dairy grazing does it make dollars & sense in your operation?

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DAIRY GRAZING Does it make Dollars & Sense In your operation?

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Page 1: DAIRY GRAZING Does it make Dollars & Sense In your operation?

DAIRY GRAZING

Does it make

Dollars & Sense

In your operation?

Page 2: DAIRY GRAZING Does it make Dollars & Sense In your operation?

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PROFIT = INCOME - EXPENSES

Page 3: DAIRY GRAZING Does it make Dollars & Sense In your operation?

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REASONS TO GRAZE

1 – Natural feed habit

2 – Reduce stress on cows & people

3 – Improve crop yields

4 – Reduce labor

5 – Improve health – cows & people

6 – Increase the life span of cows & machinery

Page 4: DAIRY GRAZING Does it make Dollars & Sense In your operation?

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REASONS NOT TO GRAZE

1 – Tractor arming is more fun

2 – We’ve never done it before

3 – It’s the last thing guys do before selling out

4 – “Good” farmers don’t do it

5 – Not modern – not progressive

6 – Lower per unit machinery cost with no pasture

Page 5: DAIRY GRAZING Does it make Dollars & Sense In your operation?

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Which List Makes Better Dollars & Sense??

Page 6: DAIRY GRAZING Does it make Dollars & Sense In your operation?

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Grazing will NOT -

1 – Solve all of your production & management problems

2 – Make you a “doctor’s wages” from the farm

3 – Give you endless free time

Page 7: DAIRY GRAZING Does it make Dollars & Sense In your operation?

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Grazing can -

1 – Save labor costs

2 – Reduce “chore” times

3 – Save operating expenses

4 – Improve grass yields

5 – Improve animal health

6 – Improve milk production

Page 8: DAIRY GRAZING Does it make Dollars & Sense In your operation?

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Continuous vs. Managed Grazing

1 – Large pastures vs. small paddocks

2 – Long periods of occupation vs. short periods

3 – Managed combines rotating pastures and regrowth

Both systems can work – Managed grazing will be more profitable

Page 9: DAIRY GRAZING Does it make Dollars & Sense In your operation?

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$0.00

$50.00

$100.00

$150.00

$200.00

$250.00

$300.00

$350.00

Gross Return Direct Costs Net Profit

Corn Silage Hay Continuous Pasture Managed Pasture

Forage ProfitabilityPennsylvania Dairy Farms 1992

Page 10: DAIRY GRAZING Does it make Dollars & Sense In your operation?

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Crop Dairy vs. Pastured DairySelected Expense Categories Pennsylvania 1992

Per CowCrop Pasture

Purchased Feed $571.00 $330.00

Breeding/Testing $50.00 $38.00

Vet & Medicines $57.00 $25.00

Livestock Supplies $79.00 $70.00

Crop Seed/Supplies $100.00 $20.00

Fertilizer & Lime $67.00 $40.00

Machinery Repair $119.00 $72.00

Fuels $57.00 $25.00

Total Expenses $1274.00 $794.00

Difference $480.00 per cow savings

Page 11: DAIRY GRAZING Does it make Dollars & Sense In your operation?

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Effects of Nine Years of Grazing Northern New York Dairy Farm

Year 1983 1987 1991

Days on Pasture 153 188 186

Milk Sold/Day 1712 1970 2562

No. Cows 55.4 48 42

Milk/Cow/Day 31 42 61

Lbs Grain/Cow 10.2 11.1 12.2

Grain to Milk Ratio 1 to 3 1 to 4 1 to 5

Grass production, milk production & efficiency all increased over time.

Page 12: DAIRY GRAZING Does it make Dollars & Sense In your operation?

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Who can benefit from grazing ?

1 – High Debt Load Farms – decrease expenses

2 – High Equity Farms – increase net income without increased debt or risk

3 – Middle Aged Dairymen - increase net income approaching retirement

4 – Starting Farmers – lower capital requirements less risk

5 – “Cow Men” - less crop work more time for cows

ALMOST ANY DAIRY FARMER CAN BENEFIT BY DEVELOPING A PASTURE SYSTEM!!

Page 13: DAIRY GRAZING Does it make Dollars & Sense In your operation?

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