Agricultural Economics 
Series 12 
Irn ,rhezr 10 A
1IC(fOt o, !
Feasibility
01
Producing
Yearling 
Beef Cattle
in
.Alabama
LA
~> It
E V. Smith, Direc ,
A. 
:h~~

TABLE OF CONTENTS
Page
INTRDUCO DUCNrONO.O.O.....
How tie StudwasMade
YEARLING BEEF PRODUCERS , * * * 0,0*
THE CATTLE FARMS O...........
Land Use .... ..... *0
Cattle 'Numbers and'value. . .
Total:Investment.in Beef Enterprises
COSTS AND RETURNS........."
Major Cost Items
Feed. " n Ar A O......... 
A
F enc ing.O . O A ".......
Labor ........ . "
Interest ." .." .."
Land... .... ... ... . .O
Returns . . .. .. .. . .0-
Net returns o. .
SUGGESTED II'ROVE NTS FOR
YEARLING BEEF
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PRODUTION
Buythand-Se11 .Beef -Cattle Production 
Programs
Hay and Pasture Program....
Silage and Pasture Program...........
Raised Yearling Beef Cattle Production 
Programs.
Hay and Pasture 'Program (100. 
Brood Cows)
H-ay and Pasture 'Program (75 
Brood Cows)
a0
tee
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1
2
.3
3
3
5
.5
8
8
10
12
13
13
14
14
15
15
17
18
19
23
24
Raised Beef Calf Program......................35
Comparisons ........ ........... ............. 35
POTENTIAL.FOR YEARLING BEEF PRODUCTION. ............... 40
APPENDIX A....................... . . ..... 43
A P PE N DI XB............. 
........ 48
SUMMARY
The primary purpose of this study was to determine the economic
feasibility of yearling (stocker) beef cattle production. Data were
obtained from 31 producers by personal interviews in late suamer and
fall of 1963. A majority of the producers were located in central
Alabama.
Records were grouped according to production cost per hundredweight.
The three groups considered were for producers who had costs less than
$22.00, $22.00 to $28.99, and $29.00 and over per hundredweight of
beef battle sold. These groups were referred to as the low, middle,
and high cost groups. The low cost group had the largest number of
brood cows. Stocker or yearling production was most prevalent in the
low and middle cost groups.
Total investment in land used for beef cattle, cattle, and buildings
.averaged $129,218 per farm. Cattle accounted for 26 per cent, land 69
per cent, and buildings 5 per cent of the total. Investment per animal
unit was highest for farms with better grazing programs. A higher
value per acre for grazing land accounted for this relationship.
Adjusted total cost per hundredweight of beef cattle (calves and
yearlings) sold was $25.94. This cost reflected purchases of animals,
less breeding stock sales, and changes in the inventory. Pasture and feed
costs were the most important of all costs, making up 39 and 30 per cent
of the total, respectively. Interest on cattle accounted for 11 per cent
of total cost and was followed closely by building, equipment, and fencing
costs that totaled 10 per cent. Labor costs were 4 per cent of total cost
per hundredweight of cattle sold, with marketing and miscellaneous costs
each accounting for 3 per cent of total cost.
The low cost group sold 80,916 pounds of cattle per farm with an
adjusted total cost of $18.08 per hundredweight. The middle cost group
sold 79,970 pounds of cattle per farm at a total adjusted cost of $25.10
per hundredweight. The high cost 
group sold 62,314 pounds of cattle 
per
farm. The low cost producer group was the only one to average a positive
net return above all expenses excluding a land charge. The low cost
producer group of farmers used less than half the acres per beef animal
unit as did the high cost group. For all groups, an average of 4.4 acres
was required per beef animal unit.
On the basis of information obtained through the survey and various
secondary sources, four basic programs were developed and compared
with a recent study of suggested improvements for beef calf production.
Each program varied with type of feed fed and whether yearlings were
raised or bought.
Net return to land and management was higher for production of beef
yearlings than calves for the same land area. For a 100-brood cow unit
in which yearlings were produced as compared with calves, net returns were
also higher for yearlings. Still higher returns relative to capital invest-
ment were possible with buy-sell programs involving steers.
Potential developments in the production of yearling cattle will
in a Jarge measure depend on alternative opportunities for resources
that qan be used for production of feed supplies, primarily pastures and
roughages, as well as area differences in demand for feeder cattle. Trans-
portation rates on both grain and cattle are important in determining the
latter. Reductions in rail transportation rates point to potential gains
for Alabama in beef production.
ECONOMIC FEASIBILITY of PRODUCING YEARLING
BEEF CATTLE in ALABAMA*
John A. Lee** and J. H. Yeager***
INTRODUCTION
A major part of the cattle industry in Alabama is geared to the pro-
duction of light weight calves. Based 
on a recent study,1
/ 
a majority
of these calves are shipped out of state for growth and eventual feedlot
finishing. A.demand exists for 'heavier weight feeder 
calves and Alabama
cattlemen are not meeting this demand.
Growing and feeding cattle to heavier weights involves additional
costs, improved management, willingness to assume certain risks, and a
greater knowledge of markets and marketing. Many producers are not aware
of the production and market requirements nor of the opportunities that
exist.
The objectives of this study were as follows:
2/
(1) To determine the resources used in producing yearling beef'
cattle either raised or purchased,
*The research on which this report is based was executed and financed
under terms of a contractual agreement with the Southern Railway System,
Washington, D. C. Accuracy of statements and interpretations 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
and Rural Sociology.
***Head,, Department of Agricultural Economics and Rural Sociology.
1/ J. R. Meadows and M. J. Danner, Movement of Cattle and Calves
Through Alabama Auction MarketsBui. 360, Ala. Agr. Expt. Stav, .
2/ The term "yearling beef cattle" is synonymous with stocker cattle
as used in this report.
(2) To deterne:,, ~the costs and returns as well as present level of
management practices used by Alabama cattlemen in producing yearling
beef cattle,
(3) To compare the returns from producing beef calves and yearlings,
and,
(4) To evaluate the feasibility of producing yearling beef cattle
in given farm situations.
How the Study Was Made
Data used in the study were obtained from producers by personal
interview in late summer and fall of 1963. The data were applicable for
the previous 12 months of farm operations.
Although efforts were made to locate yearling beef cattle producers
in all areas of the State, most were found in central Alabama. Records
that provide basic data for this study were obtained from 22 farmers in
centra, 7 in northern and 2 in southern Alabama. With a limited number of
records in northern and southern Alabama, data are not presented by
geographical areas.
Information in most cases was estimated by the cattlemen interviewed.
Very few had production or other records.
For a description of method and procedure used in calculating costs,
see Appendix A. After total cost per hundredweight of beef cattle sold
was calculated, records were placed in three groups. These were low
(less than $22.00 per hundredweight), medium ($22.00 to $28.99 per
hundredweight), and high ($29.00 per hundredweight and over). Most
of the information is presented by cost groups.
YEARLING BEEF PRODUCERS
The average age of yearling 
beef producers was 51 years, Table 
1.
As an average, they reported 22 years 
of experience in cattle production.
Almost three-fourths reported sources 
of income other than from
beef cattle production. Other 
sources of income were from 
such activities
as teaching, selling timber, being a 
postmaster, or operating a general
store.
Table 1. Average Age, Years Experience in Cattle 
Production and Percentage
of 31 Yearling Beef Producers Having 
Sources of Income Other
Than Farming;: Alabatia,. 1962 :
Average Experience Reported other
Group. Operators age of in 
cattle sources of
operators production 
income
Number Years Years Per cent
Low cost............. 9 52 22 
78
Middle cost......... 13 50 21 69
High cost............. 9 52 
26 78
Total or average.... 31 51 
22 74
THE CATTLE FARMS
Information in this section includes material on size of farms, land
use, cattle numbers, their value, and total investment in 
the beef enter-
prise as reported by the 31 producers.
Land Use
The average size farm of the yearling beef producers was 1,475 
acres,
Table 2. Cropland accounted for 16 per cent of all land in the 
sample
farms. Twenty-eight per cent of all land was improved pasture and 14
per cent unimproved pasture. Woodland, including that pastured, 
accounted
for 38 per cent of total land. The remaining 4 per cent was for farmstead
and miscellaneous uses.
Production of hay accounted for 36 per cent of the use of cropland.
Cotton and temporary pasture each accounted for 24 per cent of cropland,
while corn accounted for 11 per cent.
Table 2. Land Use and Major Crops Per Farm, 31 Yearling Beef Producers,
Alabama, 1962
Cost group
Less than $22.00 $29.00 Average
Item $22.00 to $28.99 per cwt. all groups
per cwt. per cwt. and over
Numbet of farms............ 9 13 9 
31
Acres used for beef....... .496 699 827 677
Acres operaed............ 841 1,664 1,835 1,475
Cropland ..... 227.1 149.5 363.7 234.2
Cotton ................ .8 39.3 136.0 56.2
Corn.................. 4.9 26.2 47.9 26.3
Oats...................-- .6 -- .3
Wheat ................. -- -- 7.8 2.3
Legume hay............. 50.0 8.0 -- 17.9
Other hay............. 88.3 31.8 96.7 
67.0
Temp. winter pasture.. 70.2 36.6 67.7 
55.4
Temp. summer pasture.. .9 .5 -- .5
Other crops ........... .8 4.6 -- 2.2
Silage................ -- -- 8.3 2.4
Improved open permanent
pastute................... 375.9 414.1 439.2 410.3
Unimp oved open permanent
pasture.................... 44.4 224.7 359.6 211.5
Woods pasture.............. 100.7 209.8 353.4 219.8
Woodland........... ..... 39.3 630.5 239.3 345.3
Farmstead and other- .... 53.6 35.4 79.8 
53.8
1/ Acres of various crops do not necessarily add to cropland total
as a result of some land being double cropped.
