Empirical analysis of the profitability of moderate grazing are presented based on sample dairy farms in Pennsylvania and New York. Net income per cow was higher for dairy farms that employed moderate intensive grazing than for dairy farms that employed extensive grazing. Income appeared to be adequate for family living expenses, but moderate intensive grazing could not be considered a high profit system. Detailed analyses of dairy farms that employed moderate and extensive grazing in northern Pennsylvania indicated that returns to management and owner equity were higher for pasture enterprises than for corn silage or hay enterprises. Positive dairy profits were related to lower feed costs. Milk production was lower on farms that employed moderate grazing than on farms that employed extensive grazing. Logit regression analysis characterized farms that employed moderate intensive grazing as oriented toward dairy rather than toward crop production; these farms had lower culling rates and a greater dependence on milk sales as a share of total sales. The reduced use of fertilizers and chemicals suggests that moderate grazing had environmentally sustainable features.

Intensive grazing is a fast growing dairy production system in the USA, New Zealand, and Ireland. The key concept underlying intensive grazing systems is the substitution of cow‐harvest for machinery harvest of forages. Study objectives were: (i) to determine whether randomly selected, representative dairy farms using intensive grazing were profitable, (ii) to determine whether grazing was more or less profitable than other crop enterprises, and (iii) to identify factors statistically associated with increasing intensity of grazing. Data were collected on 53 farms in a prominent dairy region of Pennsylvania in 1993. Results indicated that moderate intensive grazing achieved a $129/acre return to operator management and labor, compared with $20 and $58 returns for all hay and corn silage enterprises, respectively. Dairy enterprise returns averaged about $317/cow. Debt per cow was substantially higher for farmers increasing grazing intensity. Pasture acres per cow, high debt‐to‐assets, and negative cash flows were statistically associated with increasing intensity of pasture use. Thus, this study suggests that farm financial constraints of high debt and poor cash flows provide an important motivation to increase grazing intensity. A major drawback of intensive grazing is the likelihood of achieving slightly lower milk production than with confinement feeding. The primary economic benefit of intensive grazing was the reduction of costs associated with the production of pasture forage vs. production of other crops. Research Question This research analyzes the economic performance of forage and dairy enterprises in the context of intensive grazing systems. It's primary focus is to determine whether intensive rotational grazing is profitable among randomly selected grazing dairy farms. Although grazing systems, with varying levels of intensity, are used by more than 30% of dairy farms in several states, the economic motivation for increased use of pasture forages has not been well‐demonstrated, empirically. Attention is also given to the effects of debt and cash flow constraints on adoption of grazing systems and the relative impacts of grazing on crop enterprise vs. dairy enterprise profits. Literature Summary Intensive grazing is characterized as a cost‐controlling rather than a production‐maximizing approach to farm management. Intensive grazing systems are reportedly less erosive than row‐crop production, conducive to overall animal health, capital extensive rather than capital intensive, and cow‐focused rather than focused on manufactured inputs. However, milk production with intensive grazing systems has been found to be 3% to 10% lower than with confinement feeding. Further, ration balancing with intensive grazing systems is made more difficult when farmers do not regularly sample pasture forages. No representative studies of the economic impact of intensive grazing in a northeastern state are present in the grazing literature. Study Description A stratified random sample was drawn from grazing dairy farmers in ...

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