1. Impact of Fertilizer Prices on the Cow/Calf Enterprise
Spring 2008
Bob Woods
Area Extension Agronomy Specialist

2. Fertilizer Prices 03/25/08 Nitrogen (N) - 51¢ Phosphorus (P2O5) - 89¢
Potassium (K2O) ¢
11/12/07
44¢
34¢
25¢
11/14/06
34¢
22¢

3. Forage Requirement for a Spring Calving herd under 4 different management options
This shows that a cow unit might require between 14,000 and 17,000 pounds of dry matter per year. The smaller amount is for a 1000 cow, including 20% of the heifers retained as replacements and that cows share of the bull power. The 17,000 is for the same system but retaining the steers through the stocker phase. This suggests that it would be possible to maintain a stocking rate of 1 cow unit per 1.4 to 1.7 acres. And do that in the dry years.
OSU Publication E-926

4. Nitrogen Fertilizer needed by different Management Schemes Using Introduced Forages
A/Cow Unit
10 – 14 5 4 3 2
1.5
Forage needed
Tons/A .6
1.2 – 1.6
1.5 – 2
2 – 2.7
3 – 4
4 – 5.3
N req.
Lbs/A
30 – 50
50 – 70
70 – 105
120 – 170
N req.
Lbs/cow
150 – 250
200 – 280
210 – 315
240 – 340
A reasonably safe level is 3 acres per cow unit if relying entirely on introduced forages. This could be accomplished on as little as 105 pounds of nitrogen per acre and well within the capability of some exceptionally dry years.
Reasonably Safe

5. Forage Expense in Relation to S.R.
A/Cow
Forage T/A
N Req Lbs/A
NPK Total $ / Cow
Forage Expense Total $ / Cow
Value of Gain per Acre less forage $ 10 .6
.00
190 39 5
1.2 30
207
380 40 4
1.5 50
353 57 3 2 70
264
389 64
2 Tons litter
240
355 76
120
227
323
130
Based on March 2008 fertilizer and calf prices pound cow pounds sold per cow. Custom hay harvest and 60 day hay supply. 40 pounds P and K/A. For 3A and greater only ½ of the acres are fertilized and the N rate/a is doubled to gain efficiency. N = 51¢, P = 81¢, K = 50¢. 450 pounds of calf sales per cow unit at an average price of $1.20/lb. and 100 pounds of cull cow sales at $42 for $582 dollars gross income per cow. 40 pounds of p and k per acre. Custom harvest 2 round bales per cow, $40 per cow. Rent $15/A native and $25 per acre bermudagrass. Litter $30/ton 2ton per acre on the whole acreage. Cow calf enterprise selling all calves at weaning and <1100 pound cow.
To understand this table – At 10 acres per cow – you would expect to have $400 cover the remaining cow expenses not included in forage costs?
At 2 acres per cow, you expect to have $334 per cow remaining after forage costs to cover the remaining expenses. Will the added number of cows offset the increased cost per cow?
Achieving these stocking rates on the amount of nitrogen listed would require above average forage management that would include some limited access or rotational stocking (more than 1 or 2 pastures and closing gates). The fertilizer rates are based on amounts listed in the Forage Budgeting Fact Sheet #2584.
N 51¢, P 89¢, K 50¢, $40 Hay/cow, $15 native rent, $25 introduced rent
Litter $40/T

6. Forage Expense in Relation to S.R.
A/Cow
Forage T/A
2007 Forage Expense/ Cow
2008
Forage Expense/ Cow 10 .6
147
190 5
1.2
250
372 4
1.5
244
347 3 2
249
379
223
317
Based on Nov fertilizer and calf prices pound cow and bulls pounds sold per cow. Custom hay harvest and 60 day hay supply. 40 pounds P and K/A. For 3A and greater only ½ of the acres are fertilized and the N rate/a is doubled to gain efficiency. N = 51¢, P = 81¢, K = 50¢. 450 pounds of calf sales per cow unit at an average price of $1.20/lb. and 100 pounds of cull cow sales at $42 for $582 dollars gross income per cow. 40 pounds of p and k per acre. Custom harvest 2 round bales per cow, $40 per cow. Rent $15/A native and $25 per acre bermudagrass. Litter $30/ton 2ton per acre on the whole acreage. Cow calf enterprise selling all calves at weaning and <1100 pound cow.
To understand this table – At 10 acres per cow – you would expect to have $400 cover the remaining cow expenses not included in forage costs?
At 2 acres per cow, you expect to have $334 per cow remaining after forage costs to cover the remaining expenses. Will the added number of cows offset the increased cost per cow?
Achieving these stocking rates on the amount of nitrogen listed would require above average forage management that would include some limited access or rotational stocking (more than 1 or 2 pastures and closing gates). The fertilizer rates are based on amounts listed in the Forage Budgeting Fact Sheet #2584.