2/ Includes roads, ditches, homestead, idle land, gardens, and other
miscellaneous uses.
Cattle. Numbers and Value
The average number of brood cows for all groups was 98 with an
average value of $150 per head, Table 3. The low cost group had the
largest average number of brood cows and the same average number of bulls
as the middle and high cost groups. The average total value of brood
cows for all groups was $14,700. Raised calves under 1 year of age
averaged $73 per head. Raised yearlings were more prevalent in the low
cost group.
The middle cost group had an average of, $3,050 invested in purchased
yearlings. Also, the middle cost group was the only group that purchased
calves.
Other livestock enterprises on the beef cattle farms were relatively
unimportant. Only 4 out of 31 farmers interviewed rkported hogs.
Total Investment in Beef Enterprises
Total per farm investment allocated to beef, excluding machinery
and equipment for the sample farms, was $129,218, Table 4. Cattle
accounted for 26 per cent, land 69 per cent, and buildings 5 per cent.
Land for beef was a higher percentage of total investment for the high
cost than for the other two groups. Total per acre investment was about
the same for low and high cost groups. Per hundredweight of cattle sold,
low cost producers had almost half the total investment of the high cost
group. Low cost producers had $83 invested in land per hundredweight of
cattle sold as compared with $198 for high cost producers. Low cost pro-
ducers also had about 30 per cent less investment in cattle per hundred-
weight of cattle sold than high cost producers.
Table 3. Average Number and Value of Beef Cattle on Farms by Cost Groups, 31 Yearling Beef Producers,
Alabama, 1962
Cost group 
Average
Low Middle High all groups
Item Dollar value Dollar value Dollar value Dollar value
No. Per Per No. Per Per No. Per Per No. Per Per
head farm head farm head farm head farm
Farms ................ 9 13 9 31
Raised
Cows............... 111 135 14,985 86 154 13,244 103 160 16,480 98 150 14,700
Bulls.............. 4 298 1,192 4 405 1,620 4 380 1,520 4 367 1,468
Replacements....... 9 109 981 16 119 1,904 19 154 2,926 15 126 1,890
Calves............. 46 72 3,312 53 66 3,498 66 83 5,478 55 73 4,015
Yearlings.......... 29 82 2,378 10 112 1,120 19 132 2,508 18 109 1,962
Purchased
Yearlings.......... 62 109 6,758 87 150 13,050 38 125 4,750 66 131 8,646
Calves............ -- . -- 5 97 485 - -- . 2 97 194
Total investment..... 29,606 34,921 33,662 32,875
M'.1
Table 4. Average Investment in the Beef Enterpise per Farm, per Acre,
and per Hundredweight of Cattle Sold, 31 Yearling Beef' Producers,
Alabam, 1962
Less 
than 
$2O
per cwt,
$22 00
to $28.99
per cwt?
$29?00
per cwt,
and over
Average
all groups
Number of farms....
Per farm
Cattle.............
Land for beef.....
Bui.dings for beef.
Total....
Per acre
Cattle.............
Land for beef......
Buildings for beef,.
Per cwt. of cattle sold
Land for beef....,..
Buildings for beef,
$ 29 ,606
67,510
3,501
13
$34,921
82,804
6 ,480
31.
33,662
123 ,587
8 ,2$3
$ 32,875
90,204
6,139
$100,617 $124,205 $165,532 $129,218
$ 60 $ 50 $ 41 $ 49
136 118 149 133
7 9 10,9
$ 203
36.90
x-033
$ 177
4 3. 72
103 .34
8. 10
$ 200
54.40
198 a.33
13.29
$ 191
44.84
125.22
851
$12466 1L~ 36 $266.02 $178.57
item
U~~~~~ 09 ~BI~ Q O Y vv Y ~u
$124.66 $155.36
General purpose barns were the most common type of 
service building.
They were reported on 94 per cent 
of all farms in the sample. Six 
per
cent of the farmers reported 
no barns.
COSTS AND RETURNS
In this analysis, cost factors 
were divided into noncash 
and cash
expenses. Noncash expenses included 
budgeted pasture and hay cost,
building, fencing, water, feed and 
hauling costs, as well as interest
on investment in cattle. Cash expenses included 
the cost of fertilizer,
purchased feed, marketing, medical 
and veterinarian services and supplies,
and labor excluding buying and 
selling labor.
Major Cost Items
Total cost per hundredweight of 
beef cattle (yearlings and calves)
sold averaged $25.94, 
Table 5. This cost per hundredweight 
reflected
purchases of animals, breeding 
stock sales, and changes in the 
inventory.
The low cost group had an 
average cost of $18.08 per hundredweight 
of
cattle sold.
Pasture and feed costs were the 
most important of all costs making
up 39 and 30 per cent, respectively, 
for all groups. Interest on 
cattle
accounted for 11 per cent of 
total cost and was followed closely 
by build-
ing, equipment, and fencing 
costs that made up 10 per cent. 
Labor costs
were 4 per cent of total cost per 
hundredweight of beef sold, with
marketing and miscellaneous costs 
each accounting for 3 per cent of
total cost.
Nine producers had costs less 
than $22.00 per hundredweight 
of beef
animals sold, 13 producers 
had costs from $22.00 to $28.99 
per hundred-
weight, and 9 producers had costs 
of $29.00 or greater per hundredweight.
Table 5e .itemized Cost Per Hundredweight of Beef Animals Sold.
31 Yearling Beef Producers, Alabama, 1962
Cost rop
Less than $22.00 to $29.00 Average
Item $22.00 $28.99 per cwt. all gr ous
per cwt, per cw. and over
Number of farms 9 13 9 31
Average acres used for
beef per farmn 496 699 827 677
Cost per cwt.o
Pasture $ 5.46 $ 6.88 $13.67 $ 8007
Raised hay 2.01 1.21 3.14 1.92
Purchased UsLy .01 .46 .11.35
Grain 1.09 1.60 4.26 2.08
Protei n 1.16 1.33 1.73 1.38
Miscellaneous feed .72 .11.83.47
Hauling to market .12 .10 .19 .12
Commission and yardage .63 .31 .39 .43
Building .43 .81 1.33 .82
Fencing .56 .90 1.67 1.02
Medical anod veterinary .16 .12 .31 .18
Water .04 .04 .07 .05
Property tax .21 3.4.31
Labor (excl. buying &
selling) .58 .70 .85 .70
Labor (buying &. selaing)-1 .06 .11 .06 .08
Interest on breeding stock 1.47 1-25 2.26 1.56
Interest on market stock .40 1.08 .65 .76
Feed processing .18 .13 .28 .18
Subtotal 11 15.39 17.44 32.75 20.4 8
Less breeding stock sales
and adjustment for change
in inrvento_,ry ?1..8 2 .17 - 9 .28 -2.12
Plus purchases 4.51 7.51. 14.21 8.018
Adjusted total cost"/ 18.08 25.10 37.68 25.94
Per cwt. of beef: sold
Pasture fertilizer
expense 3.83 3.88 4.66 3.74
Hay f er t il z e r ex e -s e .84 .52 .77 
"6
Total fertilizer expense 4.67 4.4.0 5.434,35-
1/ Excludes lai charge.
10
This cost per hundredweight of cattle sold did not include a land charge.
The average total cost for the $29.00 or more per hundredweight group
was 53 per cent higher than that for the group with costs less 
than
$22.00 per hundredweight. The cost difference was because of higher
pasture and feed costs. Also, building, fencing, medical and veterinary,
property taxes, labor, and interest on breeding stock costs were consid-
erably higher than average for the high cost group. Purchases of beef
animals that were on hand at end of the year and included in ending
inventory at less than purchase price also contributed to relatively
high costs.
Feed. The total cost of hay, grain, protein and miscellaneous feed
per hundredweight of cattle marketed averaged $6.20 for all groups. Concen-
trates (grain and protein) made up 56 per cent of this feed cost per
hundredweight and hay made up 37 per cent. Miscellaneous feeds and
silage made up the remaining part.
Corn was the most important source of concentrates. An average of
60.9 pounds was fed per hundredweight of cattle sold for all groups,
Table 6. Cottonseed meal was the next most important source of concentrate
feed, averaging 23.8 pounds per hundredweight of cattle sold. Mixed
feed, which included oats, grain sorghum, and barley, averaged 14.7
pounds fed per hundredweight of cattle sold. Commercial supplement and
molasses for the average of all groups amounted to 19 pounds per hundred-
weight of cattle sold.
