Theme 22: Grazing Management
Description
The objective of this study was to evaluate contract grazing (in which the landowner grazes cattle owned by someone else for a specified fee) as an alternative to traditional ownership of the cattle, in order to improve profitability of grazing young beef cattle on annual ryegrass under limited availability of operating capital in the southeastern USA. Production data from a two-year grazing experiment were used as a basis for an economic analysis which assumed market prices for the beef industry in the region. Return/ha over animal and pasture costs was $312.20 for contract grazing, and $477.50 for purchased cattle. However, if capital was restricted to $30,000, total return over animal and pasture costs was $ 6,957.18 for purchased cattle, and $26,760.00 for contract grazing. The reason for this difference is that under contract grazing, animal and pasture costs were only $350/ha, which allowed 85.7 ha to be planted and grazed, while corresponding figures for purchased cattle were $2,059.34/ha, and 14.7 ha. It is concluded that contract grazing results in a lower return/ha, but a higher total return than purchased cattle if land is available but capital is limiting.
Citation
Bransby, David I., "Contract Grazing of Young Beef Cattle on Ryegrass in the Southeastern USA" (2021). IGC Proceedings (1993-2023). 3.
https://uknowledge.uky.edu/igc/19/22/3
Included in
Contract Grazing of Young Beef Cattle on Ryegrass in the Southeastern USA
The objective of this study was to evaluate contract grazing (in which the landowner grazes cattle owned by someone else for a specified fee) as an alternative to traditional ownership of the cattle, in order to improve profitability of grazing young beef cattle on annual ryegrass under limited availability of operating capital in the southeastern USA. Production data from a two-year grazing experiment were used as a basis for an economic analysis which assumed market prices for the beef industry in the region. Return/ha over animal and pasture costs was $312.20 for contract grazing, and $477.50 for purchased cattle. However, if capital was restricted to $30,000, total return over animal and pasture costs was $ 6,957.18 for purchased cattle, and $26,760.00 for contract grazing. The reason for this difference is that under contract grazing, animal and pasture costs were only $350/ha, which allowed 85.7 ha to be planted and grazed, while corresponding figures for purchased cattle were $2,059.34/ha, and 14.7 ha. It is concluded that contract grazing results in a lower return/ha, but a higher total return than purchased cattle if land is available but capital is limiting.
