The economics of reseeding on a dairy farm

Abstract

Herbage production and utilization on Irish dairy farms is well below its potential. A number of factors influence herbage production and utilization, not least the level of annual reseeding (introduction of a new grass ley) on the farm. The potential farm performance is reduced by old permanent pasture due to the combined effects of reduced out-of-season herbage production and lower overall herbage yield when compared to perennial ryegrass. Based on the sales of grass seed, it is estimated that approximately 2% of the land area on dairy farms in Ireland is reseeded annually. This has created a situation where the overall percentage of perennial ryegrass in sward is low. The objective of the present study was to investigate the economic benefits of reseeding through simulating the consequences of reseeding different proportions of the farm on an annual basis. Four levels of an annual reseeding programme were evaluated: 1%, 5%, 10% and 15% of the farm reseeded annually; evaluated at three milk prices (20 c/L, 27c/L and 33 c/L). Increasing the level of reseeding resulted in an increase in total and seasonal herbage production and, when accompanied by an increased stocking rate, increased herbage utilization. At a milk price of 27 c/L, farm profitability was €20 764, €24 794, €30 073 and €33 515 on a 40 ha farm when 1%, 5%, 10% and 15%, respectively, of the farm was reseeded annually. Irrespective of milk price, increasing the level of reseeding had a positive effect on profitability and the highest gain was achieved at the highest milk price. Sensitivity analysis showed that sward persistency and, to a lesser extent, herbage utilization had significant effects on the benefit from reseeding.