Livestock Enterprise Information

Dairy

– By Profitability

– By Herd Size

Beef

Hogs

Statewide Data

Livestock Enterprise Information

Dairy data on slides prior to

“Dairy by herd size” does

not include Organic Production

Number of Dairy Cows

Average Farm

20

70

120

170

220

Cow #s

117 122128

140 134 140

160170 179

184

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

The average number of dairy cows up again in 2014

Pg 50-51

Number of Dairy Cows –

Median income farms

40

90

140

190

240

Cow #s

106

138 134152

162

123

184

220

152

223

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Pg 50-51

Production &

Returns per Cow

-400

-200

0

200

400

600

800

1000

1200

1400

16,000

17,000

18,000

19,000

20,000

21,000

22,000

23,000

24,000

25,000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

# milk/cow return/cow

Milk production up slightly - Returns up Significantly

Pg 50-51

Milk Price less Feed Cost

8.15

7.1

9.93 9.62

7.31

9.9

7.44 7.49

10.5610.22

7.99

11.8811.26

6.21

9.02

11.01

9.359.93

14.15

0

2

4

6

8

10

12

14

16

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Dolla

rs p

er

CW

T

Returns UP!!!

Pg 50-51

Dairy Cows –Costs and Gross Margin per CWT

Feed

Direct

Dir & Ovhd

Gross Margin

$0.00

$7.00

$14.00

$21.00

$28.00

Average Mid 40-60 High

$10.22 $10.34 $9.58

$15.57 $16.23$13.67

$18.38 $18.44 $17.45

$23.64 $23.39$24.61

Net Returns: $5.26 $4.95 $7.16

Pg 50

Dairy Cows – 3-yr viewCosts and Gross Margin per CWT

Feed

Direct

Dir & Ovhd

Gross Margin

$0.00

$7.00

$14.00

$21.00

$28.00

2012 2013 2014

$10.19 $10.37 $10.22

$14.86 $15.18$15.57

$17.44 $17.81 $18.38

$18.72 $19.06

$23.64

Net Returns: $1.28 $1.25 $5.26

Pg 50

Dairy Cows –Returns per Cow

Net: Dir, Ovhd, Lab & Mgt

Net: Dir & Ovhd

Net: Ovhd

Gross Margin

$0

$2,000

$4,000

$6,000

$8,000

Average Mid 40-60 High

$1,026 $1,051$1,519

$1,249 $1,217$1,800

$1,918 $1,761

$2,748

$5,618 $5,752 $6,187

Pg 51

Dairy Cows – 3-yr viewReturns per Cow

Net: Dir, Ovhd, Lab & Mgt

Net: Dir & Ovhd

Net: Ovhd

Gross Margin

$0

$2,000

$4,000

$6,000

2012 2013 2014$89

$90

$1,026$290 $287

$1,249$879 $895

$1,918

$4,263 $4,400

$5,618

Pg 65

How About 2015?

How about 2015?

