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

Dairy Grazing 2 Gerow Business Graphics PROFIT = INCOME - EXPENSES

Dairy Grazing 3 Gerow Business Graphics 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

Dairy Grazing 4 Gerow Business Graphics 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

Dairy Grazing 5 Gerow Business Graphics Which List Makes Better Dollars & Sense??

Dairy Grazing 6 Gerow Business Graphics 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

Dairy Grazing 7 Gerow Business Graphics 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

Dairy Grazing 8 Gerow Business Graphics 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

Dairy Grazing 9 Gerow Business Graphics Forage Profitability Pennsylvania Dairy Farms 1992

Dairy Grazing 10 Gerow Business Graphics Crop Dairy vs. Pastured Dairy Selected Expense Categories Pennsylvania 1992 Per Cow Crop Pasture Purchased Feed $ $ Breeding/Testing $50.00 $38.00 Vet & Medicines $57.00 $25.00 Livestock Supplies $79.00 $70.00 Crop Seed/Supplies $ $20.00 Fertilizer & Lime $67.00 $40.00 Machinery Repair $ $72.00 Fuels $57.00 $25.00 Total Expenses $ $ Difference $ per cow savings

Dairy Grazing 11 Gerow Business Graphics Effects of Nine Years of Grazing Northern New York Dairy Farm Year Days on Pasture Milk Sold/Day No. Cows Milk/Cow/Day Lbs Grain/Cow Grain to Milk Ratio1 to 31 to 41 to 5 Grass production, milk production & efficiency all increased over time.

Dairy Grazing 12 Gerow Business Graphics 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!!

Dairy Grazing 13 Gerow Business Graphics Thank you for watching this presentation!