Barry Dunn1, Alexander Smart2, Roger Gates2, and Marty Beutler3. (1) King Ranch Institute for Ranch Management, Texas A&M University-Kingsville, MSC 137, 700 University Blvd, Kingsville, TX 78363, (2) Animal and Range Sciences, South Dakota State University, Box 2170, North Campus Drive, Brookings, SD 57007, (3) Economics, South Dakota State University, West River Ag Center, 1905 Plaza Blvd, Rapid City, SD 57702-9302
For decades, the conventional wisdom among rangeland professionals has been that short-term economic profits from grazing livestock are maximized with heavy stocking rates, but that these are not sustainable, as productivity declines resulting from predictable changes in range condition. Our objective was to analyze economic costs, returns, and profit using data generated over a thirty-three year period (1960-2003) from grazing a Clayey range site with variable stocking rates used to maintain 50% utilization of herbage in low fair, good, and excellent range condition classes. Data were collected at the South Dakota State University (SDSU) Range and Livestock Research Station near Cottonwood, SD. Vegetation was typical of mixed-grass prairie, which, even in low fair condition is stable and resilient. Cattle weights were measured at turnout and at the end of the grazing season. Total gain was used to calculate gross income per acre, applying historical USDA-NASS feeder cattle prices. Annual variable costs were estimated from historical yearling budgets developed by SDSU agricultural economists. Net profit, summed over the thirty-four year period, varied among range condition classes. Low fair range condition ($293.39/acre) and good range condition ($304.34/acre) were not different, but both were higher (P<0.01) than excellent range condition ($243.22/acre). Neither gross revenue nor total variable costs per acre were different among range condition classes. Rangeland managed to maintain low fair condition was as profitable as good condition rangeland. Excellent condition rangeland was the least profitable to maintain. Our results support generally observed rancher behavior regarding stocking rate decisions. Ecosystem goods and services of increasing interest to society and associated with excellent range condition, such as floristic diversity, optimum hydrologic function, and wildlife cover, come at an opportunity cost to the rancher.
