Estimated Costs of Pasture and Hay Production This report summarizes estimated costs of improving pasture by five different systems. For each system, both the initial cost per acre and the annual maintenance cost per acre are presented. In addition, costs of establishing alfalfa or alfalfagrass hay meadows and annual maintenance costs for alfalfa based hay production are presented. Included in the pasture and hay alternatives listed are the recommended steps for achieving rapid establishment and productive forage stands. Individual producers may wish to add to, delete, or otherwise modify some of these estimated cost factors where better estimates are available or where local site conditions, equipment availability, or producer expectations are appropriate.
Pasture Improvement Alternatives: Improving the existing grass with lime, fertilizer, and weed controlFor more details see PM869, Fertilizing Pastures, PM1688, General Guide for Crop Nutrient Recommendations in Iowa, and Weed Management in Small Grains, Forage Legumes, and Pastures available online at http://www.weeds.iastate.edu/ reference/wc92/WC922005/SmGrainsForPast.pdf . Complete renovation with a new grass seedingA seedbed is prepared with primary and secondary tillage as needed. For best results, needed lime should be incorporated 6 months or more before seeding. Needed fertilizer can be incorporated during seedbed preparation. Grass seed and a companion crop of oats are sown with a grain drill or other effective seeding technique. Complete renovation with a legumegrass mixture This involves the same steps as renovation with a new grass seeding except that a legume is included in the seeding mixture and nitrogen fertilizer is not used. Steps to follow are described in Pm1008, Steps to Establish and Maintain LegumeGrass Pastures, available from county extension offices. Interseeding and notill renovationWeeds are controlled several months before seeding with 2,4D. Lime and fertilizer are applied and a seeding of one or more legumes is made in an established grass sod using a drill designed for sod seeding (interseeder). Steps to follow are described in Pm1097, Interseeding and NoTill Pasture Renovation. Frost seedingOne or more legumes are broadcast on established grass in late February or March. Freezing and thawing plus early spring rains provide seed coverage and aid seeding establishment. Weed control, fertilization and grazing management help establishment and growth. For details, see Pm856, Improving Pasture by Frost Seeding.
The production from improved pasture will vary with the kind of soil, annual rainfall, plant species, and level of management. Unimproved grass pastures usually have weedy, unthrifty stands and require 2 to 3 acres or more to support the grazing needs of a mature cow. The improvement programs suggested here, when developed with moderate success, and with good grazing management practices, can be expected to provide the pasture needs for about one cow/calf pair on 1 to 1 1/2 acres. With toplevel management and favorable environmental conditions, production can be increased even further, reaching production requiring 1 acre or less of pasture per cow/calf pair.
Hay Production Management Alternatives Alfalfagrass seeded with an oat companion crop Many alfalfa and grasslegume hay meadows are seeded in early spring with an oat companion crop. A seedbed is prepared and fertilizer is incorporated as needed during seedbed preparation. For best results, needed lime should be incorporated in the seedbed six months or more before seeding. Grass and legume seed should be sown more shallow than the oats and the soil firmed over the seed. Oats often are removed for grain and straw. The sown forage seedlings will develop more rapidly if oats are removed earlier as hay or silage. One harvest of the new hay meadow can usually be taken in late summer of the establishment year. Grasslegume seedings can be made in late August without a companion crop when soil moisture and field slope conditions permit. Herbicideassisted alfalfa seedingAlfalfa spring seeded with a preplant herbicide will establish quickly. A fine, firm seedbed is prepared and preplant herbicide is incorporated prior to seeding. Alternatively, alfalfa can be seeded without a companion crop with post emergence herbicides used for weed control if needed. See Weed Management in Small Grains, Forage Legumes, and Pastures, available online at http://www.weeds.iastate. edu/reference/wc92/WC922005/SmGrainsForPast.pdf, for herbicide recommendations. Two harvests of alfalfa can usually be taken during the seeding year where an establishment herbicide program has effectively controlled weed competition. In developing the following cost estimate tables, it was assumed that lime would be needed for initial improvement or establishment. The soil phosphorus index was assumed to be in the low or medium range and the soil potassium index was assumed medium. General fertilizer rates are included based on these assumptions. Lime and fertilizer rates are best determined by soil test. Different grass and legume species and mixtures can be selected to fit specialized site, livestock, and management objectives.
