From the Department of Dairy and Animal Science
This regular column from Penn State’s Department of Dairy and
Animal Science features the research findings, student opportunities, and
resports on other important topics generated in the The
back issues of the column are archived on Lancaster Fanning’s
Internet www.lancasterfarming.com home page. Look for them.
Peter Tozer
Assistant Professor
Dairy and Animal Science
Penn State
Calculating an accurate cost of
raising a replacement heifer is
probably one of the most difficult
tasks for dairy farmers. Heifers
do not generate income and some
of the expense of raising them is
hidden in the costs of the milking
herd as, in most cases, the heifers
are fed refusals from the milking
herd or feed that comes from the
same source as the dairy herd’s
ration Knowing the true cost of
raising heifers would allow a
dairy farmer to determine whether
the resources available could be
better utilized. For example, the
dairy farmer could contract out
heifers and replace them with
more milking cows if the costs of
rearing them on-farm are much
higher than having them raised
off-farm.
Research has shown that the
average daily cost of rearing
heifers in Pennsylvania is $1.53,
however, the range is from $1.21
to $1.77. The reason for the wide
range is the different
combinations of labor, facilities,
(Continued ‘.'om Pag* 30)
William Wood, South Gibson
David Lauer, Springvillc
Harvaiine Farms. Thompson
Hillside Farms Inc., Shavcrtown
James Swelter, Union Dale
Pecora Bros, farm Daipr, Drums
El-Bcrt Farm, Schuylkill Haven
Coleman Crest, Montrose
Louis and Natalie Hawley, Montrose
James A. Rogers Family, Springvillc
Arthur H. and Kelly Wolfe. Springvillc
David Banicky, Thompson
George H. Davis. Meshoppen
Clyde Henderson, Lake Ariel
Ray Kuzma. Tunkhannock
Dewey Lyon, Hallstcad
Lloyd & Denise Pease, Susquehanna
Mark Tompkins. Montrose
Sandra & Edward Kelley, Montrose
Joseph Pavelski, Susquehanna
Dunns-Pride Farm, New Ringgold
John & Diane Rickard, Honesdale
R. M. Shipsky & Sons, Forest City
Rick Stevens, Mehoopany
Highland Farm, Honesdale
Verbyla Bros. Farm, Sweet Bailey
Robert Day Sr. and Son, Mehoopany
Peaceful Acres Dairy, Nicholson
Sterling Miller’s Farm, Stroudsburg
Kenneth Wiker, Holtwood
Myerose Farm, Elizabethtown
Cherry Crest Farm, Ronks
Bushmeade Farm, Columbia
Breeze Summit Farm, Paradise
Green Pastures Farm, Kirkwood
District 1?
Marvin Winner, LiliU
James & Susan Musser. Mount Joy
Luke F. Brubaker, Mount Joy
Weaver Homestead Farms, New Holland
Galen Crouse & Sons. Stevens
Roy H. Book. Ronks
Martin & Loren Zimmerman, East Earl
Jay E. Landis. Lancaster
Horace Jackson, Peach Bottom
Eugene Burkholder. Quarryville
Joseph DcLong, Quarryville
Curtis Akers. Quarryville
feed and numerous other factors
that go into raising replacements.
The costs to raise heifers are
labor, feed, facilities and
machinery, interest, mortality,
bedding, health, and reproduction.
Several of these costs are
relatively easy to measure; these
costs are bedding, health, and
reproduction. The remaining
costs are a little more difficult to
estimate. To estimate the true
costs of feed for heifers a value
needs to be placed on all feed,
including refusals from the dairy
herd. The value of farm-grown
feed is the market value of the
forage and the refusals can be
valued at either market or
replacement value.
The time a facility or machine
is used by the heifer enterprise
and the value of the item
determine facilities and
machinery costs Costs tor
machinery and facilities should
also include a proportion of the
repairs and maintenance costs
based on the allocation of time to
the heifer enterprise. The value
of the capital items used by the
heifer activity should be the
depreciated value rather than the
cost value.
