How to Calculate Wheat Pasture Profitability for CattleSeptember often makes wheat pasture seem like a quick way to earn money. Someone at the feed store mentions that calves should gain well this winter; a bit of rain moistens the ground, and soon everyone is eager to start planting.
Yet eventually the bills come. A large amount is taken up by seed costs, and another by fertilizer. Repair work is needed on the fence, and the water trough has to have a new float as well, together with the fact that the calves can’t begin grazing when you wanted them to.
At that point, the so-called cheap winter grazing begins to appear expensive.
Wheat pasture can assist in helping calves put on weight and allow native grass to rest when other fields have dried out; but the fact that the wheat is green doesn’t mean that your cattle will turn a profit.
Before you plant 10 acres close to your house or several hundred acres over your ranch, calculate the total cost of the pasture and the amount of weight your cattle need to gain.
You must also know how many calves the field can support, how long they can graze, and whether the additional weight gained will cover the entire program.
You can do the math in September before you begin planting.

Start With the Real Cost Per Acre

A budget for a wheat pasture involves more than merely seeding and fertilizing; you have to total up all the costs required for growing the crop and for keeping the cattle on it.
Here is one example:
  • Seed: $35 per acre
  • Fertilizer: $65 per acre
  • Drilling, fuel, and equipment: $30 per acre
  • Fencing and water: $18 per acre
  • Weed and insect control: $12 per acre
  • Mineral and basic cattle supplies: $10 per acre
  • Labor, operating interest, and miscellaneous costs: $10 per acre
Total estimated pasture cost: $180 per acre
The figures given are only examples and not the current market prices; the amount you actually pay will vary according to the local suppliers, the type of soil, the equipment you use, and the field you employ.
An 80-acre planting would require:
80 acres x $180 = $14,400
The example doesn’t take land rent into account; if you are leasing the field or could use the acreage for another crop which pays money, then you should add that cost before deciding that the pasture is profitable.
The fact that you own the tractor or the land does not prove that they are free.

Look Beyond the Price of the Seed

The fact that wheat seed is cheapest does not mean that the resulting grazing will be the cheapest.
Make sure that you check the germination rate, the variety, the seed treatment, and the actual seeding rate using your drill. Seed that is cheap and leads to a thin stand may end up costing more than better seed if your cattle exhaust the forage.
Ensure that the seed variety you choose is suitable for your plan since some producers want grazing only, whereas others need a field that can accommodate cattle and at the same time produce grain later.
Soil moisture matters as much.
A producer living close to Brady may receive sufficient rain in September to plant, while another situated 20 miles away might still have dry soil. The fact that your neighbour has started planting doesn’t mean that your field is ready.
Before you make your decision, check the seedbed; if the field is not capable of supporting seed growth then planting early won’t solve the problem.

Let the Soil Test Guide the Fertilizer

Cattle require that wheat receive sufficient nutrients so that it can produce enough forage. If you make an educated guess as to the amount of fertilizer to apply, you could end up with low production or high costs.
Begin by carrying out a soil test since nitrogen promotes forage growth and phosphorus aids in root establishment and in forming a more robust stand.
If you plan on letting the cattle graze in the field and then harvesting the grain, you must take both aspects into account; the wheat has to feed the cattle and at the same time have to recover sufficiently in order to produce a crop.
Applying nitrogen in two stages can reduce risk; first apply the amount that the field requires to get going and then make further adjustments later according to moisture levels, growth, and cattle demand.
Base your expectations on what the weather will be like and keep them realistic; wheat won’t grow if the ground is dry even if you use expensive fertilizer.

Count Fencing and Water Before the Calves Arrive

The fact that a wheat field is green doesn’t prove that it is ready for cattle.
Before planting it is necessary to inspect the perimeter fences, the gates, the water lines, the capacity of the troughs, and the access routes. For a patch of 10 acres a temporary fence might be sufficient. However, a bigger field may need additional water points in order to prevent the cattle from concentrating on one corner.
Make certain that you include these costs in your budget.
A setup costing $600 adds $60 per acre when applied to 10 acres; if the same cost is spread over 100 acres then it adds $6 per acre.
The difference can influence whether it is a good idea to plant a smaller field.
Make sure that you check your water supply, storage facilities, and backup arrangements. A trough which was sufficient for a few cows last spring may not be adequate for a larger number of calves.

