January 2001
Guidelines for Estimating
Pasture Cost of Production

Forage crops comprise approximately 36% of the agricultural land base in Manitoba. With the change in agricultural markets, there is a greater interest in the use of marginal cropland for forage production and the harvesting of that forage by grazing livestock.
The technology of grassland management has changed in recent years with the adoption of rotational grazing systems, use of improved pasture forage species and livestock marketing systems that can reduce risk to the grass manager.
Stocking rates are a critical aspect of any grazing system. This budget takes into account options to consider when calculating the stocking rate or Animal Unit Months (AUM) for your soil type and climatic conditions.
The figures in this example are a guideline for you to use when determining your own costs. The production costs have not been determined by producer survey but are considered a good representative of typical Manitoba costs that would be incurred when using recommended grazing practices.
Pasture costs and returns must be carefully calculated so that a comparison is possible with other crop options for the land base. This Pasture Cost Guideline should provide an outline for producers to determine their costs of a grazing system.
Disclaimer: This budget is only a guide and is not intended as an in-depth study of the cost of production of this industry. Interpretation and utilization of this information is the responsibility of the user. No liability for decisions based on this publication is assumed. If you require assistance with developing your individual budget, please contact your local MAF Farm Management Specialist or the Farm Management Section in Winnipeg at (204) 945-4937.
Pasture Cost of Production Summary
click here for detailed worksheet 
A. 
Operating Costs
$/Acre
Season 
$/head
Daily 
$/head
Your Farm

1.01 
Land Development
$3.40
$4.86 
$0.03
__________

1.02
Fertilizer
$12.31
$17.59 
$0.12
__________

1.03
Herbicide
$2.40
$3.43 
$0.02
__________

1.04
Fuel & Repairs
$4.38
$6.26 
$0.04
__________

1.05
Land Taxes
$4.00
$5.71 
$0.04
__________

1.06 
Miscellaneous
$2.00
$2.86 
$0.02
__________

Sub-total Operating Cost
$28.49
$40.71
$0.28
__________

1.07
Interest on Operating
$1.21
$1.73 
$0.01
__________

Total Operating Costs
$29.70
$42.43 
$0.29
__________

B.
Fixed Costs





2.0
Investment





2.01
Land
$15.00
$21.43 
$0.15
__________

2.02
Facilities
$1.80
$2.57 
$0.02
__________

2.03
Machinery
$0.00
$0.00 
$0.00
__________


3.0 
Depreciation





3.01
Facilities
$3.59
$5.13 
$0.04
__________

3.02
Machinery
$0.00
$0.00 
$0.00
__________

Total Fixed Costs
$20.39
$29.13
$0.21
__________


Total Operating and Fixed
$50.09
$71.56 
$0.50
__________

C. 
Labour
$0.00
$0.00 
$0.00
__________

Total Cost of Production
$50.09
$71.56 
$0.50
__________
Pasture Cost of Production Assumptions
Land
Total Acres
160
acres
Market Value (excluding fence)
$48,000

Market Value per acre
$300.00
$/acre
Grazing period




Days
144
days

Months
4.8
months


Animal Unit Month (AUM) Available per Acre
Vegetative Associations
Soil Groups

Light
Medium
Heavy

2
3
4
Bush
Woodland
1
0.2
0.4
0.5
 
Open woodland
2
0.4
0.6
0.8
 
Harvested woodland
3
0.6
0.8
0.9
 
Boreal forest
4
0.0
0.0
0.0
Meadow
Upland grass
5
0.8
1.2
1.0
 
Transitional grassland
6
1.2
1.2
1.4
 
Lowland meadow
7
1.6
1.8
1.8
Improved
Hay regrowth
8
0.5
0.8
1.0
 
Poor tame forage
9
1.4
1.4
1.6
 
Fair tame forage
10
2.0
2.8
3.0
 
Good tame forage
11
3.5
4.0
5.0
Annual
Annual crop land
12
0.0
3.0
3.0
 
Crop stubble
13
0.0
0.5
0.5
 
Fall seeded cereal
14
0.0
1.6
1.6
Source Manitoba Crown Lands
Estimated Carrying Capacity: Pick the soil group and vegetative association (from the table above) that most closely represents your land.


Soil Group (2-4)
3
Veg. Assoc. (1-14)
11

Estimated average weight on pasture

1188
lbs






Carrying Capacity
Number of head pastured/season
(See detailed calculations)
112

Number of head pastured/acre
0.70

Pounds liveweight per acre
832

Total pounds on pasture
133,056


For Further Information See Your Local Manitoba Agriculture, Food and Rural Initiatives Office.
Budget Prepared By The Following  Specialists:
Peter Blawat
Farm Management Specialist
Bob Gwyer
Farm Management Specialist
Ian McCartney
Farm Management Specialist
Fraser Stewart
Forage and Grassland Specialist
Gil LaHaie
Crown Lands






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