Livestock Risk Partners

“Don’t get sleepy in your risk management, if you have opportunity to cover a profit, take it!”———–Jim Mintert, Purdue University
Providing quality LRP, PRF & LGM Insurance Coverage!

Understanding Yardage Costs in Cow-Calf Operations

Have you ever wondered where your money goes during the winter-feeding period? Feed costs are easy to spot in a beef cattle operation, but what about the other expenses quietly chipping away at your bottom line? This is where yardage comes in—it is a crucial part of managing winter feeding costs in cow-calf operations.  What is Yardage? Yardage refers to the overhead and non-feed costs incurred while maintaining cattle during the winter-feeding period. These costs include day-to-day expenses such as labor, equipment and building maintenance, fuel, utilities, manure handling and other general expenses like farm taxes and accounting fees. They also include non-cash costs such as machinery and facility depreciation, which represent the graduate loss of value in assets over time. Why Does Yardage Matter to a Beef Producer? Yardage may not grab attention like feed costs, but it significantly impacts profitability. These costs, especially non-cash costs like depreciation, often remain unno