Cost-Size Relationships of Utah Cattle Ranches

Abstract

Regression analyses of per cwt. beef production costs of four sizes of Utah cattle ranches indicate that no size of Utah range cattle operation up to 500 head is capable of covering all costs. When all production costs were taken into account, the 1968 optimum sized Utah cattle ranch from the ranch owner's viewpoint was 392 head of breeding cows. The weighted average beef price necessary for the optimum ranch size to meet all costs was $30.95 per cwt. When interest on investment in land, livestock, and improvements was ignored, the optimum sized cattle ranch from the owner's viewpoint was one with a capacity of 414 breeding cows. In order to meet all costs except interest on investment, the optimum ranch size would require a weighted average beef price of $17.77 per cwt.