Beef cattle producers raising calves from birth to finish may use this planning budget to estimate their costs and returns in 2024. Table 1 presents estimates for the costs and returns associated with raising and finishing calves born in spring and fall calving herds, based on price forecasts as of September 2023. Detailed assumptions and feed requirements for systems starting with each calving season are summarized in Tables 2 through 5.
The production practices used to develop these estimates assume a 75-cow herd with purchased replacements, drylot backgrounding for spring calves and pasture backgrounding for fall calves, and grain-based finishing using self feeders. Finishing weight is roughly 1,400 pounds and animals are sold by live weight. Animals are 520 days of age at slaughter.
Table 1. Missouri on-farm beef finishing planning budget for 2024.
| Fall calving | Spring calving | |||
|---|---|---|---|---|
| Per animal sold1 | Per pound | Per animal sold1 | Per pound | |
| Income | ||||
| Live cattle sales | 2,580.60 | 2,566.20 | ||
| Culled breeding stock | 203.46 | 232.71 | ||
| Total income | 2,784.06 | 2.02 | 2,798.91 | 1.99 |
| Operating costs | ||||
| Cow herd feed | 803.28 | 0.58 | 769.85 | 0.55 |
| Backgrounding feed | 93.91 | 0.09 | 203.29 | 0.14 |
| Finishing feed | 472.97 | 0.34 | 472.97 | 0.34 |
| Labor | 223.48 | 0.16 | 247.04 | 0.18 |
| Veterinary and drugs | 57.01 | 0.04 | 60.03 | 0.04 |
| Machinery and utilities | 235.70 | 0.17 | 247.80 | 0.17 |
| Livestock facility repairs | 21.78 | 0.02 | 25.15 | 0.02 |
| Cow and bull replacement | 406.98 | 0.29 | 481.93 | 0.34 |
| Marketing and professional fees | 72.76 | 0.06 | 73.17 | 0.05 |
| Miscellaneous | 11.00 | 0.01 | 11.00 | 0.01 |
| Operating interest | 136.70 | 0.10 | 147.72 | 0.10 |
| Total operating costs | 2,535.58 | 1.84 | 2,739.94 | 1.94 |
| Ownership costs | ||||
| Depreciation on facilities and equipment | 11.05 | 0.01 | 14.58 | 0.01 |
| Interest on capital assets | 141.78 | 0.10 | 145.90 | 0.10 |
| Insurance and taxes on capital assets | 46.77 | 0.03 | 29.96 | 0.02 |
| Total ownership costs | 199.59 | 0.14 | 190.43 | 0.14 |
| Total costs | 2,735.17 | 1.98 | 2,930.37 | 2.08 |
| Income over operating costs | 248.48 | 0.18 | 58.97 | 0.04 |
| Income over total costs | 48.89 | 0.04 | -131.46 | -0.09 |
| 1. Totals may not sum due to rounding. | ||||
Table 2. Assumptions in Missouri on-farm beef finishing planning budget: fall calving, pasture backgrounding, grain-finished system.
| Description | Value | Description | Value |
|---|---|---|---|
| Live cattle price, dollars per hundredweight | 187.00 | Cows in herd | 75 |
| Cull cow price, dollars per hundredweight | 112.50 | Bulls in herd | 3 |
| Days to weaning | 210 | Weaning weight, pounds | 595 |
| Days backgrounded | 120 | Backgrounded weight, pounds | 810 |
| Days on feed | 190 | Finished weight, pounds | 1,380 |
| Replacement heifer value, dollars per head | 2,500 | Marketing fee, percent of sales | 2.5 |
| Replacement rate, percent of cow herd | 13.0 | Operating interest, percent APR | 8.0 |
| Labor, hours | 11.5 | Labor cost, dollars per hour | 17.70 |
Table 3. Assumptions in Missouri on-farm beef finishing planning budget: spring calving, drylot backgrounding, grain-finished system.
