labor 1 hr./A. @ $0.50/hr. .50
Lime (1 ton every 5 years) (custom spread) 1.60
Interest on operating capital (Estimate) .30
Subtotal $ 3.71
Annual share of establishment cost
Bahiagrass, 12-year life $ 4.70 $ 8.41
Coastal bermudagrass, 10-year life 6.47 10.18
Fescue, 6-year life 7.59 11.30
Rescue, 3-year life 16.27 19.98
Dallisgrass, 5-year life 10.15 13.86
Johnsongrass, 5-year life 10.23 13.91
3
Interest was charged on an average of $10.00 of fertilizer per
acre plus seed and other cash costs at a rate of 6 per cent for 6 months.
71
Kudzu, 10-year life 5.71 9.42
Dallisgrass and white clover, 10-year life 5.24 8.95
Crimson clover and bahia, 10-year life 5.26 8.97
Bahiagrass and sericea, 10-year life 5.10 8.81
Crimson clover, 5-year life 8.28 11.99
Dallisgrass, bahia, and white clover,
10-year life 5.47 9.18
Bahia and lespedeza, 10-year life 4.57 8.28
Dallisgrass and johnsongrass, 5-year life 10.19 13.90
White clover, 5-year life 11.51
Fescue and clover, 6-year life 8.07
Native grasses and clover 5.99
Dallisgrass and bahia 8.80
Dallisgrass and lespedeza 8.82
Johnsongrass and Caley peas 14.52
Estimated Establishment Costs Per Acre
Machinery cost:
4
Cash $ 2.56
Uonc ash 2.76
Labor 4.8 hr. @ $0.50 2.40
Lime 1 ton (custom spread) 8.00
0-16-8 600#P/A. @ $1.73 10.38
Land $70.00/A. @ 5% plus $0.30/A. taxes 3.80
Subtotal $29.90
Bahia 15# @ $0.29 $ 4.35
NH
4
NO
3 
200# @ $3.90/cwt. 7.80
Into on oper. capital G 5% 14.32
Total $56.37
Coastal bermudagrass (custom planting
and sprigs) $13.00
NH
4
NO
3 
2001k @ $3.90/cwt. 7.80
Int. on oper. capital @ 5% 14.04
Total $ 64.74
Fescue 12 1/2#b@ $ 0.17 $ 2.12
N11
4
N0
3 
200# @ $3.90/cwt. 7.80
Int. on opera capital @ 5% 5.74
Total $45.56
72
Rescue 40# @ $0,20 $ 8.00
NH
4
NO
3 
200# @ $3.90/cwt. 7.80
Int. on oper. capital @ 5% 3.13
Total $48.83
Johnsongrass 25# @ $0.32 $ 8.00
NH
4
N0
3 
200# @ $3.90/cwt. 7.80
Int. on oper. capital @ 5% 5.47
Total $51.17
White clover 4# @ $0.85
(reseed every 5 years) $ 3.40
Dallisgrass 10# @ $0.85 8.50
Int. on oper. capital @ 5% 10.63
Total $52.43
White clover 6# @ $0.85 $ 5.10
Int. on oper. capital @ 5% 
4.00
Total $39.00
Bahia 15# @ $0.29 $ 4.35
Crimson clover 60#P @ $0.14
(reseed every 5 years) 8.40
tnt. on oper. capital @ 5% 10.03
Total $52.68
Bahia 15# @ $0.29 $ 4.35
Sericea 30# @ $0.20 6.00
Int. on oper, capital @ 5% 10.75
Total $51.00
Crimson clover 30# @ $0.24 $ 7.20
tnt. on oper. capital @ 5% 4.28
Total $41.38
Dallisgrass l0## @ $0.85 $ 8.50
Bahia 15# @ $0.29 4.*35
White clover 4# @ $0.85
(reseed every 5 years) 3.40
tnt. on oper. capital @ 5% 11.99
Total $54.74
Bahia 15#~ @ $0.29 $ 4.35
Lespedeza l10# @ $0.20 2.*00
73
D. Estimated Annual Costs Per Acre of Temporary Pasture, Hay, and Grain
Crops, South Alabama, 1962
Machinery cost:
Cash $ 2.72
Noncash 2.56
Labor 4.8 hours @ $0.50 2.40
Lime (1 ton prorated 5 years) (custom spread) 1.60
Subtotal $ 9.28
Oats 3 bu. @ $1.53 $ 4.59
Int. on oper. capital
5  
.26
Total $14.13
