Farm with Beef Feedlot Planner

Authors:
J. Roy Black -- Agricultural, Food and Resource Economics, Michigan State University
Steve Rust -- Animal Science, Michigan State University

Format:
Excel spreadsheet (*.xls). There are no macros so the program will run under Excel 2003, 2007 or 2010
Can be run in "Optimize subject to constraints" mode if the user has installed "solver" and is familiar with its application

Objective:
Facilitate comparison of the profitability of alternative plans to utilize available corn acreage going into harvest and avail
storage capacity, and corn grain drying capacity.

Components:
Performance measures:
Net return to fixed assets above those costs yet to be incrurred. Costs for inputs that have already been incurred prior
Scenario analysis, particularly in risk assessment context. "How will different plans perform under a range of scenarios
Choices [manipulated by the user in testing plans. Or, solved for using the optimizer (solver)].
Corn acreage harvested for: (1) grain; (2) silage; and/or (3)snapped ear
Buy feeder cattle for finishing, choice of ration, …
Sell: (1) corn grain; (2) corn silage; and/or (3) snapped ear corn
Buy: (1) corn grain; (2) corn silage; and/or (3) snapped ear corn
Buy distiller's grains
Constraints:
Corn:
Acres available for harvest
Corn grain harvest capacity (acres)
Corn silage harvest capacity (acres)
Snapped ear corn harvest (acres)
Corn grain drying capacity (either on farm or elevator) (bu 85% DM equivalent)
Corn silage storage capacity (ton)
Feedlot
One time capacity (hd)
Minimum number the farm is willing to feed
Framework to "log in" animals that are currently on feed and will be consuming out of the 2012 crop
Parameters:
Prices for buying and for selling: (1) dry corn; (2) high moisture corn; (3) corn silage; and (4) snapped ear corn.
Price for purcahsing distillers gains (delivered)
Costs of harvesting each of the potential form of crop (costs incurred up to harvest are excluded; they have already b
Yields: Grain, silage measured as corn plant in field, snapped ear measured in field.

Animal performance for alternative feeding programs: average daily pay-to-pay gain and feed/gain. ADG x F/G = aver
Feed requirements for each feeding program: corn grain, corn silage, distillers grains, snapped ear corn, and supplem
Enter percent of each feed in ration dry matter
Program calculates requirements for each feed on an as-fed basis including an allowance for shrink and storage lo
 Feedstuff shrinkage and storage losses if fed.
Animal purchase price and weight and sale price and shrunk sale weight and price (or, carcass weight and price)
Death loss, percdent of animals purchased.
Costs of operating the feedlot (typically variable costs in this budgeting mode): yardage, interest, etc.
Manure credit, $/hd/day
Turnover rate, turns/year (typically, assume 75% or 80% of capacity (270 to 290 available days / year)

Good to the Beef Feedlot Planner tab/ worksheet

 familiar with its application

going into harvest and available feedlot capacity subject to harvest capacity,

already been incurred prior to thesse decisions are ignored.

m under a range of scenarios, particularly feedlot gross margins and corn prices?"

e 2012 crop

4) snapped ear corn.

cluded; they have already been committed).

feed/gain. ADG x F/G = average daily dry matter intake as a check

apped ear corn, and supplement.

nce for shrink and storage loss

rcass weight and price)

nterest, etc.

days / year)
Microsoft Excel 14.0 Answer Report
Worksheet: [Beff Feedlot Planner V02A.xls]Beef Feedlot Planner
Report Created: 8/22/2012 2:32:22 PM
Result: Solver found a solution. All Constraints and optimality conditions are satisfied.
Solver Engine
Engine: Simplex LP
Solution Time: 0.047 Seconds.
Iterations: 15 Subproblems: 0
Solver Options
Max Time Unlimited, Iterations Unlimited, Precision 0.000001, Use Automatic Scaling
Max Subproblems Unlimited, Max Integer Sols Unlimited, Integer Tolerance 1%, Assume NonNegative

Objective Cell (Max)

Cell Name Original Value Final Value
$L$28 Net return to "fixed resources": Level/Amount $890,630 $890,630