2014 % Change Est. 2015

Milk Produced 23,556 + 2% 24,027

Feed Cost $2,420.33 - 5% $2,299.31

Fuel $117.01 - 30% $81.91

Repairs $181.12 + 5% $190.18

Hired Labor $437.62 + 5% $459.50

Utilities $69.14 + 5% $72.60

Assuming all other expenses and income stay the same

2015 Continued

2014 2015

Average Class III $22.34 $16.34*

Average Basis $2.14 $2.14

Average Pay Price $24.48 $18.48

Net Change - $6.00

Cost of Production $19.97 $19.17

Milk Price minus Feed Cost $14.14 $8.91

Net Return/Cow $1,026 - $141.74

* Based on April 2015 Dunn Dairy Outlook Report

Production &

Returns per Cow

-400

-200

0

200

400

600

800

1000

1200

1400

16,000

17,000

18,000

19,000

20,000

21,000

22,000

23,000

24,000

25,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

# milk/cow return/cow

Estimated 2015

Pg 50-51

Milk Price less Feed Cost

7.1

9.93 9.62

7.31

9.9

7.44 7.49

10.5610.22

7.99

11.8811.26

6.21

9.02

11.01

9.369.93

14.15

8.91

0

2

4

6

8

10

12

14

16

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Dolla

rs p

er

CW

T

Estimated 2015

Pg 50-51

Dairy Cows - MN Dairy Sort

Data by Size of Herd-- All Dairy Herds,

including Organic --

Dairy Cows –Number of Farms in database

0

100

200

300

400

Total <50cows

51-100

cows

101-200

cows

201-500

cows

> 500cows

394

54

145

9966

30

MN FBM Dairy Sort

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Total <50cows

51-100cows

101-200

cows

201-500

cows

> 500cows

396

14%

37%

25%

17%

8%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Total <50cows

51-100

cows

101-200

cows

201-500

cows

> 500cows

12%

5%

10%

29% 31%

44%

Dairy Cows –Number of Herds and Percent of MN Farms

Some herd data provided by the Minn Department of Ag.

MN FBM Dairy Sort

0%

10%

20%

30%

40%

50%

Total <50cows

51-100cows

101-200cows

201-500cows

> 500cows

2012 10% 3% 10% 28% 33% 35%

2013 11% 4% 9% 31% 29% 35%

2013 12% 5% 10% 29% 31% 44%

12%

5%

10%

29% 31%

44%

2012

2013

2013

Dairy Cows –Farms as percent of all MN herds MN FBM Dairy Sort

Minnesota Dairy Sort

Selected Factors - Size and Production

16625

1991621614

2401826487

38 74140

312

797

0

200

400

600

800

1000

1200

Up to 50Cows

50 - 100Cows

100-200Cows

200-500Cows

Over 500Cows

Pounds of Milk No. of Cows

MN FBM Dairy Sort

Minnesota Dairy SortSelected Factors - Cost and Price

Feed

Dir & Ovhd

Dir, Ovhd, & Lab

Gross Margin

0.00

7.00

14.00

21.00

28.00

<50 Cows 51-100 101-200 201-500 >500 Cows

11.52 10.97 10.26 10.29 9.97

19.07 18.52 18.08 18.87 18.23

21.5720.08 19.30 19.65 18.90

23.0423.87 23.65

23.86 23.57

Ave Price = $24.43 Ave Cost w Labor = $19.40

MN FBM Dairy Sort

11.5210.97 10.26 10.29 9.97

16.18 15.55 15.0415.74 15.80

19.07 18.52 18.0818.87

18.23

21.5720.08 19.30 19.65 18.90

9.00

17.00

25.00

Under 50Cows

50 - 100Cows

100 - 250Cows

250 - 500Cows

Over 500Cows

Feed Cost

Direct

Minnesota Dairy Sort

Selected Factors – Production Costs MN FBM Dairy Sort

Minnesota Dairy SortHired Labor and Operator Labor/Mgmt MN FBM Dairy Sort

2.50

1.561.22

0.78 0.67

0.37

0.881.31 2.08 2.35

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

Up to 50Cows

50-100Cows

101-200Cows

201-500Cows

Over 500Cows

Lbr & Mgt Charge Total Hired Labor

3.022.44 2.862.532.87

Dairy Sorts Expanded…

Sort - Includes All Robotic Dairy

Non-Robotic

Traditional

Non-Robotic

3X Milking Organic

Dairy

Initiatives

Sort - Excludes NAAll non-

robotic herds

Organic, Org.

Transition, 3X

Milking, Rot.

Grazing,

Robotics

Organic, Org.

