Dairy Herd Retirement Program Bidding Calculator

DAIRY HERD RETIREMENT PROGRAM BIDDING CALCULATOR

Click here for a printable version of this calculator. The printable version requires the free Acrobat Reader which can be downloaded from http://www.adobe.com.

The purpose of this calculator is to help you develop a bid for the CWT dairy herd retirement program. Successful bidders under this program will market all cows to slaughter and will retain all proceeds from the sale of their cows to slaughter. Bids should not only cover loss of cow value, but also include funds for debt reduction, enterprise conversion, reduced net income, and other compensation desired to make the buyout worthwhile.

Enter your own figures for items 1., 2., 4., 5., 12., 14., 16., and 18. in the calculator below. Once these numbers are entered, press the Calculate button and the bid calculator will do the math for you. If you print out the paper form of this calculator, follow the instructions given for each line.

1.	Enter the total number of milking and dry cows in your herd:		head
2.	Enter the average value, per cow, you expect for your milking and dry cows:	$	per cow
3.	This is the total expected value of your herd: (Line 1. multiplied by line 2.)	$
4.	Enter the average weight of the milking and dry cows in your herd:		lbs. per cow
5.	Enter the slaughter price per pound of live weight:	$	per lb.
6.	This is the slaughter value per cow: (Line 4. multiplied by line 5.)	$	per cow
7.	This is the total slaughter value of your herd: (Line 1. multiplied by line 6.)	$
8.	This is the difference between dairy value & slaughter value: (Line 7. subtracted from line 3.)	$
9.	Enter your milk marketings, in pounds, from July 2002 through June 2003:		lbs.
10.	This is your milk marketings in hundredweights: (Line 9. divided by 100)		cwt
11.	This is your bid to cover herd value loss: (Line 8. divided by line 10.)	$	per cwt.
	Trigger points for additional compensation aspects of your bid:
12.	Enter desired reduction in debts owed, if any:	$
13.	This is the additional bid to pay this debt: (Line 12. divided by Line 10.)	$	per cwt
14.	Enter amount needed to invest in alternative enterprise or restocking dairy:	$
15.	This is the additional bid for reinvestment: (Line 14. divided by Line 10.)	$	per cwt
16.	If you would otherwise stay in dairy farming, enter lump sum amount needed to compensate you if alternative income sources yield less than your net dairy income:	$
17.	This is the additional bid to compensate for reduced net income, if any: (Line 16. divided by Line 10.)	$	per cwt
18.	Enter other compensation desired to make the buyout attractive:	$
19.	This is the additional bid for compensation: (Line 18. divided by Line 10.)	$	per cwt
20.	This is your total bid to cover herd value loss, debt, reinvestment, income reduction, & added incentive: (Lines 11., 13., 15., 17., and 19. added together)	$	per cwt.

Lara Worden , Area Specialized Agent

http://www.ces.ncsu.edu/gaston/