Region: National
The Power of New Pasture: How much more money would I make?
Date: 2010-05-21 | Category: Sheep & Beef
More than you might think.
Sheep and beef operations vary widely, with many stock policies.
To demonstrate the financial benefits we have used the example of a breeding ewe operation that finishes as many lambs as possible.
These are the properties where additional pasture renewal, as advocated in this publication, has good potential.
High, hill and back country enterprises producing store cattle and lambs do not typically have a lot of land easily covered by a tractor and, for them, the more practicable avenue for significant pasture improvement is most likely to be by aerial oversowing.
The simplest way of expressing the benefits to be gained by sheep farmers in our target sector from superior pasture are twofold:
- The ability to run more breeding ewes, and
- The ability to finish lambs faster, creating the opportunity to finish additional trading lambs [mostly applicable to summer-moist regions]
More breeding ewes
To express the first of these examples, we use the tried and true measure of the gross margin per ewe.
| Assumptions |
| The modern breeding ewe |
= 1.2 stock units |
| With an annual feed requirement |
= 660 kg DM [1 s.u. = 550] |
| Gross margin per ewe[See Appendix 2 below] |
= $62 |
| Increased pasture production from renewal |
= 3.3 tonnes/ha peryear [3-6 is typical] |
| So... |
|
| Extra 3,300 kg DM annually will support |
= 5 additional ewes |
| |
[3300/660] |
| |
$310/ha [$62 x 5] |
|
Finish extra lambs
This benefit will not always be available to farmers in summer-dry regions but the opportunity will present itself in some seasons - certainly more often than it would if pasture renewal were not undertaken at all!
| Assumptions |
| Average lamb growth rate on old pasture |
120 g/day |
| Average lamb growth rate on new pasture |
200 g/day |
| Stocking rate |
20 lambs/hectare |
| Finished lamb value /kg liveweight |
$2.00 |
| Starting liveweight |
24 kg |
| Target finishing liveweight |
36 kg |
| Therefore target liveweight gain |
12kg [12000g] |
| So: faster finishing |
| Finishing on old pasture takes |
= 100 days |
| |
12,000g @ 120g/day/days] |
| Finishing on new pasture takes |
= 60 days |
| |
[12,000g @200g day/days] |
So: more finishing capacity!
The faster growth rate frees up an additional40 days of grazing. |
| With 20 lambs/ha at 200g/day for40 days |
=160 kg extra |
| liveweight gain |
@ $2.00/kg |
| |
= $320/ha/year |
| |
| Total benefit [ewes + lambs] |
| Add the extra ewe GM |
= $310/ha/year |
| And the extra lamb finishing margin [above] |
= $320/ha/year |
| Total benefit |
= $630/ha/year |
But a new pasture will last more than a year, let's say it lasts [conservatively] 5 years.
|
|
Total benefit over 5 years [with a 10% reduction in yield & hence income per year
|
= $2,579/ha/year |
| Cost |
| Renewal investment required: [see Appendix 1 below] |
= $932/ha |
| Feed supplement - 1t silage DM @ 30c/kg |
= $300/ha |
| Extra ewes [5 @ $80] |
= $4000/ha |
| Total investment |
= $1,632/ha |
| So: Total Net Benefit |
| Extra ewe & lamb benefit over five years |
= $2,579/ha |
| Less investment required |
= $1,632/ha |
| Net benefit |
= $947/ha |
|
Remember:
This is one example of what could be achieved. This does not take into account the additional benefit of improved seasonality of dry matter production of new varieties.
*To assist feeding stock while new pasture is establishing, an allowance has been made to buy in 1tDM silage at 30c/kgDM = $300/ha. This may be necessary if feed supply is restricted at this time.
Appendix 1.
Pasture renewal cost assumptions
| Direct Costs/ha |
|
$ [ex GST] |
| Glyphosate |
3 litres/ha |
$54 |
| Application cost |
|
$40 |
| Cultivation |
1 pass |
$150 |
| Grass seed |
20kg/ha |
$180 |
| Clover seed |
4 kg/ha |
$60 |
| Fertiliser |
150 kg/ha 15:10:10 |
$206 |
| Roller drilling |
|
$150 |
| MCPB |
4 litres/ha |
$52 |
| Application cost |
|
$40 |
| Total cost |
|
$932 |
|
Appendix 2.
Breeding ewe gross margin assumptions
| Per Ewe |
|
$ [ex GST] |
Lambing %
|
|
140% |
Replacements kept
|
28% |
Lamb Income
|
1.1 lambs @ |
$56 $63 |
Cull Ewe Income
|
20% ewes @ |
$35 $7 |
Wool Income
|
5.0kg Wool/ewe |
$3 $15 |
Ram Purchases
|
24% of rams @ |
$600 -$2 |
| Ewe Income less purchases |
|
$83 |
| |
|
Less Direct costs:
|
|
Freight
|
$1 per head |
$1 |
Animal Health
|
$3.50 per sheep su |
$5 |
Shearing
|
$3 per head |
$8 |
Interest
|
10% on capital |
$8 |
Total Direct Costs
|
|
$21 |
| Gross Margin |
|
$62 |
|
|
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More frequent pasture renewal is perhaps the most effective way to get significant production gains in a New Zealand farm system
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