Do Not Count Grazing Days Before the Wheat Grows

The fact that you plant in September doesn’t mean that you can begin grazing in September.
The land should have sufficient moisture, be growing properly, and have developed roots before the cattle are introduced. If the calves are turned out too early, the plants can be pulled out of the soil and the grazing season will be shortened.
Don’t merely consider the color; make sure that there is a well-developed crown root system, that the plants remain in position when you pull on them, and that there is sufficient growth so that the cattle don’t graze them down to the ground.
Soil conditions are also important; a young stand can be damaged if the field remains muddy due to heavy hoof traffic.
In this instance, let it be assumed that the wheat offers 90 useful grazing days.
The number could be reduced because of dry weather, due to the presence of armyworms, as a result of cold temperatures, because of early harvesting, or because people have decided to harvest the grain.
Only count the days on which you can realistically expect the cattle to be grazing, not those on which you hope they will be.

Match the Stocking Rate to the Field

The stocking rate that is reasonable will depend on the actual yield of forage, the weight of the calf, the moisture content, and the duration of the grazing period.
For this example, use:
0.75 stocker calves per acre
On 80 acres:
80 acres times 0.75 equals 60 calves.
That figure won’t be suitable for all wheat fields since a dense and vigorous stand can hold more cattle, whereas thin wheat following a dry October will be able to support fewer.
The Oklahoma State University Extension’s dual-purpose wheat management guide describes how growing conditions influence stocking rate and states that stocker gains typically range from about 1.5 to 3 pounds per day.
You shouldn’t fill the field according to what you expect to grow after the next rain; instead, you should base it on what your cattle can actually eat at present.
Should the wheat be growing poorly, then the number of cattle should be reduced before the calves begin to lose weight.

Estimate Gain Without Stretching the Truth

Although wheat pasture can assist calves in gaining weight, it does not mean that every calf will gain three pounds each day.
Use realistic figures:
Average daily gain: 2.2 pounds per calf
Grazing period: 90 days
2.2 pounds multiplied by 90 days equals 198 pounds gained by each calf.
With 60 calves:
60 calves x 198 pounds = 11,880 pounds of total gain
Across 80 acres:
11,880 pounds divided by 80 acres = 148.5 pounds of gain per acre
It links the cost of keeping your pasture to the way your cattle perform.
The result is influenced by health, weather conditions, mineral intake, handling, genetics, and the availability of forage.
Take a second estimate using fewer grazing days or lower daily gains. A plan that only functions in the event that all goes well doesn’t allow much room for the weather in west Texas.

Find the Break-Even Before You Buy Calves

Start with pasture expenses:
$14,400 divided by 11,880 pounds gained = $1.21 per pound
The break-even cost you have for pasture is that amount.
You must still take into account the costs of owning cattle, such as those associated with freight, treatment, death losses, marketing, and the interest on calves that have been purchased.
Let us assume that the expenses amount to about $43.56 per calf:
$43.56 divided by 198 pounds gained = $0.22 per pound
Now add that to the pasture cost:
$1.21 + $0.22 = $1.43 full-enterprise break-even
Treat the interest earned from pasture operations as separate from the interest on cattle that have been purchased and make certain that mineral, labor, and treatment costs are not included twice.
Now work out the figure for gain. This number shows you the extra sale value which is created for each pound of extra weight after allowing for the original purchase cost of the calf.
Imagine that you purchase a calf weighing 500 pounds at $2.70 per pound:
500 x $2.70 = $1,350
The calf now weighs 698 pounds having gained 198 pounds. Since it is sold at $2.40 per pound:
698 x $2.40 = $1,675.20
$1,675.20 – $1,350 = $325.20 added value
$325.20 divided by 198 = $1.64 value of gain
Subtract the $1.43 break-even:
$1.64 – $1.43 = $0.21 margin per pound
That profit margin can disappear fast if you have fewer grazing days or if costs go up.