Transition,

Rot. Grazing,

Robotics, non-

3X milk herds

All non-

organic herds

All non-Dairy

Initiative

herds

Number of Farms 390 9 327 33 15 96

Number of Cows 180.4 179.6 151.0 558.5 87.7 158.6

Milk Produced per Cow 23,556 24,742 22,923 26,075 13,041 22,518

Product/Animals Sold $5,716.23 $5,871.18 $5,582.60 $6,229.11 $3,978.38 $5,488.87

Gross Margin $5,581.78 $5,749.94 $5,423.43 $6,159.86 $3,807.30 $5,368.08

Feed Cost per Cow $2,420.33 $2,378.86 $2,369.73 $2,607.94 $1,967.27 $2,308.10

Veterinary $112.47 $144.85 $107.21 $129.98 $35.24 $105.77

BST $48.82 $36.56 $40.73 $75.96 $0.00 $34.60

Repairs $181.12 $246.46 $162.05 $207.55 $161.25 $177.79

Hired Labor - direct $258.84 $106.78 $190.65 $471.20 $88.78 $300.13

Hired Labor - Ovhd $178.78 $97.24 $193.33 $152.10 $140.14 $71.50

Interest $84.90 $219.92 $87.43 $67.78 $76.46 $78.48

Depreciation $168.16 $391.13 $155.93 $182.55 $88.58 $155.29

Total Dir &Ovhd Cost $4,345.28 $4,506.81 $4,194.56 $4,850.70 $3,176.84 $4,098.57

Net Return $1,236.50 $1,243.13 $1,228.87 $1,309.16 $630.46 $1,269.51

Cost of Prod - O&D $18.45 $18.22 $18.30 $18.60 $24.36 $18.20

Culling Percentage 30.3 27.8 29.1 33.7 28.9 29.8

Turnover Rate 37.4 36.1 36.5 40.2 33.6 36.8

Feed Cost per CWT $10.27 $9.61 $10.34 $10.00 $15.09 $10.25

Dairy Cows - Additional Sorts

Robotic Dairy Robotic All 3X Herds Vs. 3X

Milk/Cow 24,742 23,556 26,075 -1,333

Feed Cost $9.61 $10.27 $10.00 - 0.39

Vet $144.85 $112.47 $129.98 + 14.87

Supplies $346.35 $341.93 $312.05 + 34.30

Repairs $246.46 $181.12 $207.55 + 38.91

Labor (total) $410.62 $661.57 $816.48 - 405.86

Utilities $148.66 $69.14 $67.89 + 80.77

Interest $219.92 $84.90 $67.78 + 152.15

Depreciation $391.13 $166.72 $182.55 + 208.58

COP

w/Labor

$19.71 $20.09 $19.78 - .07

Lbs

Milk/FTE

2,543,980 1,611,802 1,584,551 + 959,429

Robotic/3x Comparison (2)

Robotic 3X Difference

Labor $410.62 $816.48 - 405.86

Supplies,

Repairs,

Utilities,

Interest,

Depreciation

$1,352.52 $837.82 + 514.70

Total $1,753.14 $1,654.30 + 108.84

Robotic/3x Comparison (Labor Efficiency)

Robotic 3X Difference

Labor

Hrs/Cow26.95 45.67 59%

$/Hr $15.24 $17.88

Milk/FTE 2,543,980 1,584,551 62%

3X vs. TraditionalTraditional 3X Herds Difference

Milk/Cow 22,923 26,075 + 3,152

Hrs/Cow 39.23 45.87 + 6.64

Labor (total) $617.80 $816.48 + 198.68

Labor

Cost/CWT

Additional

Milk

$15.86

Lbs/FTE 1,627,611 1,584,511 - 43,100

Hrs/CWt .171 .176 - .005

Feed Cost $10.34 $10.00 - 0.34

COP $20.10 $19.78 - 0.32

Net Return $995.05 $1,115.98 $120.93

Barn Style ComparisonsTie-Stall Compost Free Stall Sand-Bedding

Milk/Cow 21,237 18,835 24,659 25,449

Hrs/Cow 44.13 33.18 42.76 45.78

Labor

(total)$554.31 $524.56 $368.79 $740.03

Total

Costs/Co

w

$3,744.27 $3,961.58 $4,550.77 $4,578.25

Bedding $42.93 $187.03 $83.01 $89.56

Feed Cost 10.26 11.51 10.17 9.83

COP 19.67 $21.97 $19.88 $19.64

Net

Return$1,039.88 $681.09 $1,083.16 $1,175.16

Avg

Bedding Comparisons (2)

