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 Table of Contents
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 Literature cited














Title: Pasture and supplement systems for beef cows
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 Material Information
Title: Pasture and supplement systems for beef cows
Alternate Title: Economic information report - University of Florida Food and Resource Economics Dept. ; 57
Physical Description: Book
Language: English
Creator: Greene, R. E. L.
Koger, Marvin
Publisher: Agricultural Experiment Station, University of Florida
Publication Date: 1973
 Record Information
Bibliographic ID: UF00049903
Volume ID: VID00001
Source Institution: University of Florida
Rights Management: All rights reserved by the source institution and holding location.

Table of Contents
    Front Cover
        Front Cover
    Table of Contents
        Page i
    List of Tables
        Page ii
    Main
        Page 1
        Page 2
        Page 3
        Page 4
        Page 5
        Page 6
        Page 7
        Page 8
        Page 9
        Page 10
        Page 11
        Page 12
        Page 13
        Page 14
    Literature cited
        Page 15
Full Text
S/.L December 1973
i n .o w
Oss


Economics Report 57


Food and Resource Economics Department
Agricultural Experiment Stations
Institute of Food and Agricultural Sciences
University of Florida, Gainesville 32611


R. E. L. Greene
Marvin Koger


V


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~s~sb~rpsnas~s~p~


Pasture and Supplement Systems

for Beef Cows: Programs, Beef

Production, Income and Expenses,

Beef Research Unit, Phase IIl

(1965-66 thru 1971-72)
















TABLE OF CONTENTS


Page


TABLE OF CONTENTS .. ..... ......

LIST OF -TABLES . . . .

ORGANIZATION OF THE EXPERIMENT . .

INVESTMENT PER ACRE IN PASTURE . .

ITEMS OF INPUT . . . .

Acres of Pasture Per Cow . .

Fertilizer and Lime . . .

Supplemental Feeds and Minerals . .

AMOUNT OF BEEF PRODUCED . . .

METHOD USED TO SHOW VALUE OF BEEF PRODUCED :
OF COSTS ON EACH PROGRAM . .

Value of Beef . . ....

Fertilizer and Lime . . .

Pasture Maintenance . ..

Cost of Irrigation ............

Annual Charge to Cover Cost of Investment
Pastures ., .., ,

Supplemental Feeds and Minerals .... .

Other Costs for Cattle .. . .

ANNUAL INCOME AND EXPENSES .. .

SUMMARY . . . . .

LITERATURE CITED ..... ..


. .













LND TO CHARGE ITEMS












in ,Establishing
Sa. a a. ao 4
o ,e .

ND TO CHARGE ITEM












in Establishing



. ...

... .
. . .

. .


S 10

10

11

11

14


. . . 15













LIST OF TABLES


Table

1 Number of acres, number of cows, and acres of pasture per
cow, Beef Research Unit, Phase III . .. ... 4

2 Fertilization and lime schedule, Beef Research Unit, Phase III 4

3 Supplemental feeds and minerals fed per cow, Beef Research Unit,
Phase III .. ........ . .. .. 5

4 Measures of efficiency in beef production, by programs, Beef
Research Unit, Phase III ....... . ..... 7

5 Prices and cost rates used in calculating income and expenses,
Beef Reaearch Unit, Phase III .. . . 9

6 Average income and expenses per acre and per cow for various
programs, Beef Research Unit, Phase III . 12

7 Cost per acre, per cow, and gross cost per hundredweight of
beef sold from calves and culled cows, Beef Research Unit,
Phase III . . . . . 13

8 Market and sales data, by programs, Beef Research Unit, Phase III
Phase III . . . .. . 14


I'





'*7





ii













PASTURE AND SUPPLEMENT SYSTEMS FOR BEEF COWS: PROGRAMS, BEEF
'PRODUCTION,'INCOME"AND EXPENSES, BEEF RESEARCH UNIT, PHASE III
(1965-66 thru 1971-72)


R. E. L. Greene and'Marvin Koger


This experiment was conducted at the Beef Research Unit. It was

designed to compare production performance of beef cows on various forage

programs, supplemental feeds and management systems in Central Florida and

to determine the relative economics of each.

