1. Extending the Grazing Season with Unconventional Forages to Reduce Farm Costs
Christi 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 Conference
Baltimore, Maryland
March 24, 2010

2. Our Objective Controlling costs is essential: Dual production goals
to reduce risk
to maintain profitability
Dual production goals
grass-fed lamb & sheep cheese
FINPACK analysis to project costs & returns
for enterprises
cash flow for the business plan
FINANCIAL STANDARDS MEASURES
LIQUIDITY Begin End
Current ratio
Working capital , ,294
SOLVENCY (Market) Begin End
Farm debt to asset ratio % %
Farm equity to asset ratio % %
Farm debt to equity ratio % %
PROFITABILITY Cost Market
Rate of return on farm asset % %
Rate of return on farm equity % %
Operating profit margin % %
Net farm income , ,284
REPAYMENT CAPACITY Cash Accrual
Term debt coverage ratio % %
Capital replacement margin , ,990
EFFICIENCY
Asset turnover rate (market) %
Operating expense ratio %
Depreciation expense ratio %
Interest expense ratio %
Net farm income ratio %

3. 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

4. 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

5. 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

6. Conventional Grazing It’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

7. MiG pasture vs. Conventional Pasture

8. 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 $

9. Well managed pasture

10. You build fence every day???

11. MiG Fencing Permanent & Portable

12. Bank Accounts Hay Bank - the hay stack Forage Bank - the pasture
Fat Bank - the fat on the animal’s back
(BCS – body condition score)

13. The Hay Bank You know exactly how much is in your account!
The most costly bank you have

14. 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

15. The Forage Bank Account
Growing perennial forage (pasture)
Stockpiled forage (winter pasture)
Annual forage (winter and summer pasture)

16. 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

17. Stockpiled Forage Standing hay Lower in nutrients than growing forage
Less expensive than feeding hay
Can be windrowed for accessibility in deep snow

18. Late Fall Grazing

19. Before and After Grazing

20. Winter Grazing on Pearl Millet
Dec 28,2008

21. 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

22. Flushing on Teff
August 8, 2009

23. Forages to Meet Sheep Requirements

24. Blue Sage Farm Labor Requirements

25. Cost Savings
days 80 head $120/T SAVED $ $8.83 seed/water = $ net saved
days 150 head $220/T SAVED $ $ seed/water = $ net saved
days 230 head $95/T SAVED $ $ seed/water = $ net saved

26. 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!

27. 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

28. On Farm Evaluations
Turnips
Pearl Millet
Turnips/Oats
Teff

29. Pearl Millet - Early
7/17/08

30. Pearl Millet – Mid Season

31. Pearl Millet - Fall
Oct. 9, 2008

32. Pearl Millet - Blue Sage Farm 2008
Oct. 9, 2008
10 Ton/Acre Compost
5 Ton/Acre Compost
Control

33. 100% DM Yield 2008

34. 2008 Annual Forages

35. Teff Blue Sage Farm
Late July early Aug, 2008

36. 2009 Teff Forage Yield
Average
Yield T/A at 100% DM

37. 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

38. Forage Soybeans/Pearl Millet
8/12/09

39. Feed Quality – Soybeans/Millet
Relative Feed Value

40. 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

41. Winter Cereals

42. Cost to purchase cereals compared to alfalfa,
Cost to purchase cereals compared to alfalfa, *standardized to 17% CP and 143 RFQ (140 RFV)
July 1, 2008
$ Value per ton
Varieties
*Feed values will naturally vary as the price of alfalfa hay changes, since that is the base for standardization. Alfalfa Fair Quality prices from for May ($ % DM) and July ($ % DM), separately, were averaged and used as the baseline to standardize for value, CP and RFQ.

43. July 1, 2008 Regrowth after 1st harvest, simulated grazing
4-5” residual height
L-R wheat, barley
2-3” residual height
L-R triticale, barley, wheat

44. Wheat and Barley Yields at Various Residual Heights, Simulated Grazing
Yield T/A at 100%DM

45. 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

46. 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

47. Questions