Additional Discussion of High Noon Ranch Plan
The High Noon Ranch is thought to be overstocked because of the amount of hay used.
Additional calculations are needed to determine the amount of hay currently being sold and
the amount that could be sold under alternative plans.
High Noon Ranch present situation:
1. Bluestem hay harvested annually = 160 bales (1,000 lbs.)
2. Cow-calf hay fed due to overstocking = 964 lbs. x 110 cows = 106,040 lbs. or 106 bales
3. Hay available for sale = 160 bales – 106 bales = 54 bales x $30 = $1620
Alternative - Reduced cow stocking rate to 102 head as calculated in Exercise 5 while
also grazing stockers on the bluestem pasture in July
1. Cow-calf hay needs (reduced stocking rate):
Emergency hay (10 day supply at 260 lbs./cow)
260 lbs./cow x 102 cows = 26,520 lbs. or 27 bales
2. Forage utilized and trampled by stockers in July:
Forage consumed: 75 stockers x 474a lbs. forage = 35,550 lbs. forage
Estimated trampling loss = 10% of harvested forage = 35,550 lbs. forage x .1 = 3,555 lbs.
Stocker forage needs = 35,550 + 3,555 = 39,105 lbs. forage or 39 bales
3. Excess hay = 160 bales – 27 bales for the cows – 39 bales for stockers = 94 bales
94 bales x $30 = $2,820
Potential income from sale of hay = $2,820 - $450 = $2,370
a
A 1000 lb. animal requires 26 lbs. of forage per day. Thus, the 588 lb. stocker would require, for July, 26 lbs. x 31
days x 588/1000 = 474 lbs.