Mixed hay was the major roughage fed by all groups. An average of
127.1 pounds of mixed hay was fed per hundredweight of cattle sold
followed by an average of 118.7 pounds of grass hay. Of the different
types of hay, legume hay was lowest in average amount fed. Silage was
11
Table 6. Kind and Quantity of Feed Fed per Hundredweight of Cattle 
Sold,
31 Yearling Beef Producers, Alabama, 1962
Cost group
Less than $22.00 to $29.00 Average
Item Unit $22.00 $28.99 per 
cwt. all groups
per cwt. per cwt. and over
Number of farms 9 13 9 31
Concentrate
Cottonseed meal.. Lb. 11.3 24.7 38.5 23.8
C omme rc ia 1
supplement...*....Lb. 19.2 11.4 8.2 13.6
Corn.. ....... Lb. 41.9 59.1 88.8 60.9
Molasses. Lb. 12.6 .4 5.5 5.4
Mixed feed
7 L .
.. 
- -  2.5  
.
57.1  14 .7
Total 85.0 98.1 198.1 118.4
Roughage
Grass hay.. Lb. 72.0- 118.5 179.7 118.7
Mixed hay.. Lb. 16790 37.9 240.7 127.1
Legume hay... Lb. - 34.6 3.6 16.3
C. S. hulls....... Lb. 12.4 1.3 - 4.5
Peanut hulls..... Lb. 3.3 -- m- 1.0
Total 254.7 192.3 4246,0 267.6
Silage... ..... 9400Lb. ---- 
2.3 e6
Miscellaneous/.... Lb. 3.3 4.4 
16.0 6.0'-
1/ Includes oats, grain sorghum, and barley.
2/ Includes salt and minerals.
12
fed on only one farm, which was in the high cost group.
The $5.58 difference in hay, grain, protein and miscellaneous feed
cost per hundredweight between the low and high cost groups 
was primarily
the result of feeding larger amounts of concentrates per 
hundredweight
of cattle sold. Concentrate costs accounted for $3.48 of the difference
between the low and high cost groups. 
Corn was the major grain fed.
Harvested forage, grain, protein, and miscellaneous feed costs per
hundredweight accounted for 14 per cent of the difference between the
middle and low cost groups and 32 per cent of the difference between the
low and high cost groups. These feed costs per hundredweight were highest
for the highest cost group of farmers who had the most improved pasture.
Pasture. The total cost of pasture per hundredweight of cattle
marketed averaged $8.07. Between the low and high cost groups, pasture
cost difference accounted for 47 per cent of the overall difference in
total cost per hundredweight. The difference in pasture costs per
hundredweight between the low and middle cost group accounted for 69
per cent of the difference in total cost per hundredweight.
The distribution between primarily native pastures and other grass
indicated strong reliance on improved pastures. Improved pastures were
those that were established. They consisted of grasses that are not
native to Alabama. Almost 64 per cent of the pasture land in the low
cost group was composed of improved pasture or improved pasture and
clovers.
The low cost producers used only 0.6 acre of land for each hundred-
weight of beef sold as compared with 0.9 acre by the middle cost group,
13
and 1.6 acre by the high cost group. Low and middle cost producers also
spent less for pasture fertilizer per hundredweight of cattle sold 
than
did high cost producers. The overall higher pasture cost per hundred-
weight for the middle and high cost groups was attributed to lower stocking
rates per acre, higher fertilizer costs per acre, and more expensive
pasture crops.
Fencing. The low cost group had a fencing cost of $.66 per hundred-
weight of cattle sold as compared with $1.00 per hundredweight for the
middle and $1.67 per hundredweight of cattle sold for the high cost
group. Differences among cost groups were mainly because of differences
in stocking rates.
The high cost group of farms used an average of 6.1 acres of land
per beef animal unit
/ 
as compared with 4.3 and 2.8 acres, used by the
middle and low cost groups respectively, Table 7. Apparently, animal
carrying capacity of pasture on the high cost farms was low or operators
failed to utilize forage available. The high cost farmer group, as an
average, used twice as much permanent pasture per animal unit as did the
low cost group.
Labor. Labor costs were based on man hours of labor used as reported
by farmers. The low cost group had an average labor cost of $.64 per
hundredweight of cattle sold, while $.81 and $.91 were the labor costs
per hundredweight of the middle and high costs groups, respectively.
3/ An animal unit is defined as follows: one cow or one bull equals
one unit; one yearling or replacement heifer equals three-fourths a unit;
one calf equals one-half unit.
14
Table 7. Total Number of Beef Animal Units Per Farm and Acres of Pasture
per Animal Unit, 31 Yearling Beef Producers, Alabama, 1962
Cost group
Less than $22.00 to $29.00 Average
Item $22.00 $28.99 per cwt. all groups
per cwt. per cwt. and over
Number of farms 9 13 9 31
Number of beef animal units
per farm:
Raised. ... .......... 166.5 136.0 168.5 154.2
Purchased................... 46.5 67.8 28.5 50.5
Total............... 213.0 203.8 197.0 204.7
Number of acres per beef
animal unit:
Improved open permanent
pasture................... 1.8 2.0 2.2 2.0
Unimproved open permanent
pasture.................. .2 1.1 1.8 1.0
Woods pasture.. ........ .5 1.0 1.8 1.1
Temporary pasture-......., .3 .2 .3 .3
Total................. 2.8 4.3 6.1 4.4
1/ Majority was winter pasture.
Interest. Interest on investment in beef animals for the low cost
group per hundredweight of cattle sold was $1.87. Interest costs for the
middle and high cost groups were $2.33 and $2.91 per hundredweight of
cattle sold, respectively.. The average interest cost for all groups was
$2.32 or 9 per cent of the adjusted total cost.
Land. With a land charge computed at 5 per cent of the estimated
present market value, the range in land charge per hundredweight of cattle
sold was as follows:
Land charge per hundredweight
of cattle sold
Cost group
Low $3.75
Middle 5 .05
High 6.67
15
Since appreciation in dollar value of land in most cases would
probably equal or exceed a land charge, no land charge was made in
calculating the cattle costs.
Market values for land used in beef production were relatively high
on many farms. Several yearling beef producers reported that the high
value of land resulted from location relative to cities or urban develop-
ments.
Returns
The low cost group sold an average of 80,916 pounds of cattle per
farm or 163 pounds per acre of land used for beef, Table 8. The middle
cost group sold an average of 79,970 pounds of cattle per farm or 114
pounds per acre, while the high cost group sold an average of 62,314
pounds of cattle or only 75 pounds per acre. Thus low cost producers
averaged selling more than twice as much cattle per acre as those in the
high cost category.
Net Returns. Excluding a charge for land, 8 of the 9 low cost pro-
ducers, 3 of the 13 middle cost producers, and none of the high cost
producers had a positive net return to land and management. The middle
cost producers who received a positive return to land and management
reported selling yearling cattle at an average price of $28.35 per
hundredweight. Only three low cost producers had a positive return to
land and management after land was charged at 5 per cent of its fair
market value.
16.
Table 8. Net Return Per Farmas Reported by 31 Yearling Beef Cattle Pro-
ducers, :Alabama, 1962
Cost group
Less than $22.00 to $29.0 0 Average
.tm$22.00 $28.99 per cwt. all groups
per cwt. per cwt. and over
Number of farms
Acres used for beef
per farm
Market cattle sold per
farm, cwt.Il
Average cost per cwt. of
market cattle sold!
Cash receipts per-farm
Market cattle sales
1
'
Breeding stock sales
Inventory change
Total credits per farm
Expenses per farm
Cash 
expenses-
Noncash expenses
Purchases
Total expenses per farm
Net return above cash
expenses per farm
Net return above cash
expenses per cwt. of
market cattle sold
Net return above total
expenses per farm?/.
Net return above total
expenses per cwt. of
market cattle sold?/
9
496
809
13
699
800
319
827
623
677
751
$ 18.08 $ 25.10 $ 37.68 $
$16,798.18
3,844.44
$18,267.05
$ 6,104.03
6,345.32
3,645.89
$16,095.24
$12 ,163.02
$18.289.05
1,419.00
$18,165.74
$ 7,100.55
63,846-.22
$19,952.85
$14,161.90
544.78
5.,203.78
$19,910.46
$10,474.48
9,930.63
$29,260.55
$11,065.19 $ 9,435.98
$ 15.03 $ 13.83 $ 15.15
$ 2,171.81 $-1,78.7.11 $9,350.09
25.094
$16,658.01
1,869.35
174.32
$18 ,701.68
$ 7,790.77
7,596.27
6,148.10
$21,535.14
$10,910.91
$ 14.53
$.2,833 .46
$ 2.68 $ -2.23 $ -15.01 $ 3.77
1/ Includes home consumption.
2/ Excludes land. charge.
3/ Does not include cash expenses for tractor and machinery use,
buildings and fences.
17
The low cost group experienced a net return of $2.68 per hundred-
weight excluding a land charge. For middle and high cost 
groups, the
net return per hundredweight when all expenses, excluding land, were
considered was $-2.23 and $-15.01, respectively.
Noncash expenses include budgeted pasture and hay costs, building
costs, fencing costs, water costs, interest on investment in cattle, and
feed processing and hauling costs.
