An Economic Analysis of Replacing Existing Bermudagrass Stands with Tifton 85 Bermudagrass for Beef Cow-Calf, Stocker and Hay Production
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Comparisons of simulated NPV for Coastal and Tifton 85 bermuda-grass using experimental data, current input prices and historical hay and feeder cattle prices indicates that many producers would benefit by adopting this new cultivar. Cow-calf producers would benefit the most followed by stocker/replacement heifer producers and finally hay producers. When risk-aversion is introduced into the model, all cow-calf and stocker producers regardless of the level of risk-aversion should consider adopting T85. Moderately or extremely risk-averse hay producers would consider adopting T85, while those that are slightly risk-averse would be indifferent.