Patterson, Paul E.

Rimbey, Neil R.

English

Research Papers in Economics

Regional Collaboration in the 
development of livestock cost and 
return estimates 
Presented at AAEA Meetings
Long Beach, CA 
July 30, 2002
Neil Rimbey and Paul PattersonWestern Regional Background
ﬁW. Farm Management Extension 
Committee
ﬁWCC-55 (Range Economics)
ﬁW192 (Rural Communities and Public 
Lands in the West: Impacts and 
Alternatives
ﬁPolicy Analysis Center for W. Public 
LandsIssues 
ﬁLivestock budgets are few and far 
between in the western region
ﬁLack of consistency in methods and 
presentation across the region
ﬁUses in policy impact assessment over 
the region are thus very limitedlWestern Farm Management Extension Committee 
has been cooperating on crop budgets, software, 
regional training, publications, etc. for  years
lFund for Rural America grant in 1998 allowed 
members of WCC-55 to start work on a livestock 
budget generator through Regional Research 
Project W192 
BackgroundBackground
• Windows Prototype developed in 1998-99
• Budgets have been developed in 6 states
Idaho, Oregon, Nevada, Wyoming, 
Colorado, New Mexico
Idaho, Oregon, Nevada and New Mexico
have published these in res/ext formatIdaho Procedure
￿ BLM Contract for Social/Econ Assess.
￿ Producer Panels 
￿ Develop Draft Livestock Budgets
￿ Validation with Panels
￿ Use of Budgets Analyzing Public Land Policy
Firm Level Analysis
Livestock Grazing Policy • Ranch Production
• Grazing Costs
• Season of Use
• Forage Availability 
Firm Level
Impact Models
or Budgeting
Firm Level Impacts
• Ranch income
• Ranch Expenditures
• EmploymentUse of Budgets
ﬁ BLM Project-Budgeting analysis of potential 
changes in resource management
ﬁ Regional Project
ﬁ Development of Economic Models
ﬁ Ranch and Regional Analysis
ﬁ Social Assessments 
ﬁ Policy Analysis Center for W. Public Lands
ﬁ Sage Grouse
ﬁ Permit Buyout (near future)l 300 Head Cow-Calf operation, graze public 
lands spring through fall, winter feeding
l 500 Head Cow-Calf operation, graze public 
lands spring through fall, winter feeding
l 500 Head Cow-Calf operation with winter 
grazing permits
l 500 Head Cow-Calf operation with winter 
grazing permits (Forest Service)
Idaho Ranch BudgetsBudget Depend Revenue Operating 
Cost
Gross 
Margin
Jordan 48.4% $340 $283 $57
Marsing 39.8 355 293 62
Bruneau 59.8 338 266 72
Three 
Creek
58.0 311 203 108
[1
Dependency on Public Forage and
Gross Margin, by BudgetGrazing Policy Changes
￿ Riparian Grazing Concerns
￿Wilderness Study Areas
￿ End to “Hot Season” Grazing
￿ Leave 6 inch Stubble Height
￿ Result: Public Land Grazing ends after 
July 15 Table 5.  Forage Balance (AUMs per month). 
 
 
Feed 
 
Units 
AUM/
unit 
 
Jan 
 
Feb 
 
Mar 
 
Apr 
 
May 
Alfalfa Hay               
  Repl Heifers  ton  3.75  68.6  62.0  68.6  33.2   
Feed Barley               
  Repl Heifers  cwt  0.19  10.3  9.3  10.3  5.0   
Meadow Hay               
  Cows  ton  2.50  291.0  262.5  255.8  123.8   
  Bulls  ton  2.50  30.7  27.7  30.7  14.9   
  Horses  ton  2.50  5.8  5.2  5.8  2.9   
Protein Supp               
  Cows  cwt  0.19  34.9         
Federal Range               
  Cows  AUM  1.00        138.0  276.0 
  Repl Heifers  AUM  1.00        23.6  47.2 
  Bulls  AUM  1.00        13.2  26.4 
State Range               
  Cows  AUM  1.00        12.0  24.0 
Crop Aftermath               
  Cows  AUM  1.00           
  Bulls  AUM  1.00           
  Repl Heifers  AUM  1.00           
 Ranch Adjustments
l Short Run—Purchase Hay
27#/cow/day @ $70/ton
l Intermediate Term—Private Lease Grazing
3 months @ $10.76/AUM
l Long Run—Reduce Herd 
???Scenario Federal 
Forage
Hay Private 
Pasture
Total 
Cost
GM
Existing $9.43 $113 $0.00 $283 $57
Hay 
Purchase
4.72 196 0.00 363 -23
Private 
Lease
4.72 113 38 316 24
Changes in Selected Operating Costs and Gross Margin 
From Adjustments in Forage Allocation ($/Cow)Livestock Grazing and 
Sage Grouse
ﬁSerious issue is spring grazing
ﬁNesting/brooding habitat is usually 
shared with livestock during put out
ﬁPostponing/eliminating spring grazing is 
likely policy issue
ﬁConsensus postponing put out and/or 
reducing rate likely to help sage grouse 
nesting/brooding successReduce Grazing for Grouse
(GAMs Models)
Scenario 1
•Spring grazing is eliminated on BLM
•Total AUMs remain the same for year
Brood Cows Income $/AUM
Oregon 5.3% -9.6% (8.34) $    
Idaho -20.6% -18.7% (20.31) $   
Nevada -5.3% -39.8% (17.75) $   
Ranch ImpactsSummary & Conclusions
￿ Collaboration on Budgets and other 
issues in the Western Region has a long 
history through both extension and 
research efforts.
￿Consistent development of Livestock 
Budgets over a broad area allows us the 
opportunity for further collaboration on 
issues of importance to clientele groups 
and policy makers.Summary & Conclusions
ﬁ The level of collaboration on this project 
would not have been possible without 
external funding (FRA Grant) and cooperation 
across state lines.
ﬁ Declining farm and ranch management 
resources (and warm bodies) in the west 
enhances the need for collaboration.
ﬁ The demand for crop and livestock enterprise 
budgets will increase in the future. 

REGIONAL COLLABORATION IN THE DEVELOPMENT OF LIVESTOCK COST AND RETURN ESTIMATES

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