1-800-242-7820 | Contact Us
Resources for TSCRA Resources for TSCRA Resources for TSCRA
Navigation
  • Who We Are
    • Why Join TSCRA
    • Leadership
    • Staff
    • TSCRA FAQ
    • Allied Members
    • Sponsorship
    • Employment
  • What We Do
    • Theft & Law
    • Issues & Policy
    • Education
    • Young Cattle Raisers
    • The Cattleman Magazine
    • Cattle Raisers Insurance
    • Cattle Raisers Trading Company
  • Events
  • Join
  • Member Login

Key Performance Indicator #3: Nutrition Base Expense as a Percent of Total Expenses — Between 30.0 and 45.0 Percent

What does it take to have a profitable operation? There are many ways to arrive at that answer, but Stan Bevers, a long-time economist with Texas A&M AgriLife Extension Service and popular speaker at Cattle Raisers Conventions, has identified 13 of what he calls Key Performance Indicators (KPI) for Beef Cow-calf Operations.

We have looked at KPI 1 and 2 already this year. This month, we address KPI 3, nutrition base expense as a percent of total expenses.

According to Bevers, “because reproduction is the most important factor in ranch productivity, proper herd nutrition is imperative. Yet, no two ranches have exactly the same resources to grow, purchase and maintain the nutritional base required by the breeding herd. Thus, we need to identify three types of nutritional expense:

  1. Expenditures for purchasing forage, protein supplement, salt, and minerals
  2. Expenses for producing raised feed, such as hay production
  3. Costs to maintain and improve grazing for the herd

“Those familiar with the Beef Cow-calf SPA analysis will recognize these as the Raised/Purchased Feed Expense and the Grazing Expense. To calculate this KPI, start with the total expense of the ranch including owner labor and depreciation. Then, identify the nutritional costs. Most successful ranchers keep nutritional expenses at 30 to 45 percent of total expenses.”

Bevers recently launched Ranch KPI, a ranch management consulting business, specializing in building ranch management information systems that allow for ranch accounting, analysis, and finding efficiencies measured as Key Performance Indicators. In order to have useful analysis, the data must be accurate, while also being simple in the data entry process. To find more information about KPIs, what it takes to be a successful rancher, or to schedule a consultation, visit ranchkpi.com. ❚

“Nutrition Base Expense” is excerpted from the March 2017 issue of The Cattleman magazine.

RESOURCES

Business
History
Insurance
Livestock Management
Cattle
Horses
Natural Disasters
Natural Resources
Plant Identification
People
Ranching 101
School for Successful Ranching Proceedings Manuals
Theft & Law
Wildlife
The Cattleman Digital Archives
CONNECT WITH TSCRA:

CONNECT WITH TSCRA:

Who We Are

Why join TSCRA?
Leadership
Staff
Allied Members
TSCRA FAQ
Sponsorship
Employment

What We Do

Theft and Law
Issues and Policy
Education
Young Cattle Raisers
The Cattleman  magazine
Cattle Raisers Insurance
Cattle Raisers Trading Co.

Information

Cattle Raisers Blog
News Releases
Bereavements
Events
Media Kit
Tip Hotline
Get Involved

PO BOX 101988
FORT WORTH, TX 76185

1-800-242-7820

© 2022 Texas and Southwestern Cattle Raisers Association; All Rights Reserved.

COPYRIGHT | PRIVACY POLICY | TERMS OF USE