Economic Returns and Risk Analysis of Forage Wrapping Technologies

Using stochastic simulation, we evaluated the cost savings a cow-calf operation may experience by adopting high-moisture baleage with an in-line wrapper. The results of this analysis indicate the baleage technology is economically viable for high-quality forages such as winter annuals, alfalfa or legumes, especially at higher feed prices. Break-even herd size is between 50 and 150 cows, depending on a producer’s current machinery complement. There is no apparent economic advantage to purchasing baleage equipment strictly based on reducing storage or feeding losses for beef cattle producers.