Increasing Intensity of Pasture Use with Dairy Cattle: An Economic Analysis

Abstract

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 ...

Improving the nutrient status of a commercial dairy farm: An integrated approach

“…Milk production per cow fluctuated in the years coinciding with the transition to MIG, 1992-96, most likely due to a decrease in grain consumption. The production decrease during transition to MIG is within the range of 3-10% reported by Hanson et al (1998) from a study of 60 dairy farms that switched to intensive grazing systems in the Pennsylvania-New York state border region. Difficulties in estimating intake on pasture and its impact on ration balancing may account for production decreases during transition to a MIG system (Parker et al, 1992).…”

“…The reduction in feeding costs and dependence on purchased nutrient inputs associated with increased use of legumes in forage production (Jarvis et al, 1996;Laws et al, 2000), and management intensive grazing (MIG) (Anderson and Magdoff, 2000;Fredeen et al, 2002;Hanson et al, 1998) have important implications with respect to the efficiency of dairy farm nutrient use. MIG attempts to optimize pasture productivity by rotational stocking of pastures on the basis of target sward entrance and exit heights (Murphy, 1998).…”

“…MIG attempts to optimize pasture productivity by rotational stocking of pastures on the basis of target sward entrance and exit heights (Murphy, 1998). Pasture is an important crop in Atlantic Canada (Papadopolous et al, 1993) and while an increasing body of research suggests dairy farm net returns and economic performance may be improved through MIG (Fredeen et al, 2002;Hanson et al, 1998;Parker et al, 1992) its adoption remains low among dairy farms in eastern Canada (Clark et al, 1993).…”

Characterisation of phosphorus uptake by perennial ryegrass(Lolium perenneL.) during regrowth

“…Pasture is a source of high quality herbage for grazing animals, and maintaining cost-efficient production of pasture is consistent with the economic competitiveness of the dairy industry in m any parts of the world (Hanson et al 1998;Dillon et al 2005). Perennial ryegrass (Lolium perenne L.) is the dominant pasture species in temperate dairy pastures (Lamp et al 1990), commonly sown in combination with white clover (Trifolium repens L.).…”

Nutrient budgets of Ontario organic dairy farms

“…The lower feeding costs and reduced dependence on purchased nutrient inputs of alternative dairy farming systems (including pasture-based or organic) can improve dairy farm nutrient status and nutrient useefficiency, net returns and economic performance (Hanson et al 1998;Anderson and Magdoff 2000;Stonehouse et al 2001;Fredeen et al 2002;Lynch et al 2003). Organic dairy farms often devote more of their land-base to pasture and hay production, and less to cash crops and large grains (Nicholas et al 2004).…”