Nebraska Cattle Budgets - Southeast Nebraska

Why Budgets Matter

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

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

Background and Budget Framework 

For many southeast Nebraska farms, maintaining a herd of approximately 50 to over 100 cows and two to four or five bulls is common. Pasture acres and row-crop ground are often integrated into cow-calf enterprises in the Southeast Nebraska area.

These budgets were originally developed from producer roundtables held in 2018 and updated with current values. They represent typical operations for the area and should be used only as a guide. Producers are encouraged to use the Ag Budget Calculator (ABC) program to download these sample budgets and then modify to represent their own production and cost information 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 are valued at current market rates—even when raised on owned land.

Livestock Management Practices

Calving time is typically in the February and March timeframe annually. For the 50 cow-calf herd, the weaning rate is estimated at 94 percent, producing approximately 47 calves annually, evenly split between steers and heifers. The annual cow cull rate is assumed to be 14 percent, or seven head per year. Replacement heifers are assumed to be purchased, reflecting common practice among smaller herds. Bulls are replaced on a four-year cycle.

For the 120 cow-calf herd, the weaning rate is estimated at 92 percent, producing approximately 110 calves annually, evenly split between steers and heifers. The annual cow cull rate is assumed to be 16-17 percent, or 20 head per year. In this budget, half of the replacement females are raised heifers with the rest assumed to be purchased. Bulls are replaced on a four-year cycle.

For both budgets, 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.

Cow-calf pairs graze pasture for about five months, from May through September. After grazing season, cattle commonly utilize crop residues. 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 distiller’s grains, silage, and/or alfalfa hay. Feed costs vary by hauling distance and purchasing method, and smaller herds may face higher per-unit costs due to limited storage or purchasing power. Salt and mineral costs assume four ounces per cow per day.

Non-Feed Input Costs

Veterinary, medical, non-feed materials, custom services, and other direct costs are entered on a per-head basis where 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, three-quarter-ton pickup, small-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.

Barry Weber – Extension Educator, Livestock Systems

Glennis McClure – Extension Educator, Center for Agricultural Profitability

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Updated July 2026