extending the grazing season with unconventional forages to reduce farm costs christi l. falen, ui...
TRANSCRIPT
Extending the Grazing Season with Unconventional Forages
to Reduce Farm CostsChristi L. Falen, UI Extension Educator
Laura Sluder, Blue Sage Farm
C. Wilson Gray, UI Extension Economist
Glenn Shewmaker, UI Extension Forage Specialist
National Women in Agriculture ConferenceBaltimore, Maryland
March 24, 2010
Our Objective Controlling costs is essential:
– to reduce risk– to maintain profitability
Dual production goals– grass-fed lamb & sheep cheese
FINPACK analysis toproject costs & returns– for enterprises– cash flow for the
business plan
FINANCIAL STANDARDS MEASURESLIQUIDITY Begin End Current ratio 2.93 2.30 Working capital 109,585 104,294 SOLVENCY (Market) Begin EndFarm debt to asset ratio 43 % 53 %Farm equity to asset ratio 57 % 47 %Farm debt to equity ratio 76 % 115 %
PROFITABILITY Cost MarketRate of return on farm asset 7.7 % 3.7 %Rate of return on farm equity 5.9 % 1.2 %Operating profit margin 24.9 % 16.7 %Net farm income 63,542 38,284
REPAYMENT CAPACITY Cash AccrualTerm debt coverage ratio 145 % 188 %Capital replacement margin 21,185 40,990 EFFICIENCYAsset turnover rate (market) 22.5 %Operating expense ratio 61.9 %Depreciation expense ratio 9.6 %Interest expense ratio 11.5 %Net farm income ratio 17.0 %
Economic Risk Analysis Farm expansion for contracted grazing, or
value-added sheep-milk cheese? Utilized FINPACK for economic analysis Continuing modifications on enterprise
budgets for value-added business ventures
Controlling Forage Costs Why extend the grazing season… because the biggest expense on a livestock
operation is winter feed How can we be efficient and not waste our
forage…MiG
Management intensive Grazing (MiG)
A flexible management system - matching animal nutrient requirements to forage availability
High stock density, short duration grazing similar to buffalo on the Great Plains
Uses portable electric fence as a “predator”
Allows forages a chance to rest - avoiding the sin of the second bite
Conventional GrazingIt’s like letting the animal self feed at hay stack!
Animals eat the “candy” before they eat their “veggies”
Plants can’t recover completely before they are re-grazed
Nutrients are deposited in resting and watering areas
Uses fossil fuels and big iron
Pastures become unproductive and weedy– Over & under grazing
occur side-by-side Animals need
supplementation to meet nutritional requirements
The grazing season is shortened
MiG pasture vs. Conventional Pasture
Managed Grazing Requires hands-
on daily management
Animals eat plants in phase 2 including weeds
Nutrients are spread evenly over growing forage
Plants are allowed adequate rest for re-growth– Pastures are more
dense & diverse
Forage meets all nutritional needs
The grazing season is extended
Reduced labor and off farm inputs
Even nutrient distribution right where it’s needed
SAVES $
Well managed pasture
You build fence every day???
MiG FencingPermanent & Portable
Bank AccountsHay Bank - the hay stack
Forage Bank - the pasture
Fat Bank - the fat on the animal’s back
(BCS – body condition score)
The Hay Bank
You know exactly how much is in your account!
The most costly bank you have
Fat Bank Account Body Condition
Score (BCS) 1-10 1- bag of bones 10- butterball 5-7 is best
When forage availability is high animals put on fat
They can use that fat during times of low forage availability
The Forage Bank Account Growing perennial forage (pasture)
Stockpiled forage (winter pasture)
Annual forage (winter and summer pasture)
Perennial Pasture Available
during the growing season- April- September
Usually can meet nutrient needs of the animals
Can be stockpiled for winter grazing
Least cost feed
Stockpiled Forage Standing hay Lower in
nutrients than growing forage
Less expensive than feeding hay
Can be windrowed for accessibility in deep snow
Late Fall Grazing
Before and After Grazing
Winter Grazing on Pearl Millet
Dec 28,2008
Annual Forage Account Use when
perennials aren’t available
Highly palatable Uses less water
than perennials Less expensive
than hay Breaks pasture
weed cycles
December 16, 2007 Grazing Turnips
Flushing on TeffAugust 8, 2009
Forages to MeetSheep Requirements
0
20
40
60
80
100
120
J F M A M J J A S O N D
Stockpiled
Hay
Perennials
Annuals
Blue Sage FarmLabor Requirements
Cost Savings 2007+19 days 80 head Hay @ $120/T
SAVED $638.40 - $8.83 seed/water = $629.17 net saved
2008+29 days 150 head Hay @ $220/T SAVED $3349.50 - $458.33 seed/water
= $2891.17 net saved
2009+39 days 230 head Hay @ $95/T SAVED $2982.53 - $531.80 seed/water
= $2450.73 net saved
Forage Grazing Thoughts Even though you are selling a high value
product you still need to produce at the lowest cost
Use your bank accounts wisely
YEAR-ROUND GRAZING IS POSSIBLE!
