Calculating Yardage you charging enough?



Calculating Yardage¡ªAre

you charging enough?

Dan Loy and Denise Schwab

Iowa State University

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What is Yardage?

? Daily non-feed cost not associated with

ownership of the cattle

¨C Fixed costs¡ªtaxes, insurance, depreciation,

interest on long term assets (factory)

¨C Non-feed operating costs¡ªlabor, vet med,

processing, fuel, utilities, office, repairs, etc.

¨C Variable costs = non-feed operating costs +

feed + interest on cattle.

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Complications in Yardage Calculations

? Calculations¡ªsome items may be expensed

and charged separately (i.e. vet med, chute

charges, bedding, trucking)

? Feed markup¡ªsimple calculation, difficult

accounting

? Combinations¡ªcan hide high fixed costs

? Sharing of equipment, labor, office, etc. with

other enterprises

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Head days are important

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The miracle of the internet

? Electronic technology allows us to very quickly

and efficiently disseminate inaccurate

information.

? Breakevens and projections with up to the

minute commodity prices, interest rates but

assumed standard yardage charge.

? What¡¯s your ¨Dyardage basis¡¬?

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