S/.L December 1973
i n .o w
Oss
Economics Report 57
Food and Resource Economics Department
Agricultural Experiment Stations
Institute of Food and Agricultural Sciences
University of Florida, Gainesville 32611
R. E. L. Greene
Marvin Koger
V
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Pasture and Supplement Systems
for Beef Cows: Programs, Beef
Production, Income and Expenses,
Beef Research Unit, Phase IIl
(1965-66 thru 1971-72)
TABLE OF CONTENTS
Page
TABLE OF CONTENTS .. ..... ......
LIST OF -TABLES . . . .
ORGANIZATION OF THE EXPERIMENT . .
INVESTMENT PER ACRE IN PASTURE . .
ITEMS OF INPUT . . . .
Acres of Pasture Per Cow . .
Fertilizer and Lime . . .
Supplemental Feeds and Minerals . .
AMOUNT OF BEEF PRODUCED . . .
METHOD USED TO SHOW VALUE OF BEEF PRODUCED :
OF COSTS ON EACH PROGRAM . .
Value of Beef . . ....
Fertilizer and Lime . . .
Pasture Maintenance . ..
Cost of Irrigation ............
Annual Charge to Cover Cost of Investment
Pastures ., .., ,
Supplemental Feeds and Minerals .... .
Other Costs for Cattle .. . .
ANNUAL INCOME AND EXPENSES .. .
SUMMARY . . . . .
LITERATURE CITED ..... ..
. .
LND TO CHARGE ITEMS
in ,Establishing
Sa. a a. ao 4
o ,e .
ND TO CHARGE ITEM
in Establishing
. ...
... .
. . .
. .
S 10
10
11
11
14
. . . 15
LIST OF TABLES
Table
1 Number of acres, number of cows, and acres of pasture per
cow, Beef Research Unit, Phase III . .. ... 4
2 Fertilization and lime schedule, Beef Research Unit, Phase III 4
3 Supplemental feeds and minerals fed per cow, Beef Research Unit,
Phase III .. ........ . .. .. 5
4 Measures of efficiency in beef production, by programs, Beef
Research Unit, Phase III ....... . ..... 7
5 Prices and cost rates used in calculating income and expenses,
Beef Reaearch Unit, Phase III .. . . 9
6 Average income and expenses per acre and per cow for various
programs, Beef Research Unit, Phase III . 12
7 Cost per acre, per cow, and gross cost per hundredweight of
beef sold from calves and culled cows, Beef Research Unit,
Phase III . . . . . 13
8 Market and sales data, by programs, Beef Research Unit, Phase III
Phase III . . . .. . 14
I'
'*7
ii
PASTURE AND SUPPLEMENT SYSTEMS FOR BEEF COWS: PROGRAMS, BEEF
'PRODUCTION,'INCOME"AND EXPENSES, BEEF RESEARCH UNIT, PHASE III
(1965-66 thru 1971-72)
R. E. L. Greene and'Marvin Koger
This experiment was conducted at the Beef Research Unit. It was
designed to compare production performance of beef cows on various forage
programs, supplemental feeds and management systems in Central Florida and
to determine the relative economics of each.
The Food and Resource Economics Department had the responsibility of
working with the project leaders to approximate costs and returns on each
1
program Income and expenses are calculated for each program based on a
fiscal year from October 1 to September 30. The experimental data were
supplemented with data from other studies to show the approximate economic
results for the various programs if used on a commercial operation, and
if the level of experimental practices were used and similar weaning
percentages, culling rates, and calf and culled cow weights obtained.
This report presents an economic evaluation of the results of the
study in Phase III. A more detailed report will be prepared giving the
overall results of the study.
R. E. L. CRPENE is professor of food and resource economics.
MARVIN KOGER is professor of animal science.
ORGANIZATION OF THE EXPERIMENT2
Phase III of this experiment, which was initiated in 1965, was completed
in 1972. It consisted of three forage programs with various treatments.
Phase III was undertaken to compare the most profitable program in Phases
I and II with a program designed to renovate the pastures and to compare
results with a program in which temporary grazing crops were used. Program 1
was a clover-grass program, Program 2 a clover-grass program with temporary
grazing crops3 and Program 3 a clover-grass program in which one-half was
irrigated with seepage irrigation.
