Most folks, including Alabama cattlemen, don't like
to spend money unnecessarily. However, sometimes our
attempts to save a few dollars can end up costing us
more (maybe much more) than we saved in the long run.
A few examples which pertain to forage production are
as follows.
Variety Selection
Anyone who has been involved
in the purchase of forage crop
seed knows that different varieties
are usually priced differently.
Though there are exceptions,
it is generally true that the
very best varieties sell for
the highest price per pound.
The critical question is whether
a variety for which the seed
is more expensive is worth the
extra cost.
Sometimes a few calculations
can provide a good deal of insight.
As an example, let's assume there
are two varieties of a given
forage crop which differ in price
by ten cents per pound and the
recommended seeding rate is twenty
pounds per acre. In this situation,
the additional cost per acre
of seeding the more expensive
variety would be $0.10 x 20,
which equals $2.00.
Let's further assume that the
more expensive variety typically
outyields the less expensive
variety by 500 pounds of dry
matter per acre. (This is a conservative
assumption; many examples could
be found in which the average
additional production of a given
variety as compared to other
varieties is much higher than
this.)
Now let's try to place a dollar
value on the added production.
If an added 500 pounds of hay
is produced (which is one-fourth
of a ton) and the hay is worth
$60 per ton, the value of the
added production is ($60 x .25)
or $15. Not a bad return for
an investment of $2 per acre.
If the forage crop is grazed,
and if we assume that it takes
15 pounds of dry matter to produce
a pound of beef gain, then an
extra 500 pounds of forage would
produce an added 33 pounds or
so of beef per acre. Even if
the beef is worth only fifty
cents per pound, the extra growth
would generate more $16 per acre,
or eight times the extra cost
of buying seed of the better
variety.
Reseeding
The concept of reseeding of
annual forage crops is one which
is understandably quite attractive.
However, there is often a penalty
associated with managing a forage
crop for reseeding. The penalty
is that in order to get good
seed production, cattle normally
must be removed from a field,
and thus the accumulated forage
cannot be utilized for grazing.
Now let's make a few calculations
regarding the economics of reseeding.
Let's assume that by pulling
animals off to allow a field
to reseed, $20 per acre in seed
costs are saved the following
year. Using assumptions from
the previous example, it would
require the production of only
20 pounds of beef worth $0.50
per pound (300 pounds of dry
matter per acre) to cover the
value of the seed purchase which
was avoided.
There
are also other considerations
which favor utilizing the forage
of annuals rather than trying
for reseeding. There is never
any guarantee of reseeding because
seed yield may be low, in some
cases the seed may germinate
at the wrong time, or they may
be damaged by weathering. (The
old saw, "a bird in the hand
is worth two in the bush" applies
to this situation.)
There is nothing wrong with
striving for reseeding in certain
situations. However, the point
is that if there are hungry cattle
available that a producer knows
can utilize accumulated forage
of annual crops, from an objective
viewpoint it can be difficult
to justify managing for reseeding.
Holdover Fescue
Seed
It was learned years ago that
holding endophyte-infected fescue
seed for about a year's time
is a technique which can be used
to obtain endophyte-free seed
for establishing endophyte- free
fescue stands. However, there
are several reasons why this
is not a good idea.
First, these days there is little
difference between the cost of
infected and non-infected seed.
Second, under usual on- farm
storage conditions in our climate
the germination of grass seed
held over for a year typically
drops by at least ten percent.
Third, depending on storage conditions,
the endophyte level may not drop
to zero. If a mixed stand of
infected and non-infected fescue
is obtained, over time infected
seed tends to out-compete non-infected
seed, and may eventually dominate
the stand.
Finally, even if the germination
level is not affected, the seedling
vigor of holdover seed is almost
certain to be less than that
of new crop seed. In view of
the inherently lower stress tolerance
and vigor of non-infected fescue,
it does not need the added handicap
of reduced seedling vigor resulting
from prolonged storage.
Protecting Hay
Studies have shown that when
round bales of hay are stored
outside without protection, storage
loss is likely to be at least
30%. This means that for hay
valued at $60 per ton, at least
$15 of weathering loss will occur
per ton. It also means that for
a 1,000 pound round bale, a producer
could actually afford to spend
$7.50 per bale to prevent storage
loss. There are numerous techniques
that can be taken to reduce weathering
losses, but in most situations
even the building of a hay barn
to protect hay could easily be
justified with this level of
hay loss and hay value.
Conclusion
Most of us are conditioned to
automatically go for the lowest
price or cost whenever we have
the opportunity, and in many
situations this is a good philosophy.
However, as the examples discussed
indicate, sometimes spending
a bit more initially will allow
the realization of a substantially
greater benefit later. |