These two costs, which are especially pronounced in today’s current market environment, are depreciation and the opportunity cost of interest on the market value of the cow. Even if market prices remain steady, the current price structure for cows has drastically increased cow depreciation and the opportunity cost of interest on cow value. Combining the $180 of opportunity cost of interest on the average cow market value together with the $460 of cow depreciation, results in a total of $640 per cow per year. The cow-calf producer will not get a physical notice for either cow depreciation or the opportunity cost of interest. Cow-calf producers who recognize the economic cost of both cow depreciation and opportunity interest have taken the first step needed to address it.