By Dean Kreager
Many parts of Ohio are under development pressure, and communities are trying to take actions to prevent loss of agricultural land. I bring this up because one planning group reached out as they searched for local statistics and numbers related to “prime farmland”. This got me thinking about what makes prime farmland. Is it defined by specific soil types, historical yields, lay of the land, or proximity to markets? I won’t argue these are all important and are used to determine value, but what type of land is currently providing the largest net income per acre? The marginal land that was once considered a byproduct of farmland ownership is likely producing your greatest net income per acre thanks to current cattle market conditions. Instead of producing a little extra income, the cattle enterprise may be a big contributor to the bottom-line.
We know cattle markets cycle up and down, and the current market has been high for longer than expected based on historical cycles. Indications are that the high prices are not expected to drop soon unless an unforeseen event happens. Re-investing profits into the cattle enterprise now can put a farm in better position to be profitable when markets soften in the future.
First, improve herd genetics. High quality bulls will cost more up front but can build the genetic base of the herd. Traits such as improved weaning weights and improved carcass characteristics can be selected to match the needs of the marketing program for the herd. In addition, selection of replacement heifers from top performing cows can lead to improvement in herd productivity. The use of DNA testing to aid in finding the best replacement females continues to develop and become more cost effective. These tests increase the likelihood of improved performance when used for selecting replacement females. Ohio State is currently working on a research trial involving collection and evaluation of DNA data in their herd.
Source : osu.edu