The Food and Resource Economics Department had the responsibility of

working with the project leaders to approximate costs and returns on each
1
program Income and expenses are calculated for each program based on a

fiscal year from October 1 to September 30. The experimental data were

supplemented with data from other studies to show the approximate economic

results for the various programs if used on a commercial operation, and

if the level of experimental practices were used and similar weaning

percentages, culling rates, and calf and culled cow weights obtained.



This report presents an economic evaluation of the results of the
study in Phase III. A more detailed report will be prepared giving the
overall results of the study.



R. E. L. CRPENE is professor of food and resource economics.
MARVIN KOGER is professor of animal science.






ORGANIZATION OF THE EXPERIMENT2


Phase III of this experiment, which was initiated in 1965, was completed

in 1972. It consisted of three forage programs with various treatments.

Phase III was undertaken to compare the most profitable program in Phases

I and II with a program designed to renovate the pastures and to compare

results with a program in which temporary grazing crops were used. Program 1

was a clover-grass program, Program 2 a clover-grass program with temporary

grazing crops3 and Program 3 a clover-grass program in which one-half was

irrigated with seepage irrigation.

The cows were kept on the pastures from about March 1 to November 30.

They were grouped together during the winter period and fed various

supplemental feeds. The breeding season ran from approximately March 1

to May 31.

In Phase III of the experiment, six calf crops were weaned. The

averages of these calf crops form the basis of the economic evaluation

for this analysis.



2A
The Beef Research Unit is located approximately 15 miles northeast
of Gainesville on flat, pine land commonly called "flatwoods." Experi-
mental work was first started in 1952 and has gone through three phases.
Phase I compared eight pasture programs (see Fla. Expt. Sta. Bul. 671,
technical) and Phase II, five pasture programs (see Fla. Expt. Sta. Bul.
740, technical). As indicated above, Phase III compared three
pasture programs. Experimental work at the Beef Research Unit is a co-
operative effort between five departments in the Institute of Food and
Agricultural Sciences at the University of Florida. The departments and
leaders are: Agricultural Engineering, J. M. Myers; Agronomy, G. B. Killinger;
Animal Husbandry, Marvin Koger; Food and Resource Economics, R. E. L. Greene;
and Soils, W. G. Blue.

The expenses of growing temporary grazing crops are not included
as a cost in the summary for Program 2 since this practice was discontinued
before the end of Phase III.







INVESTMENT PER ACRE IN PASTURES


In~the experiment, the level of practices followed annually appeared

sufficient to maintain or improve the pastures. Therefore, in calculating

annual costs, the costs of establishing the pastures were not depreciated

over a stated number of years, but an annual charge was made based on the

capital invested in establishing the improved pasture programs. The

estimated present cost of establishing the clover-grass pastures is $128

per acre. This figure is based on the costs of establishing such pastures

in Phase I of the experiment increased by 20 percent more nearly to reflect

present cost. A value of $120 per acre was added to the cost of establishing

pastures to cover the value of land, fencing, watering equipment, corrals

and scales. Thus the cost of clover-grass was $248 per acre. It was

assumed that pastures on a ranch would be fenced with barbed wire. A

value of $120 per acre was used as the needed investment in a well and

facilities to irrigate the pastures in Program 3 which were irrigated by

means of seepage irrigation.


ITEMS OF INPUT


Acres of Pasture Per Cow


The number of .cows assigned to each program varied slightly from year

to year. However, the number-of cows assigned in the 1971-72 season was

used in calculating the acres of pasture per cow. The average acres of

pasture perxcow varied from 1.19 ih Program 3 to 1.32 in Program 2 (Table 1).


Fertilizer and Lime


All nonirrigacd pastures -received an annual application of 300 pounds

per acre of a 0-10-20 fertilizer; irrigated pastures received 500 pounds












Table 1.--Number of acres, number of cows and acres of pasture per
cow, Beef Research Unit, Phase III

m N r of Number of Acres of
Program R i Number of
number Replication cows assigned pasture
number acres a
to program per cow


1 1 31.29 25 1.25
2 37.58 29 1.30
Average 34.44 27 1.28
2 1 34.51 27 1.28
2 32.69 24 1.36
Average '33.60 25.5 1.32
3 1 16.61 14 1.19
2 16.81 14 1.20
Average 16.71 14 1.19



aBased on number of cows assigned to each program in the 1971-72 season.