Variable Cells
Cell Name Original Value Final Value
$L$6 Fed beef budget 1, hd Level/Amount 0 0
$L$7 Fed beef budget 2, hd Level/Amount 1,200 1,200
$L$8 Fed beef budget 3, hd Level/Amount 0 0
$L$9 Fed beef budget 4, hd Level/Amount 0 0
$L$10 Corn for dry grain, acres Level/Amount 549 549
$L$11 Corn for HM grain, acres Level/Amount 0 0
$L$12 Corn for silage, acres Level/Amount 251 251
$L$13 Corn for snapped ear,ton Level/Amount 0 0
$L$14 Corn grain, 85% DM equiv, in storage, bu Level/Amount 0 0
$L$15 Corn silage, 32% DM, in storage, ton Level/Amount 0 0
$L$16 Buy dry corn, bu Level/Amount 0 0
$L$17 Buy HM corn, dry equiv, bu Level/Amount 0 0
$L$18 Buy snapped ear corn, ton Level/Amount 0 0
$L$20 Buy corn silage, ton Level/Amount 0 0
$L$19 Buy distillers, dry equiv., ton Level/Amount 879 879
$L$21 Sell dry corn Level/Amount 0 20,891
$L$22 Sell HM corn, dry equiv, bu Level/Amount 20,891 0
$L$23 Sell snapped ear corn, ton Level/Amount 0 0
$L$24 Sell corn silage, ton Level/Amount 0 0

Constraints
Cell Name Cell Value Formula
$L$33 Feedlot capacity, hd - (used+sold) 1,200 $L$33<=$N$33
$L$34 Corn, acres - (used+sold) 800 $L$34<=$N$34
$L$35 Corn grain, dry equiv., bu - (used+sold) 0 $L$35>=$N$35
$L$36 Corn silage, ton - (used+sold) 0 $L$36>=$N$36
$L$37 Corn, snapped ear, ton - (used+sold) 0 $L$37>=$N$37
$L$38 Distillers gain, dry equiv, ton - (used+sold) 0.0 $L$38>=$N$38
$L$39 Corn grain hvst capacity, acre - (used+sold) 549 $L$39<=$N$39
$L$40 Corn silage harvest capacity, acre - (used+sold) 251 $L$40<=$N$40
$L$41 Corn, snapped ear harvest capacity, acre - (used+sold) 0 $L$41<=$N$41
$L$42 Corn grain, 85% DM equiv, in storage, bu - (used+sold) 0 $L$42<=$N$42
$L$43 Corn silage, 32% DM, in storage, ton - (used+sold) 0 $L$43<=$N$43
$L$45 Corn drying capacity, bu - (used+sold) 20,891 $L$45<=$N$45
$L$47 Minimum cattle on feed, hd - (used+sold) 1,200 $L$47>=$N$47
$L$49 Minimum cattle on feed under budgets 1 & 2 - (used+sold) 1,200 $L$49>=$N$49
$L$50 Maxmum cattle on feed under budgets 1 & 2 - (used+sold) 1,200 $L$50<=$N$50
$L$51 Maximum dry corn sales, bu - (used+sold) 20,891 $L$51<=$N$51
$L$52 Maximum HM corn sales, dry equiv., bu - (used+sold) 0 $L$52<=$N$52
$L$53 Maximum snapped ear corn sales, ton - (used+sold) 0 $L$53<=$N$53
$L$54 Maximum corn silage sales, ton - (used+sold) 0 $L$54<=$N$54
NonNegative

Integer
Contin
Contin
Contin
Contin
Contin
Contin
Contin
Contin
Contin
Contin
Contin
Contin
Contin
Contin
Contin
Contin
Contin
Contin
Contin

Status Slack
Binding 0
Binding 0
Binding 0
Binding 0
Binding 0
Binding 0.0
Not Binding 250.8698864
Not Binding 549.1301136
Binding 0
Binding 0
Binding 0
Not Binding 179109.2788
Not Binding 1,200
Not Binding 1,200
Binding 0
Not Binding 179109.2788
Binding 0
Binding 0
Binding 0
Microsoft Excel 14.0 Sensitivity Report
Worksheet: [Beff Feedlot Planner V02A.xls]Beef Feedlot Planner
Report Created: 8/22/2012 2:32:23 PM

