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What’s Realistic On 50 Acres of Pasture?
Damona Doye, Extension Farm Management Specialist JJ Jones, Area Ag Economics Specialist, Eastern OK Gant Mourer, Assistant Extension Specialist, Animal Science Dana Zook, Area Extension Livestock Specialist, Northwest An earlier webinar on what’s realistic on 50 acres of crop discussed the need to be realistic in expectations for income derived on small acreages. Unless they are intensively used for horticultural or similar production, a small acreage is likely to at best provide a bit of supplemental income. Today’s discussion will focus on potential uses of pasture land, additional resources needed depending on the livestock species and income prospects.
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Pasture Alternatives Native or introduced pasture? Beef Goats Chickens
Cow/calf Stockers Goats Chickens Multi-species Rent out
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Consider These Items… Goals Investment Labor and management
Livestock Water Facilities and equipment Labor and management Planning restrictions or constraints Markets for products or services Commodity Organic Value-added Cost and return estimates
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Beef Commercial cow-calf Stocker Purebred Show cattle
Manage cow to sell calves at a specified time Central Oklahoma ≈ 1 cow/10 acres Stocker Add weight to smaller purchased calves High market and health risk Central Oklahoma ≈ 1 calf/5 acres Purebred Raise replacement bulls and heifers High genetic cost Marketability? Show cattle I just want to show the options. Show cattle is a good option for those wanting youth projects overall requirements would be similar to other segments of the industry. Income from show cattle would be limited if forced to sell at a local auction. Stocker cattle are a good option if local ranch raised cattle (neighbors) are available and the use of LRP to reduce downside risk. One example would be to purchase neighbors cattle to feed and sell beef locally.
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Beef Overhead Equipment (pasture maintenance, hay, fire)
Travel to and from acreage Mileage and time Truck/trailer Veterinarian / market / processing Water Ponds vs well or rural Working facilities / fences Safely gather to work and/or load out Human safety is imperative Cannot look over human safety. Age, health and experience will all effect the safety risk to producers. Wells can be risky and expensive $5,000 or more depending on depth. Rural water is not always available and can be $ to get on the line, if they even allow you to get on. If we do not live on the 50 acres inconvenience of travel will effect management of animals and property negatively.
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Beef Marketing Auction market Replacements Sell beef on hoof
Quality / uniformity of calf crop Market volatility Replacements Very difficult to gather genetics Sell beef on hoof Half or whole beef Sell beef products Licenses and forms required for ODAFF Inspected Develop market and inventory issues I want to focus on commercial cow-calf but at least introduce some other options.
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Cow/Calf Investment Costs
Number Units $/Unit % to Cow/ calf $/cow Cows 5 $1,200 100 Bulls Pickup 1 $20,000 $200 Equipment $2,100 Native pasture 50 Acres $1,750 $17,500 Barn Total $21,000 Note that a large part of the investment cost will be land if land is owned and that it can easily be more than $20,000 per cow. Also note that increasing the size of the herd without adding to fixed items such as barns and machinery/equipment spreads the cost over more animals, leading to lower per head costs May want to update numbers or customize to your area. Just remember to multiply by the % expected to be paid for by the cow/calf operation and divide by number of cows to get $/cow. Feed bunk, round bale feeder, squeeze chute
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Some additional notes: Cow/calf budget requires more care than some when size/scale of beginning herd is changed.
