Source: AgriLife Today
Viewed as a report card for a cattle operation, key performance indicators, also known as KPIs, can assist beef producers in measuring factors crucial to an operation.
Key KPIs include:
– Development cost of a replacement heifer
– Hay production cost per ton
– Revenue per breeding female
– Nutrition base expense as a percent of total expenses
– Labor and management expense as a percent of total revenue
– Operating expense as a percentage of total revenue
– Net income ratio
– Cost per hundredweight of weaned calf
– Total investment per breeding female
– Debt per breeding female
– Equity-to-asset ratio or market basis
– Asset turnover ratio on cost basis
– Rate of return on assets on market basis
– Reproduction is the most influencing factor on ranch productivity
With cattle prices already coming down from 2015 levels, Stan Bevers, Texas A&M AgriLife Extension Service economist in Vernon, suggests producers continue to watch prices and expenses.
“If there is something in the form of a capital asset, get it done quickly,” Bevers said. “Going into 2017, cash flow could be an issue as calf prices are anticipated to continue to come down.”
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