0

5

10

15

20

25

Tie-Stall Compost FreeStall SandBedding

Feed

Labor

Overhead

Direct

BST vs. Non-BSTBST Non-BST Difference

Milk Produced 25,581 23,280 + 2,301

Feed Costs $10.16 $10.26 - 0.10

Total Direct Costs $16.21 $15.42 + 0.79

Overhead Costs $2.71 $2.80 - 0.09

BST Cost $0.42 $0 + 0.42

BST

Cost/Additional

Milk

$4.65

Total COP $19.95 $20.03 - 0.08

Dairy Finishing –Net Return & Price per Cwt up

82.40

100.04110.26 113.17

130.69

8.98 12.39 7.05 3.07

48.66

2010 2011 2012 2013 2014

Price Recv'd/Cwt Net Return/Cwt

Pg 57

Beef Cow-Calf Returns -Net per Cow

($200.00)

($100.00)

$0.00

$100.00

$200.00

$300.00

$400.00

$500.00

Net Return

$168.89

$61.38

($27.42)

($112.55) ($120.51)

$53.60

$127.61 $88.27

$36.61

$451.63

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Pg 60

Beef Cow/Calf Cost of Production Trends

0

20

40

60

80

100

120

140

160

180

2009 2010 2011 2012 2013 2014

Cost of Production per CWT Produced

COP

Beef Cow-Calf –Costs and Returns of Production per Cow

Feed

Direct

Dir & Ovhd

Gross Margin

$0

$450

$900

$1,350

$1,800

Average Mid 40-60 High

$508$470 $482

$685 $618 $639

$844$737 $787

$1,295$1,183

$1,591

Net Returns: $451 $447 $804

Pg 60

Beef Cow-Calf –Costs and Returns of Production per Cow

Feed

Direct

Dir & Ovhd

Gross Margin

$0

$450

$900

$1,350

$1,800

Average Up to 50 50-100 100-200 200-500

$508 $497 $529 $548$397

$685 $676 $700 $725$581

$844 $882 $870 $866

$696

$1,295 $1,217 $1,301 $1,313 $1,340

Net Returns: $451 $335 $431 $447 $644

Pg 61

Beef Finishing Returns -Net per CWT

($10.00)

$0.00

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00

Net Return

$5.50 ($1.63)

($0.36) ($3.54)$0.23

$14.38

$22.10

$5.21

$15.35

$57.76

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Pg 59

Farrow to Finish Hogs –Net Return & Price per Cwt

54.03

71.61 69.4370.52

104.32

2.90

7.62

2.28

8.42

32.42

2010 2011 2012 2013 2014

Price Recv'd/Cwt Net Return/Cwt

Not in Report

Finish Feeder Pigs –Net Return & Price per Pig

85.74 85.8289.60

98.79

63.84 63.89 66.8473.61

15.07

2.86 3.13

15.03

2011 2012 2013 2014

Price Recv'd/Cwt Carcass Price/CWT live Wgt

Net Return/Cwt

Pg 62

Weaning to Finish Hogs–GrowerWhat makes up the Gross Margin?

8.088.46

12.07

11.23

5.66

2.38

7.08 4.26 3.68

Average Mid 40-60% High 20%

Net Return

Direct Exp

Overhead Exp

Pg 63

Note: Sort for returns is based on Return to Overhead

Gross Margin: $15.69 $18.39 $18.13

.

In closing…

.

In closing…

Diligence in the mother of good luck.

Thank you for listening to a review of this year’s Farm Business Management Annual Report information.