Summary

Renewing paddocks which have poor growth or high weed content can give high financial returns. In this example we have used top end renewal costs ($1350/ha), but this still returns $7540/ha in profit over 4 years. This is an internal rate of return of 63%1, one that few other investments can match.

 

Typical costs of renewal

 

Typical benefit of renewal over 4 years

The benefit of renewal is in the table below, based on the assumptions:

• 3 t DM/ha DM yield per year increase from new pasture
• +0.6 MJ/kg DM higher ME (science says 0.6 - 0.9 ME increases are typical)
• 5% greater utilisation from better ME & palatability (assumed +5%).

 

Returns renewal vs do nothing (leave underperforming pasture) over 4 years