AG96 | Revised | February 2006
Table 1. Summary of pasture improvement costs. * Initial Cost Per Acre Grass Improvement
Machinery Lime and fertilizer Herbicide Sod suppression Burndown existing sod Seed Labor Total Cost per Acre Total Cash Cost per Acre Expected Life in Years
$9.10 39.10 10.13
Grass Seeding
Legume Grass Mix
$41.45 94.00
Inter Seeding
$41.45 83.50
Frost Seeding
$20.80 67.40 6.25 6.25
$13.70 67.40 10.13
Killed Sod, No Till Renovation
$19.10 67.40
0.00 6.30
28.13 19.43
25.13 19.43
13.25 7.35
15.25 6.30
10.00 29.75 7.35
$64.63 $52.98
$183.00 $140.33
$169.50 $126.83
$121.30 $107.70
$112.78 $119.15
$133.60 $120.90
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Annual Pasture Cost Per Acre Grass Seeding Machinery Fertilizer, herbicide Labor Land Annual Maintenance Cost Initial Cost Amortization Total Cost per Acre Total Cash Cost per Acre
Legume Grass Mix
Inter Seeding
Frost Seeding
Killed Sod, No Till Renovation
$9.10 49.23 15.75 50.00
$7.40 20.30 15.75 54.00
$7.40 20.30 15.75 54.00
$7.40 20.30 15.75 54.00
$7.40 20.30 15.75 54.00
$124.08
$97.45
$97.45
$97.45
$97.45
$29.78
$44.71
$32.00
$29.75
$27.44
$153.86 $52.98
$142.16 $23.25
$129.45 $23.25
$127.20 $23.25
$124.89 $23.25
* Total costs for each pasture system and hay have been calculated to include ownership costs of machinery and land (including a return on investment) as well as a charge for labor. In the case where machinery and land are owned and labor is supplied by the operator, cash costs will include fuel and oil, machinery repairs, fertilizer, seed, herbicide, and farm operating overhead, which represents miscellaneous farm expenses not specifically identified with pasture or hay production. Annual pasture costs also include the initial renovation costs amortized over the expected life of the improved pasture. Annual maintenance cost for grass improvement will be the same as for grass seeding.
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Table 2. Pasture improvement by fertilization or renovation with a grass or legumegrass seeding: Initial cost per acre. Improvement of Existing Grass Fixed Machinery Costs Spray herbicide Moldboard plow Tandem disk (2 times) Spread fertilizer Harrow Seed (drill) Clip weeds
$0.90
Total Machinery Cost Lime and Fertilizer* Lime Nitrogen Phosphorus Potash
Renovation with Grass Seeding
Variable
Fixed
1.60
1.15
2.85
1.80
$5.35
$3.75
$23.25
Total Lime and Fertilizer
2 tons 30 lb. 50 lb. 100 lb.
$28.00 11.10
$39.10
Herbicide Labor
.6 hr.
Total Initial Cost per Acre
Variable
$7.25 4.20 1.15 0.90 2.90 1.80
$7.70 6.00 1.60 1.60 3.50 2.85
$7.25 4.20 1.15 0.90 2.90 1.80
$18.20
$23.25
$18.20
$42.00 10.50 18.50 23.00
2 tons
$42.00
50 lb. 100 lb.
18.50 23.00
$94.00
Seed** Oats Bromegrass Birdsfoot trefoil Orchardgrass Total Seed Cost
Fixed
$0.80 $7.70 6.00 1.60 1.60 3.50 2.85
80 lb. 30 lb.
Variable
Renovation with LegumeGrass Mix
1.5 bu. 10 lb.
