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