KSU CRP HAYorGRAZE by s60fx45Y

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									          KSU-CRP HAYorGRAZE.xls
          A spreadsheet program to estimate the costs of
          managed haying or grazing of CRP acres.

          Version -- 8-21-06

INPUTS vs CALCULATED VALUES
In the Haying Costs and Grazing Costs sheets all blue numbers are inputs and all other numbers are calculated
from these inputs. The spreadsheet automatically recalculates every time an additional input is entered. Thus, it is
important to wait until all data have been entered and reviewed before interpreting any of the calculated results (i.e.,
black numbers).

DESCRIPTION OF INPUTS
The paper titled Estimating the Costs of Managed Haying and Grazing of CRP (MF-2657, located at
www.agmanager.info) serves as a user's guide and provides a more detailed documentation of the concepts and
formulas used in this spreadsheet. Also, several of the input cells (i.e., blue numbers) have a red diamond in the
upper right hand corner of the cell (if the comments do not appear go to View / Comments on the Excel menu). By
moving your mouse cursor over this diamond, a brief description of the input will be displayed on the screen.


Developed by:        Kevin C. Dhuyvetter                    and               Mykel R. Taylor
                     Extension Agricultural Economist                         Former Extension Assistant
                     Kansas State University                                  Kansas State University
                     voice: (785) 532-3527
                     FAX: (785) 532-6925
                     email: kcd@ksu.edu
              Calcuation of Costs of Managed Haying of CRP Acres

Current Managed CRP Haying & Grazing Rules:
     1. Reduction in CRP Rental Rate, %                                                      25%
     2. Forage Available to Hay, %                                                          100%

Inputs:
     3. CRP Rental Rate, $/acre                                                           $39.03
     4. Hay Production, Lbs/acre                                                           1,313
     5. Cost of Swathing, $/acre                                                           $9.22
     6. Cost of Raking, $/acre                                                             $3.22
     7. Cost of Baling, $/bale                                                             $8.24
     8. Weight of bale, lbs/bale                                                           1,500
     9. Cost to Purchase Hay, $/ton                                                       $60.47

Cost Analysis:
    10. Hay Production, tons/acre                                                           0.66
    11. Cost of Swathing, $/ton                                                           $14.04
    12. Cost of Raking, $/ton                                                              $4.90
    13. Cost of Baling, $/ton                                                             $10.99
    14. Total Cost of Haying, $/ton                                                       $29.94

    15. Cost of Emergency Hay, $/acre (BHHCPA)                                             $9.76
    16. Cost of Emergency Hay, $/ton (BHHCPT)                                             $14.86
    17. Cost of Emergency Hay, $/ton (AHHCPT)                                             $44.80

    18. Breakeven CRP Rental Rate, $/acre1                                                $80.18
    19. Breakeven Rental Rate Reduction, %2                                                51.4%
1
 If your CRP rental rate is higher than this calculated breakeven rental rate (line 18), it is less
expensive to buy hay.
2
  A rental rate reduction percentage higher than this value would indicate that buying hay is
less expensive than emergency haying of CRP. Put another way, the reduction in CRP rental
rate (Line 1) would have to be at this level or less in order for haying CRP acres to be
competitive with buying hay.


Recommendation (based on your inputs) -- harvesting hay from CRP acres is
more economical than purchasing hay from other market outlets.




                                 KSU-CRP HAYorGRAZE.xls
                     Developed by Mykel R. Taylor and Kevin C. Dhuyvetter
                                   Kansas State University
            Calcuation of Costs of Managed Grazing of CRP Acres

Current Managed CRP Haying & Grazing Rules:
    1. Reduction in CRP Rental Rate, %                                                        25%
    2. Forage Available to Graze, %                                                          100%

Inputs:
    3. CRP Rental Rate, $/acre                                                             $39.03
    4. Stocking Rate, AUMs/acre                                                              0.64
    5. Private Grazing Fee, $/AUM                                                          $13.50

Cost Analysis:
    6. Cost of Emergency Grazing, $/acre (GCPA)                                             $9.76
    7. Cost of Emergency Grazing, $/AUM (GCPAUM)                                           $15.25

    8. Breakeven CRP Rental Rate, $/acre1                                                  $34.56
    9. Breakeven Rental Rate Reduction, %2                                                 22.14%
1
 If your CRP rental rate is higher than this calculated breakeven rental rate (line 8), it is less
expensive to graze private pasture.

2
  A rental rate reduction percentage higher than this value would indicate that grazing private
land is less expensive than emergency grazing of CRP. Put another way, the reduction in
CRP rental rate (Line 1) would have to be at this level or less in order for grazing CRP acres
to be competitive with private land.


Recommendation (based on your inputs) -- grazing pasture from other market
outlets is more economical than grazing CRP acres.




