From the Barns: Comparing costs

A new year always brings a time for reflection on the past year and resolution for a new year. Amid all of this, there is plenty to do, such as football and basketball viewing and celebrations with family and friends. But the time for resolutions may be far more important than all those distractions. So, where am I on those?

Well, I want to carve more personal time out of each and every day and slow up a bit. At age 82, I think I treasure each and every day more and more. So, I will be writing to you over this calendar year and then turning this over to a new voice for 2027, hopefully one to continue to promote grazing across our state.

In the meantime, there is still plenty to do. My dry erase board above me here in the office now has 15 projects listed for winter and spring and space for some more as they come up for consideration. It is just part of the continuous quest to leave the land and this place, River Oak, better than when my family landed here back in 1951. I am grateful for a lessee, Carson Welsh, who is not only a hard worker who treasures the land and the cattle as I do, but sees the big picture ahead and is a huge part of the transition plan for River Oak.

I have some information for you about our “steer grazing project on sorghum-sudangrass planted on our 63.5 crop acres in 2025, instead of soybeans following corn.” Could Carson possibly make more money per acre grazing stockers than raising soybeans? First of all, according to figures I have gleaned from the management section of www.farmdoc.illinois.edu, University of Illinois providers Gary Schnitkey and Nick Paulson and 2025 crop budgets for central Illinois low productivity and high productivity farmland, the competition for farmer return per acre is not very formidable.

I adjusted those figures for what I think our actual returns may have been for 2025 if Carson stayed in the past corn and soybean rotation. The results of my adjustments provided the following results: Soybeans after corn may have returned a negative -$57 per acre. Corn after corn may have returned a negative -$141 per acre. Breakeven prices to cover for soybeans after corn were $6.91 for non-land costs and $10.51 for non-land and land costs.

So, comparing costs for producing and grazing sorghum-sudangrass with stockers was difficult to track, but I did my best to keep accurate records all summer for all expenses and the number of grazing days. The expenses included seeding, seed, fertilizer, clipping, machines, land use, supplemental feed and miscellaneous which totaled $387.62 per acre. The crop revenue from daily custom charges and gain bonuses was $445.63 per acre, which made a return of $58.01 per acre to labor.

Those figures came from a total of 18,865 grazing units accumulated over 77 days in the 63.5 acres or 297 grazing units per acre. Four rotations were completed from June 25 to Oct. 20, but of that 118 days only 77 were in the sorghum-sudangrass. Steers were in other paddocks in the other 41 days. In all, considering the dry summer and our inexperience, we feel this was a pretty successful start for this practice.

However, a number of small improvements in management can deliver more profit per acre next season in 2026. The stocking rate will be lowered to make it possible for cattle to remain on the crop ground 100% of the summer. More shade will be provided with closer access to water. Higher quality of placements will enhance potential gain. An enhanced crop mix is needed to cover more ground space and reduce walking and trampling. Clipping may only be necessary for looks.

Winter work has increased here at River Oak with the addition of 140 5-weight feeders. Carson has a good supply of byproducts, ground hay and round bales hauled in and a routine established. The calves arrived in the snowstorm week from Oklahoma and Carolina so there has been an adjustment period. The 40 pairs on winter fescue grazing are going very good with only a few days of snow cover to bother.

Happy new year and as winter progresses stay warm, safe and sane!