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Department of Agricultural Economics
Buy Sell Margins Calculator

The buy/sell margin (the difference between a feeder calf or yearling purchase price and a sale price at some later date) is a critical component in the profitability of beef cattle backgrounding and finishing systems. In fact, the margin can make or break a producer in a single year.

This program allows you to look at historical buy/sell margins for buy-sell periods that you select for heifers and steers. These historical buy/sell margins can give you some feel for the price risk exposure on purchased cattle as well as calves from a cow/calf program. The absolute buy/sell margins in dollars per hundredweight are one measure of price risk.

The BSM Calculator will calculate the minimum (worst), average, and maximum (best) buy/sell margins for the past 10 years (5 years for Holstein steers) based on your selections of both buying and selling months, state, sex, weight ranges, and grades. The input screen of the BSM Calculator presents two boxes which include information for the buying and selling months needed to calculate the minimum, average, and maximum buy/sell margins.

picture from Buy/Sell  Margins Calculator program

Download the software

PublicationsLink to Adobe Reader download site

This software was developed cooperatively by the University of Tennessee Extension and University of Georgia Cooperative Extension Service with support from The United States Department of Agriculture Fund For Rural America program.


Information contact Tammy McKinley or Emmit Rawls

Text Only Page

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The Buy/Sell Margins Calculator has been updated to include prices through 2003 for Tennessee and Georgia feeder cattle and Southern Plains finished cattle as well as prices for Tennessee 700-800 lbs. heifers. The Buy/Sell Margins Calculator is a computer software program designed to help producers evaluate the decision to buy and/or sell cattle in a backgrounding or finishing operation.

Software Links

• Beef Systems 2002
• THE Beef Cattle fIRM
• Buy-Sell Margins Calculator
• CYMIDA
• Machinery Cost Calculator
• Sustainable Dairy Systems

 

 Institute of Agriculture  Extension Experiment Station College of ASNR College of Veterinary Medicine