Returns over cash cost 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
paid.
The average low, medium, and high cost producers covered cash ex-
penses. These cash expenses included feed, marketing, medical and
veterinary, commission and insurance, property tax, hired labor, and
fertilizer costs.
The fact that some operators did not meet total costs of production
as determined did not mean that they would be forced out of production.
Production can and will be continued as long as fixed assets are avail-
able to use or if they can be replaced with a lower cost asset of satis-
factory utility.
SUGGESTED IMPROVEMENTS FOR YEARLING BEEF PRODUCTION
It is the objective of good farm management to use the system of
beef cattle production that most efficiently utilizes the available
resources - land, labor, and capital.
Analysis of the cost data indicated that net returns received by
18
yearling cattle producers were low. The low cost 
producers were the only
ones to have a positive net return 
to land and management.
It is the purpose of this section to suggest some programs or
system of handling young cattle applicable to Alabama conditions. 
The
Coastal Plain Area in Alabama was used because 
a large portion of the
survey data was from this area. Each system or program developed 
was
budgeted based on data from various 
secondary sources, and from personnel
in the Animal Science Department, of this station. The budgets were
prepared to reflect a high level of management by 
producers.
Programs involve producing beef yearlings and calves on combinations
of Coastal bermuda pastures, hay and corn silage with all grain 
(corn)
being bought. Prices received for yearlings and calves sold were
assumed to be the same, $23.00 per hundredweight. Budgets for establish-
ments and annual costs for Coastal bermudagrass pasture and hay are
reported in Appendix B, Appendix Tables 1-4.
Two buy-and-sell programs as well as programs in which animals are
raised are presented and comparisons are made.
Buy-and-Sell Beef Cattle Production Programs
The buy-and-sell beef cattle production program refers to the type
of operation in which a farmer buys and handles yearling animals to get
as much gain in weight through growth and development as possible. This
program is best adapted to farming situations where there is available
an abundance of cheap roughage and pasture, very little grain or other
feed concentrates, considerable operating capital or credit, and limited
labor supply.
19
This system is characterized by a great deal of flexibility. It
may consist of buying calves or yearlings in the fall, roughing them
through the winter, and selling them at the end of the following summer
grazing season as feeders. The cattle may be roughed through the winter
by using stalk and stubble fields and feeding roughage, such as silage
or grass hay with little or no grain or other feed concentrates. This
involves about 1 year for a turnover of the capital investment. Or,
a buy-and-sell program may consist of buying thin yearling in the spring,
grazing them on permanent pasture, and selling them at the end of the
grazing season in the fall as feeders. This provides for a turnover
of the operating capital in 5 or 8 months.
This type of beef cattle production program requires a good
knowledge of cattle management because thin animals may be unhealthy.
Only thrifty, healthy cattle provide opportunity for profits. Good
management is also required in buying cattle because one could not
expect animals to gain more than 200 to 400 pounds per head, depending
on length of the program and quality of the pasture and roughage fed.
Stocker cattle are usually cheaper in the fall than in the spring. Yet,
in many instances they may be lighter in weight in the spring to the
extent that the capital investment would not vary greatly.
Many types of yearling programs utilize various feeds and roughages.
These feeds vary with the availability of the type of roughage (hay,
silage, or grazing) and concentrates. The following information illus-
trates the effect of two different types of feeding programs on net
returns to land and management.
Hay and Pasture Program. The hay and pasture program, Tables 9, 10,
20
Table 9. Estimated Investment Components for 50 Steers, Hay and Pasture
Program, Improved Practices, Coastal Plain Area, Alabama
Cost Average
Item Description basis basis
1/
Land 2/ 30 acres @ $100 $ 3,000 $ 
3,000
Building- 1,000 500
Pasture a9 hay establishment 30 acres @ $64.20 1,926 963
Livestock- 
4400 4,400
Subtotal $10,326 $ 8,863
Machinery and equipment:-
3 /
Tractor 3 plow $ 3,300 
$ 1,650
Disc 8.5 feet 275 138
Rot ry mower 7 feet 430 
215
Mower 7 feet 350 175
Side delivery rake 8 feet 
500 250
Bal r Twine 1,750 875
Subtotal $ 6,605 $ 3,303
Total $16,931 $12,166
1/ Includes source 
of water and fencing.
2/ See Table 10.
3/ Interest on investment in machinery 
and equipment is included
in the pasture and hay budgets.
and 11, is based on buying 50, 400-pound good and choice 
feeder calves
about November 1. They glean fields, pastures, or stubble 
until
November 30 and then receive, free choice, 
the following ration until
February 20:
Ground Coastal bermuda hay
Ground snapped corn
Cottonseed meal (41%)
Salt (with trace minerals)
Dicalcium phosphate
Per cent
69.0
20.0
10.0
.5
It is estimated that the steers will consume an average 
of 15 pounds
of feed per day and gain at the rate of 1.5 pounds per day.
21
Table 10. Estimated Investment Requirements and Annual Costs for 50
Steers, Hay and Pasture Program, Improved Practices,
Coastal Plain Area, Alabama
Value Annual costs
Item No. New Average Interest Depreciation Taxes and Total
and repairs insurance
Yearlings 50 $4,400 $4,400 $198.00 $198.00
Hay storage
and feed-
ing rack 1 500 250 15.00 $25.00 $10.00 50.00
Corral,
and . :i
1 oading
chute 1 500 250 15.00 25.00 10.00 50.00
Total $5,400 $4,900 $228,00 $50.00 $20.00 $298.00
Permanent pasture is usually the key to success in a buy-and sell
program. A continuous supply of good pasture during the entire summer
grazing period will normally supply the nutritive requirements for good
growth and development. From February 21 to July 15 the yearlings are
on a Coastal bermudagrass pasture that has been sod-seeded with vetch.
While on pasture it is estimated they will gain 1.4 pounds per head per
day.
The steers are sold as feeders at a grade primarily of high 
good and
a few grade low choice. Selling weight is 719 pounds less a 3.5 per cent
shrink or 694 pounds.
Based on the improved practices program for the Coastal Plain Area
of Alabama, total variable expense per hundredweight of all beef sold is
$17. , and total expenses per hundredweight are $18.1 2. With an average
2.2
Table 11, Estimated Costs and Returns for 50 Purchased Steers, Hay and
Pasture Program, Improved Practices, Coastal Plain Area,Alabama
Item Description Unit Quantity Rate Amount
Receipts:
Yearlings
Variable expenses:
Calves
Pasture and hay
Corn
Cottonseed meal
salt
495 steers @ 'Cwt.
694 lbs.o each-
50 @ 400 lbs.
each
Coastal bermuda
and vetch
Custom ground
41% protein
Loose
50 lb. blocks
(mineralized)
Dicalcium
phosphate
Veterinary
expenses
Marketing:
Hauling
Commiss ion
Interest on
operating
capital
Interest on
investment in
beef cattle/
Total variable expenses
Returns above variable expenses
Cwt.
Acre
Bu.
Cwt.
Cwt.
B 1k.
Cwt.
Head
Head
Dol.
Dol.
Dol.
343.5 $23.00 $7,900050
200.0 22.0
30.0 21.77
176.0
61.5
3.1
6.6
3.1
50.0
5000
7,900.50
582.52
1.525
3.80
1075
1.55
4.00
.50
.50
.03
.06
045
4 , 4-00. 00
653.10
268.40
233070
5.42
10.2.3
12.40
25.00
25.00
17.48
198.00
054i~~S
Fixed expenses:
Pasture and hay
Labor
Coastal bermuda
and vetch
Care of live-
stock
Fencing
Build ings2.
Property tax on land
Total fixed expenses
Net return to land and management
Acre
Hour
Acre
Acre
30.0
112.0
30.0
30.0
5.89 $ 176.70
.50
1.00
.34
5600
30.00
100.00
10.20
$ ._372.90
and a one
2/ See Table 10
1/ Fifty steers at 719 pounds less a 3.5 per cent shrink
per cent death. loss.
/r c~ ra i +- s~ I L
23
investment of $8,863, excluding machinery and equipment and the stated
prices for steers, net return to land and management is $1 67or
4t per cent of the average capital investment. The net return to
land end management for this program is about $3-per steer or
per acre.
Silage and Pasture Program. The silage program, Tables 12,13, and
14, is based on buying 50 400-pound good and choice feeder calves about
November 1. They glean fields, pastures, or stubble until November 30.
They receive a wintering ration of 25 pounds of silage, 2 pounds of
ground snapped corn, and 1.5 pounds of 41% cottonseed meal per head
daily until April 30. They are then placed on Coastal bermuda pasture
from May 1 to July 15.
The steers should regain their purchase weight while gleaning fields
and gain 1.4 pounds per day on the wintering ration and 1.4 pounds per
day on pasture.
The steers are sold as feeders at a grade primarily of high good
and a few grade low choice. The selling weight is 718 pounds less a
3.5 per cent shrink or 693 pounds.
Based on the improved practices and use of silage, total variable
expense per hundredweight of all beef sold is $8-8.&, and total expenses
f. ft
per hundredweight are $Q34. With an average investment of $10,118,
excluding machinery and equipment and the stated prices for steers, net
return to land and management is $ -r- or8 per cent of the average
capital investment . Net return to land and management is about $Y& per
steer or $'-per acre of land in pasture and corn silage.
