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14.6 Guidelines for Estimating Improved & Unimproved Pasture Production Costs

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January, 2007
Reference: MAFRI, Policy Analysis Knowledge Centre

Forage crops comprise approximately 36% of the agricultural land base in Manitoba. With the change in agricultural markets, there is a greater interest in the use of marginal cropland for forage production and the harvesting of that forage by grazing livestock.

The technology of grassland management has changed in recent years with the adoption of rotational grazing systems, use of improved pasture forage species and livestock marketing systems that can reduce risk to the grass manager.

Stocking rates are a critical aspect of any grazing system. This budget takes into account options to consider when calculating the stocking rate or Animal Unit Months (AUM) for your soil type and climatic conditions.

Pasture costs and returns must be carefully calculated so that a comparison is possible with other crop options for the land base. This Pasture Cost Guideline should provide an outline for producers to determine their costs of a grazing system.

Disclaimer: This budget is only a guide and is not intended as an in depth study of the cost of production of this industry. Interpretation and utilization of this information is the responsibility of the user. If you require assistance with developing your individual budget, please contact your local Manitoba Agriculture, Food and Rural Initiatives office.

Improved Pasture Cost of Production Summary

 

 

Season

Daily

Your Cost

A. Operating Costs

$/Acre

$/head

$/head

 

1.01 Land Development

$7.56

$9.82

$0.07

________

1.02 Fertilizer

$20.19

$26.22

$0.20

________

1.03 Herbicide

$2.56

$3.32

$0.03

________

1.04 Fuel & Repairs

$4.38

$5.69

$0.04

________

1.05 Land Taxes

$3.50

$4.55

$0.03

________

1.06 Miscellaneous

$0.00

$0.00

$0.00

________

Sub-total Operating Cost

$38.19

$49.60

$0.37

________

1.07 Interest on Operating

$1.24

$1.61

$0.01

________

Total Operating Costs

$39.43

$51.21

$0.38

________

B. Fixed Costs

 

 

 

 

2.0 Investment

 

 

 

 

2.01 Land

$12.00

$15.58

$0.12

________

2.02 Facilities

$1.44

$1.87

$0.01

________

2.03 Machinery

$0.00

$0.00

$0.00

________

3.0 Depreciation

 

 

 

 

3.01 Facilities

$3.59

$4.66

$0.04

________

3.02 Machinery

$0.00

$0.00

$0.00

________

Total Fixed Costs

$17.03

$22.11

$0.17

________

Total Operating and Fixed

$56.46

$73.32

$0.55

________

C. Labour

$2.41

$3.13

$0.02

________

Total Cost of Production

$58.87

$76.45

$0.57

________

Disclaimer: This budget is only a guide and is not intended as an in depth study of the cost of
production of this industry. Interpretation and utilization of this information is the responsibility of the user.

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Unimproved Pasture Cost of Production Summary

 

 

Season

Daily

Your Cost

A. Operating Costs

$/Acre

$/head

$/head

 

1.01 Land Development

$0.00

$0.00

$0.00

________

1.02 Fertilizer

$2.81

$12.22

$0.09

________

1.03 Herbicide

$1.00

$4.35

$0.03

________

1.04 Fuel & Repairs

$4.38

$19.04

$0.14

________

1.05 Land Taxes

$2.00

$8.70

$0.07

________

1.06 Miscellaneous

$0.00

$0.00

$0.00

________

Sub-total Operating Cost

$10.19

$44.30

$0.34

________

1.07 Interest on Operating

$0.33

$1.43

$0.01

________

Total Operating Costs

$10.52

$45.74

$0.35

________

B. Fixed Costs

 

 

 

 

2.0 Investment

 

 

 

 

2.01 Land

$5.00

$21.74

$0.16

________

2.02 Facilities

$1.06

$4.61

$0.03

________

2.03 Machinery

$0.00

$0.00

$0.00

________

3.0 Depreciation

 

 

 

 

3.01 Facilities

$2.66

$11.57

$0.09

________

3.02 Machinery

$0.00

$0.00

$0.00

________

Total Fixed Costs

$8.72

$37.91

$0.29

________

Total Operating and Fixed

$19.24

$83.65

$0.63

________

C. Labour

$2.41

$10.46

$0.08

________

Total Cost of Production

$21.65

$94.11

$0.71

________

Disclaimer: This budget is only a guide and is not intended as an in depth study of the cost of
production of this industry. Interpretation and utilization of this information is the responsibility of the user.

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Improved Pasture Cost of Production Assumptions

Land

 

 

 

Total Acres

160 acres

 

Market Value (excluding fence)

$48,000

 

Market Value per acre

300 $/acre

Grazing period

 

 

Days

132days

 

Months

4.4 months

Animal Unit Month (AUM) Available per Acre

 

 

Vegetative Associations

Soil Groups

 

 

 

Light

Medium

Heavy

 

 

2

3

4

Bush

Woodland 1

0.2

0.4

0.5

 

Open woodland 2

0.4

0.6

0.8

 

Harvested woodland 3

0.6

0.8

0.9

 

Boreal forest 4

0

0

0

Meadow

Upland grass 5

0.8

1.2

1

 

Transitional grassland 6

1.2

1.2

1.4

 

Lowland meadow 7

1.6

1.8

1.8

Improved

Hay regrowth

0.5

0.8

1

 

Poor tame forage 9

1.4

1.4

1.6

 

Fair tame forage 10

2

2.8

3

 

Good tame forage 11

3.5

4

5

Annual

Annual crop land 12

0

3

3

 

Crop stubble 13

0

0.5

0.5

 

Fall seeded cereal 14

0

1.6

1.6

Source: Manitoba Crown Lands
Estimated Carrying Capacity: Pick the soil group and vegetative association (from
the table above) that most closely represents your land.

Soil Group (2-4) 3 Veg. Assoc. (1-14) 11
Estimated average weight on pasture 1188 lbs

Carrying Capacity

 

Number of head pastured/season

122

(see detailed calculations on page 16)

 

Number of head pastured/acre

0.77

Pounds liveweight per acre

915

Total pounds on pasture

146,362

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