ESM Training: Farm Mgt' Issues

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ESM TrainingFarm Mgt. Issues

• Greg S. Halich
• Farm Mgt. Economist

Dept. Agricultural Econ. University of
Kentucky October 2006
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Presentation Outline

• Overview of Extension Programs.
• Summary of Forestry Outlook.

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I. Overview of Extension Programs

• Grazing Systems.
• Farm Management Training.
• Tobacco.
• Other Possible Areas.

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Grazing Systems

• Infected Tall Fescue Replacement
• October Bluesheet.
• Linked production and financial models for NPV
  analysis of Stocker Operation.
• Includes 1) chance of stand failure, 2) stand
  deterioration, and 3) increased forage
  requirements for improved fescue varieties.

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Grazing Systems

• Fall Stockpiling (Extended Grazing)
• Tradeoff between fall grazing vs. feeding hay.
• Nitrogen response functions built into model.
• Evaluate optimal rate of nitrogen application
  given cost of nitrogen, cost of hay, waste rates,
  and other parameters.

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Grazing Systems

• Forage-Finished Beef
• Multi-disciplinary effort to evaluate various
  production models.
• Estimate net returns of each system and cost of
  gain on a monthly basis.

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Farm Management Training

• FSA Borrower Training.
• Annies Project (2007).

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Tobacco (2007)

• Post-Buyout Budgets
• Interactive software tools.
• Help with investment and production decisions.

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Other Possible Areas

• Forest Management Decisions
• Financial Implications.
• Needs Determined by ANR Agents
• Grain Farming.
• Energy Costs.
• Other Areas (your input required!)

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II. Summary of Forestry Outlook

• Describe current markets.
• Recommendations.

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Stumpage Prices
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Stumpage Prices (2006)

• Most Current Situation
• Red oak still going down.
• White oak Nearby states down, KY stable.
• Hard maple down slightly, but prices still
  high.
• Yellow-poplar stable.
• Walnut stable.
• Hickory stable.
• Ash stable.
• Based on conversation with Dr. Jeff Stringer UK
  Forestry and Stumpage Reports from other States.

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Guidance and Recommendations

• Red Oak
• Medium and high quality stands hold.
• Low quality stands harvest.

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Guidance and Recommendations

• White Oak
• Medium and high quality stands ???
• Low quality stands harvest.

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Guidance and Recommendations

• Hard Maple and Black Cherry
• Prices way up - great time to sell stumpage.

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Guidance and Recommendations
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Guidance and Recommendations

• Yellow Poplar, Walnut, and Hickory
• Stable prices last few years.
• No reason to expect major changes.
• Ash
• Low stumpage prices.
• May go lower due to emerald ash borer.

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Formal Presentation Finished

• Closing Comment
• Your ideas needed for possible extension
  programs.
• Questions
• Forestry Outlook.
• Extension Program.