Rye 90# @ $0.04 $ 3.60
White clover @ $0.85 1.70
Int. on oper. capital
5  
.27
Total $14.85
Millet or sudan 25# @ $0.17 $ 4.25
Int. on oper. capital
5  
.26
Total $13.79
Wheat 1.5 bu. @ $2.15 $ 3.24
Int. on oper. capital
5  
.24
Total $12.76
Rye 90# @ $0.04 $ 3.60
Int. on oper. capital
5  
.24
Total $13.12
Vetch 15# @ $0.20 $ 3.00
Oats 1 bu. @ $1.53 1.53
Rye 56# @ $0.04 2.24
Int. on oper. capital
5  
.28
Total $16.33
Wheat .75 bu. @ $2.15 $ 1.63
Rye 56# @ $0.04 2.24
Vetch 15# @ $0.20 3.00
Int. on oper. capital
5  
.28
Total $16.43
Rye 56# @ $0.04 $ 2.24
Ryegrass 20# @ $0.10 2.00
Int. on oper. capital
5  
.28
Total $13.78
Ryegrass 25# @ $0.10 $ 2.50
Int. on oper. capital
5  
.23
Total $12.01
74
Vetch 25# @ $0.20 
$ 5.00
Int. on oper. capital
5  
.26
Total 
$12.12
Milo 6# @ $0.08 
$ .48
tnt. on oper. capital
5  
.20
Total 
$99
Vetch l5# @ $0.20 
$ 3.00
Oats 2 bu. @ $1.53 
3.06
tnt. on oper. capital
5  
.28
Total 
$15.62
Vetch 15# @ $0.20 
$ 3.00
Rye 65# @ $0.04 
2.60
tnt. on oper. capital
5  
.28
Total 
$15.16
Oats 2 bu. @ $1.53 
$3.06
Rye 56# @ $0.04 
2.24
tnt. on oper. capital
5  
.28
Total 
$14.86
Wheat .75 bu. @ $2.15 
$ 1.62
Oats 1 bu. @ $1.53 
I.53
Rye 56# @ $0.04 
2.34
tnt. on oper. capital
5  
.28
Total 
$15.05
Oats 1.5 bu. @ $1.53 
$ 2.30
Crimson clover 15# 
@ 0.29 
4.35
tnt. on oper. capital.30
Total 
$16.23
Ryegrass 12# @ $0.10 
$ 1.20
Crimson clover 15# @ 0.29 
4.35
tnt. on oper. capital 
.28
Total 
$15.11
Rye 45# @ $0.04 
$ 1.80
Crimson clover 15# @ 
$0.29 
4.35
tnt. on oper. capital
5  
.28
Total 
$15.*71
75
Oats 1.5 bu. @ $1.53 $ 2.30
Ryegrass 12# @ $0.10 1.20
Int. on oper. capital
5  
.20
Total $12.98
Additional costs for hay (per cutting per acre)
Machinery cost $ 5.08
Labor 2.25
Total $ 7.33
Additional cost for combining grain or seeds
(per acre)
Combine (based on custom rate) $ 7.00
Hauling (including truck & labor) 2.00
Total $ 9.00
E. Estimated Annual Costs Per Acre of Permanent Pasture and Hay Crops,
North Alabama, 1962
Tractor and machinery $ 1.11
Interest on operating capital (estimate) .30
Labor .50
Lime (2 tons prorated 5 years) (Custom spread) 2.20
Total $ 4.11
Annual share of establishment cost
Common lespedeza 
and white clover,
5-year life $ 9.30 $13.41
Rescue, ryegrass, and Crimson clover,
3-year life 17.33 21.44
Dallisgrass, fescue, and Ladino clover,
10-year life 5.85 9.96
Fescue and white clover, 10-year life 5.04 9.15
Coastal bermudagrass, 10-year life 7.04 11.15
Sericea lespedeza, 12-year life 4.28 8.39
Bluegrass and orchardgrass, 10-year life 6.33 10.44
Bahiagrass, 12-year life 5.17 9.28
Dallisgrass and white clover, 10-year life 5.68 9.79
Fescue, white clover, bahiagrass,
10-year life 5.42 9.53
Crimson clover and johnsongrass,
10-year life 5.62 9.73
Common lespedeza and bahiagrass,
10-year life 5.34 9.45
5
1nterest was charged on an average of $11.00 of fertilizer per acre
plus seed and other cash cost at a rate of 6 per cent for 6 months.
