The 2008 Joint Meeting of the Society for Range Management and the America Forage and Grassland Council. |
Monday, January 28, 2008 - 4:20 PM
Financial Analysis of Tall Fescue Technologies on Grazing Farms
David J. Barker1, Greg S. Halich2, R. Mark Sulc1, and Kristin Mack3. (1) Horticulture and Crop Science, The Ohio State University, 2021 Coffey Rd., Kottman Hall, Columbus, OH 43210, (2) Department of Agricultural Economics, University of Kentucky, 311 Charles E. Barnhart Bldg., Lexington, KY 40546, (3) Hali`imaile Community Garden, 870 Hali`imaile Road, Makawao, HI 96768
Non-toxic endophyte-tall fescue (Novel-E) and endophyte-free (E-) pastures offer potential benefits for grazing farms. Novel-E plots (MaxQ or Advance) were established on 11 farms from 2002-2004. Measurements of forage production and milk yield were made during the 2004 and 2005 growing seasons, each with pasture types (Novel-E, E-, or E+). The E- and Novel-E fields had establishment costs of $280 and $320/ac respectively while E+ stands were already established. In general, milk yield was similar between E- and Novel-E pastures, but averaged 4.9 lb/cow/d lower while grazing an E+ (‘wild’) fescue field on one farm. Net present value analysis was used to determine if the Novel-E or E- pastures offered financial benefits. Variables accounted for in the analysis include establishment costs, chance for stand failure, stand life, decay rate of stand, and the interest rate. In addition, a stocker cattle production model was used to measure the improved net revenue of the Novel-E or E- pastures. This production model accounts for differences in grazing days, the reduction in dry matter intake due to the endophyte, and the subsequent effect on average daily gain. The advantages of the Novel-E or E- over the E+ pastures was mixed, and depended largely on the assumptions concerning stand length and deterioration. In general, the advantages of Novel-E or E- pastures for dairy cattle were greater than for beef cattle. There were few financial advantages from using Novel-E rather than E- tall fescue, except where there E- pastures had a high likelihood of endophyte re-infestation (i.e. thus requiring replanting).