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  M152 Selecting Profitable

Livestock Enterprises

Farm Management Library

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MAIN IEA!

• Which type of livestock would be best for

my farm?

Photo © 2005 Nancy Crombie, used by permission.

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"eneral reasons to raise

livestock!

1. To market forage crops, pasture and cropresidue that have no other market;

. To add value to grain crops by usingthem to produce a higher value product;and

!. To make profitable use of a year"aroundsupply of labor.

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"eneral reasons to raise

livestock!

#$%%&'() The ob*ective is to produce the

crop and+or livestock enterprises that will

make the most profitable use of resourcesyou have available on your farm.

Staff photo/Nancy Crombie.

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Fo#r basic reso#rces!

1. and

. abor 

!. -apital

. %anagement

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$onsi%er yo#r lan% reso#rces!

• /illy or rolling land are suitable forpasture, hay and gra0ing.

• lat prairie land found in the -orn 2elt iswell suited for corn, soybeans and othergrain crops as well as crop residue forcattle feed.

• and may be limited, with little possibilityfor buying or renting more land.

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$onsi%er yo#r labor

re&#irements!

• -rop production re3uires seasonal labor which

may allow livestock production in the off"season.

• 4airy, poultry and hogs to a lesser e5tent re3uire

high labor year"round.

• -ertain feeding operations may need more

seasonal labor.

• -apital invested into mechani0ation can reducelabor re3uirements.

• $sing more labor can reduce capital

re3uirements.

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$onsi%er capital reso#rces!

• -apital"intensive enterprises

include cattle feeding, beef

cow herd and dairy operation.

• #ome operations can re3uire

either high or low capital. &

hog confinement operation is

high capital, while a hogpasture system is lower

capital. NRCS photo/Bob Nichos.

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$onsi%er management

reso#rces!

• %ore management is re3uired on a farmthat is diversified with livestock.

• %anager and other workers need specialskills to work with livestock

•  &n operator with livestock e5perience has

a valuable resource.• Those with no livestock e5perience shouldproceed with caution.

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"at'ering information starting

(it' goals an% ob)ectives!

• ivestock management skills you have or

could employ

• Type and 3uantity of feed re3uired•  &mount and timing of labor needed

•  &vailable markets, prices and stability

• -apital re3uirements and financing

• Turnover and cash flow

• 'isk and profit potential

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Analy*e alternatives!

• 6ne choice is to not produce livestock.

• $se enterprise budgets to compare

alternatives.•  &re your assumptions correct?

• %ake your choice based on resources.

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ST"%!&T-P"T"&S'# and !(")#"T *'+ are registered trademars of Stewart-Peterson Inc

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