Tracking Expenses to Effectively Manage

You can't track what you don't measure — an important thing to remember when it comes to knowing the cost of livestock production. Have you determined your cost of production? South Dakota State University's Julie Walker reminds cattlemen you have to measure to effectively manage.

Walker: "Managing cow costs are one of those things that producers don't like to do because it really takes time and it takes effort but it is really worth it to take your production records and your financial records and combining the two."

The first step is to keep a detailed account of your expenses - from feed and reproduction costs to replacement heifers and other figures.

Words of wisdom - don't wait. Walker urges taking out a notebook or iPad today.

Walker: "It won't be perfect but you have to start some place. And over the years as you do it more and more, you will be able to better tweak that to be the best reflection to you can to your cow costs of production."

When you start tracking money - you might be surprised how much you're giving away.??Walker: "Labor costs include the money you pay over the top of table, under the table and you trade for. A lot of guys will trade a tractor use for a week or a maybe give someone a half of a beef or something like that. That is a cost to your enterprise and you need to account for it."