7. Forage Expense in Relation to S.R.
A/Cow
Forage T/A
2007 Value of Gain per Acre
2008
Value of Gain per Acre 10 .6 37 39 5
1.2 54 40 4
1.5 70 57 3 2 91 64
149
130
Based on Nov fertilizer and calf prices pound cow and bulls pounds sold per cow. Custom hay harvest and 60 day hay supply. 40 pounds P and K/A. For 3A and greater only ½ of the acres are fertilized and the N rate/a is doubled to gain efficiency. N = 51¢, P = 81¢, K = 50¢. 450 pounds of calf sales per cow unit at an average price of $1.20/lb. and 100 pounds of cull cow sales at $42 for $582 dollars gross income per cow. 40 pounds of p and k per acre. Custom harvest 2 round bales per cow, $40 per cow. Rent $15/A native and $25 per acre bermudagrass. Litter $30/ton 2ton per acre on the whole acreage. Cow calf enterprise selling all calves at weaning and <1100 pound cow.
To understand this table – At 10 acres per cow – you would expect to have $400 cover the remaining cow expenses not included in forage costs?
At 2 acres per cow, you expect to have $334 per cow remaining after forage costs to cover the remaining expenses. Will the added number of cows offset the increased cost per cow?
Achieving these stocking rates on the amount of nitrogen listed would require above average forage management that would include some limited access or rotational stocking (more than 1 or 2 pastures and closing gates). The fertilizer rates are based on amounts listed in the Forage Budgeting Fact Sheet #2584.

8. Implication
Little difference in income potential between low input and high input intensive grazing
How many cows do you really need?
Class I and II soils could be cropped.

9. Nutrients Removed By Forage Crops
Species and Hay Yield N
P2O5
K2O
Bermudagrass
6 tons
258 60
288
Tall Fescue
3.5 tons
135 65
185
Sorghum/Sudan
4 tons
160 61
233
Southern Forages

10. Crude Protein Effect on Nitrogen Removal
Crude protein/6.24 = % nitrogen
5% C. P. = .8% N = 16 lbs./T
10% C.P. = 1.6% N = 32 lbs./T
15% C.P. = 2.4% N = 48 lbs./T
20% C.P. = 3.2% N = 64 lbs./T

11. Nutrients Removed per Ton of Bermudagrass Hay 2006
Crude Protein 5%
10%
15% N
$/T
3.20
6.40
9.60
P and K
$/T
9.90
Total NPK
$/T
13.10
16.30
19.50

12. Nutrients Removed per Ton of Bermudagrass Hay 2008
Crude
Protein 5%
10%
15% N
$/T
8.16
16.32
24.48
P and K
$/T
32.10
Total NPK
$/T
40.10
48.42
56.58
$/1200 lb.
Rd. Bale
24.06
29.05
33.95

13. Hay supply goes down if fewer growers fertilize
Implication
Hay prices should go up
Hay supply goes down if fewer growers fertilize

14. Poultry Litter and Fertilizer Value
03/25/08
Nitrogen (N) ¢
Phosphorus (P2O5) - 89¢
Potassium (K2O) ¢
11/12/07
44¢
34¢
25¢
11/14/06
34¢
22¢

15. Average Litter Composition and Value
Dry Matter
Water
Total N
NO3-N
NH4-N
P2O5
K2O
Total
lbs
1480
520 62
1.2
8.7 63 54 $
31.62
22.13
51.66
26.46
100.25

16. Litter Composition and Value
Average
Dry Matter
Water
Total N
NO3-N
NH4-N
P2O5
K2O
Total
lbs
1480
520 62
1.2
8.7 63 54 $
22.13
51.66
26.46
100.25
Need Based
N only $22.13
N and P $73.79
N and K $46.59

17. With Adequate P and K Litter $7/T at the house A/Cow Forage T/A
N Req Lbs/A
N Total $ / Cow
Forage Expense Total $ / Cow
Value of Gain per Acre less forage $ 10 .6
.00
190 39 5
1.2 30 72
242 68 4
1.5 50 96 85 3 2 70
101
202
126
2 Tons litter 42
157
141
Here I valued the litter at $6 + a $5 application cost.
Astericks on 3 And 2.5 acres per cow with commercial fertilizer – litter sales have been deducted from the fertilizer expense.
This is a duplication of the previous slide but with an added column for all those other costs associated with running a cow. $194 dollars per cow based on a native budget for Payne Co. provided by Bill Burton. This includes allowances for such items as supplementation, vet and med, minerals, depreciation, equipment etc. Divided the $194 by the number of acres and subtracted that amount from the value of gain per acre column.
Litter $7/T at the house

18. Implications Demand for litter increases
At current prices paid at the house, there is little incentive for the poultry grower to sell litter
Price paid to poultry grower should increase

19. Improving Forage Efficiency

20. Stocking Rates Start by determining a stocking rate without fertilizer
About 1 cow/10 to 12 acres
Can the additional cow(s) pay the additional expense?