$8.63 15.00
3 lb.
4.50
$83.50
1.5 bu.
$8.63
6 lb. 3 lb.
12.00 4.50
$0.00
$28.13
$25.13
$10.13
$0.00
$0.00
$6.30
1.85 hr. $19.43
Fixed
Variable
$11.65
$52.98
Fixed
1.85 hr. $19.43
Variable
$42.68 $140.33
Fixed
$42.68 $126.83
* These are average rates and may vary from 1/3 to 1 1/2 times these values for soils with different soil tests. ** Omit oats from August seedings. Higher priced seed varieties or different seed mixtures could vary these costs by 1.2 to 2.0 times.
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Variable
Table 3. Pasture improvement with interseeding, frost seeding, or killed sod, notill renovation: Initial costs per acre. Interseeding with Legume Fixed Machinery Costs Spray herbicide Leased interseeder or broadcast seeder Spreading fertilizer Clip weeds Total Machinery Cost Lime and Fertilizer * Lime Phosphorus Potash
Variable
$1.80
Fixed
$1.60 10.00
Variable
Fixed
Variable
$1.80
$1.60
$0.90
$0.80 10.00
1.00 1.15 1.80
1.60 2.85
1.15 1.80
1.60 2.85
1.15 1.80
1.90 1.60 2.85
$6.25
$14.55
$8.15
$5.55
$5.35
$13.75
2 tons 50 lb. 30 lb.
$42.00 18.50 6.90
2 tons 50 lb. 30 lb.
$42.00 18.50 6.90
2 tons 50 lb. 30 lb.
$42.00 18.50 6.90
Total Lime and Fertilizer Herbicide ** Suppression*** Burndown****
$67.40
$67.40
$6.25 $6.25
$10.13
$67.40
$10.00
Seed Birdsfoot trefoil Red clover Orchardgrass Bromegrass
4 lb. 3 lb.
$8.00 5.25
Total Seed Cost Labor
Killed Sod, Notill Renovation
Frost Seeding
5 lb. 3 lb.
$13.25 .7 hr.
Total Initial Cost per Acre
$7.35
$10.00 5.25
4 lb. 3 lb. 3 lb. 8 lb.
$15.25 .6 hr.
$6.30
$8.00 5.25 4.50 12.00 $29.75
.7 hr.
$7.35
Fixed
Variable
Fixed
Variable
Fixed
Variable
$13.60
$107.70
$14.45
$98.33
$12.70
$120.90
* These are average rates and may vary depending on soil test results. ** Two sprayings (spring and fall) may be necessary for thistle control. Spraying should be done the year before seeding. Follow herbicide label instructions regarding rate, timing, and cautionary statements for the following crop and animal use of treated fields. *** Chemical suppression may be desirable to improve success of interseeding. **** Fall burndown of existing grass, SeptemberOctober.
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Table 4. Maintaining productive pastures: Annual cost per acre. Improved Grass ** Fixed Machinery Costs Spreading fertilizer Spraying herbicide Clipping weeds Total Machinery Cost Fertilizer and Herbicide* Nitrogen Phosphorus Potash Herbicide
Variable
Total Labor Land Charge Cash rent equivalent
Total Annual Cost per Acre
Fixed
Variable
$1.60 0.90 2.85
$1.15 0.80 1.80
$1.60
$1.15
2.85
1.80
$5.35
$3.75
$4.45
$2.95
80 lb. 30 lb.
$28.00 11.10
30 lb. 40 lb.
$11.10 9.20
10.13
Total Fertilizer and Herbicide Labor Growing practices .5 hr. Fence maintenance 1 hr.
Improved GrassLegume ***
$49.23
$20.30
$5.25 10.50
$5.25 10.50
$15.75
$15.75
$50.00
$54.00
Fixed
Variable
Fixed
Variable
$71.10
$52.98
$74.20
$23.25
* These are average rates and may vary with soil test and the level of management on a particular field. Different herbicide alternatives could vary this cost. ** Improved grass pastures assume a dominance of cool season grasses such as smooth bromegrass, orchardgrass, tall fescue, or reed canarygrass. *** Improved grasslegume pasture assumed one third of the forage is made up of red clover, birdsfoot trefoil, or alfalfa.