76
Fescue and dallisgrass, 10-year life $ 5.62 $ 9.73
Fescue, 10-year life 4.57 8.68
Bahiagrass, dallisgrass, and white clover,
10-year life 6.02 10.13
White clover, orchardgrass and fescue,
10-year life 5.20 9.31
Fescue, Crimson clover and common
lespedeza, 10-year life 5.95 10.06
Orchardgrass, 10-year life 6.04 10.15
Dallisgrass, 10-year life 7.00 11.11
Rescue and ryegrass, 3-year life 5.65 9.76
Dallisgrass and common lespedeza,
10-year life 6.08 10.19
White clover, bluegrass and orchardgrass,
10-year life 5.83 9.94
Bahiagrass and dallisgrass, 10-year life 7.02 11.13
Common bermudagrass, Jap clover, carpetgrass, common lespedeza
alone, and bluegrass alone were considered native grasses.
Estimated Establishment Costs Per Acre
Machinery cost:
6
Cash $ 3.33
Noncash 2.00
Lime 1 ton (custom spread) 5.50
Labor 4.9 hrs. @ $0.50 2.45
0-16-8 800#/A. @ $1.50 12.00
Land $200/A. @ 5% plus $0.34/A. for taxes 10.34
Subtotal $35.62
Common lespedeza 25# E $0.20 $ 5.00
White clover 2El @ $0.85 1*70
Int. on oper. capital @l 5% 4.19
Total $46.51
Dallisgrass l10# @ $0.85 $ 8.50.
Fescue 9#t E $0.17 1.*53
Ladino clover 2# @l $0.85 1.*70
Int. on opler. capital @l 5% 11.11
Total $58.46
Fescue 9# @l $0.17 $ 1.53
77
Coastal bermudagrass
(custom planting and sprigs) $13.00
NH
4
N
3 
200# @ $3.90 7.80
Int. on oper. capital @ 57013.97
Total $70.39
Sericea lespedeza 30#/A. @ $0.15 $ 4.50
Int. on oper. capital @ 5% 11.19
Total $51.31
Bluegrass 8#/A. @ $0.50 $ 4.0
Orchardgrass 10#/A. @ $0.36 3.60
NH
4
N
3 
200#b @ $3.90 7.80
tnt. on oper. capital @ 5% 12.27
Total $63.29
Johnsongrass 20# @ $0.32 $ 6.40
NH
4
NO
3 
200# @ $3.90 7.80
tnt. on oper, capital @ 571
Total $61.69
Bahia 15# @ $0.29 $ 4.35
NH
4
NO
3 
200# @ $3.90 7.80
tnt. on oper. capital @ 5%
Total $62.00
Dallisgrass 10# @ $0.85 $ 8.50
White clover 2#f @ $0.85 1.70
tnt. on oper. capital @ 5% 10.65
Total $56.78
Fescue 9# @ $0.17 $ 1.53
White clover 2} @ $0.85 5.10
Bahia 10# @ $0.29 2.90
tnt. on oper. capital @ 57% 9.08
Total $54.23
Crimson clover 15# @ $0.24 $ 3.60
Johnsongrass 20#b @ $0.32 6.40
tnt. on oper. capital @ 57% 10.57
Total $56.19
Rescue 20#P @ $0.18 $ 3.60
Ryegrass 25## @ $0.11 6.25.
