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 unnoticed but can erode profitability over time. For example, underestimating yardage may lead a beef producer to assume their operation is more efficient than it truly is. Ignoring yardage also makes it difficult to identify areas where costs can be optimized. For example, the exclusion of machinery maintenance and repair costs may make the cow-calf enterprise look more profitable than it is.