Annual Forage Bank Low productivity pastures to unconventional
annual forages – turnips, pearl millet, teff, turnips/oats, forage soybeans, winter cereals
Tillage to reduce weed populations, along with MiG
Warm season annuals stockpile for fall/winter grazing, reduce irrigation water use
Transition back to bio-diverse perennial pastures, but increase production in short term
Let the animals be a multi-purpose farm tool
2007-09 On Farm Evaluations
Teff
Turnips Pearl Millet
Turnips/Oats
Pearl Millet - Early
7/17/08
Pearl Millet – Mid Season
Pearl Millet - Fall
Oct. 9, 2008
Control 5 Ton/Acre Compost
10 Ton/Acre Compost
Pearl Millet - Blue Sage Farm 2008
Oct. 9, 2008
100% DM Yield 2008
2008 Annual Forages
Teff Blue Sage Farm
Late July early Aug, 2008
2009 Teff Forage Yield
1
2
3
4
5
6
7
0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5
Average
Yield T/A at 100% DM
2009 Annual Forage Quality
CP% ADF NDF TDN RFV NEL
Teff 9.50 34.80 55.70 66.00 103 0.62
Pearl Millet
10.47 33.49 69.63 64.25 84 0.66
Forage Soybeans/Pearl Millet
8/12/09
Feed Quality – Soybeans/Millet
PM/M
ix o
f 5
PM/B
ig F
ello
w
PM/T
ara
PM/A
shtu
bula
PM/S
heyen
ne
PM/L
arge
Lad
Pearl
Mill
et
Mix
of 5
Big F
ello
w Tar
a
Ashtu
bula
Sheyen
ne
Large
Lad0
20406080
100120140160180200
Rel
ativ
e F
eed
Val
ue
2007 Turnips for Grazing Turnips broadcast at 4 lb/A Turnips planted in August 2007 great return for
early winter grazing Hay would have cost $638.40, turnip seed,
stockpiled tall fescue and water cost only $8.83
Winter Cereals
4 5 6 7 8 9 11 12 Hay0
255075
100125150175200225
May 22, 2008
Cost to purchase cereals compared to alfalfa, *standardized to 17% CP and 143 RFQ (140 RFV)
*Feed values will naturally vary as the price of alfalfa hay changes, since that is the base for standardization. Alfalfa Fair Quality prices from 2003-2009 for May ($97.59 100% DM) and July ($105.91 100% DM), separately, were averaged and used as the baseline to standardize for value, CP and RFQ.
$ V
alu
e p
er t
on
Varieties
July 1, 2008
July 1, 2008 Regrowth after 1st
harvest, simulated grazing
2-3” residual heightL-R triticale, barley, wheat
4-5” residual heightL-R wheat, barley
Wheat and Barley Yields at Various Residual Heights, Simulated Grazing
WC 2-3"
WC 4-5"
WC 9-10"
Barley 2-3"
Barley 4-5"
Barley 9-10"
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.01st cut 2nd cut 1st & 2nd
Yie
ld T
/A a
t 10
0%D
M
Extended Grazing to Reduce Costs
• Maximize Forage Bank to reduce input costs from the Hay Bank
• Match Forage Bank to livestock nutritional needs
• Use MiG to maximize forage use efficiency
• Use the Fat Bank when necessary
0
20
40
60
80
100
120
J F M A M J J A S O N D
Stockpiled
Hay
Perennials
Annuals
Acknowledgements• Blue Sage Farm – Laura and Paul Sluder• UI Critical Issues Grant• Magic Valley Compost• Simplot Agrisource - Burley• Producer’s Choice Seed• Eagle Seed• North Dakota State University
Questions