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Integrated Crop-Livestock Production Systems

Integrated Crop-Livestock Production Systems. John Lawrence Iowa State University Extension Livestock Economist. Overview of Iowa Livestock. #1 in production of Hogs Eggs Pork processing #5 in cattle feeding #10 in turkeys #11 in beef cows #12 in milk production.

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Integrated Crop-Livestock Production Systems

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  1. Integrated Crop-Livestock Production Systems John Lawrence Iowa State University Extension Livestock Economist

  2. Overview of Iowa Livestock • #1 in production of • Hogs • Eggs • Pork processing • #5 in cattle feeding • #10 in turkeys • #11 in beef cows • #12 in milk production

  3. Overview of Iowa Livestock • #1 in production of • Corn • Soybeans • Used in animal agriculture in Iowa • Over one-third of the corn • Over one-fourth of the soybeans • Grain surplus in all but 1-2 counties • Ample land for manure application

  4. Diversified v. Specialized • Iowa 1980 – 2001 • Number of farms -22% • Average acres per farm +23% • Hog producing farms • 1980 over 53% of farms • 2002 only 11% of farms

  5. Stochastic Budget Analysis • Cash grain v. diversified grain-hog farm • Farrow to finish • Breed to wean • Wean to finish

  6. Stochastic Budget Analysis • 6000 hours of labor per year • No seasonal labor constraint • Corn production = corn demand • Corn acres = soybean acres • Manure applied ahead of corn • Tractors shared between crop and hogs

  7. Cash Grain v. Hog-Grain Farms With 6000 Hours of Labor per Year Enterprise Acres Sows Hogs Sold Cash Grain 2378 Farrow-Finish w/G 550 191 3,270 Breed - Wean w/G 229 616 12,200 Wean - Finish w/G 723 5,963

  8. Net Return to Labor and Management Excluding Government Payments ($/yr)6000 Hours per Year

  9. Return on InvestmentExcluding Government Payments 6000 Hours per Year

  10. Net Return to Labor and Management Including Government Payments ($/yr)6000 Hours per Year

  11. Return on InvestmentIncluding Government Payments6000 Hours per Year

  12. Percent of Observations by Rank and that Beat Cash Grain Government Payments Included

  13. Cash Grain v. Beef-Grain Farms With 6000 Hours of Labor per Year Acres and Head

  14. Cash Grain v. Dairy-Grain Farms With 6000 Hours of Labor per Year Acres and Head

  15. Summary • Cost savings from diversification • Less acres per person with livestock • Impact of 2002 Farm Bill • Without: cash grain was lowest average and highest risk • With: cash grain is highest average and lowest risk

  16. Future analysis • Stochastic analysis of beef and dairy • Include crop insurance • Seasonal labor constraints • Optimization programming with greater detail on production and price • Inter-farm v. intra-farm optimization

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