Grass-fed and Organic Beef: Production Cost and Profit Potential

Grass-fed and Organic Beef: Production Cost and Profit Potential

Summary

Twenty-three cooperating beef farmers and ranchers producing organic, grassfed and organic grassfed beef documented their own farm data for costs of production and beef production parameters for the 2008 and 2009 production years. Data for 2008 was collected from farm records and 2008 Schedule F tax forms in 2009. Data included market animal weights at key times, animal inventories, feed use, grazing days and frequency of animal moves during the grazing season. Costs of all inputs were recorded, on-farm inputs noted, and labor use tracked. Usable data sets were available for twenty of the cooperating farms. Data was summarized and is available as an Excel attachment to this report. The initial case study of the Ryan and Gene Herman Farm in Iowa was revised and completed. Six on-farm field tours were conducted on cooperating farms, with 321 farmers and agricultural advisors in attendance.

Objectives/Performance Targets

We worked one-on-one with 23 beef producers in five states; Iowa, Nebraska, Wisconsin, South Dakota, and Kansas; in 2008 and 2009, to organize and document the costs for production from breeding through sale of market animals in three specialty beef production streams: grass-fed or finished, organic grass-fed, and organic grain-fed. The number of farm records collected has been fewer than originally planned, due to producers leaving the project. Twenty records were completed for the 2008 crop year and 12 for the 2009 production and calendar year, for a total of 30 records.

Many producers in these production streams are calve-to-finish, but others we have identified specialize in cow/calf or the finishing period. In addition, we documented their production systems and the specific practices, genetics, and/or management techniques that enable them to sell into their market niche.

Accomplishments/Milestones

Linked files contain the summary of data for 2008 for 20 farms in the Upper Midwest. Cost of production were documented for the cow-calf phase, growing phase and finishing phase for organic, grassfed and organic grassfed herds. Costs were also combined for the entire beef operation for farms that were calf to finish.

The first of 10 Farm/Ranch Case Studies was prepared for the Ryan and Gene Herman farm near New Albin in far northeastern Iowa.

• 2008 Midwestern Grassfed and Organic Beef Costs of Production
• Case Study Ryan and Gene Herman Grassfed Beef Production and Marketing

Impacts and Contributions/Outcomes

Six on-farm field tours were conducted on cooperating farms, with 321 farmers and agricultural advisors in attendance. Field tours features topics about grazing management, weaning schedules, winter feeding programs, and genetics for organic ansd grassfed beef.

Impact of the project for this year is the increased interest by farmer and field day participants about the need to track their costs of production to effectively price their product in the marketplace. Participating farmers and ranchers have requested an electonically-based recordkeeping form that they can use in the future without project assistance for tracking their organic and grassfed beef costs of production.

Collaborators: