1. Native Warm-Season Perennial Grasses for Forage in Kentucky
Production, Market, and Expected Return
December 2008
copyright eStudy.us 2008

2. Overview Origin: Uses: Types: Seeding rate: Primary seeding date:
First harvest:
Yield:
Kentucky and other states
Hay, rotational pasture, conservation, and wildlife
Switchgrass, big bluestem, indiangrass, eastern gamagrass
7 to 10 lbs pure live seed per acre
Mid-May to mid-June
4 to 8 tons/acre/year

3. Overview Switchgrass Big Bluestem Indiangrass Eastern Gamagrass
Tall-growing, bunchgrass
Soil and wildlife conservation
Provides mid-summer grazing in pasture systems
Big Bluestem
Tall growing, stemmy, bunchgrass
Provides excellent wildlife habitat
Makes good hay or can be used for grazing
Indiangrass
Tall growing, bunchgrass
Clumpy growth provides excellent wildlife habitat
Good match for cool-season grasses
Eastern Gamagrass
Bunchgrass
Large clumps make hay harvesting difficult
Can be stored as hay or used for rotational grazing

4. Overview
Switchgrass
Big Bluestem
Indiangrass
Eastern Gamagrass

5. Market Opportunities Direct Marketing Wholesale Marketing Dairy market
Beef market
Horse market (low end)
Other markets
Sheep
Goat
Llama & emu
Rabbit & Gerbil
Wholesale Marketing
Zoos (Louisville, Nashville, Cincinnati)
Nurseries
Feed stores

6. Market Opportunities Export Market (for large producers)
Marketing native warm-season grasses in Kentucky
Kentucky Department of Agriculture
Hay Hotline at (888)
Kentucky MarketMaker
Marketing at hay auctions
Buffalo Trace Auction; Maysville, KY
Marketing via the Internet

7. Production Characteristics
Establishing New Stands
Establishment requirements are very different from cool-season grasses
Important to learn as much as possible prior to first stand
Usually takes a full growing season to become established
Few options exist for chemical weed control
It is important to start with a weed-free seedbed

8. Production Characteristics
Timing
In Kentucky, the best time to seed native warm-season grasses is late May or early June
A soil temperature above 55º F is needed for seed germination
Seeding too early results in the loss of some seed to decay, birds or other animals eating the seed, etc.
Seeding after mid-June increases the risk of drought damage to the stand
If necessary to seed after mid-June, adequate soil moisture is needed for seed germination

9. Production Characteristics
Preparing the Seedbed
YES
Is Soil Surface Suitable (soil surface is smooth and weed competition is controlled)? NO
It is not necessary to till or cultipack the soil prior to seeding
Soil should be tilled in the spring at least one month before seeding to kill existing weeds, conserve soil moisture, and allow time to prepare a smooth, firm seedbed.

10. Production Characteristics
Native Warm-Season Grass Seeding Rates for Hay or Pasture
Pounds of pure live seed per acre
Switchgrass
8 – 10
Big Bluestem 10
Indiangrass
Little Bluestem 7
Eastern Gammagrass 8
Note: If mixtures are used, above seeding rates should be reduced in proportion to the number of species used.

11. Production Characteristics
Controlling Weed Competition
Minimal amount of herbicides are labeled for use on native warm-season grasses
Mowing tall weeds improves stand establishment
Rotary mower set to cut a 6-inch height is most effective
May be necessary to mow twice during the establishment year
A rest period is needed in late summer/early fall to build plant food reserves for winter; therefore, mowing is not recommended after the end of August
If grass growth is sufficient by the end of August, these grasses may be harvested as hay
Grazing should be restricted during the establishment year

12. Production Characteristics
Managing Established Stands
Grazing
Overgrazing can lead to rapid stand loss
Management should include rotational grazing and leaving 6- to 8-inch stubble
Begin grazing when grass is 12 to 18 inches tall
Leave livestock on an area no more than five days at one time
Allow five weeks for regrowth before grazing again

13. Production Characteristics
Managing Established Stands (cont)
Harvesting as hay
Some warm native grass species can be cut in late May (eastern gamagrass) while others should not be cut until mid-June or later (indiangrass)
Grasses harvested before seed heads emerge produce good quality hay
Forage quality rapidly declines as plants head out

14. Production Characteristics
Fertilization
Fertilizer is needed for good production and stand maintenance
Lime and fertilizer applications should be based on regular soil testing (at least one sample taken every three years)
Nitrogen (N) fertilizer applications are needed to increase yields and improve quality
50 – 60 pounds of N per acre should be applied in the spring as the grass begins to green up
Additional N applications should be made following each harvest for a total of 150 – 200 pounds per acre per year
Eastern gamagrass and switchgrass require the higher N rates because of the greater yield potential

15. Production Opportunity Cost
Capital Requirements (Land, Building, Equipment)
Land – Baler (square &/or round)
Tractor – Wagon
Mower – Tiller
Rake – Truck
Tedder
Labor requirement costs are market rates for agriculture labor (2008 labor rate: $9.00 per hour)
Land Opportunity Cost (lease value for class A: $100)

16. Revenue Estimates Revenue Sources
Revenue varies greatly with price, quality, and yield variations

17. Production Cost Overview
Variable Costs
Fixed Costs
– Soil Test
– Seed
– Nitrogen
– Phosphorus
– Potassium
– Lime
– Herbicides
– Fuel and Oil
– Repairs
– Equipment rental (if applicable)
– Cash land rental (if applicable)
– Hired Labor
– Annual interest on investment
– Annual depreciation of capital assets
– Annual taxes
– Insurance

18. Gross Revenue, Costs, and Return
Establishment Year: One Acre Estimate
Source for assumptions:

19. Gross Revenue, Costs, and Return
Full Production Year: One Acre Estimate
Source for assumptions:

20. Gross Revenue, Costs, and Return
Full Production Year: One Acre Estimate

21. Risk Assessment
Market Risk: Price is variable ($70.00 to $ per ton)
Production Risk: Hay and/or pasture yield is impacted by weather
Financial Risk: Substantial risk for farmers without initial required capital equipment.

22. Basic Summary Market Opportunity Direct Marketing Dairy Beef
Wholesale Marketing
Zoos
Nurseries
Feed Stores
Advantages of Western and Central Kentucky
Many Kentucky farmers have the skill and capital to grow native warm-season grasses without having to make additional capital investments.
Native warm-season grasses have the potential to supply grazing for Kentucky livestock during the summer when cool-season grasses are less productive.
Reduces the risk of pasture/hay shortage

23. copyright eStudy.us 2008 michael.roberson@eStudy.us
Appendices
copyright eStudy.us 2008

24. Appendix - 1
NC State University Switchgrass Establishment Year Investment & Owenership Expense Data – July 2008

25. Appendix - 2
NC State University Switchgrass Establishment Year Operating Machinery Expense Data – July 2008

26. Bibliography Marketing Production Characteristics
Tom KeenePowerPoint entitled “Hay Marketing”
Production Characteristics
Risk Assessment/Revenue