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Farm Management Guide MF-1009
Winter Wheat Grazing
Department of Agricultural Economics — www.agmanager.info
Kansas State University Agricultural Experiment Station and Cooperative Extension Service
Kevin C. Dhuyvetter Michael Langemeier Troy Dumler
Agricultural Economist Agricultural Economist Agricultural Economist
Farm Management
Kansas is known as the wheat state because of its grain per acre. Some leases may dictate the amount and type of
production. However, wheat is an excellent grazing crop, so supplemental feed to be provided. Producers who graze
producers may want to look at income from forage as well their own cattle on their own wheat should consider the
as the grain. Depending on weather and market conditions, lease charge as an opportunity cost of their forage, as they
producers can consider three basic wheat grain and forage could lease it to someone else.
strategies: harvest the wheat as grain only, as forage and
grain, or as forage only (graze out). Other guides included Cost-Return Budgets
in the crops section of the K-State Farm Management The example budgets included in this guide estimate
Guide series examine wheat as a grain crop only. This guide costs and returns for both steer and heifer wheat grazing
examines the grazing alternatives. Many Kansas producers programs. There is an example budget included for a “Winter
view wheat grazing as an opportunity for additional revenue Wheat Grazing” program, assuming that the wheat will
that presents itself periodically in certain locations in Kansas, also be harvested for grain, as well as an example budget
depending on planting and growing conditions. for a “Winter Wheat Graze-Out” program assuming the
If the objective is to harvest both a forage and a grain wheat is only harvested as a forage. Projected 2011 input
crop, cattle must be removed before the wheat reaches the and output prices are used for illustrative purposes. Where
jointing stage to minimize grain yield losses. Grazing typi- available, Kansas Farm Management Association enterprise
cally begins in mid-October to mid-November, depending reports are used as a basis for estimating other operating
on planting date and moisture. Cattle are supplemented costs. Producers should use their own prices and costs, and
through the winter when the wheat is dormant or snow adjust production factors to match their individual situations
covered. Under proper management research shows little when using the budget. Breakeven prices are particularly
or no effect on yields with properly managed spring grazing. sensitive to changes in average daily gain, pasture rental
Additional fertilizer will be required after spring grazing charge, and feeder cost. Because of this sensitivity, it is
to achieve desired yields. Be aware that grain yields can important to analyze the feasibility of alternative programs
be reduced significantly by excessive stocking rates, or by at the beginning of each grazing season.
leaving the cattle on too long in the spring. Table 1 identi-
fies the assumptions used in our “Winter Wheat Grazing”
example budget projection.
Production Level
Costs per unit and net returns in livestock production
Alternatively, producers may want to harvest at least a
are highly dependent on animal performance. The following
portion of their wheat solely as a forage (graze-out) crop.
budgets include two different production level assumptions.
Again, grazing typically begins in October or November,
Production levels vary for a number of reasons including
and the cattle are supplemented when the wheat is dormant
livestock quality or genetics, weather, input levels, and
or snow covered. Unlike in the previous scenario, grazing
management. The two production levels included in these
continues into the spring as late as mid-May to early June.
estimated budgets primarily reflect production variability
The stocking rate needs to be increased in the spring relative
due to weather and management. Budgeting at multiple
to that of fall and winter to assure uniform grazing and for-
production levels can help producers examine the finan-
age utilization. Producers typically consolidate cattle from
cial risk of a livestock enterprise that is directly related to
winter wheat grazing onto fewer acres for wheat graze-out.
production risk.
Table 2 reveals the assumptions used in our “Winter Wheat
These wheat grazing budgets include columns for two
Graze-Out” example budget projection.
alternative performance levels for both steer and heifer
Under either scenario, cattle that are grazing wheat
grazing systems. In each case, performance is assumed to
should be implanted. During lush growth, cattle are sus-
be above or below long term averages due to differences
ceptible to bloat, so management of this risk is important.
in average daily gain. The values assumed in the “Winter
Including an ionophore with supplemental feed or by other
Wheat Grazing” budget projection are included in Table 1.
means can improve daily gains and reduce bloat. There are
Similarly, the values assumed in the “Winter Wheat Graze-
a number of alternative arrangements for wheat pasture
Out” budget projection are included in Table 2.
