Cow-calf profit per head in South Dakota

South Dakota cow-calf producers entered 2025 with the strongest calf market in a decade. USDA ERS Northern Great Plains cow-calf returns put gross value of production near $1,420 per cow, driven by 550-lb steer calves trading above $3.00/lb at SD auction barns, which pushes gross revenue well above the long-run average tracked in the ERS Commodity Costs and Returns series.

SDSU Extension's 2025 cow-calf enterprise budget assumes an 88-92% weaning rate on native range in western SD, with winter feeding costs built around locally harvested hay. Feed costs (grazed forage plus 120-140 days of hay feeding) make up 55-60% of the $1,135 cash cost per cow, and pasture rent in the Northern Plains remains meaningfully below Corn Belt rates, which is the structural reason SD consistently outperforms the U.S. average in the ERS returns dataset.

The gap between the $285 net cash income and the $95 total economic profit per cow reflects the non-cash charges SDSU and ERS load into the full-cost budget: depreciation on the cow herd and equipment, unpaid operator and family labor, and an opportunity charge on owned land. The South Dakota Cattlemen's Association's 2025 market outlook flags that while cash margins are strong, replacement heifer values above $2,500 are inflating the depreciation line and will compress economic profit as herds rebuild through 2026.