22. Forage Expense in Relation to S.R.
A/Cow
Forage T/A
N Req Lbs/A
NPK Total $ / Cow
Forage Expense Total $ / Cow
Value of Gain per Acre less forage $ 10 .6
.00
190 39 5
1.2 30
207
380 40 4
1.5 50
353 57 3 2 70
264
389 64
2 Tons litter
240
355 76
120
227
323
130
Based on Nov fertilizer and calf prices pound cow and bulls pounds sold per cow. Custom hay harvest and 60 day hay supply. 40 pounds P and K/A. For 3A and greater only ½ of the acres are fertilized and the N rate/a is doubled to gain efficiency. N = 51¢, P = 81¢, K = 50¢. 450 pounds of calf sales per cow unit at an average price of $1.20/lb. and 100 pounds of cull cow sales at $42 for $582 dollars gross income per cow. 40 pounds of p and k per acre. Custom harvest 2 round bales per cow, $40 per cow. Rent $15/A native and $25 per acre bermudagrass. Litter $30/ton 2ton per acre on the whole acreage. Cow calf enterprise selling all calves at weaning and <1100 pound cow.
To understand this table – At 10 acres per cow – you would expect to have $400 cover the remaining cow expenses not included in forage costs?
At 2 acres per cow, you expect to have $334 per cow remaining after forage costs to cover the remaining expenses. Will the added number of cows offset the increased cost per cow?
Achieving these stocking rates on the amount of nitrogen listed would require above average forage management that would include some limited access or rotational stocking (more than 1 or 2 pastures and closing gates). The fertilizer rates are based on amounts listed in the Forage Budgeting Fact Sheet #2584.
N 51¢, P 89¢, K 50¢, $40 Hay/cow, $15 native rent, $25 introduced rent
Litter $40/T

23. Stocking Rate Forage for 1 cow per 10 cost $190
Fertilizer for each additional cow on the 10 acres will cost $325 to $380
325/6Tons = $54 forage cost per ton.
Alternative is to buy feed for the next cow(s)
Round bale has to cost less than $32
How many cows do you really need??

24. Northeast Oklahoma is now predominantly Introduced Forages
Introduced to compliment Native Range

25. You can double your stocking rate with 10% of your acreage in introduced forages – Dr. Wilfred McMurphy
9 acres native range with a harvestable yield of 1500 pounds per acre = 13,500 pounds
1 acre bermudagrass/fescue fertilized with 250 pounds of N per acre = 10,000 pounds
Total production 23,500 pounds

26. Forage Requirement for a Spring Calving herd under 4 different management options
This shows that a cow unit might require between 14,000 and 17,000 pounds of dry matter per year. The smaller amount is for a 1000 cow, including 20% of the heifers retained as replacements and that cows share of the bull power. The 17,000 is for the same system but retaining the steers through the stocker phase. This suggests that it would be possible to maintain a stocking rate of 1 cow unit per 1.4 to 1.7 acres. And do that in the dry years.
OSU Publication E-926

27. Soil Test before Fertilizer
STP > 40 no phosphorus this year
STK > 200 no potassium this year
Multiple year history of following a soil test consistently – Skip P and K this year
Retest every 3 years or less

28. Improve Fertilizer Use
Fertilize only the best soil
Fertilize for optimum yields (3T/A fescue and 4 or 5T/A bermudagrass
Fertilizer only what is required to reach forage goal
Do not fertilize native range

32. In this example – failure to fertilize with P and K as recommended makes 51¢ N cost $1.04 per pound.
200 lbs N = 1.9 T without the required P and K

33. Mayes County Fairgrounds Lawn Bermudagrass/Fertilizer Demo
Mayes County Fairgrounds Lawn Bermudagrass/Fertilizer Demo Fertilized May 12, Harvested August 5
So far this discussion has focused on the application of nitrogen fertilizer. But it is important to remember that P and K, and lime, should be applied as recommended by a soil test. These nutrients are critical to efficient use of the nitrogen as illustrated by this table. This are results of a demonstration on the lawn of the Mayes County Extension Office. This site fits the description of a mismanaged pasture, mowed short every week or 2, at times a parking lot, never fertilized, with an exceptionally low level of P and K.
A fairly common belief is that P does not help you till the year after it is applied. A claim that this trial clearly contradicts. If the soil test recommends phosphorus you can expect a fairly rapid and within the season applied. Notice that P and K according to the soil test more than doubled the response to nitrogen up to the 200 pound per acre level. Above 200 pounds of N, moisture became the limiting factor.

