Extension looks at operations to find profits in the field
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For some producers knowing what to do on their cattle operations can be tough, but the Nebraska Extension took information from the 2019 FINBIN database to find a benchmark for other producers.
For some producers knowing what to do on their cattle operations can be tough, but the Nebraska Extension took information from the 2019 FINBIN database to find a benchmark for other producers.
Beef systems expert Randy Saner and ag economist Matt Stockton broke down how people can look at cost structure and revenue to see how to improve their own business.
“We looked at 31 commercial cow-calf operations with 100 or more cows,” Saner began. “They were split into five categories by profit level -- lowest, low, middle, high and highest.”
They started by comparing the high and highest groups and by asking people to think about the relationship between cost and productivity. Then they asked how does productivity affect profitability.
“The other thing we want you to think about is marginal value,” Stockton added. “Does the next unit of input give me back what it was worth? The cost of the relationship is what we want you to think about.”
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