The Same Math Works on 10 Acres or 300

Small operators use the same formula as bigger ranches. The main difference is usually in fixed costs.
Suppose 10 acres cost $215 per acre because fencing and water run higher:
10 acres x $215 = $2,150
If seven calves gain 198 pounds each:
7 x 198 = 1,386 pounds gained
$2,150 divided by 1,386 = $1.55 pasture-only break-even
Now compare 300 acres at $170 per acre:
300 x $170 = $51,000
At 0.75 calves per acre:
300 x 0.75 = 225 calves
225 x 198 = 44,550 pounds gained
$51,000 divided by 44,550 = $1.14 pasture-only break-even
By planting on more acres you spread your costs over a greater area, but this also means that you are risking $51,000 before the cattle have paid for themselves.
Small operators have the possibility of improving their figures by sharing their equipment, making use of the water they already have, installing temporary fencing, or retaining the calves that they currently own.

Decide Early Whether Grain Still Matters

Wheat that is only grazed and wheat that has dual purposes both involve different decisions.
If you want to harvest grain, you cannot keep cattle in the field just because the grass still looks green.
Find out how to spot the first hollow stem, the stage of growth at which further grazing can start to lower grain yield. You should contact your local Extension office to keep an eye on the plants and to find out when to take the cattle off.
The extra weight gained by the calves might not make up for the grain you lose as a result of grazing for too long.
If you want some additional background, the article discusses the cost of grazing winter pastures too early.
In September you must decide whether the land will be used solely for increasing the cattle population or for both cattle and grain. The choice you make will have an impact on your stocking rate, your fertilizer plan, the grazing period, and your budget.

Practical Management Strategies

Make three versions of your wheat pasture budget:
  • A more conservative scenario involving fewer days for grazing.
  • A scenario which is typical and reflects realistic cattle performance.
  • A strong scenario featuring better moisture levels and an increase.
Fix the dates in order to monitor the emergence of crops, examine root development, check the water, and look at the amount of forage available.
You should not wait until your cattle begin to lose weight before making a change to the stocking rate.
It’s important to have a backup plan; this might involve having hay on hand, using a different pasture, reducing the number of calves, or selling them earlier.
A person who is looking after seven calves on 10 acres has fewer methods of spreading out the cost of water or fencing, whereas someone dealing with 225 calves has a greater amount of money at risk should a dry spell occur.
They both need to have an exit plan before the wheat is used up.

Warning Signs Your Wheat Pasture Is Not Paying

Healthy calves should be alert, continue to eat, and gain weight steadily.
Watch for:
  • Calves that cease to gain weight or lose flesh.
  • A full rumen or too much walking around the fence.
  • Bloat on lush wheat.
  • Gathering round the water or the gates.
  • Diarrhea, dehydration or a decreased appetite.
  • Symptoms such as coughing, difficult breathing, or other signs of illness.
A single sick calf may only require individual attention; but if a group of calves is falling behind, it is usually due to an issue with the forage, the water, the stocking rate, or the management.
You should also look at the field; thin stands, muddy spots, exposed roots, uneven grazing, and shorter forage are all signs of trouble.
Lush wheat may also lead to bloat or mineral problems, so you should consult your vet or nutritionist about preventing them.
The amount of money you lose by failing to achieve the required gain has an impact on your budget, and it is generally less expensive to detect problems early on than it is to correct them after the cattle have lost condition.

Actionable Tips You Can Use Today

Before ordering seed, write down:
  1. Grazable acres.
  2. Seed and fertilizer costs.
  3. The costs associated with drilling, fuel, fencing, and water.
  4. Land rent or other uses of the land.
  5. Expected grazing days.
  6. Realistic stocking rate.
  7. Expected daily gain.
  8. Total gain per acre.
  9. Pasture-only break-even.
  10. The cost of owning cattle and the point at which a complete enterprise breaks even.
Get price quotes from local sources rather than making guesses; walk around your field, check the moisture, examine the fence, and ensure that the water system is working.
Now reduce the number of days you expect to be grazing by 20 per cent and work out the figures once more.
You’ll have a safety margin if the plan still proves to be viable; if it doesn’t, then modify the amount of acreage, decrease the number of cattle, or wait until better planting conditions occur.