Productivity and Economic Return of Three Warm Season Grass Stocker Systems for the Southern Great Plains

Production per animal and per acre and input cost and returns were determined on three grazing systems, native range (NR), bermudagrass Cynodon dactylon (L. ) Pers. var. dactylon (B), and Old World Bluestem (OWB) during the summers of 1987 through 1989. Each system was managed based on the best recommended practices. Calves obtained from commercial sources in May were randomly assigned to each system. They averaged 497, 491, and 565 lb body weight for each of the 3 yr. All pastures were burned each year to remove old residue, but only B and OWB pastures were fertilized with 70 to 150 lb of N/acre. Data were analyzed across years as a randomized block using a model containing years, forage, and year × forage. Because stocking rates were greater, B and OWB provided more (P > 0. 05) animal units per acre than the NR system. Steers grazing NR and OWB pastures had greater average daily gain (ADG) (P > 0. 01) and gain per head than steers grazing B pastures. However, total animal gain per acre was greater (P < 0. 01) from B and OWB than from NR pastures. The cost per acre of forage and fencing were 4. 34, 33. 77, and 27. 68 for the NR, B, and OWB pastures, respectively. These costs represented only a third of the total cost of production, which includes interest, labor, marketing, and fixed cost. The NR system had the lowest forage production cost and was profitable all 3 yr, while the OWB system was profitable 2 out of 3 yr and the B system in only 1 yr. Stocker systems based on NR have less variability in return per acre and cost per acre than systems based on B or OWB; however, the potential for large economic returns are greater for systems based on introduced warm season grasses. Research Question Summer stocker producers in the Southern Great Plains can build grazing systems around different grasses that require varying levels of management and investment of capital. Choices can range from low input native species to intensively managed introduced species with greater input demands. The objectives of this study were to determine individual animal productivity, production per acre, and input costs of summer stocker systems based on three forage sources that are currently in use in the Southern Great Plains. Literature Summary Individual animal performance is similar among summer stocker grazing systems when stocking rate is within an acceptable range for the grass used. However, stocking rate varies greatly among systems depending upon the grass used. Native range is a renewable resource that needs little capital input, while introduced grasses such as bermudagrass and Old World Bluestem require higher levels of fertility and a larger investment in capital to efficiently use the additional forage produced. Although introduced grasses usually produce more beef per acre, comparisons of the cost of producing a pound of beef or the return per acre for summer stocker systems is not available. Study Description The study was conducted over three summer grazing seasons. Steers averaging 518 lb were assigned to one of three grazing systems based on either native range, bermudagrass, or Old World Bluestem. Calves were obtained from a commercial source in May just prior to the initiation of grazing. Each system was managed independently of the others and all management decisions were based on the best recommended practices for each grass (Table). Applied Question Do summer stocker systems that use introduced grasses produce beef more economically than a system based on native range with little capital input? Steers grazing native range and Old World Bluestem pastures gained more weight than steers grazing bermudagrass pastures, but because the stocking rates were greater on introduced pastures, gain per acre was greater for the two systems that used introduced grasses than for native range (Table). The cost of production (/head) was similar among the three systems, because the cost of fertilizer, fencing, and other cost in producing and harvesting the grass represent only a third of the total cost of production. Other costs such as interest on borrowed money, marketing cost, and labor had more impact on net return than pasture cost. Many of the costs are time dependent or are one time per head costs. Since the introduced grasses have a greater stocking rate, they are more sensitive to cost that accrued on a per head basis. The native range system was less variable in profitability than the systems based on introduced grasses; however, it had limited flexibility to take advantage of years when large returns were possible. Recommendation Reducing the cost of needed N inputs into introduced grass systems would increase profitability. Systems based on introduced grasses are more volatile than a system based on native range and are more sensitive to cost accrued on a per head basis. Therefore more market protection is needed when introduced grass systems are used, but the potential returns are greater for the introduced grass systems. Number of pastures, steers per pasture, grazing days, and N inputs for each system. Forage system Native Old World Item range Bermudagrass Bluestem No. of pastures 10 6 10 No. of head/pasture 33 61 28 Acres/pasture 132. 2 37. 0 14. 4 Stocking rate, head/acre 0. 25 1. 6 1. 9 Grazing days/acre 109 125 100 N applied lb/acre 0 125 104 Animal performance, cost of gain, and economic return under three summer stocker systems. Forage system Item Native range Bermudagrass Old World Bluestem Body weight Initial 499 511 538 Final 670 640 680 ADG 1. 57 1. 03 1. 43 Gain, lb/head 171 129 143 Gain, lb/acre 44 196 280 Cost, /head 61. 29 68. 60 54. 94 Cost, /lb 0. 358 0. 532 0. 384 Return, /acre 7. 71 −10. 85 43. 40