Economic Analysis of Sorghum Silage Potential for Dairy Industry in the Texas High Plains

Oladipo S. Obembe, Lal K. Almas, Bridget L Guerrero and David G. Lust

No 162423, 2014 Annual Meeting, February 1-4, 2014, Dallas, Texas from Southern Agricultural Economics Association

Abstract: The objective is to evaluate the economic feasibility and potential water savings to a dairy of replacing corn silage with BMR sorghum silage; and to estimate the potential economic benefits and water savings (current & future) to the region from adoption of this practice. Economic analysis was conducted for different scenarios to estimate irrigated sorghum silage potential in the Texas High Plains to meet the feed requirements of ever growing dairy industry. Sensitivity analysis was also conducted to know the effects of yield on the amount of water that will be saved, feed requirement, acreage to cultivate and cost of production. The cost of production for corn silage is higher than the cost for sorghum silage. More acreage, irrigation water and feed requirement will be needed if sorghum silage is used to replace 100% of the corn silage needed to feed the dairy cow inventory unless there is an increment in yield per acre of sorghum silage between 24 -26 tons per acre. More water can also be saved if the yield per acre of dryland sorghum silage can be increased substantially so that the effect of cost of production can be reduced in relation to the high number of dryland sorghum acreage needed to meet the feed requirement through irrigated sorghum-dryland combination.

Keywords: Agribusiness; Crop Production/Industries; Farm Management; Livestock Production/Industries; Production Economics; Resource/Energy Economics and Policy (search for similar items in EconPapers)
Pages: 15
Date: 2014-02
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Persistent link: https://EconPapers.repec.org/RePEc:ags:saea14:162423

DOI: 10.22004/ag.econ.162423

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