Nebraska Cattle Budgets - Central Nebraska

Why Budgets Matter

For cattle producers, understanding the full cost of production — not just out-of-pocket expenses — is essential for evaluating profitability, marketing decisions, and herd management strategies.

Representative budgets reflect typical Nebraska cow-calf systems and are designed to be customized using current local prices, production assumptions, and individual management practices.

Background and Budget Framework – 300 Head Cow Herd 

For many Central Nebraska farms and ranches, maintaining a herd of approximately 300 cows with 12 bulls is common. Pasture acres and row-crop ground are often integrated into cow-calf enterprises in this area. 

This budget was originally developed from producer roundtables held in 2018 and updated with current values in 2026. It is created to represent a typical operation for the area and should be used only as a guide.

Producers are encouraged to enter their own production and cost information to develop projections specific to their operation.

These are cost-of-production budgets and not cash-flow-only budgets. To reflect the true economic cost of production, feed, hay, pasture, and crop residues were valued at market rates—even when raised on owned land.

Livestock Management Practices

Calving time is typically in the February and March timeframe annually. For the 300 cow-calf herd, the weaning rate is estimated at 91 percent, producing approximately 273 calves annually, evenly split between steers and heifers. The annual cow cull rate is assumed to be 16.7 percent, or 44 per year with 2% death loss. Replacement heifers are assumed to be purchased, reflecting common practice among smaller herds. Bulls are replaced on a four-year cycle.

This budget reflects that half of the calves are typically sold 30 to 60 days after weaning from late November through January. Steer calves average 575–600 pounds and heifers 525–550 pounds at weaning. Creep feeding is optional and is not included in this representative budget. The other half of the calf crop is retained for backgrounding where additional weight is added before sale over a 60–75-day timeframe. See the Central NE Backgrounding Cattle budget for an example of a backgrounding budget where calves are transferred in from the cow herd. 

Cow-calf pairs graze pasture for about five months, from May through September. After grazing season, cattle commonly utilize crop residues when available. Corn stalks are frequently grazed on owned land; rental costs vary depending on fencing, water availability, and infrastructure.

During the 60-to 90-day pre-calving and calving period, rations typically include an energy supplement such as distillers grains, and corn silage. Protein supplements often include distillers grains, and/or alfalfa. Salt and mineral costs assume approximately 2-4 ounces per cow per day.

Non-Feed Input Costs

Veterinary, medical, non-feed materials, custom services, and other direct costs are added on a per-head basis or per-herd basis when applicable.

Marketing costs may be entered per head, as a percentage of sale value, or per transaction. In these examples, a four-percent marketing charge reflects typical commission and sale-related fees. Transportation is not included in marketing costs as they are explicitly added as other direct expenses or additional marketing costs. 

Machinery, Equipment, and Facilities

Equipment in the budgets might include an ATV, a pickup, small to medium-sized horsepower tractor, stock trailer, portable chute, fencing panels, and feeding equipment. Facility expenses are entered as direct expenses in these examples.  

Assets shared across multiple enterprises should be considered at full value, with only the appropriate share allocated to the cow-calf herd. Fuel, repairs, depreciation, and opportunity ownership costs are included, with depreciation and opportunity costs treated as non-cash expenses.

Depreciation, Interest, and Overhead

Livestock depreciation is calculated as the difference between average in-service value and expected cull value. Depreciation for tax purposes may differ and should be reviewed with a tax professional. 

An opportunity interest rate of three percent is applied to total livestock investment to reflect alternative use of capital. This opportunity interest rate reflects a conservative long-term alternative return and is used currently across Nebraska Extension budgets.

Overhead includes the cow-calf share of insurance, accounting, professional fees, and utilities. Real estate costs are excluded because pasture, hay, and crop residues are valued as rental expenses. Management charges and enterprise-specific overhead may be added as appropriate.

Brent Plugge – Extension Educator, Livestock Systems

Glennis McClure – Extension Educator – Center for Agricultural Profitability

Shannon Sand – Extension Educator - Center for Agricultural Profitability

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Updated July 2026