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
Our Objective
 Controlling costs is essential:
– 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
Current ratio
Working capital
Begin
2.93
109,585
End
2.30
104,294
Begin
43 %
57 %
76 %
End
53 %
47 %
115 %
PROFITABILITY
Rate of return on farm asset
Rate of return on farm equity
Operating profit margin
Net farm income
Cost
7.7 %
5.9 %
24.9 %
63,542
Market
3.7 %
1.2 %
16.7 %
38,284
REPAYMENT CAPACITY
Term debt coverage ratio
Capital replacement margin
Cash
145 %
21,185
Accrual
188 %
40,990
SOLVENCY (Market)
Farm debt to asset ratio
Farm equity to asset ratio
Farm debt to equity ratio
EFFICIENCY
Asset turnover rate (market)
Operating expense ratio
Depreciation expense ratio
Interest expense ratio
Net farm income ratio
22.5
61.9
9.6
11.5
17.0
%
%
%
%
%
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
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
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
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
MiG pasture vs.
Conventional Pasture
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 regrowth

– 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 $
Well managed pasture
You build fence every
day???
MiG Fencing
Permanent & Portable
Bank Accounts
Hay
Bank - the hay stack
Forage
Fat
Bank - the pasture
Bank - the fat on the animal’s
back
(BCS – body condition score)
The Hay Bank


You know exactly
how much is in
your account!
The most costly
bank you have
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
The Forage Bank
Account

Growing perennial forage (pasture)

Stockpiled forage (winter pasture)

Annual forage (winter and summer
pasture)
Perennial Pasture




Available during
the growing
season- AprilSeptember
Usually can meet
nutrient needs of
the animals
Can be stockpiled
for winter grazing
Least cost feed
Stockpiled Forage




Standing hay
Lower in nutrients
than growing
forage
Less expensive
than feeding hay
Can be windrowed
for accessibility in
deep snow
Late Fall Grazing
Before and After Grazing
Winter Grazing on
Pearl Millet

Dec 28,2008
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
Flushing on Teff
August 8, 2009
Forages to Meet
Sheep Requirements
120
100
80
Stockpiled
60
Hay
Perennials
40
Annuals
20
0
J F MA M J J A S O N D
Blue Sage Farm
Labor Requirements
Cost Savings

2007+19 days 80 head Hay @ $120/T
SAVED $638.40 - $8.83 seed/water
= $629.17 net saved

2008+29 days 150 head Hay @ $220/T
SAVED $3349.50 - $458.33 seed/water
= $2891.17 net saved

2009+39 days 230 head Hay @ $95/T
SAVED $2982.53 - $531.80 seed/water
= $2450.73 net saved
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!
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
2007-09 On Farm Evaluations
Turnips
Pearl Millet
Turnips/Oats
Teff
Pearl Millet - Early
7/17/08
Pearl Millet – Mid Season
Pearl Millet - Fall
Oct. 9, 2008
Pearl Millet - Blue Sage Farm 2008
Oct. 9, 2008
Control
5 Ton/Acre
Compost
10 Ton/Acre
Compost
100% DM Yield 2008
2008 Annual Forages
Teff
Blue Sage Farm
Late July early Aug, 2008
2009 Teff Forage Yield
Average
7
6
5
4
3
2
1
0.0
0.5
1.0
1.5
2.0
2.5
Yield T/A at 100% DM
3.0
3.5
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
Forage Soybeans/Pearl Millet
8/12/09
Relative Feed Value
Feed Quality – Soybeans/Millet
200
180
160
140
120
100
80
60
40
20
0
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
Winter Cereals
$ Value per ton
Cost to purchase cereals compared to alfalfa,
*standardized to 17% CP and 143 RFQ (140 RFV)
225
200
175
150
125
100
75
50
25
0
July 1, 2008
May 22, 2008
4
5
6
7
8
9
Varieties
11
12
Hay
*Feed values will naturally vary as the price of alfalfa hay changes, since that is the base
for standardization. Alfalfa Fair Quality prices from 2003-2009 for May ($97.59 100% DM)
and July ($105.91 100% DM), separately, were averaged and used as the baseline to
standardize for value, CP and RFQ.
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
Wheat and Barley Yields at Various
Residual Heights, Simulated Grazing
Yield T/A at 100%DM
4.0
1st cut
2nd cut
1st & 2nd
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
WC 2-3"WC 4-5"WC 9-10"
Barley 2-3"
Barley 4-5"
Barley 9-10"
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
120
100
80
Stockpiled
60
Hay
Perennials
40
Annuals
20
0
J F M A M J J A S O N D
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
Questions