----- Original Message -----
From: "KV9U" <mrfarm@mwt.net>
To: <graze-l@witt.ac.nz>
Sent: Thursday, June 08, 2006 8:57 AM
Subject: [Graze-l] Growth of U.S. grazing farms vs. other farms
> Bernie,
>
> How much better do you see managed grazing? Tom Kriegl's studies have
shown some benefit
> to the bottom line, in the area of $1/CWT or sometimes a bit more on
average. Therefore,
> some individual farms could do even better than that, and that can be
significant in a
> mature industry such as farming. With, say, 100 cows, wouldn't that be
only $10,000
> dollars difference, give or take?
In Mo. the difference between grazing and conventional is more i believe. The
extra
bonus grazing provides when you reach the herd size that suits your farm is
being able to
sell surplus cattle back into the dairy industry instead of slaughter.
On strictly cost of production the grazers COP compares about even with the
confinement
clients of Genski, Mulder and Co. We have more room for improvement. Add in
dairy sales
and we win.
> What do you see as the COP for a CWT of milk with the two separate models?
Or maybe four
> separate models, of the older small farm vs. the large confinement farm,
vs. the
> moderate size grazing farm vs., the large grazing farm.
COP is important but not the whole picture. Don't get hung up on that. The
assets of a grazing operation are weighted towards appreciable assets, land
and cattle. Some confinements are on a small parcel of land with buildings
and waste facilities and the system is more like to depreciate cattle.
> With roughly equal management ability, how much lower a COP can you
estimate using the
> older small farm as a sort of baseline? I know that this is difficult to
do, but any
> idea of some relative difference?
Ya that is real hard to figure. Just throwing a number out, 20% lower.
> Also, it is not only the COP, but the net farm income that counts too so
you would want
> to take that into consideration.
yup.
> If you did not have to have buildings, land was low cost, and labor
efficiency was high,
> aren't those the main factors? And couldn't that be done with different
managerial
> approaches other than grazing?
Those will always key factors. I believe top end grazers will beat top
end confinement in return on investment over time. Middle grazers will
beat middle confinement. Bottom end of both will be out of business.
> In talking to a local dairy farmer, in the past day about MO, it turns out
that he has
> spent some time down there because a relative lives close to the Arkansas
border. He
> wondered how you would weather the horrifically high temperatures which
can go one for
> months, the lack of dairy infrastructure, the extremely poor soils, and
the severe
> weather conditions and the winter weather which can get cold in winter and
might still
> require shelter at times or have a disaster waiting to happen.
Thinkers can deal with these challenges. Heat- shade trees (requires management-
multiple areas) shade structures (portable or fixed), cooling under pivots,
cooling ponds.
Don't buy extremly poor soil. There are good areas. We have infrastructure
here. If t
here is non you need to be big enough to attract it or know how to deal with
things
yourself.
> As you know, on Grazersedge, we have a number of extension personnel,
several DVM's, one
> being a DVM pathologist, one of the top dairy nutritionists, and of course
some very
> capable farmers who have a lot of practical knowledge and have helped
many. You are also
> on that group and former agriculture agent Turner has commented in the
past day or so.
> Maybe I have the wrong state, but I thought he was in MO or close to that
area of the
> south.
I think Keenan and Lucky may have both spent time in Mo. but when that
last was i don't recall and exactly what part i don't know.
> One nice thing about Grazersedge group is that while you will get
differences of
> opinion, there does not seem to be quite the acrimonious attitude of the
know it all
> types who only believe their way is the right one and anyone who even
questions them are
> personally attacked. Also, the group keeps growing and is now over 1100
members, which
> is substantial in my view.
Well Dave is the know it all on Grazersedge but is not challenged there. I and
others can't be bothered. FW, Vaughn, and others have the will to challenge.
Only one thing I agree on with Dave is the 15 cent check off. Better yet they
should
stop talking it out of my milk check. Its no net gain to producers. The milk
price
pendulum will always swing back to near the cost of production.
The big crock of BS Dave spouts is currency exchange subsidy. That only applies
to country's who have a fixed exchange rates like China.
Bernie
Reeds, Mo.
