Region: National
Look at a farm system as the numbers start to stack up
Date: 2011-01-12 | Category: Sheep & Beef
The powerful compounding effect works here too.
Taking a 350ha farm that currently sows 4% of area into new pasture, what happens if you increase this to 8%? (For the purpose of this example it is assumed that half the re-grassed area is used for ewe grazing and half for lamb finishing.)
| First, some more assumptions |
| Average farm size: |
350 hectares - say 3000 breeding ewes |
| Area presently renewed after crop [4%] |
14 hectares |
| Extra annual income from renewing an extra |
|
| 14 hectares [4%]: |
$9,240 [($420 x 7ha) + ($900 x 7ha)] |
|
It's a powerful argument
If you sow an additional 14 hectares of new pasture every year the benefits compound: in year two, you sow another additional 14 hectares of new pasture, while gaining the benefit the extra 14 hectares of new grass sown in year one.
With each passing year, the potential income lost from not regrassing an extra 4% of the farm gets bigger and bigger.
Here’s what could have been earned [we’ve factored in a 10% annual decline in the production off the new pasture]:
| Year 1: |
Extra income from extra 14ha new pasture |
$9,240 [see above] |
| Year 2: |
Total increased income |
= $17,556/ha [$9,240 from new pasture + $8,316 from 2nd year pasture] |
| Year 3: |
Total increased income |
= $25,040 [$17,556 + $7,484] |
| Year 4: |
Total increased income |
= $31,776/ha [$25,040 + $6,736] |
| Year 5: |
Total increased income |
= $37,838 [$31,776 + $6,062] |
| Total |
Increased income before costs over 5 years |
= $121,450 |
|
Sheep and beef farmer:
Just as with dairying, income keeps stacking up when renewal of poor paddocks is undertaken. The net benefit at year 5 is over $30,000 and this doesn’t account for benefits still to come from new pastures sown in that year.
| Total cost |
|
| Extra 14ha pasture renewal on 350ha farm loses 1 t DM/ha (9 weeks out of grazing), so 14 t DM is needed. |
| 14 t DM silage @ 30c/kg DM |
= $4,200 |
| Silage cost for 5 years |
= $21,000 |
| Direct costs of renewal [see Appendix 1] |
= $932/ha |
| 14 hectares |
= $13,048 |
| Over five years |
= $65,240 |
| Extra ewes (35 @ $80) |
= $2,800 |
| Total Costs |
= $89,040 |
| |
|
| Net benefit |
|
| Increased income |
= $121,450 |
| Total cost |
= $89,040 |
| Total return on investment is |
= $32,410 |
|
Note: The estimated 1.0 t DM/ha supplement on hand for pasture renewal on sheep farms is less than dairy farms [2.0 t DM/ha] as less pasture production is lost through renewal.
Appendix 1.
Pasture renewal cost assumptions
| Direct Costs/ha |
|
$ [ex GST] |
| Glyphosate |
3 litres/ha |
$54.00 |
| Application cost |
|
$40.00 |
| Cultivation |
1 pass |
$150.00 |
| Grass seed (treated) |
20kg/ha |
$180.00 |
| Clover seed |
4 kg/ha |
$60.00 |
| Fertiliser |
150 kg/ha 15:10:10 |
$206.00 |
| Roller drilling |
|
$150.00 |
| Selective herbicide |
4 litres/ha |
$52.00 |
| Application cost |
|
$40.00 |
| Total cost |
|
$932.00 |
|
Important Note
These appendices provide indicative conservative figures, which will vary between situations. Calculators are available online ; please use these to calculate the specific costs for your own individual situation.
|
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Pasture renewal programme begins after 35 years. "My goal is to transform the farm over 10 years so I can farm with new pastures and flatter paddocks"
