Contributed by Carl Stafford, Senior Extension Agent, Animal Science, Culpeper County
Wintering cost is one of the biggest expenses in producing beef cattle. John Howe, Spotsylvania Extension Agent, explained the difference in the cost of a pound of dry matter from pasture vs. that from harvested feed. He found that the equipment harvested feed can run 3 to 4 times the cost of that harvested by cattle. Gordon Groover supports Howe in his article, “What I Know about Forage Economics,” Virginia Forager, Fall 2016, page 7. He finds that each ton of hay could have more than $200 per ton equipment depreciation before “out-of-pocket” expenses are added.
Gordon Groover Extension Economist, Department of Agricultural & Applied Economics, Virginia Tech
First, the key assumption behind this article is that the farm business in managed to make a profit. A second assumption is that the environment farm business managers face is not constant, or to quote Heraclitus, (535 BCE), “The only constant is change.” That is, as prices and technology change then management strategies, enterprises, and capital investments must change for the farm to remain profitable. For example, few cow-calf producers harvest and feed corn silage to their beef cow herd as opposed to what was a common practice 40-50 years ago. Corn silage was and is still a high quality feed for ruminants, yet the capital investment to plant, harvest, transport, store, and feed has increased the total costs of corn silage. On a relative costs basis and with the help of round bale technology the cost of making hay was less than corn silage, leading to wholesale Continue reading
USDA National Agricultural Statistical Service (NASS) released cash rental rates for 2014 irrigated and non-irrigated cropland and pastureland for Virginia counties and cities. See the following PDF file for details
2014 NASS Cropland and Pastureland Rental Rates
Tom Stanley, Extension Agent, Farm Business Management, Rockingham, Augusta, Rockbridge, Highland, and Bath Counties
These are good times in the cattle business with record high prices for calves and feed prices that have moderated following the severe drought in the Corn Belt in 2012. Beef cattle are the leading agricultural product in most Virginia Counties west of the Blue Ridge in terms of land use and gross receipts, thus the favorable cattle market is good news. The three to five year outlook for the cow/calf sector (the predominant type of beef production in Virginia) is very strong. This has many cattlemen contemplating how they might retain their own heifer calves or acquire additional cows to capitalize on this profitable environment. Continue reading