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Before converting back to pasture, think twice

 

By MATTHEW D. ERNST
Missouri Correspondent

LEXINGTON, Ky. — Plenty of pastureland was converted to row crops with higher grain prices. Now producers are considering returning land to pasture – a decision that takes much planning and, in some cases, significant investment.
Fencing is the biggest financial factor. “Here in Kentucky, we are historically cattle and grain,” said Greg Halich, UK farm management extension specialist. “There was a lot of pasture brought into row crops, and a lot of old fencing was removed.”
Putting fences back up is resource-intensive. Iowa State University estimates put woven wire fencing costs at more than $3 per foot, including the value of labor. But there may be ways to save. “The best scenario is if there’s woven wire fence still there,” Halich said. “But you may be able to get by without putting up woven wire.”
A conventional high-tensile electric fence is one option. Combining perimeter woven wire fences with other systems is also possible. “A two-wire high-tensile electric fence using fiberglass posts may fit some situations,” Halich said.
Stock type, grazing system, operator experience and location all play into the decision. “Ask yourself: Is the pasture at the end of a dead-end road, or is it by a U.S. route?” Halich said.
Cow-calf producers also need to use realistic revenue projections when estimating the potential payback from new fence, Halich advised. The latest Livestock Marketing Information Center estimate is a 10 percent to 12 percent decline in calf prices in 2016, followed by a 1 percent to 5 percent decline in 2017.
The other major expense in re-establishing pasture is seeding. Warm-season grasses can add diversity to the farm’s total forage mix, according to University of Missouri forage specialist Rob Kallenbach, who advises producers to always make sure of seed availability for perennial grasses.
Many of the region’s pastures are heavy in tall fescue. Kallenbach said reseeding with fescue is a chance to seed novel, endophyte-free varieties bred to eliminate the possibility of fescue toxicosis.
Rental ground can create other challenges for producers wanting to transition to pasture, said Greg Halich, who has personally negotiated pasture leases providing for fencing. “You have to have a good legal document,” he said. “The lease has to be structured so that the cost of the fencing is fair to both parties.”
A tenant establishing a high-tensile fence would benefit from a lengthy lease, long enough that the fencing cost is recouped. A lease could stipulate the landlord must pay part of the tenant’s fence cost to break the lease before a certain amount of time.
While there are benefits to re-establishing pasture, Halich cautions producers not to move into the decision without weighing all variables – including forage production that does not require a fence. “Hay is an obvious option,” he said. “With grain prices where they are, my guess is a lot of this (converted) ground will be put into hay.”
11/25/2015