leasing: 1) dollar per hundredweight per month; 2) dollar
per pound of gain; 3) dollar per head per day; or 4) dollar
Livestock 19 — Revised January 2011
COST-RETURN PROJECTION — WINTER WHEAT GRAZING
Steers Heifers
Level 1 Level 2 Level 1 Level 2 Your Farm
RETURNS PER HEAD
1. Market animal: (See Table 1) ................................ $ 802.54
___________ $ 773.36
__________ 709.42
$ __________ $ 677.34
________ _________
2. Less cost of animal: (See Table 1) .......................... 605.88
___________ 605.88
__________ 524.07
__________ 524.07
________ _________
3. Less death loss ....................................................... 16.05
___________ 15.47
__________ 14.19
__________ 13.55
________ _________
4. Other income......................................................... ___________ __________ __________ ________ _________
A. GROSS RETURNS PER HEAD .............................. $ 180.61
___________ $ 152.01
__________ 171.17
$ __________ $ 139.73
________ _________
COSTS PER HEAD
5. Pasture ................................................................... $ 92.40
___________ $ 75.60
__________ 84.00
$ __________ $ 67.20
________ _________
6. Harvested forage ................................................... 13.09
___________ 13.09
__________ 13.09
__________ 13.09
________ _________
7. Grain ..................................................................... 22.97
___________ 22.97
__________ 22.97
__________ 22.97
________ _________
8. Supplement, mineral, and salt ............................... 10.50
___________ 10.50
__________ 10.50
__________ 10.50
________ _________
9. Other feed ............................................................. ___________ __________ __________ ________ _________
10. Labor .................................................................... 5.85
___________ 5.85
__________ 5.85
__________ 5.85
________ _________
11. Veterinary, drugs, supplies ...................................... 10.00
___________ 10.00
__________ 10.00
__________ 10.00
________ _________
12. Marketing costs ..................................................... 8.00
___________ 8.00
__________ 8.00
__________ 8.00
________ _________
13. Hauling/Yardage .................................................... ___________ __________ __________ ________ _________
14. Utilities, fuel, and oil .............................................. 9.74
___________ 9.74
__________ 9.74
__________ 9.74
________ _________
15. Facilities and equipment repairs ............................ 8.00
___________ 8.00
__________ 8.00
__________ 8.00
________ _________
16. Professional fees (legal, accounting, etc.)................ 2.00
___________ 2.00
__________ 2.00
__________ 2.00
________ _________
17. Miscellaneous ........................................................ 5.00
___________ 5.00
__________ 5.00
__________ 5.00
________ _________
18. Depreciation on facilities and equipment .............. 5.09
___________ 5.09
__________ 5.09
__________ 5.09
________ _________
19. Interest on facilities and equipment ...................... 2.92
___________ 2.92
__________ 2.92
__________ 2.92
________ _________
20. Insurance and taxes on facilities and equipment .... 0.18
___________ 0.18
__________ 0.18
__________ 0.18
________ _________
B. SUBTOTAL ................................................................. $ 195.75
___________ $ 178.95
__________ 187.35
$ __________ $ 170.55
________ _________
21. Interest on feeder and ½ Operating Costs ............ 16.01
___________ 15.82
__________ 14.03
__________ 13.84
________ _________
C. TOTAL COSTS PER HEAD .................................... $ 211.76
___________ $ 194.76
__________ 201.38
$ __________ $ 184.38
________ _________
D. RETURNS OVER TOTAL COSTS (A – C) ............ $ -31.15
___________ $ -42.75
__________ -30.21
$ __________ $ -44.66
________ _________
22. Hundredweight produced ...................................... 2.50
