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Analysis Of Labor Use And Profitability In Three Pasture Systems For The Grass-Fed Beef Production In The U.S

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  • Bhandari, Basu Deb
  • Gillespie, Jeffrey
  • Scaglia, Guillermo

Abstract

An experiment to compare three pasture systems was conducted at the Iberia Research Station in Jeanerette, Louisiana, for five consecutive years from 2009/10 to 2013/14. System 1 included of bermudagrass and ryegrass pasture; System 2 included bermudagrass, ryegrass, clover mix (berseem, red and white clovers), rye, and dallisgrass; and System 3 included bermudagrass, ryegrass, sorghum sudan, soybeans, clover mix (berseem, red and white clovers), rye, and dallisgrass. Fifty-four May-weaned steers were divided into nine groups of six based on their body weight and randomly placed into one of the replications of the three pasture systems. Detailed records of daily activities along with various inputs, machinery and labor use, and outputs was collected. Analysis was done using the Kenward-Roger Degrees of Freedom method with and without including labor expenses. Systems 1 and 2 yielded higher profit than System 3 in both cases. System 1 consumed the highest labor inputs among the systems. Simulation and dominance analysis showed that System 1 dominated Systems 2 and 3, and System 2 dominated to System 3 without including labor. With labor, the decision between Systems 1 and 2 was based on the risk preference of the decision maker. Again, Systems 1 and 2 dominated System 3. Sensitivity analysis showed that System 2 would be numerically dominant than System 1 when the labor charge per hour was >$32.

Suggested Citation

  • Bhandari, Basu Deb & Gillespie, Jeffrey & Scaglia, Guillermo, 2015. "Analysis Of Labor Use And Profitability In Three Pasture Systems For The Grass-Fed Beef Production In The U.S," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205278, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea15:205278
    DOI: 10.22004/ag.econ.205278
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    References listed on IDEAS

    as
    1. J. Brian Hardaker & James W. Richardson & Gudbrand Lien & Keith D. Schumann, 2004. "Stochastic efficiency analysis with risk aversion bounds: a simplified approach," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 48(2), pages 253-270, June.
    2. Gillespie, Jeffrey M. & Wyatt, Wayne & Venuto, Brad & Blouin, David & Boucher, Robert W., 2008. "The Roles of Labor and Profitability in Choosing a Grazing Strategy for Beef Production in the U.S. Gulf Coast Region," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 40(1), pages 1-13, April.
    3. Boucher, Robert W. & Gillespie, Jeffrey M., 2001. "Projected Costs And Returns For Beef Cattle, Dairy, Broiler And Forage Crop Production In Louisiana, 2001," AEA Information Series 31666, Louisiana State University, Department of Agricultural Economics and Agribusiness.
    4. Pelletier, Nathan & Pirog, Rich & Rasmussen, Rebecca, 2010. "Comparative life cycle environmental impacts of three beef production strategies in the Upper Midwestern United States," Agricultural Systems, Elsevier, vol. 103(6), pages 380-389, July.
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