New Online Tool Assists Forage Producers in Making Informed Financial Decisions
KNOXVILLE, Tenn. – Forages are a vital input for livestock operations, either through grazing or when harvested for hay. A wide range of annual and perennial forage crops can be produced in Tennessee, and understanding the costs and potential returns associated with forage production is essential for effective farm management.
To assist Tennessee producers, specialists with the University of Tennessee Department of Agricultural and Resource Economics have developed the Tennessee Forage Budget Calculator. This online tool helps producers estimate the cost and returns of producing forage under various scenarios. Users can customize the budget by selecting a forage type, harvest method (pasture, hay or baleage), bale type and size, number of cuttings, and storage method. Additionally, input prices can be adjusted to reflect an operation’s specific costs as significant regional and seasonal price variability may exist.
“We saw a need for a budgeting tool that would help forage producers better understand their production costs and make informed decisions,” said UT Extension Farm Management Specialist David Bilderback. “Forage is a critical input for livestock producers, so we have many farmers across the state producing their own forages or buying hay from other producers, but many farmers don’t have a clear picture of what it actually costs to produce. This calculator provides a simple way to evaluate expenses and determine a profitable production strategy under various yields and prices.”
Beyond basic cost estimation, the Tennessee Forage Budget Calculator allows users to evaluate potential returns and assess how changes in yield and price could impact profitability. The tool generates an enterprise budget and includes sensitivity analysis, helping producers consider several financial scenarios.
The Tennessee Forage Budget Calculator is an Excel spreadsheet accompanied by a series of publications, including a user guide, all of which are available on the UT Department of Agricultural and Resource Economics website at arec.tennessee.edu/extension/budgets.
For assistance utilizing the forage budget calculator or any of the decision aid tools for your farm, contact your farm management specialist at manage.tennessee.edu.
The University of Tennessee Institute of Agriculture is comprised of the Herbert College of Agriculture, UT College of Veterinary Medicine, UT AgResearch and UT Extension. Through its land-grant mission of teaching, research and outreach, the Institute touches lives and provides Real. Life. Solutions. to Tennesseans and beyond. utia.tennessee.edu.