Beef Farmers of Ontario (BFO) has recently launched a cost of production calculator to help Ontario beef farmers determine how much they spend to produce their cattle.
Production practices on Ontario beef farms vary significantly, and that means nailing down cost of production has been difficult. Creating useful numbers has been challenging and historically have been too specific to a farm, or inflexible to be used widely.
Understanding cost of production is very helpful because then a farmer knows how much he needs to sell cattle for in order to make a profit.
The new BFO calculator gives cow-calf producers an estimate of their farm’s finances based on their herd and their production practices, says BFO. The Excel tool enables farmers to enter the details of their farm and then be able to work with more exact numbers from their operation. Examples include herd size, breeding stock sales and feed programs. From those numbers sales and revenue, production cost and total profitability projections can be created. It’s possible to select from best practices in order to examine the effect of potential changes on the farm profitability.
The calculator is not available for download yet from the BFO website, but a webinar explaining how it works is available.