The major differences between the hay-pasture program and the
24
Table 12. Estimated Investment Components for 50 Purchased Steers,
Silage and Pasture Program, Improved Practices,
Coastal Plain Area, Alabama
Cost Average
Item Description basis 
basis
1/
Land 2/ 41.8 acres @ $100 $ 4,180 $ 4,180
Building- 1,150 
575
Pasture 30 acres @ $64.20 
1,926 963
Livestock 400 4,400
Subtotal $11,656 $10,118
3/
Machinery and equipment:-
Tractor 2 plow $ 3,300 $ 1,650
Bottom plow 3 plow 340 170
Disc 8.5 feet 275 138
Rotary mower 7 feet 430 215
Silage cutter 1 row 900 450
Truck 4,000 2,000
Total $ 9,245 $ 4,623
1/ Includes source of water and fencing.
2/ See Table 13.
3/ Interest on investment in machinery and equipment is included in
the pasture and silage budgets.
silage-pasture program are in the variable expenses. Corn silage is an
additional expense. A larger quantity of cottonseed meal is fed and this
increases the variable expenses about $600.
Raised Yearling Beef Cattle Production Programs
The annual costs of a beef brood cow must be covered by the major
output which is a calf or fraction thereof. A calf may be sold when
weighing about 350 pounds, kept 2 or 3 months longer when it should
weigh about 500 pounds, or held for several additional months at which
time it may weigh 700 to 800 pounds. Thus, production per cow can be
increased greatly by carrying calves to heavier weight classes. Carrying
calves to heavier weights entails additional costs but income increases
also.
25
Table 13. Estimated Investment 
Requirements and Annual Costs for 
50
Purchased Steers, Silage and Pasture 
Program, Improved Practices,
Coastal Plain Area, Alabama
Value Annual costs
Item No. New Average Interest 
Depreciation Taxes and Total
and repairs insurance
Yearlings 50 $4,400 $4,400 
$198.00 
$198.00
Trench silo
and plastic
cover 1 650 325 
19.50 $64.50 $ .90 
84.90
Corral and
loading
chute 1 500 250 
15.00 25.00 10.00 50.00
Total $5,550 $3,975 $232.50 
$10.90 $332.90
If 700-pound calves are sold, 
only half as many cows are 
necessary
to produce a given volume of beef as would be required 
for 350-pound
calves. About one-half as much would 
be invested in the breeding herd,
which is a major consideration 
to a farmer who is starting 
in cattle
production on borrowed funds. 
Only half as much grazing and other 
feeds
would be required for the 
cows. Thus a large part of 
the grazing and
feed would go into calves that 
constitute the marketable product.
Cows and weaned calves 
should be separated so 
that each herd will
get the proper feeding and 
management. Unless such precautions 
are
taken, too much of the grazing 
will go into cows and too little 
into
calves. Rationing of feed resources 
to the various classes of animals
according to their needs is possible 
in a grazing system only through
management practices and proper 
separation of animal groups.
26
Table 14. Estimated Costs and Returns for 50 Purchased Steers, Silage
and. Pasture Programs, Improved Practices, 
Coastal Plain Area, Alabama
Item Description Unit 
Quantity Rate Amount
Receipts:
Yearlings
Variable expenses:
Calves
Pasture
Corn 'silage
Corn
Cottonseed meal
Salt
49.5 steers @ Cwt.
693 lbs. eachi!
50 @ 400 lbs.
each
Coastal bermuda
Custom ground
4l7~ protein
Loose
5 0 lb.e blocks
(mineralized)
Dicac i
phosphate
Veterinary
expenses
Marketing:
Hauling
Comrmiss ion
Interest on
operating
capital
Interest on investment
in beef cattle
Total variable expenses
Returns 'above variable expenses
Cwt.
Acre
Acre
Bu.
Cwt.
Cwt.
Cwt.
Head
Head
Dol.
Dol.
Dol.
343.0 $23.00 $7,889.00
200.0 $22.00 4,400.00
30.0
11.8
201.0
113.2
3.1
6.6
3.1
50.0
50.0
7,889.00
817.10
21.20
32.24
1.525
3.80
1.75
1.55
4.00
.50
.50
.03
.06
636.00
380-.43.
306.52
430.16
5.42
10.23
12.40
25.00
25.00
24.51
.045 198.00
$6v 465O6 a 6 ?O1'1
$ 1 z-:: l / ? .
Coastal bermuda
Care of live-
stock
Fencing
Buil dings
Property tax on land
Total fixed expenses
Net return to land and management
Acre
Acre
Hour
Acre
Acre
30.0
11.8
112.0
30.0
41.8
$ 5,43
13.31
.50
1.00
.34
$ 162.90
157.06
56.00
30.00
134.90
14.21
$ 555.07
$a -&-7-&- 13
1/ Fifty steers at 718 pounds 
less a 3.5
cent death loss.
per cent shrink and 1.0 per
Fixed expenses:
Pasture
Corn ,s il age
Labor
,,,,9,.~--
27
Hay and Pasture Program (100 Brood Cows). This program, Tables 15,
16, and 17, is based on a herd of 100 beef 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 from high performing performance-
tested bulls. A bull is purchased every year and used for four breeding
seasons. The first year the bull is used to breed heifers only and no
replacements are saved from first calf heifers. For the next 2 years
the bull may be used to breed any cow and the fourth year only 
breed
older cows.
Ninety calves are weaned each year and 10 calves are kept 
as replace-
ments. Heifers are bred at 15 months of age. Most calves 
are dropped
in November and December although some are born in Octo1er and January.
The bull calves are castrated within 3 weeks of birth. 
A record of the
sire and dam of each calf is kept so the cows may be performance 
tested.
The calves are kept until yearlings and sold as feeders 
weighing 720
pounds each.
Medical and veterinary expense includes drenching the 
heifers with
approved medication. Cows that fail to breed are sold. Animal units are
used in determining feed requirements. One cow or one bull equals 
a
unit and one yearling or replacement heifer equals three-fourths 
a unit.
One calf equals one-half an animal unit. Thus the herd consists 
of 216.5
animal units.
Each animal unit requires 1.0 acre of Coastal bermuda for hay and
pasture. Thus 216.5 acres of Coastal bermuda are required. Of the 216.5
acres, 146.3 acres are overseeded with vetch in late October or early
November with a sod seeder. Of the remaining 70.2 acres, 29.3 are 
used
for hay production. Each animal unit requires 0.8 tons of hay.
28
Table 15. Estimated Investment Components for 100 Beef Cow 
Herd Raising
Yearlings, Improved Practices, Coastal Plain Area, Alabama
Cost Average
Item Description basis 
basis
1/
Land (inclyding farmstead) 216.5 acres @ $100 $21,650 $21,650
Buildings- 1,950 
975
Pasture establishment 187.2 acres @ $44.90 8,405 
4,202
Hay establishment 29.3 acres @ $44.90 1,316 658
Livestock- 25,600 25,600
Subtotal $58,921 $53,085
3/
Machinery and equipment:-
Tractor 2 plow $ 2,500 $ 1,250
Mower 7 feet 350 175
Side delivery rake 8 feet 500 250
Hay baler Twine 1,750 875
Rotary mower 7 feet 430 215
Fertilizer spreader 8 feet 275 138
Sod seeder 8 feet 675 338
Subtotal $ 6,480 $ 3,240
Total $65,401 $56,325
1/ Includes source of water and fencing.
2/ See Table 16.
3/ Interest on investment in machinery and equipment is
the pasture and hay budgets. Equipment for establishment was
owned but the investment was charged to other enterprises.
covered in
considered
The yearlings receive, free choice, the following ration from November
30 until February 20:
Ground Coastal bermuda hay
Ground snapped corn
Cottonseed meal (41%)
Salt (with trace minerals)
Dicalcium phosphate
Per cent
69.0
20.0
10.0
.5
.5
The yearling animals will consume an average of 15 pounds of feed
per day and it is estimated they will gain at the rate of 1.5 pounds per
day during this feeding period.
r
rh "
1
29
Table 16. Estimated Investment Requirements and Annual Costs for a 100
Beef Cow Herd Raising Yearlings, Improved Practices, Coastal Plain
Area, Alabama
Value Annual costs
Item No. New Average Interest Depreciation Taxes and Total
and repairs insurance
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
Yearlings 80 7,200 7,200 360.00 360.00
Hay storage
and feeding
rack 1 1,450 725 43.50 $72.50 $29.00 145.00
Corral and
loading
chute 1 500 250 15.00 25.00 10.00 50.00
Total $27,550 $26,575 $1,338.50 $97.50 $39.00 $1,475.00
From February 21 to July 15 the yearlings are on a Coastal bermuda
pasture that has been sod-seeded with vetch. While on pasture it is
estimated they will gain 1.4 pounds per day.
The yearlings are sold at a feeder grade primarily of high good and
a few grade low choice. The selling weight is 720 pounds less a 3.5 per
cent shrink or 694 pounds.
