Applying a Higher Level of Fertilizer Application 



An obvious way of increasing crop yields, and tiiereby herd size, is by 

 increasing the level of fertilizer application. In this example an additional 

 S492 is spent on fertilizer, increasing the total corn production by 375 

 bushels and the hay equivalent by 50 tons. This amounts to a one ton in- 

 crease per acre for hay and a 25 bushel increase per acre for corn. This allows 

 for an increase in the herd size of nine cows and three replacements. Not 

 only is there more milk for sale, but there is also additional com left over 

 for cash sale, totaling an increase of $5,100 in receipts. Other than the 

 expense for fertilizer, the major increases on the expense side are connected 

 with caring for the nine additional cows. This is reflected not only in in- 

 creased concentrate purchases but also in increased amounts of hired labor, 

 depreciation and interest charges. The result is a rather favorable increase 

 in the net returns to labor and management of $2,892. 



Some qualifications may be in order with respect to the high fertilizer 

 situation. Just as for this basic farm situation, many farmers may find that 

 greater use of fertilizer is one of their most profitable alternatives. But it 

 should be realized that the effect on net income will vary according to yield 

 responses to fertilizer just as it varies for irrigation according to yield re- 

 sponse. Also, it is well to note in this illustration that the other parts of 

 the farm business were figured to efficiently utilize the added yield. Unless 

 the other parts are run efficiently the farmer would simply waste the added 

 forage by putting it into cows that are not properly cared for, properly 

 milked, and properly housed. It should also be cautioned that in certain 

 years serious lack of moisture can eliminate completely the possible gains 

 from higher fertilizer applications. The present example, however, should be 

 practical on many farm situations. 



Replacing Corn Grain with Corn Silage 



Producing corn silage instead of corn grain will increase the roughage 

 supply on this farm by about 180 tons of silage which is equivalent to 

 about 60 tons of hay. This change means that the farmer now has to pur- 

 chase grain instead of raising it. By utilizing the extra 60 tons of hay 

 equivalent and by feeding purchased grain, 9 cows and 5 replacements can 

 be added to the herd. 



It will take practically the same amount of labor to produce silage as it 

 does to produce corn grain. The main differences in costs are more ma- 

 chine hire, more grain, the added livestock and the addition to the barn. 

 This farm's net returns to labor and management would increase by about 

 $584 if this change is made. 



Buying Hay 



An obvious way of increasing the carrying capacity of a given farm is 

 to simply purchase hay in addition to what can be raised on the farm it- 

 self. This change does not involve or limit the number of cows that can 

 be added to the herd, but for purposes of comparison, it has been assumed 

 that the farmer adds five cows.^ To add five cows and two replacements 



1 The number of cows added for this ahernative is arbitrary, but the choice of five 

 helps to keep the magnitude of this change somewhat comparable to the irrigation 

 alternative. 



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