Investment Analysis Of Replacing Endophyte-Infected With Endophyte-Free Tall Fescue Pastures
AbstractCattle consuming tall fescue pastures infected with the endophyte Neotyphodium coenophialum often suffer physiological disorders that reduce animal performance. One solution is to replace endophyte-infected tall fescue pastures with an endophyte-free mixture. A benefit-cost analysis was conducted to determine the profitability of pasture restoration. The profitability of this action depends on the percentage of endophyte in existing pastures, the discount rate, and the stand life of the endophyte-free tall fescue variety. Our benefit-cost analysis results indicate that in order for pasture replacement to be profitable, the existing pastures must be infected with more than 16.1% of the endophyte, assuming the stand life of endophyte-free tall fescue is 12 years and the discount rate is three per cent. Additionally, a sensitivity analysis was conducted to determine the impact on the critical infestation level when the following parameters are changed: the discount rate, the baseline calving rates, and the pasture stand life. This research provides farmers with a practical investment analysis model for replacing endophyte-infected with endophyte-free tall fescue pastures.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Southern Agricultural Economics Association in its series 2004 Annual Meeting, February 14-18, 2004, Tulsa, Oklahoma with number 34630.
Date of creation: 2004
Date of revision:
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Tubetov, Dulat & Musshoff, Oliver & Kellner, Ulla, 0. "Investments in Kazakhstani Dairy Farming: A Comparison of Classical Investment Theory and the Real Options Approach," Quarterly Journal of International Agriculture, Humboldt-Universität zu Berlin, vol. 51.
- Musshoff, Oliver & Hirschauer, Norbert, 2008. "Investment planning under uncertainty and flexibility: the case of a purchasable sales contract," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 52(1), March.
- Smith, Stephen A. & Caldwell, James D. & Popp, Michael P. & Coffey, Kenneth P. & Jennings, John A. & Savin, Mary C. & Rosenkrans, Charles F., Jr., 2012. "Tall Fescue Toxicosis Mitigation Strategies: Comparisons of Cow-calf Returns," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 44(04), November.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.