The cow-calf estimates are presented on a per bredcow basis. The cow-calf cost and return accounts were prepared using published AAEA task force recommendations on cost and return estimation. The accounts are also presented using the ERS Farm Resource Regions. Accounts are included only in the regions where enough observations were available to make a statistically reliable estimate. Of particular interest to the cow-calf accounts is the cost of feed.
Feed is the largest direct cost component in cow-calf production.
Cost estimation involves specifying the types, quantities, and prices of feed consumed within the production period. Purchased feed is valued using the surveyed information on the amount spent on purchased feed items. Dry conditions during the summer of 1998 in many southern states resulted in increased beef herd liquidation. Many beef replacement heifers had already been sold and placed in feedlots during the spring of 1998, reflecting deteriorating forage conditions. Large beef supplies from increased female slaughter and record slaughter weights depressed beef prices during 1998.