Yardage is feedlot rent cost per animal. Yardage is calculated using overhead costs and number of animals. Yardage costs include building depreciation, employee salary, maintenance, equipment, marketing, administrative fees and taxes. According to the University of Illinois Extension, the average yardage costs are between .30 and .40 per head. Older feedlots might offer a lower yardage cost because of a lack of replacement costs. Yardage does not include feed costs.
Things You'll Need
- Fixed costs
- Number of head
- Facility days in use
- Capacity of facility
Write down your fixed costs: building depreciation, employee salary, maintenance, bedding, fuel, equipment, marketing, administrative fees and taxes.
Add the fixed costs together.
Calculate feedlot use by multiplying the feedlot capacity by 365 days.
For example: 25,000 head x 365 days = 9,125,000 head days. If the feedlot is only 50 percent utilized, multiply .50 x 25,000 x 365 = 4,562,500 head days.
Divide your overhead costs by head/days. If your overhead cost is $3,850,125, for example: $3,850,125/9,125,000 = .42. Yardage costs per head will be 42 cents.
Tips & Warnings
- Costs are lowered when the feedlot is used to full capacity.
- Iowa State University Extension. Calculating Yardage - Are You Charging Enough. Dan Loy, Denise Schwab.
- University of Illinois Extension. What would yardage be on a 800-pound calf with a projected ADG (average daily gain) of 2.7 pounds a day? February 2011.
- User Manual Stocker, Feeder Grow Yard Projected Profit Calculator. 2010
- Photo Credit Jupiterimages/Photos.com/Getty Images
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