Economically Optimal Stocking Rates: A Bioeconomic Grazing Model

Abstract

A dynamic bioeconomic model that examines economically optimal stocking rate decisions while taking into account changes in forage availability is presented. The model presented here focuses on economically optimal stocking decisions while taking into account changes in the forage resource. The model is parameterized for a stocker operation in central Wyoming. Regardless of the scenario analyzed, the general rule of 50% utilization is determined to be an economically sound management strategy. The factors most heavily influencing economically optimal stocking rate decisions are forage growth rates and the Michaelis Constant. Both grain prices and cattle prices impact financial returns yet do not directly impact optimal stocking decisions by cattle producers.