Table 2.--Fertilization and lime schedule, Beef Research Unit, Phase III


Mixed fertilizer
Program Replication Acres
number
Analysis Pounds per acre

1 1 31.29 0-10-20 300
Limea 2000
2 37.58 0-10-20 300
Limea 2000

2 1 34.51 0-10-20 300
Limea 2000
2 32.69 0-10-20 300
Limea 2000

3 1 (irrigated) 8.04 0-10-20 500
Limea 2000
(nonirrigated) 8.57 0-10-20 300
Limea 2000
2 (irrigated) 8.04 0-10-20 500
Limea 2000
(nonirrigated) 8.77 0-10-20 300
Limea 2000


aLime was applied each three
between high calcic and dolomitic


years with the
limestone.


kind of lime alternated


Pt;


*r






(Table 2). Lime was applied to the pastures in each program every three-

years at the rate of a ton per acre with the kind of lime alternated between

high calcic and dolomite limestone.


Supplemental Feeds and Minerals


A record was kept of the amounts of supplemental feeds and minerals

consumed by cows on each program each year. The kinds and amounts of

supplemental feeds fed from year to year varied but basically the cows

received corn silage, a protein supplement or a ration mixture and a mineral

mixture. However, the kind and amount of supplemental feeds and minerals

used in calculating costs on each program were based on the amount of these

items the cows consumed in the 1971-72 season (Table 3).


Table 3.--Supplemental feeds and minerals fed per cow, Beef Research
Unit, Phase III


Program number
Item
1 2 3

Pounds per cow
Cottonseed meal 146 146 146
Blackstrap molasses 365 365 365
Corn silage 4,352 4,339 ... 5,549
Minerals 40 44 46


cows assigned


aBased on supplemental feeds and minerals fed
to each program in the 1971-72 season.






AMOUNT OF BEEF PRODUCED


The amount of beef produced on each program per acre and per cow was

calculated from the percent calf crop weaned and the average final weight

of calves when they were removed from the pastures each year (Table 4).
No credit was given for change in cow weights but a figure was included

in beef production for normal culling of cows each year. The percent calf

crop weaned was 87.0 on Program 1, 86.5 on Program 2 and 88.1 on Program 3.

The percent of cows normally sold as culled cows in a commercial herd each

year was estimated to be 12 percent. This figure was used to estimate the

amount of beef sold from a culled cow on each program.

The estimated production of beef from a calf per acre varied from

345 pounds on Program 1 to 378 pounds on Program 3. The production of

beef from 'a calf per cow varied from 442 pounds on Program 1 to 450 pounds

on Program 3. The amount of beef from a culled cow per acre varied from

104 pounds on Program 1 to 111 pounds on Program 3.

Each pasture was stocked with pregnant cows each year. However,

the production of beef from calves was based on percent calf crop weaned

from all brood cows exposed for each program and not from percent calf

crop weaned from cows placed on the pastures in each program.

The gross weight of a calf and a culled cow was reduced by 4 percent

to adjust for normal shrinkage in marketing. The adjusted sales weight

per acre per calf ranged from 332 pounds on Program 1 to 363 pounds on

Program 3. Gross and adjusted production of beef per acre and per cow

from a calf or a culled cow were not adjusted for supplemental feeds fed

during the winter period since costs of such feeds were included in the

costs calculated per acre and per cow for each program.


-----~---; ~ -












Table 4.--Measures of efficiency in
Beet Research Unit, Phase


beef production, by
III


Item Program number

1 2 3


Percent calf crop weaneda 87.0 86.5 88.1
Percent of broog cows sold
as culled cows 12.0 12.0 12.0
Average weight per animal (Ibs.)
Calf when removed from pastures 508 515 512
Cow when culled 1112 1112 1091

Production of beef per acre (lbs.)
From calf 345 337 378
From culled cow sold 104 101 111
Production of beef per cow (Ibs.)
From calf 442 445 450
From culled cow 133 133 131
Adjusted sales weights for beef
produced (Ibs.)
From calf:
Per acre 332 324 363
Per cow 424 428 432
From culled cow sold:
Per acre 100 97 107
Per cow 128 128 126


aBased on percent calf crop weaned for
program.


all cows exposed on-each


It was estimated that on a commercial ranch 15 percent of the
cows would be culled each year; 12 percent would be sold as culled
cows and 3 percent would die.