Variable Cells
Final Reduced
Cell Name Value Cost
$L$6 Fed beef budget 1, hd Level/Amount 0 -10.93156608
$L$7 Fed beef budget 2, hd Level/Amount 1200 0
$L$8 Fed beef budget 3, hd Level/Amount 0 -10.93156608
$L$9 Fed beef budget 4, hd Level/Amount 0 0
$L$10 Corn for dry grain, acres Level/Amount 549.1301136 0
$L$11 Corn for HM grain, acres Level/Amount 0 -5
$L$12 Corn for silage, acres Level/Amount 250.8698864 0
$L$13 Corn for snapped ear,ton Level/Amount 0 0
$L$14 Corn grain, 85% DM equiv, in storage, bu Level/Amount 0 0
$L$15 Corn silage, 32% DM, in storage, ton Level/Amount 0 0
$L$16 Buy dry corn, bu Level/Amount 0 -0.6
$L$17 Buy HM corn, dry equiv, bu Level/Amount 0 -91.6
$L$18 Buy snapped ear corn, ton Level/Amount 0 0
$L$20 Buy corn silage, ton Level/Amount 0 -17.31818182
$L$19 Buy distillers, dry equiv., ton Level/Amount 878.796 0
$L$21 Sell dry corn Level/Amount 20890.72125 0
$L$22 Sell HM corn, dry equiv, bu Level/Amount 0 0
$L$23 Sell snapped ear corn, ton Level/Amount 0 -99
$L$24 Sell corn silage, ton Level/Amount 0 0

Constraints
Final Shadow
Cell Name Value Price
$L$33 Feedlot capacity, hd - (used+sold) 1200 25.525286993
$L$34 Corn, acres - (used+sold) 800 1075
$L$35 Corn grain, dry equiv., bu - (used+sold) 1.455192E-11 -7.4
$L$36 Corn silage, ton - (used+sold) 0 -50.68181818
$L$37 Corn, snapped ear, ton - (used+sold) 0 -99
$L$38 Distillers gain, dry equiv, ton - (used+sold) 0 -302.5210084
$L$39 Corn grain hvst capacity, acre - (used+sold) 549.1301136 0
$L$40 Corn silage harvest capacity, acre - (used+sold) 250.8698864 0
$L$41 Corn, snapped ear harvest capacity, acre - (used+sold) 0 949
$L$42 Corn grain, 85% DM equiv, in storage, bu - (used+sold) 0 7.4
$L$43 Corn silage, 32% DM, in storage, ton - (used+sold) 0 50.681818182
$L$45 Corn drying capacity, bu - (used+sold) 20890.72125 0
$L$47 Minimum cattle on feed, hd - (used+sold) 1200 0
$L$49 Minimum cattle on feed under budgets 1 & 2 - (used+sold) 1200 0
$L$50 Maxmum cattle on feed under budgets 1 & 2 - (used+sold) 1200 0
$L$51 Maximum dry corn sales, bu - (used+sold) 20890.72125 0
$L$52 Maximum HM corn sales, dry equiv., bu - (used+sold) 0 0
$L$53 Maximum snapped ear corn sales, ton - (used+sold) 0 0
$L$54 Maximum corn silage sales, ton - (used+sold) 0 14.318181818
 Objective Allowable Allowable
Coefficient Increase Decrease
932.53704545 10.93156608 1E+030
859.28967391 1E+030 0
932.53704545 10.93156608 1E+030
859.28967391 0 10.93156608
-35 0 5
-40 5 1E+030
-40 1115 82.28837226
-154 1E+030 949
0 1E+030 7.4
0 1E+030 50.68181818
-8 0.6 1E+030
-99 91.6 1E+030
-99 43.13636364 1E+030
-68 17.31818182 1E+030
-302.5210084 302.5210084 34.85489737
7.4 0 0.888815772
0 0 1E+030
0 99 1E+030
65 1E+030 14.31818182

Constraint Allowable Allowable

R.H. Side Increase Decrease
1200 252.9416601 0
800 250.8698864 139.271475
0 20890.72125 179109.2788
0 3063.97245 5519.1375
0 1E+030 0
0 1E+030 878.796
800 1E+030 250.8698864
800 1E+030 549.1301136
0 0 0
0 179109.2788 0
0 5519.1375 0
200000 1E+030 179109.2788
0 1200 1E+030
0 1200 1E+030
 1200 0 1200
200000 1E+030 179109.2788
0 1E+030 0
0 1E+030 0
0 3063.97245 0
Microsoft Excel 14.0 Limits Report
Worksheet: [Beff Feedlot Planner V02A.xls]Beef Feedlot Planner
Report Created: 8/22/2012 2:32:23 PM

Objective
Cell Name Value
$L$28 Net return to "fixed resources": Level/Amount $890,630