Of Distinction Winners Listed From Past Years
Dairy
Noah Martin, Kirkwood
Jay Richard Groff. Manhcim
Kenneth & Lois Hoffer, Manhcim
John L. Landis, Lancaster
Dale Hcrshey, Gap
Donald & Larry Hershey, Manheim
Kenneth L. Balmer, Elizabethtown
Titus B. Stoner, Landisville
Maplchofe Dairy Faim, Inc., Quarryvillc
Robert & Bonnie Wentworth & Family, Quarryvillc
John S. Zimmerman, East Earl
Rohrer Homestead, Lancaster
John & Susan Howard, Willow Street
Larry & John Hess, Lancaster
Dale Herr, Kirkwood
John Shank, Quarryvillc
The Martins Bridge View Dairy, Conestoga
David R. Wenger, Manheim
J. Ray and Rcba Ranck, Paradise
Philip G. Crouse, Stevens
Samel F. and Marian B. Long, Peach Bottom
Dave and Joe Garber. Lancaster
Kat-Lin Farm, Lililz
Sixcomcr Farm, Leola
Kenneth Run, Quarryvillc
Leonard H. Martin, Ephrala
Earl E. Martin, Ephrata
John A Rick Groff, Leola
Meadow Vista Farm, Bainbridge
Alan D. McCauley, Elizabethtown
James F. Brubaker, Mount Joy
Earl N. Landis, Manheim.
Cletus A Dale Balmer, Manheim
Ray Byer A Son. Lititz
Marlin Cassel Family, Manheim
Krcider Dairy Farms, Manheim
David A Lois Landis, Lancaster
Glen & Sharon Longenccker. Elizabethtown
Elvin Martin & Sons, Kinzers
Earl & Mary Jane Sander, Goodville
Trout Spring Farm, Lancaster
Harry & Elizabeth Zimmerman, East Earl
Fountain Hill, Gap
Brubaker Farms, Mount Joy
Nevin S. Homing, Litilz
D.G. Kauffman/J.E. Kreider, Lancaster
Samuel E. Beiler, Gordonville
Marvin R. or Ruth Stoltzfus, Lcola
Johnathan or Miriam Stoltzfus, Jr, Ronks
Lamar Gocklcy, Mohnton
Bodendale Farm, Lancaster
Mlr „ mn-Hinn Supplement to UicaMer Fainttn. SmurHair, July »■ 2000-l>aa» 31
Calculating The Costs Of
Replacements For Your
Interest costs capture the
opportunity cost of having a
heifer on the farm; the cost also
includes the interest cost of
variable inputs, such as feed.
Opportunity costs are the costs
the producer incurs when a
decision is made. For example,
the dairy farmer could sell the
heifer and invest the money in the
bank at the current interest rate
and gain income from this
investment; the income foregone
is the opportunity cost.
The mortality cost measures
the costs incurred due to the death
of heifers as they progress
through the heifer herd. Included
is the cost to raise a heifer to a
particular age, the value of the
heifer in different age classes and
the mortality rate of heifers in
each age class.
The final cost, labor, is
calculated in a similar way
to the facilities and
machinery cost. The most
important aspect to consider
here is that all labor tasks
are included. In the same
research mentioned earlier,
producers reported time
spent on feeding, bedding
and cleaning out heifer
facilities, but did not include
time spent on such tasks as
breeding, health checks and
vaccinations, and record
keeping. By not measuring
and reporting these jobs a
Landis S. Reid, Paricsburg
Maynard Rolhenbcrgcr, Lansdalc
DJ. & S.P. Schuler, Fleetwood
& Sharon Wampler, Lebanon
Clyde, Thomas & William Williams, Oxford
Ar-Joy Farms, Cochranville
WO-BO Farms, Ottsville
Franklin Troutman, Womelsdorf
Wilbur Hershey, Bethel
Rick Phillips, Glenhartsville
Wilhclmena Schmidt, Glenhartsville
Allen Rohrback, Brcinigsvillc
Boonecrofl Farms, Douglasville
Klein Farms, Easton
Dalton & Vickie Biehl, Kutztown
Gary & Sharon Slollzfus, Elverson
Delaware Valley College, Doyleslown
Promise Land Dairy, Perkasie
Dale Hoover, Lebanon
Vincent & Juliet Wagner, Myerstown
Lester & Marian Zimmerman, Myerstown
Junge Farms, New Tripoli
Ralph & Crystal Moyer, Myerstown
Marlin & Missy Moyer, Womelsdorf
Charles & Linda Zimmerman, Mohtsvillc
Paul & Geraldine Zimmerman, Bemvillc
James & Dolores Keller, Coopersburg
Nathan & Patricia Stoltzfus. Honeybrook
Ken & Marilyn Unable, Atglcn
Wilkinson Farms, Landenberg
Melvin & Jean Zcok, Elverson
Robert & Barry Gehman, Coopersburg
dairy farmer or heifer
grower is underestimating
the time spent rearing
heifers, which in turn leads
to an underestimation of the
cost of rearing heifers.
