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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.
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.
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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