1. Use of Irrigated Pastures and Economics of Establishment and Grazing Jerry D. Volesky Range / Forage Specialist West Central Res. & Ext. Center 461 West University Drive North Platte, NE 69101 (308) 532-3611 ext. 147 jvolesky1@.unl.edu Richard T. Clark Interim Head Department of Agricultural Economics 102 H.C. Filley Hall Lincoln, NE 68583-0922 (402) 472-3401 rclark3@.unl.edu

2. Planning Considerations Grazing forage and/or hay needs.Grazing forage and/or hay needs. Use within your operation.Use within your operation. Site selection - livestock fence and water development.Site selection - livestock fence and water development. Forage type and establishment.Forage type and establishment. Economics.Economics.

3. Management Considerations Seeding and establishment.Seeding and establishment. Livestock fence & water development.Livestock fence & water development. Irrigation.Irrigation. Fertilization.Fertilization. Grazing management.Grazing management.

4. Forages for Irrigated Pasture Annuals WheatMillet Triticale / ryeSudangrass Oats / barley Sorghum TurnipsS X S hybrids Annual legumesCorn CS / WS annual grasses (e.g. ryegrass, crabgrass)

5. Irrigated Cool-Season Perennial Forages

6. Irrigated Cool-Season Perennial Grasses Species and Variety Evaluation – North Platte

7. SpeciesComments Tall fescues & Festulolium High production; good summer growth; livestock performance? Intermediate wheatgrasses High production; poor summer growth. Orchardgrasses Moderate to high production, good summer growth Smooth & Meadow bromegrasses Moderate production; moderate summer growth; persistent Production range (2003): 5.1 to 8.7 tons/acre

8. Species and Variety Evaluation – North Platte SpeciesComments Creeping foxtail Moderate production, excellent summer growth Timothy Lower production; poor summer growth Perennial ryegrasses Lower production; high quality, good summer growth; persistence? Virginia wildrye & Alaska brome Lower production, poor summer growth; persistence? Production range (2003): 5.1 to 8.7 tons/acre

9. Irrigated pasture mixture: Example 1 Species lb / acre Seeds / ft 2 Cost/acre 1 Orchardgrass5 75$7.50 Smooth bromegrass3 9$3.75 Meadow brome5 9 $12.50 Creeping foxtail1 17$6.50 Alfalfa2 10$4.00 Total 16 120 $34.24 1 November 2003 Prices.

10. Establishing Irrigated Pasture

11. Irrigation Management

12. Average monthly precipitation North Platte and Torrington.

13. Irrigation Management Irrigation: 16 - 20“ /growing season (North Platte). Irrigation + rainfall: 32 – 36“.Irrigation: 16 - 20“ /growing season (North Platte). Irrigation + rainfall: 32 – 36“. Crop water use: 0.20 to 0.35 inches/day.Crop water use: 0.20 to 0.35 inches/day. Applications at higher frequency (5 - 12 days); lesser amounts (0.50” – 1.00”).Applications at higher frequency (5 - 12 days); lesser amounts (0.50” – 1.00”). Generally applied after a paddock has been grazed.Generally applied after a paddock has been grazed.

14. Monthly rainfall and irrigation water on cool- season perennial grasses, North Platte, 2002. 8.75” 26.75” 35.50”

15. Seasonal-split applications: 50% early spring, 25% in summer, and 25% in fall.Seasonal-split applications: 50% early spring, 25% in summer, and 25% in fall. Spoon-feeding split applications.Spoon-feeding split applications. Applications timed with forage-need.Applications timed with forage-need. Fertilization Forage yield response up to 200 to 250 lb N / acre.

16. Grazing Management

17. At least 5 to 6 pastures (paddocks).At least 5 to 6 pastures (paddocks). 28 to 35 day rest periods.28 to 35 day rest periods. Flexibility in pasture movements, haying, stocking.Flexibility in pasture movements, haying, stocking. Rotation Grazing:

18. . Livestock water 7 day grazing and 28 day recovery period / paddock Pivot Head Gates Example paddock arrangement under a center pivot

19. Using stubble height as a guide for paddock moves.

20. Effect of clipping stubble height on fall tiller density of 3 irrigated, cool-season perennial grasses, North Platte, 2002.

21. Grazing Strategies for Cool-Season Perennial Irrigated Pasture

22. Grazing Strategies JanFebMarAprMayJunJulAugSepOctNovDec Pairs (season-long) PairsYearlings (Range) Pairs Cows or Calves (Range) No use - stockpile

23. Grazing Strategies JanFebMarAprMayJunJulAugSepOctNovDec Yearlings (Group 1) Yearlings (Group 2) PairsCalves Wean: cows range YearlingsCalves No use - stockpile

24. Grazing Strategies JanFebMarAprMayJunJulAugSepOctNovDec Yearlings (lead) Pairs Pairs (follow) Drought Reserve and/or Hay

25. Economic Considerations Pasture establishment and development costs Annual operating costs for grazing and maintaining pasture Valuing the production and comparison to other alternative uses Impact on farm program payments Evaluating irrigated pasture in a system

26. First-year seeding and pasture establishment costs for a 130-acre pivot. 1 ItemCost/acre Seed$36.00 Burn-down herbicide$13.64 No till-drill seeding$12.00 Nitrogen 30 lb/ac N @ $0.23/lb$ 6.90 Fall irrigation water (3 inches)$10.95 1 Assumes an August seeding following a summer annual forage crop. Seeding & establishment total$79.49