| Description | Value | Description | Value |
|---|---|---|---|
| Live cattle price, dollars per hundredweight | 182.00 | Cows in herd | 75 |
| Cull cow price, dollars per hundredweight | 112.50 | Bulls in herd | 3 |
| Days to weaning | 210 | Weaning weight, pounds | 570 |
| Days backgrounded | 120 | Backgrounded weight, pounds | 840 |
| Days on feed | 190 | Finished weight, pounds | 1,410 |
| Replacement heifer value, dollars per head | 2,500 | Marketing fee, percent of sales | 2.5 |
| Replacement rate, percent of cow herd | 15.0 | Operating interest, percent APR | 8.0 |
| Labor, hours | 12.5 | Labor cost, dollars per hour | 17.70 |
Table 4. Feed requirements per animal sold in Missouri on-farm finishing planning budget in pounds: fall calving, pasture backgrounding, grain-finished system.
| Feed description | Stage(s) used | Pricing unit | Cost per unit | Total pounds | Dollars1 |
|---|---|---|---|---|---|
| Pasture | Cow-calf, background | AUM | 18.00 | 12.5 AUM | 217.52 |
| Mixed hay | Cow-calf, finishing | tons | 165.00 | 5,712 | 471.26 |
| Shelled corn | Finishing | bushels | 5.00 | 3,010 | 270.97 |
| Dried distillers grain | Finishing | tons | 240.00 | 1,011 | 121.32 |
| Protein supplement | Cow-calf, background | tons | 275.00 | 645 | 88.65 |
| Feedlot supplement | Finishing | tons | 500.00 | 118 | 29.39 |
| Mineral | Cow-calf, background | tons | 1,200.00 | 112 | 67.16 |
| Limestone | Background | tons | 200.00 | 18 | 1.82 |
| Total | 10,626 | 1,268.10 | |||
| 1. Totals may not sum due to rounding. | |||||
Table 5. Feed requirements per animal sold in Missouri on-farm finishing planning budget in pounds: spring calving, drylot backgrounding, grain-finished system.
| Feed description | Stage(s) used | Pricing unit | Cost per unit | Total pounds | Dollars1 |
|---|---|---|---|---|---|
| Pasture | Cow-calf | AUM | 18.00 | 12.8 AUM | 230.35 |
| Mixed hay | All stages | tons | 165.00 | 5,355 | 441.76 |
| Shelled corn | Background, finishing | bushels | 5.00 | 3,646 | 328.25 |
| Dried distillers grain | Background, finishing | tons | 240.00 | 1,637 | 196.49 |
| Protein supplement | Cow-calf | tons | 275.00 | 187 | 25.74 |
| Feedlot supplement | Background, finishing | tons | 500.00 | 186 | 46.52 |
| Mineral | Cow-calf | tons | 1,200.00 | 91 | 54.75 |
| Total | 11,102 | 1,323.86 | |||
| 1. Totals may not sum due to rounding. | |||||
Returns to on-farm finishing
Producers considering finishing beef strictly for direct-to-consumer freezer beef should understand how production scale affects their decisions. The finishing costs in this model reflect a small-scale feedlot that buys, mixes, and processes raw feed inputs into an incomplete ration fed through self feeders. The balance of the ration (roughage) is fed through free choice hay. This business model depends on the cost of gain being lower than the opportunity cost of selling the calves at weaning. For example, a 550-pound calf selling for $250 per hundredweight is more profitable than a 1,400-pound steer selling for $180 per hundredweight when the cost of gain is more than $1.35 per pound.
Economies of scale are important in the cattle finishing business. Small operators may be better suited to buying feed pre-mixed rather than mixing it on the farm. Similarly, larger operations than the one described will have the scale to justify the equipment and facilities necessary to handle wet feed ingredients that can sometimes be produced or obtained at a lower cost. The costs and returns experienced on an individual operation can vary widely from what is described in this budget.
Other resources
Use the resources below to customize on-farm finishing budgets for your operation, explore marketing opportunities or see other beef cattle budgets from University of Missouri Extension.
- Missouri Beef On-Farm Finishing Budget for Fall Calving (XLSX)
- Missouri Beef On-Farm-Finishing Budget for Spring Calving (XLSX)
- Evaluating Marketing Opportunities for Local Beef in Missouri showcases opportunities to market beef raised and finished on-farm directly to consumers as either freezer beef (wholes, halves, and quarters) or as retail cuts.
- Other beef cattle budgets and related information can be found on the Beef Extension webpage.