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| Just doing some budgeting for the future and how do you calculate cow depreciation for a cow-calf herd for cows. This is not for IRS purposes, but for budgetary purposes only to determine whether or not it is profitable at all.
I don't know if this would be correct or not, but this is the scenerio that has been running through my head. Say I bought a bred heifer today for $1700 to calves in April. I expect her to stay in the herd for 10 years. Her salvage value as a slaughter cow in 10 years is projected at 1300 lbs @.70/lb or $910. So subtract the salvage value from the purchase price and divide it by the ten years. Am I out of line here, yes or no?
What about bulls?
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How do you calculate cow depreciation on a budget?
