PROFITABILITY OF CATTLE PRODUCTION FROM RYE, OATS, AND A RYE PLUS RYEGRASS MIXTURE GRAZED AT DIFFERENT STOCKING RATES

Profitability of stocker production is affected by both production var iables and prices. The objective of this study was to determine profit ability of stocker production, taking into account effects of pasture species, stocking rate, and time on weight and selling price of animal s. Production data were obtained from stocking rate grazing experiment s on rye (Secale cereale L.), oats (Avena sativa L.), and a rye + ryeg rass (Lolium multiflorum L.) mixture grazed at 1.0 to 2.5 heifers/acre for 110 to 133 d during two seasons in southeast Alabama. Weekly pric e data for Alabama from 1986 to 1990 were used to develop equations re lating price to animal weight for November (buying time) and March-Apr il (selling time). Production costs were obtained from current budgets developed by the Alabama Cooperative Extension Service. Profitability was estimated for different stocking rates and for grazing periods of 90 through 130 d, starting in December. As stocking rate increased, a verage daily gain decreased most for rye (P < 0.01) and least for oats (P < 0.01), with rye + ryegrass not different from oats. Price per po und decreased with increased weight and time on pasture over the sprin g selling period. Expected maximum returns per acre occurred at the hi ghest experimental stocking rates for all three pastures, 2.0 animals/ acre for oats and rye, 2.5 animals/acre for rye + ryegrass. Because oa ts showed a production and profit response to stocking rate much like that of rye + ryegrass, future experiments should use higher stocking rates on oats pasture. When effects of time and animal weight on selli ng price are ignored, expected maximum net returns per acre are highly distorted. In the case of rye, ignoring the effects of time and weigh t on price would also lead to erroneous conclusions about the optimal stocking rate.