Gross weight was reduced by 4 percent to adjust for normal shrinkage
in marketing.


programs,






METHOD USED TO SHOW VALUE OF BEEF PRODUCED AND TO
CHARGE ITEMS OF COSTS ON EACH PROGRAM


Calculations were made of the estimated annual income and expenses

-for each program based on the level of experimental practices used. The

value of beef produced was based on the state average price of feeder

calves grading Good in September 1972 at Florida auction markets. The

price of beef from culled cows was based on the price of slaughter cows

grading Commercial in August 1972. The price of beef for calves on each

program was adjusted for variation in market grade score of calves.

Expenses included costs of maintaining pastures, supplemental feeds

and minerals, breeding fees and other costs of maintaining the cattle,

The charges for items purchased were those paid by the experiment station

for items used at the Beef Research Unit during the 1971-72 season.

Prices and cost rates used-in calculating income and expenses are shown

in Table 5.


Value of Beef


The value of beef produced was based on the adjusted sale weights of

beef produced from a calf and a culled cow. The value of.beef was calculated

by multiplying the adjusted sales weight per acre and per cow of a calf and.

a culled cow times the price per hundredweight for these animals (Tables 4

and 5). As indicated above, the price of beef for a calf in each program

was adjusted for market grade score of calves.


Fertilizer and Lime


The charge for fertilizer and lime was calculated by multiplying the

amount applied times the average price paid for these items (Tables 2 and 5).

The cost of lime was prorated over a three year period, The charge for















Table 5.--Prices and cost rates used in calculating income
Beef Research Unit, Phase IIIa


and expenses


Item Unit Average rate


State average price for
feeder calves grading Good
in September, 1972
Culled cows grading Commercial
in August, 1972


0-10-20 fertilizer
Lime


Spreading fertilizer
Mowing


41 percent cottonseed meal
Blackstrap molasses
Corn silage
Special mineral mix.



Cost of operating equipment
Annual cost of maintaining
equipment


Breeding fees
Labor on cattle
Veterinary, medicines
and insurance
Taxes
Prorated annual replacement
cost of brood cow
Interest on investment in cows
Depreciation and repairs on
buildings and fences
Other


Price of beef


hundredweight

hundredweight

Fertilizer
ton
ton


Maintenance operations
ton
hour

Feed and minerals
ton
ton
ton
ton

Irrigation cost
hour

per dollar invested


Other costs for cattle
animal unit
animal unit

animal unit
animal unit

animal unit
animal unit

animal unit
animal unit


Based on costs and prices used in summarizing data for the 1971-72
season, except adjusted for higher rates for certain other costs for cattle.

bData from
Data from E1].


Cost per ton spread on the pastures.


$ 41.96b


41.75
7.50c


6.00
5.41


92.30
31.32
7.50
102.00


.60

10 percent


$ 9.00
6.00

3.75
5.00

45.00
21.00

3.50
4.00




10

lime included the cost of spreading the material on pastures.


Pasture Maintenance


Cost of spreading fertilizer was charged on a per ton basis. Mowing

was charged on a per hour basis. In each case, the rate used was assumed

to cover cost of labor, power and use of equipment. Only those areas that

needed mowing were mowed each year. The per acre and per cow charge for

mowing was based on the total charge for mowing for each program divided

by the number of acres in or cows assigned to each program.


Cost of Irrigation


Cost of irrigation was charged on the basis of the estimated cost of

operating equipment to irrigate 200 acres. The cost of installing such

equipment would be about $24,000, or $120 per acre. Based on the limited

data available, it is estimated that the fixed costs of maintaining such

equipment is 10 percent of the investment cost. Operating costs depended

on the hours operated. Operating cost per hour was calculated at 60 cehts.


Annual Charge to Cover Cost of Investment in Establishing Pastures

14' '
The investment charge was based on 7 percent of the estimated cost of

establishing pastures including land, fencing, watering equipment, corrals

and scales. The charge was made to cover the cost of capital invested in

establishing the pastures. The interest charge for irrigation equipment

was included in the fixed costs of operating the equipment.


Supplemental Feeds and Minerals

A record was kept of supplemental feeds and minerals fed cows on each

program. The costs of these items was calculated by multiplying the amount

fed as shown in Table 3 times the prices in Table 5.








