Economic and Environmental Benefits of Increased Grass Utilisation

Economic and Environmental Benefits of Increased Grass Utilisation Sinclair Mayne and John Bailey 21 October, 2016

Overview Study commissioned by DAERA on behalf of Working Group • Grass utilisation – What are we currently achieving? – What is possible? • Impact of additional tonne DM/ha utilised on – Economics of dairy and beef production – Environment

What are we currently achieving? • Grass yield and utilisation not routinely measured on farm • At overall Northern Ireland level, best estimate is obtained by calculating total energy output from dairy, beef and sheep sectors LESS energy from concentrates and other non forage sources.

Grass Utilisation – Dairy Sector Energy (TJ) Energy demand 31, 347 (311, 520 dairy cows plus followers etc) Energy from Feeds 9, 915 Energy from Forage 21, 432

Grass Utilisation – Dairy Sector Grass Area Energy (TJ) (ha) Energy demand 31, 347 (311, 520 dairy cows plus followers etc) Energy from Feeds 9, 915 Energy from Forage 21, 432 254, 179

Grass Utilisation – Dairy Sector Grass Area Energy (TJ) (ha) Energy demand Utilised Yield (t DM/Ha) 31, 347 (311, 520 dairy cows plus followers etc) Energy from Feeds 9, 915 Energy from Forage 21, 432 254, 179 Assumes Grass ME of 11. 2 MJ/kg DM 7. 5

Grass Utilisation – Beef & Sheep Sector Energy (TJ) Energy demand 34, 381 (260, 300 suckler cows plus followers, 938, 600 breeding ewes plus lambs etc) Energy from 4, 478 Feeds Energy from 29, 903 Forage

Grass Utilisation – Beef & Sheep Sector Energy (TJ) Energy demand Grass Area (ha) 34, 381 (260, 300 suckler cows plus followers, 938, 600 breeding ewes plus lambs etc) Energy from 4, 478 Feeds Energy from 29, 903 677, 221 Forage

Grass Utilisation – Beef & Sheep Sector Energy (TJ) Energy demand Grass Area Utilised Yield (ha) (t DM/Ha) 34, 381 (260, 300 suckler cows plus followers, 938, 600 breeding ewes plus lambs etc) Energy from 4, 478 Feeds Energy from 29, 903 677, 221 4. 1 Forage Assumes Grass ME of 10. 8 MJ/kg DM

What are we currently achieving? Grass yields utilised ie consumed by ruminant livestock Dairy Farms 7. 5 t DM/ha Beef and Sheep 4. 1 t DM/ha All Grassland Farms 5. 0 t DM/ha

What is possible –Research studies? • Experimental plots Grass growth measured routinely in new variety plots at Loughgall and Crossnacreevy – ideal conditions with 270 kg N/ha/year and cut every 3 – 4 weeks. Measured grass growth of 20 t DM/ha – in really good grass years Measured grass growth of 15 -16 t DM/ha – routinely achieved.

What is possible – Field measurements? • Grass Check plots Plots in normal grass fields at Hillsborough and Greenmount – ideal conditions with 270 kg N/ha Measured grass growth was 13. 2 t DM/ha in 2016, compared to average of 11. 0 t DM/ha (2007 – 2015)

What is possible – On farm utilised yield? • Top dairy farms in ROI – 12. 5 t DM/ha • Dairy Study at Hillsborough (Gordon 1983 – utilised 12 t DM/ha) • CAFRE Benchmarked dairy herds - Top 10% herds 11. 2 t DM/ha - Average 8. 0 t DM/ha

What are the limiting factors? • Growing grass Plant nutrients – N, P, K and S Soil factors – p. H, drainage and soil structure Grass species and variety • Utilising grass Soil type and ground conditions Grazing infrastructure Silage management Weather conditions!