The cows were kept on the pastures from about March 1 to November 30.
They were grouped together during the winter period and fed various
supplemental feeds. The breeding season ran from approximately March 1
to May 31.
In Phase III of the experiment, six calf crops were weaned. The
averages of these calf crops form the basis of the economic evaluation
for this analysis.
2A
The Beef Research Unit is located approximately 15 miles northeast
of Gainesville on flat, pine land commonly called "flatwoods." Experi-
mental work was first started in 1952 and has gone through three phases.
Phase I compared eight pasture programs (see Fla. Expt. Sta. Bul. 671,
technical) and Phase II, five pasture programs (see Fla. Expt. Sta. Bul.
740, technical). As indicated above, Phase III compared three
pasture programs. Experimental work at the Beef Research Unit is a co-
operative effort between five departments in the Institute of Food and
Agricultural Sciences at the University of Florida. The departments and
leaders are: Agricultural Engineering, J. M. Myers; Agronomy, G. B. Killinger;
Animal Husbandry, Marvin Koger; Food and Resource Economics, R. E. L. Greene;
and Soils, W. G. Blue.
The expenses of growing temporary grazing crops are not included
as a cost in the summary for Program 2 since this practice was discontinued
before the end of Phase III.
INVESTMENT PER ACRE IN PASTURES
In~the experiment, the level of practices followed annually appeared
sufficient to maintain or improve the pastures. Therefore, in calculating
annual costs, the costs of establishing the pastures were not depreciated
over a stated number of years, but an annual charge was made based on the
capital invested in establishing the improved pasture programs. The
estimated present cost of establishing the clover-grass pastures is $128
per acre. This figure is based on the costs of establishing such pastures
in Phase I of the experiment increased by 20 percent more nearly to reflect
present cost. A value of $120 per acre was added to the cost of establishing
pastures to cover the value of land, fencing, watering equipment, corrals
and scales. Thus the cost of clover-grass was $248 per acre. It was
assumed that pastures on a ranch would be fenced with barbed wire. A
value of $120 per acre was used as the needed investment in a well and
facilities to irrigate the pastures in Program 3 which were irrigated by
means of seepage irrigation.
ITEMS OF INPUT
Acres of Pasture Per Cow
The number of .cows assigned to each program varied slightly from year
to year. However, the number-of cows assigned in the 1971-72 season was
used in calculating the acres of pasture per cow. The average acres of
pasture perxcow varied from 1.19 ih Program 3 to 1.32 in Program 2 (Table 1).
Fertilizer and Lime
All nonirrigacd pastures -received an annual application of 300 pounds
per acre of a 0-10-20 fertilizer; irrigated pastures received 500 pounds
Table 1.--Number of acres, number of cows and acres of pasture per
cow, Beef Research Unit, Phase III
m N r of Number of Acres of
Program R i Number of
number Replication cows assigned pasture
number acres a
to program per cow
1 1 31.29 25 1.25
2 37.58 29 1.30
Average 34.44 27 1.28
2 1 34.51 27 1.28
2 32.69 24 1.36
Average '33.60 25.5 1.32
3 1 16.61 14 1.19
2 16.81 14 1.20
Average 16.71 14 1.19
aBased on number of cows assigned to each program in the 1971-72 season.
Table 2.--Fertilization and lime schedule, Beef Research Unit, Phase III
Mixed fertilizer
Program Replication Acres
number
Analysis Pounds per acre
1 1 31.29 0-10-20 300
Limea 2000
2 37.58 0-10-20 300
Limea 2000
2 1 34.51 0-10-20 300
Limea 2000
2 32.69 0-10-20 300
Limea 2000
3 1 (irrigated) 8.04 0-10-20 500
Limea 2000
(nonirrigated) 8.57 0-10-20 300
Limea 2000
2 (irrigated) 8.04 0-10-20 500
Limea 2000
(nonirrigated) 8.77 0-10-20 300
Limea 2000
aLime was applied each three
between high calcic and dolomitic
years with the
limestone.
kind of lime alternated
Pt;
*r
(Table 2). Lime was applied to the pastures in each program every three-
years at the rate of a ton per acre with the kind of lime alternated between
high calcic and dolomite limestone.