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Production Cost Dollars Profitability Group
Excludes depreciation, operator labor, interest on investment. Kansas Farm Management Association, 2016
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Goats =
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Types of Goat Operations
Commercial Sell the live kids at the market Sell the live kids for meat off of the farm Purebred/seed stock Higher capital requirement Show goats Takes a lot more than production ability Takes time to establish Value added Selling meat to individuals or restaurants Need to be a marketer More time needed
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Initial Financial Requirements
Land Fences Material Cost: $1.50 to $2.00 per foot 50 ac fence cost $10,000 Breeding animals Does: $200 to $300 Bucks: $300 to $500 Housing for goats Will need something for them to get into when it starts to rain Miscellaneous Feed and water troughs
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Goals needed to be successful
Kidding % > 160% Death loss < 15% Parasite control
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Poultry Photo Source: Jacquie Jacob, University of Kentucky
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Options for Small Scale Poultry
Backyard egg production Egg production for on-farm sale Egg production for retail sale Pastured broiler production Conventional Fast Slow Organic or other value-added production practice Large scale production OSU Broiler Production: Considerations for Potential Growers , AGEC-202
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Recipe for Success Research viable markets
Certification Program Develop plan Obtain stock from a NPIP approved hatchery National Poultry Improvement Plan Review local zoning regulations Offer well-built, cost effective housing and fencing Protection from weather and predators Provide nutrition specific to stage of production and end product
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General Poultry Requirements
Egg Production Broiler Production Housing Stationary Portable Pen (pastured) Portable House (pastured, no-pen) Labor Egg Collection Movement of Pen House Space Small Breeds: 1 – 1.5 ft./bird Large Breeds: 2-3 ft./bird 1.5 – 2 ft./bird Pen/Run Space Small Breeds: 4-6 ft./bird Large Breeds: 8-10 ft./bird Per 25 birds Per 50 birds Feed Pullets : 9 50# bags Hens: 4 50# bags/month Conventional: # bags Slow: # bags
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Fast Growth Organic Slow Growth
Enterprise Budget for Pastured Broiler Production Modified from NCAT Pastured Poultry Budget, 2010 # of birds lbs. per bird 999 4.5 Fast Growth Organic Slow Growth Price Per Pound $3.25 $3.75 $3.5 Income Sell 999 birds $14, $16, $15,734.25 Fixed Costs Brooder House 320 Processing building Processing equipment 157.86 Pens 160 200 Composter 50 Waterers 100 120 Brooder 17.86 Dolly (to move pens) 20 Certification 500 Total Fixed Costs $1,145.72 $1,645.72 $1,205.72 National Center for Appropriate Technology NCAT developed and manages the ATTRA Sustainable Agriculture Program. The funding for ATTRA comes in part through a cooperative agreement with the US Department of Ag Rural Business Cooperative Service
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Fast Growth Organic Slow Growth
Enterprise Budget for Pastured Broiler Production (Cont.) Variable Costs Fast Growth Organic Slow Growth Chicks 1350 1185 Bags and Staples 177.82 Wood Chips 150 Utilities 20 Feed 4406 7734 4826 Marketing 400 Labor (production) 2639 3959 Labor (processing) 1392 1566 Liability insurance (rider on farm policy) 250 Pasture rent per acre 30 Miscellaneous Total Variable Costs $11,214.82 $14,542.82 $12,963.82 Break Even Cost/Bird $12.37 $16.21 $14.18 Net Income per bird $2.25 $0.67 $1.57
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More Information Articles and monthly webinars: YouTube videos focused on Poultry Production and OK Slaughter and Egg Regulations: agecon.okstate.edu/efarmmanagement NCAT website with budget info: pub/viewhtml.php?id=328 Photo Source: USDA photo gallery
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Pasture Land Rental Rates, 2016
Rent It Out: Cash Rent Pasture Land Rental Rates, 2016 5 to 9 10 to 14 25 to 29 20 to 24 30 plus 15 to 19 N/A USDA/NASS data: Also, CR-216, Oklahoma Pasture Rental Rates,
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Rent It Out: Share Rent Livestock share Costs to be included
Valuing contributions Arriving at equitable share Risk Beef Cow Rental Arrangements for Your Farm, Aglease101.org
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Conclusion Goals Resources Planning restrictions or constraints
Need for income Resources Financial Labor and management Planning restrictions or constraints Markets for products or services Commodity Organic Value-added
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Other References E-982, A Resource Guide for Beginning Farmers in Oklahoma Facts.okstate.edu Beef Cattle Manual, Part 1. What Do You Hope to Achieve with the Farm? 1 Part 2. Selecting Appropriate Enterprises 3 Part 3. Financial Planning for the New Farm 7 Part 4. Acquiring the Capital for Your New Farm 11 Part 5. Finding Opportunities for Education and Training 18 Part 6. Locating Land for Farming 24 Part 7. Understanding Land Use Regulations and Restrictions 26 Part 8. Gaining Access to Markets 29 Part 9. Tax Considerations 32 Part 10. Government Programs
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Contact Information Agecon.okstate.edu/efarmmanagement Facebook: OSUFarmManagement Please take a quick Survey regarding this Webinar by clicking On this link Thank You
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