Hay feeding in the winter for the brood cows and bulls is liberal
enough to prevent excessive weight loss. Hay is fed at the rate of 16
pounds per animal 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
1.2 pounds per day per animal unit while the cows are fed hay.
30
Table 17.0 Estimated Costs and Returns From
Yearlings, Improved Practices, Coastal
100 Beef Cow Herd Raising
Plain Area.,. Alabama..
Item Description Unit Quantity Rate Amount
Receipts:
Yearlings
Cull cows
Bull
Total
Variable expenses:
Pasture
Hay
Corn
Cottonseed meal
Salt
Dicalcium
phosphate
Veterinary
expenses
Marketing:
Hauling
Commission
Labor
80 head @ 694 Cwt.
lbs. each
9 head @ 1,000 Cwt.
lbs. each
1 head @ 1,500 Cwt.
lbs. each
Coastal bermuda Acre
and vetch
Coastal bermuda Acre
Coastal bermudaAcre
Custom ground Bu.
41%Q protein Cwt.
Loose Cwt.e
50 lb. blocks Bik.
(mineralized)
Cwt.
A.U.
Feeding and
hauling
Bull
Interest on investment
in beef cattle
Interest on operating
.capital
Total variable expenses
Returns above variable expenses
Fixed expenses:
Pasture Coastal bermu4
Head
Dol.
Hr.
Head
555.2 $23.00 $12,769.60
90.0 13.00 1,170.00
15 15.00 225 00
$14,164.60
146.3 21.77 3,184.9,5
40.9
29.3
282.0
254.5
32.9
10.6
16.2
216.5
80.0
14,164.60
1,200
21.20
59.14
1.523
3.80
1.75
1.55
4.00
.75
.50
.03
.50
1 600.00
Dol. 25,600
Dol. 2,281.54
.da Acre
and vetch
Coastal bermuda Acre
Hay Acre
Fencing Acre
Build ings
Property tax on land Acre
Operator's labor Buying,selling Hour
Total fixed expenses
Total expenses
Net return to land and management
146.3
40.9
29.3
216.5
253.4
11.2
867 .08
1,732.80
430.05
967.10
57.58
16.43
64.80
162.38
40.00
424.94
600.00
600.00
.05 1, 280. 00
.06 136.89
$10,565 .00
3,599.60
5.89 $ 861.71
5.43
15.e59
1.00
.34
1.25
222.09
456.79
216.50
195.000
86.12
14.00
$ 2,052.21
$12,6.17 .21
$ 1, 547.39
Kill I nP=l~
31
Based on improved practices of raised yearling beef cattle production,
total variable expenses per hundredweight are $16.00 and total expenses
per hundredweight are $19.11. With an initial investment of $53,085,
excluding machinery and equipment and the given prices for animals
sold, net return to land and management is $1,547.39 or 2.9 per cent
of the average capital investment.
Hay and Pasture Program (75 Brood Cows). This program, Tables 18,
19, and 20, is based on a herd of 75 cows weighing 1,000 pounds each, 8
yearling replacement heifers and 3 bulls. The cows are from one of the
beef breeds and the bulls are from high performing performance-tested
bulls. A bull is purchased about every 16 months and used for 
four
breeding seasons. The first year the bull is used only 
on heifers and
no replacements are saved from first calf heifers. For 
the next 2 years
the bull may be used on any cows and the fourth year only on older cows.
Sixty-eight calves are weaned each year and eight calves are kept
as replacements. Heifers are bred at 15 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 within three 
weeks of birth.
A record of the sire and dam of each calf is kept so 
the cows may be
performance tested. The calves are kept until yearlings 
and sold as
feeders weighing 720 pounds each.
Medical and veterinary expenses include 
drenching the heifers twice
each fall with approved medication. Cows that fail to breed are sold.
Animal units are used in determining feed requirements. 
One cow or one
bull equals one unit and one yearling or replacement heifer equals
three-fourths of a unit. One calf equals one-half of an animal unit.
Thus the herd consists of 163 animal units.
32
Table 18. Estimated Investment Components for 
75 Beef Cow Herd Raising
Yearlings, Improved Practices, Coastal Plain 
Area, Alabama
Cost Average
Item Description 
basis basis
1/
Land (including farmstead) 
l/  
163 acres @ $100 $16,300 $16,300
Buildings
2/  
1,950 975
Pasture establishment 140.7 acres @ $44.90 
6,317 3,158
Hay establishment 22.3 acres @ $44.90 
1,001 501
Livestock2/ 19,250 19,250
Subtotal $44,818 $40,184
3/
Machinery and equipment:-
Tractor 2 plow $ 2,500 $ 1,250
Mower 7 feet 350 175
Side delivery rake 8 feet 500 250
Hay baler Twine 1,750 875
Rotary mower 7 feet 430 
215
Fertilizer spreader 8 feet 275 
138
Sod seeder 8 feet 675 338
Subtotal $ 6,480 $ 3,240
Total $51,298 $43,424
1/ Includes source of water and fencing.
2/ See Table 19.
3/ Interest on investment in machinery and equipment is covered in
the pasture and hay budgets. Equipment for establishment was considered
owned but the investment was charged to other enterprises.
Each animal unit requires 1.0 acre of Coastal bermuda for hay and
pasture. A total of 163 acres of Coastal bermuda are required. Of the
163 acres, 111.5 acres are overseeded with vetch in late October or early
November with a sod seeder. Of the remaining 51.5 acres, 22.3 are used
for hay production. Each animal unit requires .8 ton of hay.
The yearlings receive free choice the following ration from
November 30 until February 20:
33
Ground Coastal bermuda hay
Ground snapped corn
Cottonseed meal (41%)
Salt (with trace minerals)
Dicalcium phosphate
Per cent
69.0
20.0
10.0
.5
Table 19. Estimated Investment Requirements and Annual Cost 
for a 75
Beef Cow Herd Raising Yearlings, Improved Practices, Coastal 
Plain
Area, Alabama
Value Annual costs
Item No. New Average Interest Depreciation 
Taxes and Total
and repairs insurance
Cows 75 $11,250 $11,250 $ 562.50 
$ 562.50
Bulls 3 1,800 1,800 90.00 
90.00
Replacements 8 800 800 40.00 
40.00
Yearlings 60 5,400 5,400 270.00 
270.00
Hay storage
and feeding
rack 1 1,450 725 43.50 
$72.50 $29.00 145.00
Corral and
loading
chute 1 500 250 
15.00 25.00 10.00 50.00
Total $21,200 $20.,.225 $1,021.00 
$97.50 $39.00 $1,162.50
It is estimated that the yearling 
animals will consume an average
15 pounds of feed per day and gain at the 
rate of 1.5 pounds per day
during this feeding period.
From February 21 to July 15 the 
yearlings are on a Coastal bermuda
pasture that has been sod-seeded with vetch. 
While on pasture it is
estimated they will gain 1.4 pounds per day.
The yearlings are sold at a feeder 
grade primarily of high good
and a few grade low choice. The 
selling weight is 720 pounds less a
3.5 per cent shrink or 694 pounds.
34
Table 20. Estimated Costs and Returns From 75 Beef Cow Herd Raising
Yearlings, Improved Practices,, Coastal Plain Area, Alabama
Item Description Unit Quantity 
Rate Amount
Receipts:
Yearlings
Cull cows
Bull
Total
Variable expenses:
Pasture
Hay
Corn
Cottonseed meal
Salt
Dicalcium phospha
Vet. expenses
Marketing:
Hauling
COmmission
Labor
60 head @ 694
lb. each
7 head @ 1,000
lb. each
3/4 head @ 1,500
lb. each
Coastal bermuda
and vetch
Coastal bermuda
Coastal bermuda
Custom ground
41% protein
Loose
50 lb. block
(mineralized)
ate
Feeding and
hauling
Bull
Interest on investment
in beef cattle
Interest on
operating capital
Total variable expenses
Returns above variable expenses
Fixed expenses:
Pasture Coastal bermuda
and vetch
Coastal bermuda
Hay
Fencing
Building
Property tax on land
Operator's labor Buyingselling
Total fixed expenses
Total expenses
Net return to land and management
Cwt.
Cwt.
Cwt.
Acre
Acre
Acre
Bu.
Cwt.
Cwt.
Blk.
416.4
70.0
11.2
111.5
29.2
22.3
211.5
190.9
24.7
8.0
Cwt. 12.2
A. U. 163.0
Head
Dol.
Hour
Head
60.0
10,655.20
900
3/4
Dol. 19,250
Dol. 1,474.20
Acre
Acre
Acre
Acre
Acre
Hour
111.5
29.2
22.3
163.0
163.0
8.4
$23.00 $ 9,577.20
13.00
15.00
910.00
168.00
$10,655.20
$21.77 $ 2,427.36
21.20
59.14
1.523
3.80
1.75
1.55
4.00
.75
.50
.03
.50
600.00
.05
.06
619.04
1,318.82
322.11
725.42
43.22
12.40
48.80
122.25
30.00
319.66
450.00
450.00
962.50
88.45
$ 7,940.03
$ 2,715.17
$ 5.89 $ 656.74
5.43
15.59
1.00
.34
1.25
158.56
347.66
163.00
195.00
55.42
10.50
$ 1,986.88
$ 9,526.91
$ 1,128.29
ULLII ILF~C~~ JI~
35
Hay feeding in the winter for the brood cows and bulls is liberal
enough to prevent excessive weight loss. Hay is fed at the rate of 16
pounds per animal 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
1.2 pounds per day per animal unit while the cows are fed hay.