Other Costs for Cattle


In the experiment heifers for herd replacement were not raised on

the experimental pasture. To obtain cost estimates that would approximate

a commercial operation, charges were made on a per cow basis to cover esti-

mated costs of breeding fees, labor on cattle, veterinary services, medi-

cines and insurance, taxes, prorated annual replacement cost of a brood

cow, interest on investments in cow, depreciation and repairs on building

and fences and other costs. Brood cows were valued at $300 per head. The

rate of interest used was 7 percent.


ANNUAL INCOME AND EXPENSES


The total income from beef produced was $170.88 per acre on Program

1 and $189.67 on Program 3 (Table 6). The total returns per cow were

$218.31 on Program 1 and $225.34 on Program 3.

The total cost per acre ranged from $129.12 on Program 1 to $160.07

on Program 3 (Table 6). The cost per cow was $165.27 on Program I and

$190.48 on Program 3. The net cost of beef produced from calves after

crediting the value of culled cows sold was $100.90 per acre on Program 1

and $129.87 per acre on Program 3. Net returns per acre were $41.76 on

Program 1 but only $29.60 on Program 3.

The data are summarized in Table 7 and are expressed on the bases of

cost per acre, per cow and gross cost per hundredweight of beef sold.

The total cost per acre for pasture was $28.99 in Program 1 and $48.53

in Program 3. The cost per acre for irrigating pastures in Program 3 was

$17.82. The cost per cow for supplemental feeds and minerals was $30.91

in Program land $35.48 in Program 3. Other costs of cattle were calcu-

lated at $97.25 per cow for each program. The gross cost per hundredweight












Table 6.--Average income and expenses per acre and per cow for various programs,
Beef Research Unit, Phase III

Per acre Per cow
Item Program number Program number
1 2 3 1 2 3


Number of acres
Number of cowsa
Acres per cowa
Income:
Sale of calf
Sale of culled cow
Total
Expenses:
Cost of maintaining pastures:
0-10-20 fertilizer
Limeb
Applying fertilizer
Mowing
Total
Irrigation:
Operating cost
Fixed cost of equipment
Total
Total direct costs
Investment charge
Total cost of maintaining
pastures
Feed and minerals:
Cottonseed meal
Blackstrap molasses
Corn silage
Minerals
Total
Other costs for cattle
Breeding fees
Labor on cattle
Vet., med., and ins.
Taxes
Prorated annual replace-
ment cost of brood cow
Interest on investment
in cows
Depreciation and repairs
on building and fences
Other
Total
Total expenses:
Less value of culled
cow sold
Net cost of beef
produced from calf
Net returns:


34.44
27.00
1.28


33.60 16.71
25.50 14.00
1.32 1.19


$142.66 $139.22 $159.47
28.22 27.37 30.20
$170.88 $166.59 $189.67


$ 6.26' $ 6.26 $ 8.27
2.50 2.50 2.50
.90 .90 1.13
1.97 1.55 1.45
$ 11.63 $ 11.21 $ 13.35

$ 12.05
5.77
$ 17.82
11.63 11.21 31.17
17.36 17.36 17.36


$182.19 $183.91 $189.78
36.12 36.12 35.56
$218.31 $220.03 $225.34


$ 8.02 $ 8.26 $ 9.84
3.20 3.30 2.98
1.15 1.19 1.34
2.52 2.05 1.73
$ 14.89 $ 14.80 $ 15.89

$ 14.34
6.87
$ 21.21
14.89 14.80 37.10
22.22 22.91 20.65


$ 28.99 $ 28.57 $ 48.53 $ 37.11 $ 37.71 $ 57.75


$ 5.28 $ 5.11 $ 5.64
4.48 4.34 4.79
12.80 12.35 17.43
1.59 1.69 1.96
$ 24.15 $ 23.49 $ 29.82


$ 7.03
4.69
2.93
3.91


$ 6.82
4.54
2.84
3.79


$ 7.57
5.04
3.15
4.20


35.16 34.09 37.81

16.41 15.91 17.65

2.73 2.65 2.94
3.12 3.03 3.36
$ 75.98 $ 73.67 $ 81.72


$ 6.7b $ 6.75 $ 6.71
5.73 5.73 5.70
16.38 16.30 20.74
2.04 2.23 2.33
$ 30.91 $ 31.01 $ 35.48