78
Fescue 9# @ $0.17 $ 1.53
Dallisgrass 10 @ $0.85 8.50
Int. on oper. capital @ 5% 10.57
Total $56.22
Fescue 12# @ $0.17 $ 2.04
Int. on oper. capital @ 5%
Total $45.71
Bahia 101, @ $0.29 $ 2.90
Dallisgrass 0# @ $0.85 8.50
White clover 2# Pd $0.85 1.70
tnt. on oper. capital @ 5% 11.53
Total $60.25
Orchardgrass 10#b @ $0.36 $ 3.60
White clover 2# @ $0.85 1.70
Fescue 9# @ $0.17 1.53
tnt. on oper, capital @ 5% 9.56
Total $32.01
Fescue 9# @ $0.17 $ 1.53
Crimson clover 15# @ $0.24 3.60
Common lespedeza 25# @ $0.20 5.00
Int. on oper. capital @ 57013.78
Total $59.53
Orchardgrass 15# @ $0.36 $ 5.40
NH
4
NO
3 
200# @ $3.90 7.80
Tnt. on oper. capital @ 5% 11.56
Total $60.38
Dallisgrass 15# @ $0.85 $12.75
NH
4
N0
3 
2007# @ $3.90 7.80
Int. on oper. capital @ 5% 13.87
Total $70.04
Rescue 20#k @ $0.18 $ 3.60
Ryegrass 25#b @ $0.11 2.75
tnt. on oper. capital @ 5% 3.25
Total $56.52
Dallisgrass l0#P @ $ 0.85 $ 8.50
Common lespedeza 25#/ @ $0.20 5.00
79
Bahia 15# @ $0.29 
$ 4.35
Dallisgrass 10# @ $0.85 
8.50
NH
4
NO
3 
200# @ $3.90 
7.80
Int. on oper. capital @ 5% 13.91
Total $70.18
F. Estimated Annual Costs Per Acre of Temporary Hay, Pasture and 
Grain
Crops in North Alabama, 
1962
Machinery cost:
Cash $ 2.37
Noncash 2.00
Labor 5 hr. @ $0.50 2.50
Lime (2 ton prorated 5 yrs.) (custom spread) 2.20
Subtotal $ 9.07
Barley 1.5 bu. @ $3.10 $ 4.65
Int. on oper. capital
7
.24
Total $13.96
Rye 56# @ $0.04 $ 2.24
Crimson clover 10 @ 0.24 2.40
Int. on oper. capital .24
Total $13.95
Oats 2 bu. @ $1.53 $3.06
Vetch l0# @ $0.15/# 1.50
Int. on oper. capital
7
.24
Total $13.87
Oats 3 bu. @ $1.53 
$4.59
Int. on oper. capital?.24
Total $13.90
Oats 1.5 bu. @ $1.53 $ 
2.29
Crimson clover l1lA@C9 0.24 
2.40
Int. on oper. capital .24
Total $14.00
Wheat 1.5 bu. @ $-2.15 
$ 3.24
tnt. on oper. capital
7  
.23
Total $12.54
Millet or Sudax @ $0.17 $ 
4.25
80
Ryegrass 25# @ $0.10 $ 2.50
Int. on oper. capital
7  
.18
Total $11.75
Soybeans 2 bu. @ $6.25 $12.50
Int. on oper. capital
7  
.34
Total $21.91
Ryegrass 25# @ $0.10 $ 2.50
Oats I bu. @ $1.53 1.53
Crimson clover 10# @ $0.24 2.40
Int. on oper. capital
7  
.27
Total $15.77
Crimson clover 20# @ 90.24 $ 4.80
Int. on oper. capital .25
Total $14.12
Rye 90# @ $0.04 $ 3.60
Int. on oper. capital
7  
.23
Total $12.90
Soybeans 1 bu. @ $6.25 $ 6.25
Sorghum 12# @ $0.17 2.04
Int. on oper. capital
7  
.29
Total $17.65
Additional costs for hay (per cutting per acre)
Machinery cost $ 4.90
Labor 2.15
Total $ 7.05
Additional cost for combining grains or seed (per acre)
Combining (based on custom rate) $ 9.00
Hauling (including labor and truck) 2.00
Total $11.00
7
Interest was charged on an average of $10.00 of fertilizer per acre
plus seed and other cash cost at a rate of 6 per cent for 6 months.