___________ 2.03
__________ 2.27
__________ 1.80
________ _________
23. Feed cost per hundredweight ................................. 55.65
___________ 60.27
__________ 57.59
__________ 63.32
________ _________
E. BREAKEVEN PRICE, $/cwt .................................... $ 116.85
___________ $ 122.67
__________ 111.32
$ __________ $ 117.17
________ _________
F. ASSET TURNOVER ((1 + 4 – 3) ÷ INVESTMENT)1 121.44%
___________ 117.02%
__________ 122.87%
__________ 117.31%
________ _________
G. NET RETURN ON INVESTMENT
((D + 19 + 21) ÷ INVESTMENT)1 ............................. -1.89%
___________ -3.71%
__________ -2.34%
__________ -4.93%
________ _________
1
Investment equals total value of feeder calf, facilities (fence), and equipment
Table 1. Factors Used for Winter Wheat Grazing Cost-Return Budget
Steers Heifers
Level 1 Level 2 Level 1 Level 2
Days on pasture 120 120 120 120
Average daily gain 2.20 1.80 2.00 1.60
Purchase weight 450 450 425 425
Purchase price $134.64 $134.64 $123.31 $123.31
Sale weight, $/cwt 714 666 665 617
Sale price, $/cwt $112.40 $116.12 $106.68 $109.78
Feed
Pasture, months @ $0.35/lb of gain 264 216 240 192
Grain sorghum, lbs/day @ $5.36/bu 2.00 2.00 2.00 2.00
Prairie hay, lbs/day @ $74.81/ton 2.92 2.92 2.92 2.92
Mineral and salt @ $700/ton 0.25 0.25 0.25 0.25
Other feed, lbs/day @ $0/ton 0.00 0.00 0.00 0.00
Labor, hours @ $13/hr 0.45 0.45 0.45 0.45
Investment Useful life Salvage Interest Insurance Tax rate
($/head) (years) value, (%) rate, (%) rate, (%) (%)
Facilities (fence) $5.11 10 0% 7.00% 0.25% 1.50%
Equipment $36.65 8 0% 7.00% 0.25% 0.00%
Interest rate on operating costs and
purchased cattle 7.0%
COST-RETURN PROJECTION — WINTER WHEAT GRAZE-OUT
Steers Heifers
Level 1 Level 2 Level 1 Level 2 Your Farm
RETURNS PER HEAD
1. Market animal: (See Table 2) ................................ $ 920.11 ___________ $ 868.97
__________ 809.73
$ __________ $ 764.19
________ _________
2. Less cost of animal: (See Table 2) .......................... ___________ 605.88 605.88
__________ 524.07
__________ 524.07
________ _________
18.40
3. Less death loss ....................................................... ___________ 17.38
__________ 16.19
__________ 15.28
________ _________
4. Other income......................................................... ___________ __________ __________ ________ _________
A. GROSS RETURNS PER HEAD .............................. $ 295.83 ___________ $ 245.71
__________ 269.47
$ __________ $ 224.84
________ _________
COSTS PER HEAD
5. Pasture ................................................................... $ 116.64
___________ $ 110.16
__________ 108.90
$ __________ $ 102.42
________ _________
6. Harvested forage.................................................... ___________ 13.09 13.09
__________ 13.09
__________ 13.09
________ _________
34.45
7. Grain ..................................................................... ___________ 34.45
__________ 34.45
__________ 34.45
________ _________
8. Supplement, mineral, and salt ................................ ___________ 15.75 15.75
__________ 15.75
__________ 15.75
________ _________
9. Other feed ............................................................. ___________ __________ __________ ________ _________
7.80
10. Labor .................................................................... ___________ 7.80
__________ 7.80
__________ 7.80
________ _________
11. Veterinary, drugs, and supplies ............................... ___________ 13.00 13.00
__________ 13.00
__________ 13.00
________ _________
12. Marketing costs ..................................................... ___________ 8.00 8.00
__________ 8.00
__________ 8.00
________ _________
13. Hauling/Yardage .................................................... ___________ __________ __________ ________ _________
14.61
14. Utilities, fuel, and oil .............................................. ___________ 14.61
__________ 14.61
__________ 14.61
________ _________
15. Facilities and equipment repairs ............................ ___________ 9.00 9.00
