For six nights in early 2025, Aaron Berger, beef extension educator at University of Nebraska-Lincoln talked to a group of cattlemen about the one thing that’s king in every business: money. More specifically, the process of calculating annual cow costs to create a profitable business. Equipped with a thick black sharpie and an easel pad, Berger shared economic wisdom and left attendees thinking in a new light. This series walks through each of the six sessions and shares some of the concepts Berger explained. 

Session Six: Benchmark Data 

In the final session, Berger shares performance records from herds in Kansas, Colorado and North Dakota to help producers see how what they’ve been learning applies to actual operations.  

Using data reports like the Cow Herd Appraisal Performance Software (CHAPS) which has records going back to 1980, Berger discusses trends in beef production. From weaning weights to breed-up rates, this final session puts everything Berger has been teaching into perspective. 

Five Key Takeaways

1. Productivity does not equal profitability. It’s tempting to assume that highly productive cows are automatically profitable, but data shows otherwise. More pounds at weaning does not guarantee profit if input costs are rising disproportionately. Analyze the costs involved with improving productivity and strategically determine what to invest in for your operation. 
   
   To drive home the point, Berger shared a quote from Bob Taylor, former professor at Colorado State University: “Profitable cattle are usually productive, but productive cattle are not always profitable.” 
   
   
2. Know the limitations of your resources. Even if cows have the genetic potential to produce higher weaning weights, more milk and faster growth, their actual performance is capped by the resources available in their environment. Know the limitations of things forage quality, feed availability, climate and management practices.  
   
   Berger says, “In most operations folks have maxed out what their cows can do in terms of production based on the resources they have. They’re not going to get anymore, and if they do get much more, it’s going to come at an exceedingly high cost.” 
   
   
3. Cow size in increasing, but returns aren’t. Over the past 30 years, average cow weights have risen by 100 to 150 pounds but weaning weights have remained steady. Bigger cows demand more feed and maintenance, but the incremental gains in calf weight don’t offset the higher costs, leading to diminishing returns.  
   
   “We can ask cows to do more but if they don't have the resources to do more we're not going to get that production out of them,” he says. 
   
   
4. Cost control drives profitability. Data from the Kansas Farm Management Association shows that profitability hinges on managing costs, not just chasing maximum production. High-profit herds spend less on key budget items like harvested feed, equipment depreciation and labor, while maintaining similar productivity to herds with higher costs. 
   
   “Economically, they had a cow cost of about $965 whereas the high cost group was pushing $1,250,” Berger explains. “That’s a $450 difference in cost between these two groups of producers.” 
   
   
5. Fit genetics to the environment. Continually selecting for single traits like higher milk or weaning weights can backfire if the cow’s environment can’t support growth in those traits. Genetics is only half of the phenotypic equation; environment is the other half. When cows are pushed beyond what forage, feed and climate can sustain, reproductive performance and profitability suffer. 
   
   “In many cases we’ve got genetic potential in the cow that’s beyond what the environment and biology the resources will support,” Berger says. “If I have not seen any change in my weaning weight over the last 15–20 years and I’ve been selecting for increased weaning weight … could there be a reason why?”