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Investment Analysis Of Replacing Endophyte-Infected With Endophyte-Free Tall Fescue Pastures

Listed author(s):
  • Marchant, Mary A.
  • Murrell, Courtney Paige
  • Zhuang, Jun

Cattle 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.

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Paper provided by Southern Agricultural Economics Association in its series 2004 Annual Meeting, February 14-18, 2004, Tulsa, Oklahoma with number 34630.

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Date of creation: 2004
Handle: RePEc:ags:saeaft:34630
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