NC STATE UNIVERSITY
_ 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.
Distributed in furtherance
of the Acts of Congress
of May 8 and June 30, 1914.
North Carolina State University
and North Carolina A&T State
University commit themselves to
positive action to secure equal
opportunity regardless of race,
color, creed, national origin,
religion, sex, age, or disability.
In addition, the two Universities
welcome all persons without
regard to sexual orientation.
North Carolina State University,
North Carolina A&T State
University, U.S. Department of
Agriculture, and local
governments cooperating.
Decisions about forage should be based
upon several factors:
• The cost of production or
procurement measured at the point
where the animal consumes the
forage,
• The impact of forage choices on total
feed cost,
• The impact on animal performance,
and
• 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:
• Crops, including grasses and
legumes, corn, and small grains;
• Harvesting and conservation options,
including grazing, hay, silage, and
haylage;
• Storage options, including barns,
silos, and wrapped or bagged bales,
and
• Feeding options.
Eastern North Carolina and the
piedmont have a long growing season,
but these sections of the state are subject
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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
