Financial evaluation of hill country pasture improvement

Abstract

<jats:p>Capital fertiliser dressings and intensified grazing management (to fully utilise available pasture) are shown to be essential components of hill country pasture improvement options when they were analysed by a computer simulation model. For calculations to be profitable, animal performance needed to exceed specified minima throughout the period of development. For traditional mixed livestock policies, these minima were that finishing cattle reach 300 kg carcass weights and breeding ewes achieve more than 100% lambing. Keywords pasture improvement, gross margin, reseeding</jats:p>

Hill country farm investment options - cocksfoot pasture vs. superphosphate fertiliser

“…At the level of financial return measured, and for a cost of $138/ha of system developed ($275/ha oversown), 8% interest on capital and $60/ha for grazing costs in the establishment winter, the period to breakeven financially from Wana cocksfoot oversowing was 8 years. This was an almost identical result to a similar calculation by Parminter (1991).…”

“…Among the options for farm investment are pasture species introduction and fertiliser application. Parminter (1991) modelled the economic return from capital fertiliser application or 'Grasslands Wana' cocksfoot (Dactylis glomerata) introduction, and found a similar payback period (7-8 years) for both investment options. Detailed comparison between these investment options in hill country, however, is complicated by there being relatively little biological information on the relative differences in the responses of pasture and animal production to these farm inputs.…”

“…Webby et al (1990) calculated that greater production from Wana cocksfoot in hill country could be worth up to $125/ha, but concluded however, that establishment failure and inconsistent responses of other pasture species made wide-spread use of new pastures in hill country of questionable value. Previous modelling with Stockpol ® has found that where establishment of Wana increased total pasture production, increased animal and financial performance can be expected (Parminter 1991;Barker & Baars 1993), however, no system trials have been done to show the benefits for animal production.…”

The impacts of change in forage quality and seasonality on sheep farm profitability

“…Improved grazing management (Sheath et al 1984), soil fertility (Gillingham et al 1990) and subdivision (Fitzharris & Wright 1984) can all contribute to less seasonality in pasture supply and improve feed quality. Financial analysis suggests that management and soil fertility must also be addressed in pasture improvement (Parminter 1991). One would assume that in any fine-tuned farm system these factors would not be an issue, leaving the opportunity for substantial gains to be made through pasture or forage supply improvement.…”