WILL MORE FORAGE PAY? 



59 



this type in the northern Great Plains apparently can shift a part 

 of their wheat land to grass with very little change in income. 



However, some sacrifice in income is to be expected during the 3 

 years required to establish stands of crested wheat grass and to build 

 up numbers of breeding stock necessary to utilize the increased acreage 

 of grass. During these intervening years the net cash income will be 

 less than under the former plan (table 13). 



In shifting to the present plan accrued reductions in cash income 

 of 8996 with the medium price level and $1,565 with the high price 

 level are indicated. In shifting to the alternative plan with no 

 receipts from wheat, reductions ranging from s:).9^4 to $6,233 might 

 be experienced. These temporary reductions in income are caused by 

 holding back from market more cows and breeding heifers to build 

 up breeding cow numbers, and by purchasing the additional feed 

 needed in increasing livestock numbers before the crested wheat grass 

 is in full production. Additional cash expenses also are incurred 

 during this period. Crested wheat grass, which is drilled in wheat 

 stubble and summer-fallow during the fall, must be purchased. 

 Another bull must be added to service the additional cows. But these 

 reductions in net cash income are partially compensated by increases 

 in livestock inventories. When these are considered, actual reduc- 

 tions in reaching the present plan are cut to $110 under the medium 

 price level and S162 under the high price level. These amounts could 

 be retrieved in from 1 to 3 years of full production after adjustment 

 has been completed. 



Table 13. — Reductions in net cash Income and increases in livestock 

 invent ones that occurred during establishment of crested icheat 

 grass on a wheat-cattle ranch in southwestern XortJt Dakota 



Item 



Present plan — ■ 

 90 acres wheat 

 and summer- 

 fallow land 

 seeded to 

 crested wheat 

 grass 



Alternative plan — 



all wheat and 



summer-fallow 



land seeded 



to crested 



wheat grass 





Medium 

 price 

 level 



High Medium 

 price price 

 level level 



High 

 price 

 level 



Reductions in net cash income: 

 First vear 



Dollars 

 334 

 422 

 240 



Dollars 

 503 

 674 

 388 



Dollars 

 1, 535 

 2.273 

 1, 162 



Dollars 

 2. 436 



Second vear 



3 526 



Third vear 



1, 6S3 







Total reduction accrued 



996 



1, o'io 4. 970 



7. 645 





Increases in livestock inventories 



886 

 110 



1, 403 3. 924 



6, 233 



Extent total accrued reductions exceed 

 increases in livestock inventories 



162 



1,046 



1.412 



The sacrifice this rancher has undergone in shifting about a third 

 of his less productive wheat land into forage product ion apparent ly has 

 been justified. Marginal wheat land has been taken otit of produc- 



