One of the best tools for management decisions on a cow-calf operation is the breakeven point calculation. The breakeven point is the point at which cost is equal to income, $0 profit/$0 loss. It identifies the minimum sale price needed to cover the total cost of production. Understanding the breakeven point for the operation will help cow-calf producers make better management decisions for the current and future production cycles.
Breakeven can be calculated with pencil and paper, but there are some user-friendly tools available to help make these calculations simpler and to help make sure that all costs have been considered. CattleFax has a comprehensive and confidential breakeven calculator. Data entered in the calculator is not shared with CattleFax, and users are not asked for any personal identification information. To access the calculator, visit cattlefax.com/ccbe/.
Once a breakeven point has been calculated, producers can make decisions about marketing their calves, and assess their input costs and herd productivity.