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An Economic Evaluation of the FutureDairy Complementary Forage Rotation System – Using Whole Farm Budgeting

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  • Alford, Andrew
  • Garcia, S.C.
  • Farina, Santiago
  • Fulkerson, Bill

Abstract

A complementary forage rotation (CFR) aims to achieve high levels of home-grown forage to complement high performance dairy pastures. An economic evaluation of the CFR technology is undertaken by combining biophysical modelling with preliminary results from farm trials conducted at the University of Sydney’s Corstorphine Dairy. This data is applied to steady state whole farm budgets to compare four alternate or progressive scenarios that might be considered by farmers looking at the potential to increase farm productivity through their feeding system beyond a base farm scenario. A base scenario of a relatively well managed dairy farm in NSW, with 140 ha of milking area, stocked at 2.4 cows/ha, utilises about 12 t DM/ha/year under irrigation and produces more than 16,000 L/ha/year from 6,900 L/cow, achieves 0.9 per cent return on assets. A system with improved pasture management over the base scenario, utilising 15.6 t DM/ha/year and 1.3 t DM/cow/lactation of concentrates to achieve 6,900 L/cow obtains 3.4 per cent return on assets. A production system where pasture and supplement (concentrates) are emphasised achieves 6 per cent return on assets (3.7 cows/ha, 9,000L/cow and 2.3 t DM/cow/lactation concentrates). In comparison the CFS system obtains a return on total assets of 8 to 12 per cent, based upon actual or targeted (best case) forage yield results, respectively. The CFS-based farm business becomes relatively more profitable when scenarios with increased cost of fertiliser, water and especially grain are examined. A production system incorporating the complementary forage rotation (CFS) has the potential to be profitable. However, these analyses are based upon a steady state situation, after the implementation of the systems on farm, and implementation costs associated with adopting the technology on individual farms should be considered.

Suggested Citation

  • Alford, Andrew & Garcia, S.C. & Farina, Santiago & Fulkerson, Bill, 2009. "An Economic Evaluation of the FutureDairy Complementary Forage Rotation System – Using Whole Farm Budgeting," Research Reports 280787, New South Wales Department of Primary Industries Research Economists.
    • Handle: RePEc:ags:nswprr:280787
    DOI: 10.22004/ag.econ.280787
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    References listed on IDEAS

    as
    1. Malcolm, Bill, 2004. "Where's the economics? The core discipline of farm management has gone missing!," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 48(3), pages 1-23.
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