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Table 5. Hay production: Seeding year costs. AlfalfaGrass Seeded with Oat Companion Crop * Establishment Costs
Fixed
Preharvest Machinery Spray herbicide Tandem disk (2 times) Spread fertilizer Harrow Seed (drill) Total Preharvest Machinery Cost Seed *** Oats Alfalfa Bromegrass Orchardgrass
Variable
Fixed
Variable
$6.00 1.60 1.60 3.50
$4.20 1.15 0.90 2.90
$0.90 6.00 1.60 1.60 3.50
$0.80 4.20 1.15 0.90 2.90
$12.70
$9.15
$13.60
$9.95
2 bu. 8 lb. 6 lb. 3 lb.
Total Seed Cost Herbicide Lime (total cost for hay lifetime) Labor 1 hr.
Alfalfa Seeded with Herbicide **
$11.50 24.00 9.00 4.50
15 lb.
$45.00
$49.00
$45.00
29.00
13.00 29.00
$10.50
1 hr.
$10.50
Total Establishment Costs
$23.20
$87.15
$24.10
$96.95
Annual Production Costs OneThird of Establishment Costs (for establishment year)
Fixed $7.73
Variable $29.05
Fixed $8.03
Variable $32.32
60 lb. 45 lb. 130 lb.
$21.00 16.65 29.90
35 lb. 125 lb.
$12.95 28.75
Fertilizer (for establishment year) Nitrogen Phosphorus Potash Total Fertilizer Labor
$67.55 3 hr.
$31.50
$41.70 3 hr.
$31.50
Land Cash rent equivalent
$70.00
Harvest Machinery Oats: combine and haul grain rake, bale, and haul straw
$10.80 $8.62
$9.40 $6.64
$12.02
$9.14
$24.60
$18.90
$31.44
$25.18
$24.60
$18.90
Fixed
Variable
Fixed
Variable
$140.67
$121.78
$134.13
$92.92
Alfalfa: mowerconditioner, rake, bale, and haul Total Harvest Cost Total Costs
$70.00
* Assumes 80 bushels oat yield, one ton straw yield and one ton per acre alfalfa yield from one cutting. ** Assumes two and a half tons per acre from two alfalfa cuttings with a herbicideassisted seeding. *** Omit oats from August seedings. Higher priced seed varieties or different seed mixtures could vary these costs by 1.2 to 2.0 times.
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Table 6. Annual production costs for established alfalfa or alfalfagrass hay. Present Hay Production Level 4 tons per acre * 6 tons per acre *
Your Estimate
Fixed
Fixed
Variable
Fixed
Variable
Variable
Onethird of establishment costs Machinery, seed, lime, and herbicide **
$7.73
$29.05
$8.03
$32.32
__________________
Annual fertilizer *** 01350/ton removed plus spreading
$1.60
$66.39
$3.20 $100.16
__________________
Harvesting Costs: Large Round Bales **** Mowerconditioner, rake, baling, and hauling
$37.18
$28.66
$50.32
$39.04
__________________
Labor Costs: 1.33 hr./cutting @ $10.50 per hour
$42.00
$56.00
_________
Land Cash rent equivalent
$60.00
$70.00
_________
Total Cost Using Large Round Bales Cost per Ton Total Cost per Acre Total Cost per Ton
$148.51 $124.10 $37.13 $31.03
$187.55 $171.52 $31.26 $28.59
$272.61 $68.15
$359.07 $59.84
__________________ __________________ _________ _________
Harvesting Costs: Small Square Bales **** Mowerconditioner, rake, baling, and hauling Labor Costs: 1.8 hr./cutting @ $10.50 per hour Land Cash rent equivalent Total Cost Using Small Square Bales Cost per Ton Total Cost per Acre Total Cost per Ton
$39.58
$26.41
$53.52
$36.04
__________________
$56.70
$75.60
_________
$60.00
$70.00
_________
$165.61 $121.85 $41.40 $30.46
$210.35 $168.52 $35.06 $28.09
$287.46 $71.87
$378.87 $63.15
__________________ __________________ _________ _________
* For harvest as silage use machine cost estimates from Table 7. ** Assumes alfalfagrass seeded with oat companion crop. If alfalfa seeded with preplant herbicide then use other costs. *** For 6ton yield goal, a split application of fertilizer is assumed. *** Harvest cost estimates assume 3 cuttings for 4 tons and 4 cuttings for 6 tons.
