Break-Even Values Reports

The Break-Even reports identify the point at which a grazing livestock enterprise is projected to neither make nor lose money under the current ranch management plan.

Ranch Vision provides break-even analysis for applicable stocker and feeder enterprises, including:

• Break-even purchase price: the maximum purchase price at which the enterprise is projected to break even, given the other modeled assumptions.
• Break-even sales price: the minimum sales price needed for the enterprise to break even, given the other modeled assumptions.
• Break-even purchase weight: the purchase weight at which the enterprise is projected to break even, given the other modeled assumptions.
• Break-even sales weight: the minimum sales weight needed for the enterprise to break even, given the other modeled assumptions.

The break-even calculations take into consideration cash and non-cash direct costs as well as adjustments for death loss.

How to use it: Use these values as references when evaluating livestock purchases and sales. Comparing actual or expected transaction values with the calculated break-evens shows the metrics the enterprise must meet to remain profitable and helps assess the financial feasibility of a potential grazing enterprise before committing resources.