# Cow-calf profit per head in Montana

> Montana cow-calf operations averaged roughly $165 in net cash income per bred cow in 2024, while total economic profit (after unpaid labor and capital charges) remained negative at about -$120 per cow despite stronger calf prices.

**Headline:** $165 net cash income per cow (2024, Northern Plains)

## Key Figures

| Metric | Value |
| --- | --- |
| Gross revenue per cow | $1,150 |
| Cash costs per cow | $985 |
| Non-cash costs (depreciation, unpaid labor, capital) | $285 |
| Net cash income per cow | $165 |
| Total economic profit per cow | -$120 |

## Detail

Montana cow-calf producers are seeing the strongest calf prices in a decade, with 550-lb feeder steers trading above $2.80/lb through 2024, pushing gross revenue per bred cow to roughly $1,150 on an 87-90% weaning rate assumption used in MSU Extension budgets. That revenue level is about 25% higher than the 2022 baseline, and it explains why net cash income per cow swung back to a positive $165 after several near-breakeven years.

The state's cost structure is dominated by feed. USDA ERS Commodity Costs and Returns data for the Northern Great Plains region show total cash costs near $985 per cow, with harvested forage and purchased hay alone accounting for more than $450 of that figure. Montana's longer winter feeding window - typically 150-180 days - drives feed costs above the national cow-calf average and leaves little room for error when hay markets tighten.

Despite the positive cash margin, total economic profit stays negative at roughly -$120 per cow once non-cash charges are included. MSU Extension budgets allocate about $285 per cow across depreciation on the cow herd, unpaid operator and family labor, and a capital charge on land and breeding stock. Montana Stockgrowers Association industry data confirm that the median ranch continues to rely on land appreciation and off-ranch income rather than accounting profit, which is the central economic reality of cow-calf production in the state.

## Frequently Asked Questions

### Why is Montana's cow-calf cost structure higher than the US average?

Long winters force 5-6 months of harvested hay feeding, and Montana's hay and pasture rent costs run above the Northern Plains mean, pushing feed costs past $450 per cow versus a US average near $390.

### What weaning percentage do Montana budgets assume?

MSU Extension cow-calf budgets assume an 87-90% weaning rate on a 550-lb steer calf basis, which is the single largest driver of per-cow revenue variance.

### Are 2024-2025 calf prices enough to make Montana ranches profitable?

Feeder steer prices above $2.80/lb lifted net cash income sharply, but total economic profit (including unpaid family labor and land charges) is still negative for the median Montana operation.

## Sources

1. USDA ERS Commodity Costs and Returns - Cow-Calf, Northern Great Plains (2024) — https://www.ers.usda.gov/data-products/commodity-costs-and-returns/
2. MSU Extension Montana Cow-Calf Enterprise Budget (2024) — https://www.montana.edu/extension/agbusiness/budgets/
3. Montana Stockgrowers Association Industry Data (2024) — https://mtbeef.org/

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