Supplemental Feeds and Minerals
A record was kept of the amounts of supplemental feeds and minerals
consumed by cows on each program each year. The kinds and amounts of
supplemental feeds fed from year to year varied but basically the cows
received corn silage, a protein supplement or a ration mixture and a mineral
mixture. However, the kind and amount of supplemental feeds and minerals
used in calculating costs on each program were based on the amount of these
items the cows consumed in the 1971-72 season (Table 3).
Table 3.--Supplemental feeds and minerals fed per cow, Beef Research
Unit, Phase III
Program number
Item
1 2 3
Pounds per cow
Cottonseed meal 146 146 146
Blackstrap molasses 365 365 365
Corn silage 4,352 4,339 ... 5,549
Minerals 40 44 46
cows assigned
aBased on supplemental feeds and minerals fed
to each program in the 1971-72 season.
AMOUNT OF BEEF PRODUCED
The amount of beef produced on each program per acre and per cow was
calculated from the percent calf crop weaned and the average final weight
of calves when they were removed from the pastures each year (Table 4).
No credit was given for change in cow weights but a figure was included
in beef production for normal culling of cows each year. The percent calf
crop weaned was 87.0 on Program 1, 86.5 on Program 2 and 88.1 on Program 3.
The percent of cows normally sold as culled cows in a commercial herd each
year was estimated to be 12 percent. This figure was used to estimate the
amount of beef sold from a culled cow on each program.
The estimated production of beef from a calf per acre varied from
345 pounds on Program 1 to 378 pounds on Program 3. The production of
beef from 'a calf per cow varied from 442 pounds on Program 1 to 450 pounds
on Program 3. The amount of beef from a culled cow per acre varied from
104 pounds on Program 1 to 111 pounds on Program 3.
Each pasture was stocked with pregnant cows each year. However,
the production of beef from calves was based on percent calf crop weaned
from all brood cows exposed for each program and not from percent calf
crop weaned from cows placed on the pastures in each program.
The gross weight of a calf and a culled cow was reduced by 4 percent
to adjust for normal shrinkage in marketing. The adjusted sales weight
per acre per calf ranged from 332 pounds on Program 1 to 363 pounds on
Program 3. Gross and adjusted production of beef per acre and per cow
from a calf or a culled cow were not adjusted for supplemental feeds fed
during the winter period since costs of such feeds were included in the
costs calculated per acre and per cow for each program.
-----~---; ~ -
Table 4.--Measures of efficiency in
Beet Research Unit, Phase
beef production, by
III
Item Program number
1 2 3
Percent calf crop weaneda 87.0 86.5 88.1
Percent of broog cows sold
as culled cows 12.0 12.0 12.0
Average weight per animal (Ibs.)
Calf when removed from pastures 508 515 512
Cow when culled 1112 1112 1091
Production of beef per acre (lbs.)
From calf 345 337 378
From culled cow sold 104 101 111
Production of beef per cow (Ibs.)
From calf 442 445 450
From culled cow 133 133 131
Adjusted sales weights for beef
produced (Ibs.)
From calf:
Per acre 332 324 363
Per cow 424 428 432
From culled cow sold:
Per acre 100 97 107
Per cow 128 128 126
aBased on percent calf crop weaned for
program.
all cows exposed on-each
It was estimated that on a commercial ranch 15 percent of the
cows would be culled each year; 12 percent would be sold as culled
cows and 3 percent would die.
Gross weight was reduced by 4 percent to adjust for normal shrinkage
in marketing.
programs,
METHOD USED TO SHOW VALUE OF BEEF PRODUCED AND TO
CHARGE ITEMS OF COSTS ON EACH PROGRAM
Calculations were made of the estimated annual income and expenses
-for each program based on the level of experimental practices used. The
value of beef produced was based on the state average price of feeder
calves grading Good in September 1972 at Florida auction markets. The
price of beef from culled cows was based on the price of slaughter cows
grading Commercial in August 1972. The price of beef for calves on each
program was adjusted for variation in market grade score of calves.
