Tag Archives: inflation

Feeding Hay to Improve Your Land-Part 1

As you may already know, Jim and Dawn Gerrish are two of the most notable and knowledgeable people when it comes to land and livestock management, including management-intensive grazing (MiG).  Jim has his own consulting business which can save you lots of money right from the start of your adventure in managed grazing.  Contact him through American GrazingLands Services, LLC.  Find him on Youtube videos and pick up one of his well written books, Management Intensive Grazing – The Grassroots of Grass Farming and Kick the Hay Habit – a Practical Guide to Year Round Grazing.

Feeding Hay to Improve Your Land – Part 1

By   /  February 25, 2019  /  3 Comments

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We think it is far more important to stop making hay on your land than it is to stop feeding hay on your land. Here are some things to think about.

What Made Sense in 1973 Doesn’t Make Sense Today

Making hay is a whole lot more expensive than it used to be. This table compares input costs for making hay in 1973 in contrast to 2013.

 

All of the input costs have increased at a much faster rate than the value of beef cattle, lamb, or milk. To be on par with costs experienced in 1973, fed cattle should have been $284/cwt, not the $148 they were.

Hay = Inexpensive Fertility

While making hay is expensive, in much of the US, hay can be bought for less than the cost of production. When you buy someone else’s hay and feed it on your property, you are buying their fertility at a highly discounted rate. In some years in some locations, you can buy beef cattle hay for less than the fertilizer value it contains.

This is a great opportunity for improving your land in a way that also benefits soil health.

Feeding Uniformly is the Key

The key to soil improvement is to get the hay fed uniformly over your pastures. This is how you can realize the greatest benefit from purchased hay as a planned fertility input.

Large round bales are still the norm in much of US cow country. Round bales can be unrolled with relatively low-cost equipment. Bales don’t unroll uniformly all the time, but the subsequent manure distribution is way better than feeding bales in ring feeders.

Big square bales can be flaked off easily in a systematic way to cover a specific area with each bale fed.

Bale processors are expensive pieces of equipment. If you are invested in something like this, make sure you are feeding all of your hay to optimize the distribution of manure across the pasture.

We need to be thinking about how much nitrogen and phosphorus is in each bale we are feeding so we can plan our daily feeding to apply appropriate levels of nutrients rather than feeding too little and not realizing the benefit we expected or feeding too much and overloading the soil and environment with excess N. We’ll look at that next week!

Stay tuned! Jim will be covering all the data and math in this series to help us figure out how to do the best we can at improving pastures with hay feeding. If you have questions for Jim, do share them in the comments section below!

Parity? Not a chance in Farming

It’s not hard to understand why most young people have no interest in farming as a career.  Low wages, working conditions can be brutal at times (weather related or dangerous), and very low return on investment coupled with high financial risk.  Not a good combination.  The average age of principle operators continues to rise and is now over 58 years old – a time when many in other sectors are planning retirement.  However, the young people who are starting up do seem to work smarter and not harder with the result being a more balanced family/work lifestyle.  Also, mechanisation and better ranching principles continue to make the work more pleasant and give farmers/ranchers the opportunity to expand without working harder or longer hours.  There is hope that agriculture will continue in the US, just with fewer operators and sadly, still supported with off farm income.  There is a joke amongst farmers and ranchers that when asked what they’d do if they won a million dollars, the answer is ‘farm until it’s gone.’

1966

Land cost per acre:  $93/acre  (my Bowyer Place)

Cow Prices:  $20/cwt  (20 cents per pound)

Fed Steer Price:  $25/cwt  (25 cents per pound)

Wages per hour:  $1.25 (minimum wage)

Fuel:  .32/gallon

2018

Land cost per acre:  $2800/acre (similar land sales in Linn County, MO)

Cow Prices:  $63/cwt  (63 cents per pound)

Fed Steer Price:  $115/cwt  ($1.15 per pound)

Wages per hour:  $7.25 (minimum wage)

Fuel: $2.45/gallon

CPI Inflation Calculator to compare:

Land – $93 in 1966 is the same as $725 in 2018 dollars

Cow Prices:  $0.20/lb  in 1966 is the same as $1.56/lb in 2018 dollars

Fed Steers:  $0.25/lb in 1966 is the same as $1.95/lb in 2018 dollars

Wages per hour:  $1.25/hr in 1966 is the same as $9.74/hr in 2018 dollars

Fuel: $0.32/gallon in 1966 is the same as $2.49/gallon in 2018