Forage economics

              Forage Economics
Forages are an essential part of a ruminant animal’s diet and are an important factor in a profitable farm business. Many producers choose to grow some or all of their own forages, and this represents a significant cost. Cost is affected by decisions made in choosing, producing, harvesting, storing, and feeding forage. Years with low yields and production shortfalls create the need to buy additional feeds at added cost. Costs of alternative feeds and costs of alternative ways of procuring forages must also be considered as part of the profit equation. There are times when it is better to buy than grow forage. This publication discusses these aspects of forage economics.
Decisions about forage should be based upon several factors:
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The cost of production or procurement measured at the point where the animal consumes the forage,
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The impact of forage choices on total feed cost,
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The impact on animal performance, and
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The impact of year- to- year variations in yield and quality.
North Carolina has a wide variety of soil types, topography, and climate as you move from the coast to the mountains. There are numerous forage crop choices:
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Crops, including grasses and legumes, corn, and small grains;
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Harvesting and conservation options, including grazing, hay, silage, and haylage;
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Storage options, including barns, silos, and wrapped or bagged bales, and
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Feeding options.
Eastern North Carolina and the piedmont have a long growing season, but these sections of the state are subject to high summer temperatures and unpredictable amounts of summer rainfall. Many types of forage crops can be grown, but yields are unpredictable. Fewer options are available in the mountains because the growing season is shorter. This being the case, it is not possible to generalize and make recommendations that would fit all areas of the state. You must make decisions based on your goals, location, and
resources.
Production Costs
Production costs are important considerations when choosing among alternative forage crops. These costs include operating expenses for items that are used up within one cropping season and fixed costs associated with investments in machinery and equipment. The cost structure is different when comparing annual crops, such as corn silage or winter rye for grazing, to perennial forage crops, such as fescue and Bermudagrass. For annual forage crops, all the production costs are incurred during the production cycle for a single crop. For perennial crops, costs can be separated into the start- up
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