Variable Lower Objective Upper

Cell Name Value Limit Result Limit
$L$6 Fed beef budget 1, hd Level/Amount 0 0 890,630 0
$L$7 Fed beef budget 2, hd Level/Amount 1,200 0 -140,517 1,200
$L$8 Fed beef budget 3, hd Level/Amount 0 0 890,630 0
$L$9 Fed beef budget 4, hd Level/Amount 0 0 890,630 0
$L$10 Corn for dry grain, acres Level/Amount 549 549 890,630 549
$L$11 Corn for HM grain, acres Level/Amount 0 0 890,630 0
$L$12 Corn for silage, acres Level/Amount 251 251 890,630 251
$L$13 Corn for snapped ear,ton Level/Amount 0 0 890,630 0
$L$14 Corn grain, 85% DM equiv, in storage, bu Level/Amount 0 0 890,630 0
$L$15 Corn silage, 32% DM, in storage, ton Level/Amount 0 0 890,630 0
$L$16 Buy dry corn, bu Level/Amount 0 0 890,630 #N/A
$L$17 Buy HM corn, dry equiv, bu Level/Amount 0 0 890,630 #N/A
$L$18 Buy snapped ear corn, ton Level/Amount 0 0 890,630 #N/A
$L$20 Buy corn silage, ton Level/Amount 0 0 890,630 #N/A
$L$19 Buy distillers, dry equiv., ton Level/Amount 879 879 890,630 #N/A
$L$21 Sell dry corn Level/Amount 20,891 0 736,039 20,891
$L$22 Sell HM corn, dry equiv, bu Level/Amount 0 0 890,630 0
$L$23 Sell snapped ear corn, ton Level/Amount 0 0 890,630 0
$L$24 Sell corn silage, ton Level/Amount 0 0 890,630 0
Objective
Result
890,630
890,630
890,630
890,630
890,630
890,630
890,630
890,630
890,630
890,630
#N/A
#N/A
#N/A
#N/A
#N/A
890,630
890,630
890,630
890,630
 Feed purchase prices
Corn, dry, $/bu $8.00
Corn, HM $/bu (dry equiv.) $99.00
Corn, snapped ear, $/ton $99.00
Distillers, $/ton dry equiv. $302.52
Corn silage, $/ton @ 32%DM (w/o shrink & stor. loss)) $68.00

Feed sale price (gross)

Corn, dry, $/bu $7.80
Corn, HM $/bu (dry equiv. @ farm) $0.00
Corn silage, $/ton @ 32%DM $65.00
Corn, snapped ear, $/ton $0.00

Feed processing for sale costs:

Corn, dry, delivered
Drying cost,$/point $0.040
Points dried 5.0
Hauling cost, $/bu $0.20
Net sale price, $/bu $7.40

Crop harvesting & processing for feeding costs:

Corn silage: Hvst, transport, pack ($/ton) $7.00
Corn grain ($/acre) $35.00
Corn, HM ($/dry bu equiv.) $40.00
Corn, snapped ear, $/acre $50.00

Crop Yields:
Corn grain, bu 150.0
Corn silage, ton in field 22.0
Corn, snapped ear, ton in field 0.0

Field and harvest losses, %

Corn, HM, relative to dry corn 0.0

Resource constraints:
Corn, acres 800
Feedlot, one time capacity 1,000
Corn grain harvest capacity, acres 800
Corn silage harvest capacity, acres 800
Snapped ear harvest capacity, acres 0
Corn silage storage capacity, ton 18,000

Maximum drying capacity, bu dry equiv 200,000

Corn grain, 85% DM equiv, in storage, bu 0

Corn silage, 32% DM, in storage, ton 0

Targets:
Minimum cattle on feed at one time, hd 0
Cattle fed under budgets 1 and 2 (to accommodate
cattle currently on feed):
Minimum, hd 0
Maximum, hd 0
Maximum dry corn sales, bu 200,000
Maximum HM corn sales, bu dry equiv. 0
Maximim corn silage sales, tons 0
Maximum snapped ear sales, tons 0
What is solver?
An "add-in" for Excel that "solves" for the plan that maximizes net return above allocated costs subject to:
Constraints:
Corn:
Acres available for harvest
Corn grain harvest capacity (acres)
Corn silage harvest capacity (acres)
Snapped ear corn harvest (acres)

Corn grain drying capacity (either on farm or elevator) (bu 85% DM equivalent)
Corn silage storage capacity (ton)

Feedlot
One time capacity (hd)
Minimum number of cattle the farm is willing to feed
Framework to "log in" animals that are currently on feed and will be consuming out of the 2012 crop
llocated costs subject to:

ng out of the 2012 crop