                         KSU-CRP HAYorGRAZE.xls
              Developed by Mykel R. Taylor and Kevin C. Dhuyvetter
                            Kansas State University
                        Region 2
                        Normal
                        Graze: 0.6 aum/ac
                        Hay: 1,470 lbs/ac
                        Unfavorable
Region 1                Graze: 0.4 aum
                        Hay: 1,078 lbs/ac
Normal                                                                Region 4
Graze: 0.5 aum/ac                                                     Normal
Hay: 735 lbs/ac                                                       Graze: 1.2
                                                 Region 3
Unfavorable                                                           aum/ac
                                                 Normal
Graze: 0.35 aum                                                       Hay: 2,328 lbs/ac
                                                 Graze: 0.8
Hay: 368 lbs/ac                                                       Unfavorable
                                                 aum/ac
                                                 Hay: 1,960           Graze: 0.65 aum
                                                 lbs/ac
                                                 Unfavorable


    Source: USDA-NRCS, http://www.nrcs.usda.gov/technical/efotg/


     State acre-weighted averages           Graze (aum/ac)         Hay (lbs/ac)
      Normal conditions                          0.64                1,313
      Unfavorable conditions                     0.42                 863
             NRCS    Grazing:  Grazing:        Hay:         Hay:
   COUNTY    Region (Normal) (Unfavorable)   (Normal)   (Unfavorable)
Allen              4       1.2        0.65       2,328          1,593
Anderson           4       1.2        0.65       2,328          1,593
Atchison           3       0.8        0.50       1,960          1,348
Barber             3       0.8        0.50       1,960          1,348
Barton             2       0.6        0.40       1,470          1,078
Bourbon            4       1.2        0.65       2,328          1,593
Brown              3       0.8        0.50       1,960          1,348
Butler             3       0.8        0.50       1,960          1,348
Chase              3       0.8        0.50       1,960          1,348
Chautauqua         4       1.2        0.65       2,328          1,593
Cherokee           4       1.2        0.65       2,328          1,593
Cheyenne           1       0.5        0.35          735           368
Clark              2       0.6        0.40       1,470          1,078
Clay               3       0.8        0.50       1,960          1,348
Cloud              3       0.8        0.50       1,960          1,348
Coffey             4       1.2        0.65       2,328          1,593
Comanche           2       0.6        0.40       1,470          1,078
Cowley             3       0.8        0.50       1,960          1,348
Crawford           4       1.2        0.65       2,328          1,593
Decatur            1       0.5        0.35          735           368
Dickinson          3       0.8        0.50       1,960          1,348
Doniphan           3       0.8        0.50       1,960          1,348
Douglas            4       1.2        0.65       2,328          1,593
Edwards            2       0.6        0.40       1,470          1,078
Elk                4       1.2        0.65       2,328          1,593
Ellis              2       0.6        0.40       1,470          1,078
Ellsworth          2       0.6        0.40       1,470          1,078
Finney             1       0.5        0.35          735           368
Ford               2       0.6        0.40       1,470          1,078
Franklin           4       1.2        0.65       2,328          1,593
Geary              3       0.8        0.50       1,960          1,348
Gove               1       0.5        0.35          735           368
Graham             2       0.6        0.40       1,470          1,078
Grant              1       0.5        0.35          735           368
Gray               1       0.5        0.35          735           368
Greeley            1       0.5        0.35          735           368
Greenwood          4       1.2        0.65       2,328          1,593
Hamilton           1       0.5        0.35          735           368
Harper             3       0.8        0.50       1,960          1,348
Harvey             3       0.8        0.50       1,960          1,348
Haskell            1       0.5        0.35          735           368
Hodgeman           2       0.6        0.40       1,470          1,078
Jackson            3       0.8        0.50       1,960          1,348
Jefferson          3       0.8        0.50       1,960          1,348
Jewell             2       0.6        0.40       1,470          1,078
Johnson            4       1.2        0.65       2,328          1,593
Kearny             1       0.5        0.35          735           368
Kingman            3       0.8        0.50       1,960          1,348
Kiowa              2       0.6        0.40       1,470          1,078
Labette        4   1.2   0.65   2,328   1,593
Lane           1   0.5   0.35     735     368
Leavenworth    3   0.8   0.50   1,960   1,348
Lincoln        2   0.6   0.40   1,470   1,078
Linn           4   1.2   0.65   2,328   1,593
Logan          1   0.5   0.35     735     368
Lyon           4   1.2   0.65   2,328   1,593
Marion         3   0.8   0.50   1,960   1,348
Marshall       3   0.8   0.50   1,960   1,348
McPherson      3   0.8   0.50   1,960   1,348
Meade          1   0.5   0.35     735     368
Miami          4   1.2   0.65   2,328   1,593
Mitchell       2   0.6   0.40   1,470   1,078
Montgomery     4   1.2   0.65   2,328   1,593
Morris         3   0.8   0.50   1,960   1,348
Morton         1   0.5   0.35     735     368
Nemaha         3   0.8   0.50   1,960   1,348
Neosho         4   1.2   0.65   2,328   1,593
Ness           2   0.6   0.40   1,470   1,078
Norton         2   0.6   0.40   1,470   1,078
Osage          4   1.2   0.65   2,328   1,593
Osborne        2   0.6   0.40   1,470   1,078
Ottawa         3   0.8   0.50   1,960   1,348
Pawnee         2   0.6   0.40   1,470   1,078
Phillips       2   0.6   0.40   1,470   1,078
Pottawatomie   3   0.8   0.50   1,960   1,348
Pratt          3   0.8   0.50   1,960   1,348
Rawlins        1   0.5   0.35     735     368
Reno           3   0.8   0.50   1,960   1,348
Republic       3   0.8   0.50   1,960   1,348
Rice           3   0.8   0.50   1,960   1,348
Riley          3   0.8   0.50   1,960   1,348
Rooks          2   0.6   0.40   1,470   1,078
Rush           2   0.6   0.40   1,470   1,078
Russell        2   0.6   0.40   1,470   1,078
Saline         3   0.8   0.50   1,960   1,348
Scott          1   0.5   0.35     735     368
Sedgwick       3   0.8   0.50   1,960   1,348
Seward         1   0.5   0.35     735     368
Shawnee        4   1.2   0.65   2,328   1,593
Sheridan       1   0.5   0.35     735     368
Sherman        1   0.5   0.35     735     368
Smith          2   0.6   0.40   1,470   1,078
Stafford       2   0.6   0.40   1,470   1,078
Stanton        1   0.5   0.35     735     368
Stevens        1   0.5   0.35     735     368
Sumner         3   0.8   0.50   1,960   1,348
Thomas         1   0.5   0.35     735     368
Trego          2   0.6   0.40   1,470   1,078
Wabaunsee      4   1.2   0.65   2,328   1,593
Wallace        1   0.5   0.35     735     368
Washington     3   0.8   0.50   1,960   1,348
Wichita     1   0.5   0.35     735     368
Wilson      4   1.2   0.65   2,328   1,593
Woodson     4   1.2   0.65   2,328   1,593
Wyandotte   3   0.8   0.50   1,960   1,348
**Includes all signups (10-30).
Source: USDA-FSA, http://www.fsa.usda.gov/crpstorpt/09Approved/r1sumsn/ks.htm