__________ 9.00
__________ 9.00
________ _________
16. Professional fees (legal, accounting, etc.)................ ___________ 2.00 2.00
__________ 2.00
__________ 2.00
________ _________
17. Miscellaneous ........................................................ ___________6.00 6.00
__________ 6.00
__________ 6.00
________ _________
18. Depreciation on facilities and equipment .............. ___________ 5.09 5.09
__________ 5.09
__________ 5.09
________ _________
19. Interest on facilities and equipment ....................... ___________ 2.92 2.92
__________ 2.92
__________ 2.92
________ _________
20. Insurance and taxes on facilities and equipment .... ___________ 0.18 0.18
__________ 0.18
__________ 0.18
________ _________
B. SUBTOTAL ................................................................. $ 248.54
___________ $ 242.06
__________ 240.80
$ __________ $ 234.32
________ _________
21. Interest on feeder and ½ Operating Costs ............ ___________ 24.93 24.82
__________ 21.97
__________ 21.86
________ _________
C. TOTAL COSTS PER HEAD .................................... $ 273.47 ___________ $ 266.88
__________ 262.77
$ __________ $ 256.18
________ _________
D. RETURNS OVER TOTAL COSTS (A – C) ............ $ 22.36
___________ $ -21.17
__________ 6.70
$ __________ $ -31.34
________ _________
22. Hundredweight produced ...................................... ___________ 3.79 3.09
__________ 3.44
__________ 2.74
________ _________
23. Feed cost per hundredweight ................................. ___________ 47.47 56.22
__________ 50.01
__________ 60.54
________ _________
E. BREAKEVEN PRICE, $/cwt ..................................... $ 106.06 ___________ $ 115.06
__________ 102.28
$ __________ $ 111.66
________ _________
F. ASSET TURNOVER ((1 + 4 – 3)) ÷ INVESTMENT)1 ___________ 139.23% 131.49%
__________ 140.24%
__________ 132.36%
________ _________
G. NET RETURN ON INVESTMENT
((D + 19 + 21) ÷ INVESTMENT)1 ............................. ___________ 7.75% 1.02%
__________ 5.58%
__________ -1.16%
________ _________
1
Investment equals total value of feeder calf, facilities (fence), and equipment
Table 2. Factors Used for Winter Wheat Grazing (Graze-out) Cost-Return Budget
Steers Heifers
Level 1 Level 2 Level 1 Level 2
Days on pasture 180 180 180 180
Average daily gain 2.20 1.80 2.00 1.60
Purchase weight 450 450 425 425
Purchase price $134.64 $134.64 $123.31 $123.31
Sale weight, $/cwt 846 774 785 713
Sale price, $/cwt $108.76 $112.27 $103.15 $107.18
Feed
Pasture, months @ $3/cwt/mo. 6.00 6.00 6.00 6.00
Grain sorghum, lbs/day @ $5.36/bu 2.00 2.00 2.00 2.00
Prairie hay, lbs/day @ $74.81/ton 1.94 1.94 1.94 1.94
Mineral and salt @ $700/ton 0.25 0.25 0.25 0.25
Other feed, lbs/day @ $0/ton 0.00 0.00 0.00 0.00
Labor, hours @ $13/hr 0.60 0.60 0.60 0.60
Investment Useful life Salvage Interest Insurance Tax rate
($/head) (years) value, (%) rate, (%) rate, (%) (%)
Facilities (fence) $5.11 10 0% 7.00% 0.25% 1.50%
Equipment $36.65 8 0% 7.00% 0.25% 0.00%
Interest rate on operating costs and
purchased cattle 7.0%
Publications from Kansas State University are available on the World Wide Web at: www.ksre.ksu.edu.
Publications are reviewed or revised annually by appropriate faculty to reflect current research and practice. Date shown is that of publi-
cation or last revision. Contents of this publication may be freely reproduced for educational purposes. All other rights reserved. In each
case, credit Kevin C. Dhuyvetter, Michael Langemeier, and Troy Dumler, Winter Wheat Grazing, Kansas State University, January 2011.
Kansas State University Agricultural Experiment Station and Cooperative Extension Service
MF-1009 January 2011
K-State Research and Extension is an equal opportunity provider and employer. Issued in furtherance of Cooperative Extension Work, Acts of May 8
and June 30, 1914, as amended. Kansas State University, County Extension Councils, Extension Districts, and United States Department of Agriculture
Cooperating, Gary Pierzynski, Interim Director.
