Budgeting further development on intensive sheep-farms in Southland

Abstract

This publication is the second report arising out of the Unit's research programme on fertiliser economics in New Zealand farming. The first report analysed actual farm output at the intensive margin in Southland; this report examines the problems of farmers who wish to intensify production still further. The authors base their calculations on a representative intensive sheep farm in the area and estimate how greater intensification would affect output and net farm income at different price levels. The results show that greater output per acre is consistently a paying proposition with our present-day knowledge of farming technology. Such higher outputs depend very largely on the ability of farmers to control large numbers of sheep on a small area. Attention to correct fertiliser practices and grazing management in the form of autumn saved pasture is most important. It is estimated that fertiliser requirements in Southland will double if the high intensities of stocking budgeted are to be achieved. This paper compares the profitability of different rates of intensive development on a fairly heavily stocked sheep farm in Southland.