Impacts of Increasing Utilised Grass Yield Dairy Model Base system - Utilising 7. 5 t DM/ha 600 kg dairy cow, 7700 l milk per year, fed 2. 4 t concentrate, 205 days grazing and overall farm SR of 1. 77 CE/ha • Option 1 Non derogated and 1 t/ha extra grass utilised • Option 2 Derogated (SR of 2. 01 CE/ha) and 1 t/ha extra grass utilised, plus better grass quality

Impact of Increasing Utilised Grass Yield Base System Option 1 7. 5 8. 5 Conc use (t/cow) 2. 40 1. 64 Milk Yield (l/cow) 7700 7250 Milk sales Base -210 Conc cost Base +267 Fert and silage cost Base -12 Net change in margin Base +45 Grass utilised (t DM/ha) Economics (£/ha/year)

Impact of Increasing Utilised Grass Yield Base System Option 1 Option 2 7. 5 8. 5 Conc use (t/cow) 2. 40 1. 64 2. 08 Milk Yield (l/cow) 7700 7250 7700 Milk sales Base -210 +521 Conc cost Base +267 +7 Fert and silage cost Base -12 -87 Net change in margin Base +45 +441 Grass utilised (t DM/ha) Economics (£/ha/year)

Impact of Increasing Utilised Grass Yield Base System Grass utilised (t DM/ha) 7. 5 Conc use (t/cow) 2. 40 Conc P input (kg P/ha/yr) 22. 2 Milk P export 12. 9 (kg P/ha/yr) Environmental impact Whole farm P balance 11. 3 (kg P/ha/yr) Change in N conc in Base drainage water (mg nitrate N/ l) Option 1 8. 5 1. 64 15. 4 12. 2 Option 2 8. 5 2. 08 22. 1 14. 7 4. 2 8. 4 +2 +3

Impacts of Increasing Utilised Grass Yield Beef Model Base system - Utilising 4. 1 t DM/ha Continental beef steer, bought at 264 kg and taken to 690 kg at 24 months. Growth rates of 0. 7 kg/day – first winter, 0. 8 kg/day – summer grazing and 1. 0 kg/day – second winter fed 0. 4 t concentrate • Option 1 1 t/ha extra grass utilised • Option 2 1 t/ha extra grass utilised, plus better grass quality and higher animal performance

Impacts of Increasing Utilised Grass Yield Base System Option 1 4. 1 5. 1 0. 39 24 24 401 498 Liveweight gain Base + 180 Conc cost Base - 25 Fert and silage cost Base -12 Net change in margin Base +143 Grass utilised (t DM/ha) Conc use (t/steer) Age at slaughter (mo) Liveweight gain/ha (kg) Economics (£/ha/year)

Impacts of Increasing Utilised Grass Yield Base System Option 1 Option 2 4. 1 5. 1 0. 39 0. 25 24 24 21. 9 401 498 541 Liveweight gain Base + 180 +259 Conc cost Base - 25 +32 Fert and silage cost Base -12 -87 Net change in margin Base +143 +204 Grass utilised (t DM/ha) Conc use (t/steer) Age at slaughter (mo) Liveweight gain/ha (kg) Economics (£/ha/year)

Impacts of Increasing Utilised Grass Yield Grass utilised (t DM/ha) Conc use (t/steer) Conc P input (kg P/ha/yr) LW P export (kg P/ha/yr) Environmental impact Whole farm P balance (kg P/ha/yr) Change in N conc in drainage water (mg nitrate N/ l) Base System 4. 1 0. 39 2. 0 2. 6 Option 1 5. 1 0. 39 2. 5 3. 3 Option 2 5. 1 0. 25 1. 6 3. 6 1. 9 2. 0 0. 8 Base +2 +3

Overall Summary • Grass yield and utilisation across Northern Ireland is well short of potential • Grass production, utilisation and quality need to be addressed to achieve potential • Improving grass utilisation by 1 t DM/ha and improving grass quality by 7. 5% has the following potential: § Dairy farms £ 84. 9 m per annum increase in net margin (P balance reduced from 11. 3 to 3. 0 kg P/ha/yr, marginal increase in nitrate N) § Beef farms £ 111 m per annum increase in net margin (P balance maintained at less than 2 kg P/ha/yr, marginal increase in nitrate N)

Further Opportunities – AFBI Research • Grass analysis for early diagnosis of soil nutrient deficiencies. • World class grass breeding programme producing varieties suited to local soil and weather conditions - Potential to breed ‘high P uptake 'varieties for high P soils. • Advances in precision grazing technologies, for example: automated grass yield measurement. • Decision support systems for grazing management. • Manure management and processing to optimise nutrient recycling. • Potential of agroforestry to extend the grazing season.