Expenses included costs of maintaining pastures, supplemental feeds
and minerals, breeding fees and other costs of maintaining the cattle,
The charges for items purchased were those paid by the experiment station
for items used at the Beef Research Unit during the 1971-72 season.
Prices and cost rates used-in calculating income and expenses are shown
in Table 5.
Value of Beef
The value of beef produced was based on the adjusted sale weights of
beef produced from a calf and a culled cow. The value of.beef was calculated
by multiplying the adjusted sales weight per acre and per cow of a calf and.
a culled cow times the price per hundredweight for these animals (Tables 4
and 5). As indicated above, the price of beef for a calf in each program
was adjusted for market grade score of calves.
Fertilizer and Lime
The charge for fertilizer and lime was calculated by multiplying the
amount applied times the average price paid for these items (Tables 2 and 5).
The cost of lime was prorated over a three year period, The charge for
Table 5.--Prices and cost rates used in calculating income
Beef Research Unit, Phase IIIa
and expenses
Item Unit Average rate
State average price for
feeder calves grading Good
in September, 1972
Culled cows grading Commercial
in August, 1972
0-10-20 fertilizer
Lime
Spreading fertilizer
Mowing
41 percent cottonseed meal
Blackstrap molasses
Corn silage
Special mineral mix.
Cost of operating equipment
Annual cost of maintaining
equipment
Breeding fees
Labor on cattle
Veterinary, medicines
and insurance
Taxes
Prorated annual replacement
cost of brood cow
Interest on investment in cows
Depreciation and repairs on
buildings and fences
Other
Price of beef
hundredweight
hundredweight
Fertilizer
ton
ton
Maintenance operations
ton
hour
Feed and minerals
ton
ton
ton
ton
Irrigation cost
hour
per dollar invested
Other costs for cattle
animal unit
animal unit
animal unit
animal unit
animal unit
animal unit
animal unit
animal unit
Based on costs and prices used in summarizing data for the 1971-72
season, except adjusted for higher rates for certain other costs for cattle.
bData from
Data from E1].
Cost per ton spread on the pastures.
$ 41.96b
41.75
7.50c
6.00
5.41
92.30
31.32
7.50
102.00
.60
10 percent
$ 9.00
6.00
3.75
5.00
45.00
21.00
3.50
4.00
10
lime included the cost of spreading the material on pastures.
Pasture Maintenance
Cost of spreading fertilizer was charged on a per ton basis. Mowing
was charged on a per hour basis. In each case, the rate used was assumed
to cover cost of labor, power and use of equipment. Only those areas that
needed mowing were mowed each year. The per acre and per cow charge for
mowing was based on the total charge for mowing for each program divided
by the number of acres in or cows assigned to each program.
Cost of Irrigation
Cost of irrigation was charged on the basis of the estimated cost of
operating equipment to irrigate 200 acres. The cost of installing such
equipment would be about $24,000, or $120 per acre. Based on the limited
data available, it is estimated that the fixed costs of maintaining such
equipment is 10 percent of the investment cost. Operating costs depended
on the hours operated. Operating cost per hour was calculated at 60 cehts.
Annual Charge to Cover Cost of Investment in Establishing Pastures
14' '
The investment charge was based on 7 percent of the estimated cost of
establishing pastures including land, fencing, watering equipment, corrals
and scales. The charge was made to cover the cost of capital invested in
establishing the pastures. The interest charge for irrigation equipment
was included in the fixed costs of operating the equipment.
Supplemental Feeds and Minerals
A record was kept of supplemental feeds and minerals fed cows on each
program. The costs of these items was calculated by multiplying the amount
fed as shown in Table 3 times the prices in Table 5.
Other Costs for Cattle
In the experiment heifers for herd replacement were not raised on
the experimental pasture. To obtain cost estimates that would approximate
a commercial operation, charges were made on a per cow basis to cover esti-
mated costs of breeding fees, labor on cattle, veterinary services, medi-
cines and insurance, taxes, prorated annual replacement cost of a brood
cow, interest on investments in cow, depreciation and repairs on building
and fences and other costs. Brood cows were valued at $300 per head. The
rate of interest used was 7 percent.