 State acre-weighted average is $39.03/acre
             Average CRP
   COUNTY     Rental Rate
Allen               $52.68
Anderson            $55.71
Atchison            $59.49
Barber              $32.32
Barton              $37.39
Bourbon             $54.50
Brown               $72.29
Butler              $37.49
Chase               $46.04
Chautauqua          $41.14
Cherokee            $53.55
Cheyenne            $32.67
Clark               $33.56
Clay                $51.30
Cloud               $41.83
Coffey              $56.79
Comanche            $29.72
Cowley              $39.81
Crawford            $51.71
Decatur             $33.82
Dickinson           $51.07
Doniphan            $77.88
Douglas             $64.68
Edwards             $34.51
Elk                 $42.25
Ellis               $34.88
Ellsworth           $41.81
Finney              $38.21
Ford                $36.04
Franklin            $57.46
Geary               $50.73
Gove                $38.52
Graham              $30.30
Grant               $35.86
Gray                $39.50
Greeley             $35.53
Greenwood           $45.84
Hamilton            $33.04
Harper              $37.46
Harvey              $39.14
Haskell             $39.90
Hodgeman            $38.85
Jackson             $59.07
Jefferson           $58.74
Jewell              $45.49
Johnson             $55.63
Kearny              $35.67
Kingman             $40.09
Kiowa               $30.48
Labette        $48.70
Lane           $38.49
Leavenworth    $64.44
Lincoln        $44.57
Linn           $54.12
Logan          $32.82
Lyon           $50.38
Marion         $40.25
Marshall       $57.09
McPherson      $38.05
Meade          $36.33
Miami          $53.00
Mitchell       $41.29
Montgomery     $46.37
Morris         $44.14
Morton         $35.23
Nemaha         $57.32
Neosho         $48.09
Ness           $39.58
Norton         $30.68
Osage          $50.77
Osborne        $38.87
Ottawa         $44.25
Pawnee         $35.29
Phillips       $36.09
Pottawatomie   $54.62
Pratt          $34.67
Rawlins        $31.30
Reno           $40.12
Republic       $47.78
Rice           $39.14
Riley          $49.83
Rooks          $32.77
Rush           $39.89
Russell        $37.17
Saline         $42.17
Scott          $38.68
Sedgwick       $38.80
Seward         $34.53
Shawnee        $59.89
Sheridan       $37.61
Sherman        $35.26
Smith          $42.50
Stafford       $42.00
Stanton        $33.02
Stevens        $29.59
Sumner         $41.08
Thomas         $38.14
Trego          $32.46
Wabaunsee      $57.65
Wallace        $33.73
Washington     $52.62
Wichita     $37.39
Wilson      $46.65
Woodson     $52.00
Wyandotte      na

								
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