Based on the improved practices of raised yearling beef 
cattle
production, the total variable expenses per hundredweight are $15.95
and total expenses per hundredweight are $19.15. With an 
average invest-
ment of $40,184, excluding machinery and equipment, and the stated prices
for animals sold, net return to Land and management is $1128.29 or 2.8
per cent of the average investment.
4/1
Raised Beef Calf Program- The raised beef calf program, Tables 
21,
22; and 23, as presented is based on a herd of 100 cows, 10 yearling
replacement heifers and 4 bulls Ninety calves are weaned each 
year and
10 calves are kept as replacements. The calves are sold as 
stockers and
feeders weighing 475 pounds each.
Variable expense per hundredweight of all beef sold 
is $15.82;
total expense per hundredweight of all beef sold is $19.13. With 
the
stated prices and an average investment of $39,580, 
the net return to
land and management is $859.28 or 2.2 per cent of average 
investment.
Co~ari sons
Comparisons among the various programs presented for producing
yearling beef cattle and calves may be made by the use of summary data
4/ T. D. Nolen and J, H. Yeager, Beef Calf Production in Alabama:
Costs Return s and Improvements,
5 
Agricultural Economics Series 5.?
Agricultural Experiment Station, Auburn University, June 1965, pp. 45-51.
36
Table 21. Estimated Investment Components 
for a 100 Beef Cow Herd,
Improved Practices, Coastal Plain 
Area, Alabama
Cost Average
Item Description basis 
basis
Land (including farmstead)1/ 165 acres at $100 
$16,500 $16,500
Buildings2/ 1,950 975
Pasture establishment 142.7 
at $44.90 6,408 3,204
Hay establishment 
22.3 at $44.90 1,001 
501
Lives tock?/ 
18,400 18,400
Subtotal 
$44,259 $39,580
3/
Machinery and equipment:-
Tractor 2 plow 
$ 2,500 $ 1,250
Mower 7 feet 
350 175
Side delivery rake 8 feet 
500 250
Hay baler Twine 
1,750 875
Rotary mower 7 feet 
430 215
Fertilizer spreader 8 feet 
275 138
Sod seeder 8 feet 
675 338
Subtotal 
$ 6,480 $ 3,240
Total $50,739 
$42,820
1/ Includes source of water and 
fencing.
2/ See Table 22.
3/ Interest on investment in machinery 
and equipment is covered in
the pasture and hay budgets. Equipment 
for establishment was considered
owned but the investment was charged 
to other enterprises.
in Table 24. A larger capital investment 
in land, buildings, pasture
and hay establishment, and livestock 
is required for programs with
breeding stock. Investment per dollar 
of net return to land and
management for the raised yearling 
programs with brood cows is about
seven times that for the hay and pasture 
buy-sell program. A still
higher investment per dollar of 
net return is required for the raised
calf program.
Net returns to land and management 
are about the same for the raised
yearling program with 100 brood cows 
and the hay and pasture buy-sell
program with 50 steers. However, 
about one-seventh of the total land
area and total investment is required 
for the buy-sell program. Net
returns per acre of land and per dollar 
invested are considerably higher
for the buy-sell programs than for 
programs of raised yearlings and
37
Table 22. Estimated Investment Requirements and Annual Costs for a 100
Beef Cow Herd, Improved Practices, Coastal Plain Area, Alabama
Value Annual costs
Item No. New Average Interest Depreciation Taxes and Total
and repairs insurance
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 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
calves presented. Costs per hundredweight of beef are about the same
in the raised yearlings and raised calves programs. Unit cost of beef
was highest in the silage-pasture buy-sell program and lowest in the
hay-pasture buy-sell program.
The price received for yearlings or calves sold was assumed to be
the same. This may not be true in given farm situations. A producer of
raised calves, based on budget data presented, would need to receive
$24.81 instead of $23.00 per hundredweight for calves sold for calf
production with 100 cows to give a return to land and management equal
to that for 100 cows from which raised yearlings are sold. Or another
approach may be used. Instead of selling 80 calves at 475 pounds each,
the calf producer would have to increase average selling of calves to
512 pounds for calf production to be equally as profitable as yearling
production with price of animals sold the same in both cases.
38
Table 23. Estimated Costs and Returns From Beef Calf Production, 100
Beef Cows, Improved Practices, Coastal Plain Area, Alabama
Total for Average
Item Unit 
Price Quantity herd 
per cow
Receipts:
Calv?
Cows-
Bulls
Total
Cwt.
Cwt.
Cwt.
$23.00
13.00
15.00
380
90
15
$ 8,74 0.00
1,170.00
225.00
$10,135.00
Variable expenses:
Pasture (Coastal and
vetch)
(Coastal)
Acre
Acre
Hay Acre
Cottonseed meal (41%) Cwt.
Salt - trace mineralized Cwt.
Deflourinated phosphate Cwt.
Veterinary and medical Cow
Marketing
Hauling Head
Commission Dol.
Labor (feeding and
hauling) Hour
Bull 
Head
Interest on investment
in beef cattle2. Dol.
Interest on operating
capital Dol.
Total variable expenses
Return above variable expenses
21.77
21.20
59.14
3.80
1.90
4.25
1.25
111.5
31.2
22.3
156.1
27.9
11.2
100
.50 90
.03 10,135000
.50 1,050
.05 18,400
.06 846.42
2,427.36
661.8 6
1,318.82
593.18
53.01
47.60
125.00
45.00
304.05
525.00
600.00
920.00
50.79
$ 7,671.67
$ 2,9463.33
Fixed expenses:
Pasture (Coastal and
vetch)
(Coastal)
Hay
Fencing 2/
Buildings-
Property tax on land
Operator's labor
(buying and selling)
Total fixed expenses
Total expenses
Acre
Acre
Acre
Acre
Acre
$5.89
5.43
15.59
1.00
34
Hour 1.25
111.5
31.2
22.3
165.0
165.0
11.2
Net return to land and management
$ 656.74
169.52
347.66
165.02
195.00
56.11
1400
$ 1,604.05
$ 9,275.72
$ 859.28
Assumesa I per cent death loss.
See Table 22.
$ 87.40
11.70
2.25
$101.35
24.27
6.62
13.19
5,93
.53
.48
1.25
.45
3.04
5.25
6.00
9.20
.51
$ 76.72
$ 24.63
$ 6.57
1.69
3.48
1.65
1.95
.56
.14
$ 16.04
$ 92.76
$ 8.59
1/
a~Ch~~~C ~, ~,^wc
39
Table 24 . Comparison of Land Requirement,.Investment, and Expenses 
and
Returns from Producing Yearling Beef Cattle Under Various Programs
and Beef-Calves, Coastal Plain Area, Alabama
Program
Raised
Item Bu-el Raised yearlings 
calves
Hay-pasture Silage-pasture 100 cows .75 cows 100 cows
(50 steers) (50 steers)
Land (acres) 30
Average investment:
Land $ 3,000
Buildings 500
Pasture &.hay
establishment
Livestock
Total
Receipts:
Market beef
Others
Total
Expenses:
Total
Expenses rper
hundredweight:
Variable
Fixed
Total
963
49400
$ 8,863
$ 7,901
$ 7,901
$17.&-
1.09
$181-2
.0, 41.e8
$ 4,180
575
963
4,40Q
$10,118
$ 7,889
$ 7,889
1.62
$20.44
216.5
$21,650
975
4,860
.25,600
$53 ,085
$12,770
1,395
$14,165
163.0
$16,300 $16,500
975 975
3,659
19,250
$40,184
$ 9,577
1,078
$10,655
3,705
18,400
$39,580
$ 8,740
1,395
$10,135
$12,617 $ 7,927 $ 9,276
$16.00
3011
$19.11
$15.95
3.20
$19.15
$15.82
3.31
$19.13
Return above variable
expenses $
Net return to land
and management 
/
Total $ 46
Per acre
$3600 $ 2,715 $ 2,463
1,548 $ 1,128
7.15 6.92
The most prevalent program of beef 
production in Alabama is pro-
duction of beef calves. Producers have 
long foll~owed this type of pro-
duction program. They are more familiar 
with production requirements
and problems faced in calf than in 
yearling production. Probably the
1650
$ 859
5.21
l-L. I----n
-1 o V
40
overall. risk involved in producing calves is less than 
with yearlings.
However, consideration should be given to adjustments by many cattlemen
that would point to growing calves into yearlings.
For the present calf producers, the shift to yearling production
means reducing the number of brood cows or increasing the land area for
beef use. The raised yearling program with 75 brood cows, as presented,
requires about the same amount of land as the raised calf 
program with
100 brood cows. Differences in investment items between the two pro-
grams are not great. Yet, net returns to land and management are 31 per
cent greater for the yearling than the calf program with about the same
amount of land and capital investment.
Still greater returns are possible with the hay-pasture buy-sell
program with beef steers. However, risk, 
particularly by market risk in
connection with buying and selling steers, is greater compared with pro-
grams involving raised yearlings.