ANNUAL INCOME AND EXPENSES
The total income from beef produced was $170.88 per acre on Program
1 and $189.67 on Program 3 (Table 6). The total returns per cow were
$218.31 on Program 1 and $225.34 on Program 3.
The total cost per acre ranged from $129.12 on Program 1 to $160.07
on Program 3 (Table 6). The cost per cow was $165.27 on Program I and
$190.48 on Program 3. The net cost of beef produced from calves after
crediting the value of culled cows sold was $100.90 per acre on Program 1
and $129.87 per acre on Program 3. Net returns per acre were $41.76 on
Program 1 but only $29.60 on Program 3.
The data are summarized in Table 7 and are expressed on the bases of
cost per acre, per cow and gross cost per hundredweight of beef sold.
The total cost per acre for pasture was $28.99 in Program 1 and $48.53
in Program 3. The cost per acre for irrigating pastures in Program 3 was
$17.82. The cost per cow for supplemental feeds and minerals was $30.91
in Program land $35.48 in Program 3. Other costs of cattle were calcu-
lated at $97.25 per cow for each program. The gross cost per hundredweight
Table 6.--Average income and expenses per acre and per cow for various programs,
Beef Research Unit, Phase III
Per acre Per cow
Item Program number Program number
1 2 3 1 2 3
Number of acres
Number of cowsa
Acres per cowa
Income:
Sale of calf
Sale of culled cow
Total
Expenses:
Cost of maintaining pastures:
0-10-20 fertilizer
Limeb
Applying fertilizer
Mowing
Total
Irrigation:
Operating cost
Fixed cost of equipment
Total
Total direct costs
Investment charge
Total cost of maintaining
pastures
Feed and minerals:
Cottonseed meal
Blackstrap molasses
Corn silage
Minerals
Total
Other costs for cattle
Breeding fees
Labor on cattle
Vet., med., and ins.
Taxes
Prorated annual replace-
ment cost of brood cow
Interest on investment
in cows
Depreciation and repairs
on building and fences
Other
Total
Total expenses:
Less value of culled
cow sold
Net cost of beef
produced from calf
Net returns:
34.44
27.00
1.28
33.60 16.71
25.50 14.00
1.32 1.19
$142.66 $139.22 $159.47
28.22 27.37 30.20
$170.88 $166.59 $189.67
$ 6.26' $ 6.26 $ 8.27
2.50 2.50 2.50
.90 .90 1.13
1.97 1.55 1.45
$ 11.63 $ 11.21 $ 13.35
$ 12.05
5.77
$ 17.82
11.63 11.21 31.17
17.36 17.36 17.36
$182.19 $183.91 $189.78
36.12 36.12 35.56
$218.31 $220.03 $225.34
$ 8.02 $ 8.26 $ 9.84
3.20 3.30 2.98
1.15 1.19 1.34
2.52 2.05 1.73
$ 14.89 $ 14.80 $ 15.89
$ 14.34
6.87
$ 21.21
14.89 14.80 37.10
22.22 22.91 20.65
$ 28.99 $ 28.57 $ 48.53 $ 37.11 $ 37.71 $ 57.75
$ 5.28 $ 5.11 $ 5.64
4.48 4.34 4.79
12.80 12.35 17.43
1.59 1.69 1.96
$ 24.15 $ 23.49 $ 29.82
$ 7.03
4.69
2.93
3.91
$ 6.82
4.54
2.84
3.79
$ 7.57
5.04
3.15
4.20
35.16 34.09 37.81
16.41 15.91 17.65
2.73 2.65 2.94
3.12 3.03 3.36
$ 75.98 $ 73.67 $ 81.72
$ 6.7b $ 6.75 $ 6.71
5.73 5.73 5.70
16.38 16.30 20.74
2.04 2.23 2.33
$ 30.91 $ 31.01 $ 35.48
$ 9.00
6.00
3.75
5;00
$ 9.00
6.00
3.75
5.00
$ 9.00
6.00
3.75
5.00
45.00 '45.00 45.00
21.00 21.00 21.00
3.50 3.50 3.50
4.00 4.00 4.00
S 97.25 $ 97.25 $ 97.25
$129.12 $125.73 $160.07 $165.27 $165.97 $190.48
28.22 27.37 30.20 36.12 36.12 35.56
$100.90 $ 98.36 $129.87 $129.15 $129.85 $154.92
$ 41.76 $ 40.86 $ 29.60 $ 53.04 $ 54.06 $ 34.86
aBased on number of cows on program in the 1971-72 season.