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Table 7. Estimated machinery costs for forage production. The following cost estimates are for onfarm use, excluding labor. Depreciation is based on current replacement cost, interest is based on average market rates. Fixed costs will be greater for newer machinery. If annual machine use is greater than that assumed, fixed costs per acre will be lower, and vice versa. Hauling costs are based on a round trip of one mile. Remember these are estimates only and they should not take the place of accurate recordkeeping.
Operation Moldboard plow Chisel plow Chop stalks Tandem disk Peg tooth harrow Sprayer/disk Field cultivator Bulk fertilizer spreader Grain drill Broadcast seeder Sprayer Combine small grain Haul grain (on farm) Forage chopper Haul silage Forage blower Rotary mower Mowerconditioner Windrower Rake Square baler (inc. twine) Round baler (inc. twine) Stacker Haul hay & straw
Hours of Use Assumed per Year
Fixed Cost per Acre (depreciation, interest, insurance, housing)
120 120 120 120 60 120 120 60 100 100 150 120 300 200 140 100 120 120 200 120 120 120 120 120
$7.70 3.30 3.90 3.00 1.60 3.45 1.90 1.60 3.50 1.90 0.90 9.20 0.02 12.50 1.00 0.75 2.85 3.40 3.00 2.00 6.30 5.50 7.20 1.12
/bu. /ton
/cutting /cutting /cutting /cutting /cutting /ton
Variable Cost per Acre (fuel, oil, repairs) $7.25 3.50 3.40 2.10 0.90 2.40 1.80 1.15 2.90 1.00 0.80 7.00 0.03 8.70 1.00 0.70 1.80 2.50 2.80 1.25 3.40 4.15 5.50 1.24
/bu. /ton
/cutting /cutting /cutting /cutting /cutting /ton
Table 8. Price and cost assumptions used. Lime and Fertilizer Lime, ton Nitrogen, lb. Phosphorus, lb. Potash, lb. Labor, $ per hour
Dollars per unit $21.00 0.35 0.37 0.23
Seed Oats, bu. Bromegrass, lb. Birdsfoot trefoil, lb. Orchardgrass, lb. Red clover, lb. Alfalfa, lb.
$10.50
Prepared by Steve Barnhart, extension agronomist, Michael Duffy, extension economist, Darnell Smith, extension associate, and Kyle Mowrer, undergraduate assistant. . . . and justice for all The U.S. Department of Agriculture (USDA) prohibits discrimination in all its programs and activities on the basis of race, color, national origin, gender, religion, age, disability, political beliefs, sexual orienta tion, and marital or family status. (Not all prohibited bases apply to all programs.) Many materials can be made available in alternative formats for ADA clients. To file a complaint of discrimination, write
Dollars per unit $5.75 1.50 2.00 1.50 1.75 3.00
File: Economics 18 and Agronomy 33
[A]
USDA, Office of Civil Rights, Room 326W Whitten Building, 14th and Independence Avenue, SW, Washington, DC 202509410 or call 2027205964. Issued in furtherance of Cooperative Extension work, Acts of May 8 and June 30, 1914, in cooperation with the U.S. Department of Agriculture. Jack M. Payne, director, Cooperative Extension Service, Iowa State University of Science and Technology, Ames, Iowa.
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