$ 9.00
6.00
3.75
5;00


$ 9.00
6.00
3.75
5.00


$ 9.00
6.00
3.75
5.00


45.00 '45.00 45.00

21.00 21.00 21.00

3.50 3.50 3.50
4.00 4.00 4.00
S 97.25 $ 97.25 $ 97.25


$129.12 $125.73 $160.07 $165.27 $165.97 $190.48

28.22 27.37 30.20 36.12 36.12 35.56

$100.90 $ 98.36 $129.87 $129.15 $129.85 $154.92
$ 41.76 $ 40.86 $ 29.60 $ 53.04 $ 54.06 $ 34.86


aBased on number of cows on program in the 1971-72 season.
cost of lime is prorated on a yearly basis.


,;s


-;i









Table 7.--Cost per acre, per cow, and.gross
beef sold, from calves and culled
Phase III


cost per hundredweight of
cows, Beef Research Unit,


Program number
Item
1 2 3


Fertilizer and limea
Pasture maintenance
Cost of irrigation
Investment charge
Total cost of maintaining
pastures

Supplemental feeds and
minerals
Other costs for cows
Total costs


Fertilizer and limea
Pasture maintenance
Cost of irrigation
Investment charge
Total pasture costs
Supplemental feeds and
minerals
Other costs for cattle
Total costs


$ 9.66
1.97

17.36

$ 28.99


$ 24.15
75.98
$129.12


$ 12.37
2.52

22.22
$ 37.11


$ 30.91
97.25
$165.27


Cost per acre
$ 9.66
1.55

17.36

$ 28.57


$ 23.49,
73.67
$125.73


Cost per cow
$ 12.75
2.05

22.91
$ 37.71

$ 31.01
97.25
$165.97


Grass cost per


hundredweight of beef soldb


Fertilizer and limea
Pasture maintenance
Cost of irrigation
Investment charge
Total pasture costs
Supplemental feeds and minerals
Other costs for cattle
Total costs


$ 2.23
.46

4.02
$ 6.71
$ 5.59
17.59
$29.89


$ 2.30 $ 2.53
.37 .31
3.79
4.12 3.69
$ 6.79 $10.32


$ 5.58
17.50
$29.87


$ 6.35
17.39
$34.06


a


a
Covers cost of spreading materials on the pastures.

Based on pounds of beef sold from calves and culled cows.


$ 11.90
1.45
17.82
17.36

$ 48.53


$ 29.82
81.72
$160.07


$ 14.16
1.73
21.21
20.65
$ 57.75

$ 35.48
97.25
$190.48


Gross cost 'DJ-e







for calf and culled beef sold was $29.89 on Program 1 and $34.06 on Program 3.

The lowest net cost per hundredweight of beef produced from calves

was on Program 1 and was $23.36 per hundredweight (Table 8). Program 3

at $27.63 per hundredweight was the highest cost.


Table 8.--Market and sales data, by programs, Beef Research Unit, Phase III


Item Program number
1 2 3


Market grade score of calves 11.0 11.0 11.5
Beef produced from calves:
Price per hundredweight $ 42.97 $ 42.97 $ 43.93
Net cost per.hundredweight 23.36 23.36 27.63
Net returns per hundredweight 19.61 19.61 16.30
Value of beef sold from calves:
Per calf 209.41 212.61 215.41
Per acre 142.66 139.22 159.47
Per cow 182.19 183.91 189.78


a9.0 low good, 10.0 good and 11.0 high.
calves are for the 1971-72 season.


Market grade score of


SUMMARY


The experimental data were supplemented with data from other studies

to show the approximate income and expenses for the various pasture programs

if followed on a commercial operation. The cost of establishing grass-clover

pastures was estimated to be $248 per acre. Cows were valued at $300 per

head. The rate of interest charged was 7 percent.

Net returns per acre were $41.76 on Program 1 but only $29.60 on

Program 3. The gross cost per hundredweight of beef sold from calves and

culled cows was $29.89 on Program 1 and $34.06 on Program 3.





15


LITERATURE CITED

[I] Florida. Crop and Livestock Reporting Service. Florida Agricultural
Statistics--Livestock Summary. Orlando: 1973.


I- -, `




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