Measuring all these costs
accurately leads to a cost that is
closer to the true value of rearing
a heifer and allows a dairy
producer or heifer grower to
determine a better use of the
resources available to them.
Better utilization of resources
then leads to potentially higher
income and higher profitability of
✓ Check Out Our
Web site
www.lancasterfarnung.com
District 20
David & Phoebe Hitler, Fleetwood
Wilmcr & Robert Richard, Boyertown
Kirby & Sheryl Horst, Newmanstown
Clarence Kulp, Mohrsville
Jack Miller, Kempton
Hubert Sell, Schnccksvillc
Donald Hoffer, Lebanon
James Lindquist, Buckingham
Cyrus Bombcrgcr, Lebanon
Ben Bcilcr, Cochranvillc
K.W. & H.M. Blau, Jonestown
Warren W. Detweiler, Perkasie
Donald E. Landis, Myerstftwn
John C. & William J. Menz, Kulziown
Alvin M. Marlin, Lebanon
Rev-Hcl Farms, Inc., Mohrsville
Harold & Ester Bare, Aiglcn t
Tim & Teresa Kisslmg, Robesonia
Andrew D. Slollzfus, Morgantown
Paul Scmmcl Family, Schnccksvillc
Lancaster Farming
George and Mary Troutman, Mycislown
Joseph Greggo, Pen Argyl
Norman and Audrey Koehler, Bangor
Robert & Esther Crouse Family, Riegelsville
Clarence & Carol Fehnel Family, Easton
David & Rhoda King Family, Cochranville
William & Lynn Kline, Elverson
Tom & Shirley Krall. Lebanon
Timothy & Deborah Kurtz. Elverson
Raymond & Nancy Seidel, Kulztown
Larry K. Bauschcr, Lcnhartsville
Dan Rice, Kempton
Kenneth Sanner, Kulztown
Karl Herr, Oxford
Eugene Martin, Lebanon
John B Kline, Mycrslown
Raymond Kleintop. Jr., Danielsvillc
William and Karen Boyd, Mertztown
Michael Dietrich, Kulztown
Peter Markel. Breinigsville
Melvin Stoltzfus Family, Cochranville.
Conebella Farm, Elverson
Mark & Melody Stoltzfus, Honeybrook
Glen Run Way Farm, Alglen
Evergreen Farm, Chatham
Marshek Dairy Farm, Kennets Square
Edn Shaynah Kee Farm, Topton
Kieffer Farms, Inc., Hamburg
Maulfair Acres, Jonestown
Reid & Diane Hoover, Lebanon
Raising
Dairy
the dairy enterprise.
A computer-based spreadsheet
developed at Penn State is
available that calculates the costs
of raising heifers. The
spreadsheet and accompanying
instruction manual can be
downloaded from the Department
of Dairy and Animal Science’s
web-site, the address is
htto:/Avww.das nsu.edu/teamdairy
/special/. If you don’t have
access to the web, disk copies of
the program and manual can be
obtained by calling Peter Tozer at
(814) 863-3917.
Donald V. Scipl Family, Easion
George & Carol Undemach, Palmyra
Gideon SloUzfus. Honey Brook
James & Billie Hill. Lebanon
Jesse & Michelle Howe, Oltisvillc
Martin & Darlene Younkcr. Fleclwood
Edward Shushler & Daughters, East Greenville
Kirbyville Holsteins, Fleetwood
Birchwood Farm, Newtown
Dairy
of M
Distinction
Oaky Farm BaauWleaMoo Fngnm