Economics of renewal

Renewing paddocks which have poor growth or high weed content can give high financial returns. In this example we have used top end renewal costs, and an increase in pasture performance over 4 years. This has an internal rate of return of 139%, one that few other investments can match.

Renewing paddocks with poor growth or high weed content can give high financial returns. In this example, we’ve used top end renewal costs, and an increase in pasture performance over 4 years. This has an internal rate of return of 70%, one few other investments can match.

The correct rate of renewal for your farm depends on the state of the pastures, and your goals. This section covers how to assess pasture performance across a farm and plan accordingly.

Sowing cheap seed, or seed of questionable origin, risks large losses in profit. In this example it saves $265/ha at sowing, but $3395/ha in operating profit is lost over three years.

Sowing cheap seed, or seed of questionable origin, risks large losses in income. In these examples $265/ha is saved at sowing but $3000/ha is potentially lost in a ewe breeding enterprise, or $2780/ha lost in a lamb finishing system over the next three years.

Pugging and treading damage can reduce pasture yield by >35%. Severe pugging by cattle can kill pastures. Where pastures are badly damaged, repairing them is a race against time. New seed needs to be sown before weeds take over.