Listed costs showed an upward trend from 2010 compared to 2009 and higher selling prices for the average livestock producer. This information is based on the statistical analysis from the farmers and ranchers enrolled in the Farm/Ranch Business Management Program through the Mitchell Technical Institute according to Calvin Pietz.
The hog finishing enterprises showed a profit of $4.34/cwt. of pork produced in 2010 compared to a loss of $2.57/cwt. in 2009.
The cow calf enterprises showed a profit of $64.63/cow in 2010 compared to a loss of $23.60 in 2009. The beef backgrounding was profitable in 2010 with a profit of $23.29/cwt. of beef produced compared to a profit of $9.72/cwt. in 2009. Beef finishing profited $22.93/cwt in 2010 compared to a loss of $1.79/cwt. in 2009.
The dairy enterprises showed a profit in 2010 as the average price of milk was $16.39/cwt. of milk compared to $12.34 in 2009. The expense per cow in 2010 was $2789/ cow compared to $2896/ cow in 2009. The cost to produce 100 pounds of milk in 2010 was $13.20 compared to $13.26 in 2009. The profit per cow was $333.86 in 2010 compared to a loss of $224.43 per cow in 2009. The profit per 100 pounds of milk produced was $1.19 in 2010 compared to $1.11 loss in 2009.
A major factor that will affect the profitability will be the death loss in the livestock enterprises and feed costs and selling price. Good management of your livestock enterprises will increase your chances of profitability.
The South Dakota Center for Farm/Ranch Management is expanding its reach later in 2011 to include north central/eastern South Dakota. This follows the expansion of 2010 that included central/eastern South Dakota. This expansion was made possible in part due to the support of Farm Credit Services of America, South Dakota Corn Utilization Council, South Dakota Wheat Commission, South Dakota Soybean Research and Promotion Council, and the South Dakota Pork Producers Council. For more information about the data in this article or about the programs offered please call 1-888-647-1527.