MSU Agricultural, Food, and Resource Economics
Dissertations, Theses and Plan B Papers -- Abstract
, Cheryl Joy. The Economic Viability of Intensive Stocker Cattle Grazing Systems
Major Professor: Black.
The average annual net return (AAR) to land and other unallocated costs for land
capable of producing 100 to 120 bu/acre corn was calculated for three grazing
systems differing in grazing pressure and design and for a corn system with three
yield levels at two prices. Production data from a Michigan State University
stocker cattle grazing trial was used. Break-even thresholds between systems
were calculated. Risk was included through the use of cumulative distributions
and an expected benefit model. A corn system at 100 and 120 bu/acre resulted
in a higher AAR than that of two stocking systems supporting two head/acre which
was greater than the AAR of a corn system yielding 80 bu/acre. The two stocking
systems had a higher AAR than the corn system at any yield level using a break-even
price. Cumulative distributions explicitly showed the large negative returns
possible with an inappropriately high stocking rate.