cost of lime is prorated on a yearly basis.
,;s
-;i
Table 7.--Cost per acre, per cow, and.gross
beef sold, from calves and culled
Phase III
cost per hundredweight of
cows, Beef Research Unit,
Program number
Item
1 2 3
Fertilizer and limea
Pasture maintenance
Cost of irrigation
Investment charge
Total cost of maintaining
pastures
Supplemental feeds and
minerals
Other costs for cows
Total costs
Fertilizer and limea
Pasture maintenance
Cost of irrigation
Investment charge
Total pasture costs
Supplemental feeds and
minerals
Other costs for cattle
Total costs
$ 9.66
1.97
17.36
$ 28.99
$ 24.15
75.98
$129.12
$ 12.37
2.52
22.22
$ 37.11
$ 30.91
97.25
$165.27
Cost per acre
$ 9.66
1.55
17.36
$ 28.57
$ 23.49,
73.67
$125.73
Cost per cow
$ 12.75
2.05
22.91
$ 37.71
$ 31.01
97.25
$165.97
Grass cost per
hundredweight of beef soldb
Fertilizer and limea
Pasture maintenance
Cost of irrigation
Investment charge
Total pasture costs
Supplemental feeds and minerals
Other costs for cattle
Total costs
$ 2.23
.46
4.02
$ 6.71
$ 5.59
17.59
$29.89
$ 2.30 $ 2.53
.37 .31
3.79
4.12 3.69
$ 6.79 $10.32
$ 5.58
17.50
$29.87
$ 6.35
17.39
$34.06
a
a
Covers cost of spreading materials on the pastures.
Based on pounds of beef sold from calves and culled cows.
$ 11.90
1.45
17.82
17.36
$ 48.53
$ 29.82
81.72
$160.07
$ 14.16
1.73
21.21
20.65
$ 57.75
$ 35.48
97.25
$190.48
Gross cost 'DJ-e
for calf and culled beef sold was $29.89 on Program 1 and $34.06 on Program 3.
The lowest net cost per hundredweight of beef produced from calves
was on Program 1 and was $23.36 per hundredweight (Table 8). Program 3
at $27.63 per hundredweight was the highest cost.
Table 8.--Market and sales data, by programs, Beef Research Unit, Phase III
Item Program number
1 2 3
Market grade score of calves 11.0 11.0 11.5
Beef produced from calves:
Price per hundredweight $ 42.97 $ 42.97 $ 43.93
Net cost per.hundredweight 23.36 23.36 27.63
Net returns per hundredweight 19.61 19.61 16.30
Value of beef sold from calves:
Per calf 209.41 212.61 215.41
Per acre 142.66 139.22 159.47
Per cow 182.19 183.91 189.78
a9.0 low good, 10.0 good and 11.0 high.
calves are for the 1971-72 season.
Market grade score of
SUMMARY
The experimental data were supplemented with data from other studies
to show the approximate income and expenses for the various pasture programs
if followed on a commercial operation. The cost of establishing grass-clover
pastures was estimated to be $248 per acre. Cows were valued at $300 per
head. The rate of interest charged was 7 percent.
Net returns per acre were $41.76 on Program 1 but only $29.60 on
Program 3. The gross cost per hundredweight of beef sold from calves and
culled cows was $29.89 on Program 1 and $34.06 on Program 3.
15
LITERATURE CITED
[I] Florida. Crop and Livestock Reporting Service. Florida Agricultural
Statistics--Livestock Summary. Orlando: 1973.
I- -, `
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