# Cow-calf profit per head in Michigan

> Michigan cow-calf operators are averaging roughly $165 per cow in net cash income in 2025, with total economic profit closer to breakeven once unpaid labor and depreciation are charged. Strong feeder calf prices are offsetting elevated hay and interest costs.

**Headline:** $165 net cash income per cow (2025)

## Key Figures

| Metric | Value |
| --- | --- |
| Gross revenue per cow | $1,180 |
| Cash costs per cow | $1,015 |
| Non-cash costs (labor, depreciation) | $310 |
| Net cash income per cow | $165 |
| Total economic profit per cow | -$145 |

## Detail

Michigan cow-calf producers are seeing their best calf market in a generation in 2025, with 550 lb steer calves bringing $3.20-$3.40/lb at Lower Peninsula auctions. Applied to an 88% weaning rate on MSU Extension's standard budget, gross revenue lands near $1,180 per exposed cow once cull cow receipts are folded in.

Cash costs in Michigan run roughly $1,015 per cow, materially higher than USDA ERS national cow-calf averages because Michigan winters demand 150-180 days of stored feed. Hay, pasture rent, and veterinary costs dominate the variable line, while interest on operating loans has stayed elevated into 2025.

Once non-cash charges for unpaid operator labor and depreciation on bulls, fencing, and equipment (around $310 per cow per MSU budgets) are subtracted, total economic profit flips negative near -$145 per cow even though net cash income clears $165. That gap is why Michigan's beef cow herd continues to contract in line with the national NASS inventory decline.

## Frequently Asked Questions

### Why is Michigan cow-calf profit lower than Plains states?

Michigan's humid climate forces longer winter feeding (150-180 days) versus 90-120 days in the Plains, driving hay and stored-forage costs well above the national average.

### What weaning percentage do Michigan budgets assume?

MSU Extension cow-calf budgets assume an 88-90% weaning rate and a 550 lb average weaning weight for spring-calving herds in Michigan's Lower Peninsula.

### How much are Michigan feeder calves bringing in 2025?

550 lb steer calves at Michigan auctions are trading around $3.20-$3.40/lb in spring 2025, a record high driven by the smallest US beef cow herd since 1961.

## Sources

1. USDA ERS Commodity Costs and Returns, Cow-Calf (2024) — https://www.ers.usda.gov/data-products/commodity-costs-and-returns/
2. MSU Extension Michigan Cow-Calf Budget (2024) — https://www.canr.msu.edu/beef/uploads/files/Cow_Calf_Budget.pdf
3. USDA NASS Michigan Cattle Inventory (2025) — https://www.nass.usda.gov/Statistics_by_State/Michigan/

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Source: Vellum — https://vellum.app/cow-calf-profit-per-head/michigan