81
0. Estimated Silage Cost Per Acre (Excluding Fertilizer) for Beef Cattle,
Alabama, 19628
Central Alabama
Corn Silage
Machinery cost:
Cash $14.50
Noncash 9.45
Labor 12.3 hrs. @ $0.45 5.54
Seed 1.60
Interest .95
Total $32.04
Sorghum Silage
Machinery cost:
Cash $15.50
Noncash 10.00
Labor 14 hrs. @ $0.45 6.30
Seed .40
Interest .97
Total $33.17
South Alabama
Corn Silage
Machinery cost:
Cash $10.69
Noncash 8.62
Labor 12.3 @ $0.50 6.05
Seed 1.36
Interest .84
Total $27.56
Sorghum Silage
Machinery cost :
Cash $13.85
Noncash 9.31
Labor 14 hrs. @ $0.50 7.00
Seed .40
Interest .94
Tot'd $31.50
82
North Alabama
Corn Silage
Machinery cost:
Cash $13.90
Noncash 9.05
Labor 12.3 hrs. @ $0.50 6.15
Seed 1.68
Interest .82
Total $31.60
Sorghum Silage
Machinery cost:
Cash $17.06
Noncash 9.74
Labor 14 hrs. @ $0.50 7.00
Seed .40
Interest 1.03
Total $35.23
83
APPENDIX C
FERTILIZER COSTS PER TON OR PER HUNDREDWEIGHT USED IN CALCULATING
BEEF CATTLE COSTS, ALABAMA, 1962
A. Central Alabama
Type
0-10-20
0-12-12
0-14-14
0-16-8
0-20-20
4-12-12
8-8-8
8-14-14
10-10-10
10-12 -12
14-44-14
16-8-8
NH
4
NO
3
Potash (607%)
Liquid N
B. South Alabama
0-5-5
0-12-12
4--12 -12
6-18-18
Cost/Ton
$ 38 .50
35.00
36.50
34.50
56.50
40.00
42.50
55.60
50.00
55.20
75.00
59.20
78.00
52.00
220.00
$ 13.00
35.00
40.00
72.00
Cost/Cwt.
$ 1.93
1.75
1.83
1.73
2.83
2.00
2.13
2.78
2.50
2.76
3.75
2.96
3.90
2.60
11.00
$ 0.65
1.75
2.00
3.60
B . South
Alabama (continued)
6-24-24
6-28-24
8-8-8
12-12-12
13-13-13
NH
4
NO
3
Urea
C. North Alabama
0-10-20
0-12 -12
0-14-14
0-16-8
0-20-10
0-30-30
0-20-20
4-12-12
6-8-8
6-12-12
6-24-24
7-9-9
8-8-8
8-24-24
10-10-10
13-13-13
14-14-14
84
$76.00
75.00
42.50
65.50
69.50
78.00
100.00
$38.50
35.00
38.00
30.00
41.00
78.00
47.00
40.00
34.00
42.00
76.00
40.20
42.50
78.50
50.00
69.50
73.50
$ 3.80
3.75
2.13
3.28
3.48
3.90
5.00
$ 1.93
1.7 5
1.90
1.50
2.05
3.90
2.35
2.00
1.70
2.10
3.80
2.01
2.13
3.93
2.50
3.48
3.68
C. .North Alaba(contined
15-15-15
NH
4
NO
3
30-10-0
Basic Slag
D. All Areas
Superphosphate 187%
Superphosphate 20%
Nitrate of Soda
Arnm. Sulphate
Anhydrous Amm.
85
$75.00
78.00
87.00
15.00
$ 3.75
3.90
4.35
.75
$ 21.00
23.00
58.00
55.00
130.00
$ 1,05
1.15
2.90
2.75
6.50
86
APPENDIX D
PRICES OF GRAIN, PROTEIN AND MISCELLANEOUS FEEDS, 19621
Iter
Corn (if raised)
Corn (if purchased)
Oats
Wheat
Barley
Molasses
Cottonseed Meal 4172
Cottonseed Meal 36%2
Soybean meal
Cottonseed hulls
Cottonseed
Cobbs and shucks
Alfalfa hay
Other hay
Salt -mineral mixture
Salt
Peanut hulls
Commercial supplements
'Prices as reported
2
1f pelleted, $2.00
North
Alabama
$1. l3Ibu.
1.251bu.
.82/bu.
l.951bu.
1.15bu .
70/T.
76/IT.
72 IT.
84/T.
30/T.
45/T.
lO/T.
36/T,
25/IT,
38 IT.
35/IT.
181T.
951T.
by USDA.
per ton was
Central
Alabama
$1. 25/bu.
1.37/bu.
.821bu.
70/T.
76/T.
72IT.
84/T.
30/T.
45/T.
l0/T.
3 6/T.
25/IT.
38/T.
35/IT.
18/T.
95/IT.
added to the cost.
South
Alabama
$l. 231bu.
x..351bu.
.82Ibu.
70/T .
76 IT.
72/IT.
84/T.
3o/T.
451T.
lOIT.
36/T.
25/ I.
38/T.
35/IT.
18/T.
95/IT.
87
North Central South
Item Alabama Alabama Alabama
Range pellets (20%) $70/T. $70/T. $70/T.
Minerals 94/T. 94/T. 
94/T v
Peanut meal 45% 80/T o 
80/T. 80/T,
Commercial creep feed 70/T. 70/T, 
70/T.