27. First-year fencing and livestock water development costs for a 130-acre pivot ItemCost/acre 5-pasture cross-fencing (Energizer & 6600 ft. 2-wire HTE @ $0.58/ft 1 )$31.75 Perimeter fencing (10,560 ft. 2-wire HTE @ $0.41/ft.)$47.10 Livestock water (tank, hydrant & 1320 ft. pipeline @ $1/ft.)$15.46 Fence and livestock water total$94.31 Seeding & establishment total$79.49 Grand total $173.80 1 Allows about $300 for energizer

28. Annual fertilizer and irrigation costs for a 130-acre pivot pasture ItemCost/acre N fertilizer (200 lb/ac @ $0.23/lb)$46.00 P fertilizer (50 lb/ac @ $0.13/lb)$10.50 Irrigation water 1, labor & move cattle $81.00 Annual O & M on fence & water $12.00 Total annual operating costs $149.50

29. Total operating and amortized costs for 130-acre pivot pasture—No land, overhead or management costs (long recovery) ItemCost/acre Total operating costs$149.50 Stand establishment (amortized 25 years @ 5% annual interest) $5.64 Fence and livestock water development (amortized 25 years @ 5% annual interest) $6.69 Grand total annual cost excluding land etc. $161.83

30. Total operating and amortized costs for 130-acre pivot pasture—No land, overhead or management costs (short recovery) ItemCost/acre Total operating costs$149.50 Stand establishment (amortized 5 years @ 5% annual interest)$18.36 Fence and livestock water development (amortized 5 years @ 5% annual interest)$21.78 Grand total annual cost excluding land etc. $189.64

31. Value of AUM Rental value –@ $20/Cow-calf pair. CC pair = 1.4 AUMs so that translates to $14.29/AUM –@$30/CC pair = $21.43/AUM Feed value based on drylot feeding of Alfalfa diet –Hay only @ $90/ton = $1.14/hd/day for a dry cow or $0.95/aud or $28.50/AUM (dry cow = 1.2 AU)

32. Value of AUM Pounds of gain for yearlings –Research at North Platte over 3 years –Yearlings averaged 1.75 lb/head/day for about 150 days or about 668 lb/acre –In some years did see 2 lb/head/day gain for the 150 days or about 800 lb/acre

33. Value of Gain (1.75 lb/hd/d) for E.WY & W. NE Prices 1992-2001 Value--May = $88.77/cwt x 6.06 cwt = $538 –Interest cost for 5 months @ 5% = 11 Total Cost of steer onto grass = $549 Value Sept/Oct = $75.44/cwt x 8.66 cwt = $653 Gain in value = $653 - $549 = $104/hd Value of gain/pound = $104/260 = $0.40/lb

34. Value of Gain (2 lb/hd/d) for Average Prices 1992-2001 Value--May = $88.77/cwt x 6.06 cwt = $538 –Interest cost for 5 months @ 5% = 11 Total Cost of steer onto grass = $549 Value Sept/Oct $73.51/cwt x 9.06 cwt = $666 Gain in value = $666 - $549 = $117/hd Value of gain/pound = $117/300 = $0.39/lb

35. Gross return comparisons a Assumes 10 AUMs/acre and pair requires 1.4 AUMs/month for grazing period.

36. Other Crop Comparison 1 Costs include use related depreciation on equipment and irrigation system

37. Short-term net returns

38. Pasture and the Farm Program Two types of standard payments –Direct payment (DP) –Counter cyclical payment (CCP) Both are based on the base acreage in the farm and the payment yield Base is your historical base that existed prior to the new bill or your updated base which depends on actual plantings 1998- 2001

39. Pasture and the Farm Program Neither base figure will be impacted by irrigated pasture unless you had some in the 1998-2001 time period and then only if you update. Payment yields are as you had prior to 2002 bill or as you update based on 1998-2001 Makes no difference what you plant. Still get these payments if available

40. Loan and Loan Deficiency Payment (LDP) Must have crop to receive so in times of low corn and wheat prices, growing another crop e.g. irrigated pasture will impact your payments Loan rates –Corn & sorghum--$1.98 will drop to $1.95 in 2004 –Wheat--$2.80 will drop to $2.75 in 2004 Remember, if LDP is in effect, prices for these commodities are low!

41. Evaluating irrigated pasture in a cow-calf system 1.Use partial budgeting procedure 2.Estimate number of cows to be carried with and without irrigated pasture a)Examine forage requirements and availability by time period b)If irrigated pasture fills a shortage in your forage availability the number of animals should be affected 3.Estimate the change in costs of cow-calf enterprise due to the irrigated pasture

42. Evaluating Irrigated Pasture in a Cow-calf System 4.Estimate change in total returns WITH the irrigated grass –May increase number of cows that can be carried in total –May increase productivity of cows (weaning rates and/or weaning weight) –May reduce costs of heifer development 5.Compare the change in returns to change in costs see if irrigated pasture pays its way.

43. Evaluating Irrigated Pasture in a Cow-calf System 6.If change in returns exceed change in costs then adding an irrigated pasture may make sense 7.Also look at cash flow of developing pasture a)Can I cash flow the establishment costs? b)What about costs of expanding cow operation if that is involved?

44. THANK YOU! (More discussion at the Bull-Pen session this evening)