This publication is prepared by the faculty and staff of the Department of Agricultural Economics, University of Kentucky. These articles present information on the economic situation and outlook for Kentucky agriculture and are intended to assist farmers, agribusiness professionals, Extension field staff, and others with interest in agriculture and agribusiness. Information presented here is based on the most recent information and research available. However, the rapidly changing economic and policy conditions for agriculture limit the usefulness and life span of conclusions and recommendations cited here. Decision makers should keep these facts in mind. Feel free to use the information included in this publication for other uses, but please provide professional citation about the source. The papers contained in this publication are published without formal review and the views expressed are those of the authors and do not necessarily reflect the views of the University of Kentucky, the Agricultural Experiment Station, or the Cooperative Extension Service.
Since the summer of 2007, the Livestock Risk Protection (LRP) Insurance program has been available to Kentucky cattle producers. Due to recent volatility in the cattle market, interest in price risk protection has increased. Traditionally, livestock producers have used either forward contracts or futures/options trading to manage this price risk. LRP insurance provides another option that producers can now use to do this. The purpose of this publication is to familiarize the reader with how the LRP insurance program works and compare it with other feeder cattle price risk management options. A case example is included to show how this insurance program works in a real-life situation.
Rotational grazing has long been used by livestock producers as a way to use pastures more efficiently. Horses expecially tend to be selective grazers, and the use of smaller paddocks encourages them to eat more of what is available.
There are two main sections in this publication: 1) “Agronomic Basics of Spring Nitrogen Fertilization”, and 2) “Potential Profitability of Spring Nitrogen Applications”. The first section provides basic guidance and information for applying nitrogen to hayfields in the spring. The second section describes the methods used to determine the profitability of applying nitrogen to spring hayfields, discusses assumptions used in this determination, and provides a summary of the potential profitability given various price scenarios. Three prices for nitrogen and five prices for hay are evaluated as well as multiple nitrogen response rates for tall fescue and orchardgrass hayfields.
2007 Review: 2007 in the aggregate was another good year financially for Kentucky agriculture with farm cash receipts totaling an estimated (UK estimate) $4.22 billion.
2008 Outlook: Assuming normal growing conditions and no major disease outbreaks, farm cash receipts in 2008 are expected to set an all-time record of $4.294 billion! During the past several years rising cash receipts were primarily due to stronger livestock receipts. Next year, however, we expect crop receipts to be up 12% while livestock receipts to decrease 2.4%. The crop receipt forecast is based on what we hope will be more normal growing conditions.
These articles present information on the economic situation and outlook for Kentucky agriculture and are intended to assist farmers, agribusiness professionals, Extension field staff, and others with interest in agriculture and agribusiness. Information presented here is based on the most recent information and research available. However, the rapidly changing economic and policy conditions for agriculture limit the usefulness and life span of conclusions and recommendations cited here. Decision makers should keep these facts in mind.
The unusual weather conditions of 2007 created many management problems for Kentucky beef producers. The late spring freeze severely damaged the first cutting of hay, reducing yields by as much as 50%. Then hot, dry weather limited pasture growth and left many producers very short of hay and out of pasture. Producers struggle to cope with both of these problems at the same time. While good management decisions can not make it rain, they can help producers hang on in the most economical manner possible.
A descriptive summary of results based on the “Wheat Damage Decision Aid” below. Designed to help producers evaluate whether they should keep freeze damaged wheat stands or replant to corn or full-season soybeans
High grain prices in 2007 are providing new opportunities for Kentucky farmers. One of these opportunities is the production of corn on ground that has primarily been used for hay or pasture. This publication is designed to help these producers evaluate if planting corn on sod ground would prove profitable in 2007.
The purpose of this publication is to help producers evaluate their options between planting corn and soybeans in 2007. Multiple budget scenarios are used to help producers identify the situations under which continuous corn (defined here as two or more years) may be profitable.
Forage Enterprise Budgets.
Kenny Burdine, Dick Trimble, Garry Lacefield, Ray Smith, Bill Witt, Tom Keene.
September, 2006.
(Microsoft Excel (macros) format.)
The purpose of these budgets is to serve as a management and decision-making guide for current and prospective producers of these enterprises.
Equine Enterprise Budgets.
Kenny Burdine, Bob Coleman, Steve Isaacs, Reka Nagy, Stephanie Goode, and Dick Trimble.
July, 2006.
(Adobe Acrobat & MS Excel format.)
The Equine Budgets actually consist of four separate budgets, each designed for a unique type of operation. The four individual budgets are (1) Broodmare Marketing Yearlings, (2) Boarding Operation, (3) Horse Owner on Owned Land, and (4) Owner Boarding.
The key to economic success for the cow-calf operation is cost control. According to a recent study of beef farms participating in the Kentucky Farm Business Management Program , feed costs make up more that 40% of the total cost of producing a weaned calf. Over 80% of feed costs are made up of homegrown feed, the majority of which is undoubtedly hay. Anything producers can do to reduce the costs associated with hay production and harvesting should help improve the profitability of their beef business.
The Improved Grass Legume Hay Enterprise Budget Decision Aid is a simple tool designed to help producers determine the cost of hay production in their operation.
Provides background on the economics of forage
management decsions and introduces the Hay Storage Decision Tool and
the Pasture and Forage Improvement Investment Tool.
Discusses the economics of various hay storage options
Hay Storage Decision Aid.
Kenny Burdine, Richard Trimble and Steve Isaacs.
April, 2005.
(Microsoft Excel format.)
A simple tool that is designed to help producers determine the best hay storage method for their operation.
Pasture and Forage Improvement Investment Tool.
Kenny Burdine, Richard Trimble and Steve Isaacs.
April, 2005.
(Microsoft Excel format.)
The Pasture and Forage Improvement Investment Tool is intended to evaluate numerous investments that the beef operator may consider. The decision aid can be easily applied to any investment with a multi-year life.
Despite the fact that the trade situation seems much more positive for pork than it does for beef, both cattle and hog producers have enjoyed a profitable 2004.
Radio Script: Prior to BSE, exports accounted for approximately 9% of US beef production. Immediately following the BSE announcement, all countries closed their borders to US beef imports. A key move in the direction of re-establishing trade with Japan was made in late October.
These articles present information on the economic situation and outlook for Kentucky agriculture and are intended to assist farmers, agribusiness professionals, Extension field staff, and others with interest in agriculture and agribusiness.
A semi-structured interview process was combined with an econometric analysis to document the newly changed structure of the Holstein sector, to evaluate existing quality perceptions, and to assess the impact that recent changes in production practices have had on prices of Holstein steers. Results suggest that finished Holstein steer prices are driven by many of the same market factors as native steers, overturning some common quality misconceptions.
The Holstein beef sector is a fascinating and integral part of the United States beef system; however, it has been largely overlooked in academic research. Holstein beef has long suffered from perceptions that it is of poor quality. Recent changes in slaughter industry structure, marketing systems, and production models have made the Holstein system unbelievably complex. Coupled with econometric modeling, this sector analysis uses a semistructured interview approach to evaluate the reality of these perceptions, the impact of these changes, and to determine what truly drives the Holstein beef market. Results suggest that many of the perceptions of Holstein beef are inaccurate; the market for Holstein steers was found to be quite similar to the market for native steers. Recent changes in production systems appear to have been driven by changes in market preferences. Finally, the driving forces behind the Holstein market are not that different from the driving factors in the native cattle market, although some of the impacts were found to be different.
