Profitability of stocker production is affected by both production variables and prices. The objective of this study was to determine profitability of stocker production, taking into account effects of pasture species, stocking rate, and time on weight and selling price of animals. Production data were obtained from stocking rate grazing experiments on rye (Secale cereale L.), oats (Avena sativa L.), and a rye + ryegrass (Lolium multifrorum L.) mixture grazed at 1.0 to 2.5 heifers/acre for 110 to 133 d during two seasons in southeast Alabama. Weekly price data for Alabama from 1986 to 1990 were used to develop equations relating price to animal weight for November (buying time) and March–April (selling time). Production costs were obtained from current budgets developed by the Alabama Cooperative Extension Service. Profitability was estimated for different stocking rates and for grazing periods of 90 through 130 d, starting in December. As stocking rate increased, average daily gain decreased most for rye (P < 0.01) and least for oats (P < 0.01), with rye + ryegrass not different from oats. Price per pound decreased with increased weight and time on pasture over the spring selling period. Expected maximum returns per acre occurred at the highest experimental stocking rates for all three pastures, 2.0 animals/acre for oats and rye, 2.5 animals/acre for rye + ryegrass. Because oats showed a production and profit response to stocking rate much like that of rye + ryegrass, future experiments should use higher stocking rates on oats pasture. When effects of time and animal weight on selling price are ignored, expected maximum net returns per acre are highly distorted. In the case of rye, ignoring the effects of time and weight on price would also lead to erroneous conclusions about the optimal stocking rate.
Research Question
Selling price of stockers and profitability of stocker enterprises change with time and selling weight of cattle. Because lighter animals command a higher price per pound, estimates of profitability of a stocker enterprise can be seriously distorted when such effects are ignored. This study estimated economic optimum stocking rates for stockers grazing rye, rye + ryegrass, or oats in southeast Alabama, taking account of the effects of time and selling weight on selling price.
Literature Summary
Several studies have determined economic optimum stocking rates from stocking rate experiments. All these studies, however, have assumed that cattle would be sold for the same price, regardless of ending weight or time of sale. Price differences related to time and weight could substantially alter the estimated profitability of a grazing system. Further, little grazing research has been conducted on recently improved varieties of oats pastures.
Study Description
Data used for this study came from 2‐yr grazing experiments on ‘Wintergrazer 70’ rye stocked at 1.0, 1.5, and 2.0 animals/acre, ‘Citation’ oats stocked at 1.3 and 2.0 animals/acre, and a rye + ‘Marshall’ ryegrass mixture stocked at 1.5, 2.0, and 2....