34. Litter might be a good deal if it is available and you need all the nutrients
Hard to get due to Competition.
Volume that needs to move has not changed.
Who will get it? Established relationships Close to the source Large Quantities Flexible Easy to get along with Pays quickly and reliably Patient

35. Improve Grazing Management
Waste Less
Healthier Pasture
Less Herbicides

37. Effect of year-round continuous vs
Effect of year-round continuous vs. rotational (12 paddocks with cattle rotated every two days) stocking of endophyte-free tall fescue and common bermudagrass mixed grass pastures in the Piedmont of Georgia, three-year average.
Continuous
Rotational
% Change
Stocking rate, cow-calf units/A
.50
.69
+38
Calf weaning weight, lb
490
486
Total calf gain/A, lb
243
334
+37
Cow pregnancy rate, % 93 95
Hay fed/cow, lb
2,430
1,680
-31

38. Implication 100 pounds of N per acre for 2T per acre
Fertilize 3 acres to get 6 tons per year per cow
Improve grazing days by 30%
Now 70 pounds of N is adequate
Or 100 pounds on 2 acres or 200 pounds on 1 acre.

39. Forage Expense in Relation to S.R.
A/Cow
Forage T/A
N Req Lbs/A
NPK Total $ / Cow
Forage Expense Total $ / Cow
Value of Gain per Acre less forage $ 10 .6
.00
190 39 5
1.2 30
207
380 40 4
1.5 50
353 57 3 2 70
264
389 64
2 Tons litter
240
355 76
120
227
323
130
Based on Nov fertilizer and calf prices pound cow and bulls pounds sold per cow. Custom hay harvest and 60 day hay supply. 40 pounds P and K/A. For 3A and greater only ½ of the acres are fertilized and the N rate/a is doubled to gain efficiency. N = 51¢, P = 81¢, K = 50¢. 450 pounds of calf sales per cow unit at an average price of $1.20/lb. and 100 pounds of cull cow sales at $42 for $582 dollars gross income per cow. 40 pounds of p and k per acre. Custom harvest 2 round bales per cow, $40 per cow. Rent $15/A native and $25 per acre bermudagrass. Litter $30/ton 2ton per acre on the whole acreage. Cow calf enterprise selling all calves at weaning and <1100 pound cow.
To understand this table – At 10 acres per cow – you would expect to have $400 cover the remaining cow expenses not included in forage costs?
At 2 acres per cow, you expect to have $334 per cow remaining after forage costs to cover the remaining expenses. Will the added number of cows offset the increased cost per cow?
Achieving these stocking rates on the amount of nitrogen listed would require above average forage management that would include some limited access or rotational stocking (more than 1 or 2 pastures and closing gates). The fertilizer rates are based on amounts listed in the Forage Budgeting Fact Sheet #2584.
N 51¢, P 89¢, K 50¢, $40 Hay/cow, $15 native rent, $25 introduced rent
Litter $40/T

40. Improved Grazing – Less Herbicide
Spray every year on 100 Acres ($2100 in 3 years)
How much fence could that build?
How many goats or sheep could that add? Forbs become an asset rather than a liability.

41. Managing for Legumes

42. No P and K
Legumes will require fertilizer!

43. Managing Legumes Require residue management
Short in the fall or winter
A part of the system but not on all of the acreage
Rotational stocking is a must
P, K, and lime as recommended by a soil test
Can substitute for 100 to 150 pounds of N per acre.

44. Introduced intensive Scenario
A cow to 3 acres requiring 150 pounds of N per acre or cow
Save 30% with grazing – now need 100 pounds of N/cow
Legumes on 1/3 - now 70 pounds of N per cow.

45. Less Intensive Scenario
8 acres at 1500 per acre = 12,000 pounds or 1 cow
1 acre bermudagrass/fescue fertilized for 5 tons per acre = 10,000 pounds
1 acre legumes at 3 tons per acre = 6,000
Total production 28,000 on 10 acres

46. Forage Requirement for a Spring Calving herd under 4 different management options
This shows that a cow unit might require between 14,000 and 17,000 pounds of dry matter per year. The smaller amount is for a 1000 cow, including 20% of the heifers retained as replacements and that cows share of the bull power. The 17,000 is for the same system but retaining the steers through the stocker phase. This suggests that it would be possible to maintain a stocking rate of 1 cow unit per 1.4 to 1.7 acres. And do that in the dry years.
OSU Publication E-926

47. Native versus Introduced
Without fertilizer, native grasses are the most productive and economical.
Multiple income opportunities on native range Recreational leasing (hunting, photography, fishing, camping), Cattle, Small Ruminants
Without fertilizer Introduced Forages will need to be stocked as Native.

48. Summary Do you really want to run that extra cow?
If decision is to Fertilize - fewer acres higher yield goal best soils
Improve the grazing system