ECONOMIC USE OF FORAGES IN LIVESTOCK PRODUCTION 31 
at the end of 1 year’s operation without reducing the size of the 
enterprise. 
Feeder-cattle systems, except those for 2-year-old steers, required 
only 8 or 4 years to replace the initial investment in buildings and 
equipment and feeders. They need only 2 years to replace the initial 
investment in livestock from returns above costs of feed, labor, and 
miscellaneous expenses. ‘Two-year-old steers required 13 years to re- 
place all investments and 3 years to replace the investment in livestock. 
The nature of the flow of returns from the various feeding systems 
may be important to some farmers. Dairy systems provide a fairly 
steady stream of income during the year at weekly or monthly inter- 
vals, which makes it possible to pay as you go for labor, feed, and 
other production expenses. Returns from hogs, feeder cattle, and 
beef cows come at less frequent intervals. This often makes it neces- 
sary to borrow money to meet operating costs and expenses for family 
living while production is in process. 
The procedure followed in tables 13 and 14 is useful in comparing 
the relative rate at which returns are realized on investments in 
alternative feeding systems for the set of price relationships employed. 
But the time required for livestock to return the initial investment 
varies with the level of prices. Figure 1 compares the time required 
to return the initial investment in livestock with prices at the levels 
of 1930 and 1940. It is apparent that the timing of the original 
investment with respect to prices is equally as important as type of 
livestock in determining the rate of turn-over of capital. The period 
YEARS REQUIRED TO REGAIN ORIGINAL INVESTMENT IN 
LIVESTOCK MADE IN 1930 AND IN 1940 WITH 
VARIOUS LIVESTOCK SYSTEMS 
YEARS REQUIRED TO REGAIN LIVESTOCK INVESTMENT 
6 ioosty(8 10; f5,/ 2 14 
DAIRY COWS 
(a) High grain 
(b) Med.-High grain 
(c) Med.-High forage [& 
(d) High forage 
FEEDER CATTLE 
Calves, Gd.—Ch. 
Yearlings 
(a) High grain 
(b) Med. forage 
(c) High forage 
Two year old steers ibbhbhnbbbteihetaeeh tae hE CEE SE DoE Eee 
BEEF HERD 
(a) 400 Ib. calf : ae : SRP 
(b) Calf fed out a eee ne nS SS EE SRS RR 
HOGS 
I Dry lot hogs | 
(a) High grain 
(b) Med. forage exer Years required to regain invest- 
()Hishiereee ment in livestock made in 1930 
II Pasture hogs quam Years required to regain invest- 
(a) High grain ment in livestock made in 1940 
(b) Med. forage * Indefinite 
(c) High forage - 
U.S. DEPARTMENT OF AGRICULTURE NEG. 48643 BUREAU OF AGRICULTURAL ECONOMICS 
FIcurE 1.—Years required to regain original investment in livestock made in 1930 
and in 1940 with various livestock systems. 