POTENTIAL FOR YEARLING BEEF PRODUCTION
Beef consumption per capita in the U. S. has increased consistently
since 1958. This increase has been about 20 pounds per person in the
past 10 years. Per capita beef consumption in Alabama and the South is
below the U. S. average. It is estimated that 1965 per capita consumption
of beef in Alabama was about 85 pounds as compared with the U. S. average
of 102 pounds. However, increasing population and family incomes point
to increased demand for beef in the South.
The demand for fed or finished beef has also increased rapidly since
World War II. Growth in cattle feeding has resulted in increased demands
for feeder cattle. If a higher proportion of beef consumed is to come
41
from feedlot-finished animals, there will 
be increased needs for animals
to go into feedlots. Does Alabama and the South 
have a potential for
producing such animals?
In a recent study,5 64 per cent of feeder cattle weighing 250-499
pounds and 53 per cent .of those weighing 500 pounds and over 
sold through
Alabama auction markets had a destination out of state. For the lighter
weight group, 27 per cent went to Western States. It 
would appear that
Alabama producers should be able to capture a larger portion of 
the
market for growing and finishing beef cattle beyond the calf stage.
Trends in Alabama and the South point to possibilities for increased
beef production based on forages. There is a continued shift 
away from
row crops. Acreage in improved permanent pastures has increased. Im-
proved higher-yielding forage crops are available and are used by many
beef producers. Dairy cow numbers are declining.
Based on data presented, it is possible to increase the net return
to land and management by shifting from raising calves to yearlings. For
the same land area used for beef, it was shown, based on budgets, that
net return to land and management was 31 per cent greater for yearlings
than calves. A higher return to land is necessary as land values continue
to increase.
Still greater net returns to land and management appear possible
under a buy-sell program. Average investment in capital items is also
5/ J. R. Meadows and M. J. Danner, Movement of Cattle and Calves
Through Alabama Auction Markets, Bulletin 360, Agricultural Experiment
Station, Auburn University, 1965, p. 12.
42,
less under buy-sell programs than under programs in which breeding 
stock
are maintained. However, risks resulting from market price fluctuations
are greater with buy-sell programs. Highest net returns per acre appear
possible with buy-sell programs.
The fact that feedlot operators are seeking feeder cattle in Alabama
and the South is evidence that desirable beef animals are available at
least during certain seasons of the year. They are apparently available
at competitive prices with other sources of supply. This has stimulated
demand and interest in production of feeders. Potential developments
in the production of yearling feeder cattle will depend on alternative
opportunities for resources that can be used for production of feed
supplies, primarily pastures and roughages, as well as area differences
in demand for feeder cattle. Transportation rates on both grain and
cattle are important in determining the latter. Reductions in rail
transportation rates point to potential gains for Alabama in beef pro-
duction.
43
APPENDIX A
METHOD AND PROCEDURE USED IN CALCULATING COSTS
Basic data, primarily physical inputs used in raising beef calves
1/
were secured by personal interview. Information from published reports-
that provided pasture, harvested forage, 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 Agricultural 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, Agricultural 
Economics Series
5, "Beef Calf Production in Alabama: Costs, Returns, and Improvements,"
June 1965.) 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 fer-
tilizer dealers. Fertilizer prices used in calculating costs in all areas
are reported in Appendix C of publication mentioned above.
1/ T. H. Ellis and E. J. Partenheimer, Costs and Returns from Live-
stock Production in the Limestone Valley Area of Alabama, Alabama
Agricultural Experiment Station, mimeograph, 1960, and E. J. Partenheimer
and G. W. Clark, Costs and Returns for Livestock Production in the
Wiregrass Area (Lower Coastal Plains) of Alabama, Alabama Agricultural
Experiment Station, Auburn University, mimeograph, 1961.
44
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
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, based on the number of cuttings, was charged to hay.
The cost of hay per ton was found by dividing the calculated total 
costs
by the tons produced. When a crop was used strictly for hay, the budgeted
costs, fertilizer costs, and the costs of harvesting 
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 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 in Agricul-
tural Economics Series 5.)
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 1 -ton capacity. 
If greater than
l -ton capacity, including trailer trucks, the vehicle 
charge was $.20
per mile. Hired hauling was charged as reported 
by the producer.
45
Man-hours of labor on pastures and forage crops 
were included on
the budgets used as a guide in determining costs. Other labor costs
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 northern and 
southern 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 pro-
ducer with the original cost, size, source 
of power, and the proportion
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 5 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 reported
46
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 4 per cent for depreciation, 3 per cent for
interest (equivalent of 6 per cent on half the original or replacement
cost), 2 per cent for taxes and insurance, and 1 per cent for repairs.
Producers reported the acres of land fenced with the prorata share
or fencing chargeable to beef. Annual fencing costs charged were $1.00
per acre in northern and southern 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 reported
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. Th~e initial cost portion of water from wells chargeable
to beef was multiplied by 5 per cent :and that from ponds was multiplied
by 1 per cent to determine annual water costs.
47
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 5 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 $034
per acre, the average rate for Alabama in 1962. Taxes on buildings,
machinery, and equipment were included in their respective cost
categories and charged to beef cattle.
Losses because of 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.
48
APPENDIX B
Appendix Table 1. Estimated Establishment Expense Per Acre of Coastal
Bermuda, Improved Practices, Coastal Plain Area, Alabama
Item Description Unit Price Quantity Expense
Cash expense:
Stolons Bu. $0.50 9.0 $ 4.50
Fertilizer 4-12-12 Cwt. 2.00 4.0 8.00
Ammonium Nitrate Cwt. 3.90 1.3 5.07
Lime Custom spread Ton 8.00 1.0 8.00
Tractor Gas, oil and repairs 3.96
Machinery Gas, oil and repairs 1.06
Labor Hr. .50 10.6 5.30
Subtotal of cash expenses $
3
5.8-
Noncash expense:
Tractor and
machinery Depreciation $ 1.78
Interest, housing, taxes and insurance 2.23
Interest on
investment
cap al Compounded, of $35.87 @ .05 19.36
Land- 100 @ .05 5.00
Subtotal of noncash expenses $28.37
Total establishment expenses $64.26
1/ Since there is no return during the year of establishment a charge
is made for the use of the land.
Appendix Table 2. Estimated Annual Expe
and Vetch Pasture, Improved 
Practices,
nse Per Acre of Coastal 
Bermuda
Coastal Plain Area, Alabama
Item Description 
Unit Price Quantity 
Expense
Variable expense:
Seed
Fertilizer
Lime
Tractor
Machinery
Labor
Interest on
operating
capital
Recommended variety
0-20-20
Ammonium Nitrate
3 tons next 14 years
Custom spread
Gas, oil and repairs
Gas, oil and repairs
Lb.
Cwt.
Cwt.
Hr.
$0.15
2.83
3.90
.50
30.0
3.0
1.0
2.6
of $21.14 @ .06
Subtotal of variable 
expenses
Fixed expense:
1/15 of establishment 
cost
Tractor and
machinery Depreciation
Interest, housing, taxes 
and insurance
Sutoa of fie exene 5.89
49
$ 4.50
8.49
3.90
1.60
1.11
.24
1.30
.63
$21.77
$ 4.28
.86
.75
$ 5.8.9
Subtotal of fixed expenses
50
Appendix Table 3. Estimated Annual Expense Per Acre of Coastal Bermuda
Pasture, Improved Practices, Coastal Plain Area, Alabama
Item Description Unit Price Quantity Expense
Variable expense:
Fertilizer
Lime
Tractor
Machinery
Labor
Interest on
operating
capital
0-20-20
Ammonium Nitrate
3 tons next 14 years
Custom spread
Gas, oil and repairs
Gas, oil and repairs
of $20.85 @ .06
Cwt. $2.83
Cwt. 3.90
Hr. .50 2.8
Subtotal of variable expense
Fixed expense:
1/15 of establishment costs
Tractor and
machinery Depreciation
Interest, housing, taxes and insurance
Subtotal of fixed expenses
3.0
2.0
$ 8.49
7.80
1.60
1.04
.25
1.40
.62
$21.20
$ 4.28
.64
.51
$ 5.43
51
Appendix Table 4. Estimated Annual Expense of Coastal Bermuda Hay, Five
Ton Yield, Improved Practices, Coastal Plain Area, Alabama
Item Description Unit Price Quantity Expense
Variable expense:
Fertilizer 0-10-20
Lime
Tractor
Machinery
Labor
Truck
Interest on
operating
capital
Ammonium Nitrate
3 tons next 14 years
Custom spread
Gas, oil and repairs
Gas, oil and repairs
Hauling Hay
of $57.42 @ .06
Cwt. $1.93 5.0
Cwt. 3.90 6.0
Hr.
Ton
.50 19.7
.60 5.0
Subtotal of variable expenses
Fixed expense:
1/15 of establishment costs
Tractor and
machinery Depreciation
Interest, housing, taxes and insurance
Subtotal of fixed expenses
$ 9.65
23.40
1.60
5.20
4.72
9.85
3.00
1.72
$59.14
$ 4.28
4.57
6.74
$15.59