Annual Net Returns Research Articles

Oregano production under various water depths estimated by means of the class A pan evaporation

The purpose of this experiment was to analyze the effect of five irrigation water depths on oregano production. Oregano is a plant rich in essential oil, commonly used as seasoning in food preparation. The water depths were estimated based on the class A pan evaporation (CPE): 0 CPE (without water replacement); 25 CPE, 50 CPE, 75 CPE, and 100% CPE. The analyzed variables were fresh and dry weight of leaves and roots, yield, net return, and water use efficiency. The experiment was carried out in Presidente Prudente, São Paulo State, Brazil, from February to May 2006. The best results for all the studied variables were found when 100% CPE was used. A linear positive relation was observed between water increments and fresh and dry weight of both the aboveground part and roots. The use of a water depth corresponding to 100% CPE resulted in the maximum productivity (8,089.7 kg ha-1), and in the highest net annual return (R$ 57,637.87 ha-1).

Can Investors Profit from Gender Heterogeneity Among the Prophets?

We document that buying assets for which the dierence in average rec- ommendation between male and female analysts is small and female analysts are more optimistic, yields signi…cant net annual returns of 3.2 percent af- ter controlling for market risk, size, book-to-market and price momentum eects. The …nding is robust to dierent stock selection criteria. In addi- tion, correcting for …rm size eects shows that the strategy yields comparable results for the subset of large …rms. Furthermore, we show that the outper- formance is robust to regulatory changes in September 2002, while market wide liquidity exposure cannot explain the documented outperformance.

Can Investors Profit from Gender Heterogeneity Among the Prophets?

We document that buying assets for which the dierence in average rec- ommendation between male and female analysts is small and female analysts are more optimistic, yields signi…cant net annual returns of 3.2 percent af- ter controlling for market risk, size, book-to-market and price momentum eects. The …nding is robust to dierent stock selection criteria. In addi- tion, correcting for …rm size eects shows that the strategy yields comparable results for the subset of large …rms. Furthermore, we show that the outper- formance is robust to regulatory changes in September 2002, while market wide liquidity exposure cannot explain the documented outperformance.

Economics of Cogongrass Control in Slash Pine Forests

Cogongrass (Imperata cylindrica), an invasive weed, is a threat to slash pine forests. Using a dynamic optimization model, we estimated the impact of cogongrass on the profitability of slash pine forestry under four scenarios: no threat of cogongrass infestation; infestation is uncertain, and no control measures are taken; infestation is uncertain, but control measures are undertaken by one landowner but not the neighbors; and infestation is uncertain, and control measures are undertaken by everyone. Results indicate that annual net returns per acre under each scenario, respectively, are $25.30, $16.97, $13.89, and $17.38. Results suggest fostering a cooperative behavior among landowners is desirable.

Simulating Management Effects on Phosphorus Loss from Farming Systems

A process-level soil phosphorus (P) model including surface and subsurface components was incorporated into the Integrated Farm System Model (IFSM). Model evaluation indicated that sediment losses were adequately estimated compared to observed data for a corn production system in Texas. In a further evaluation, sediment losses simulated for a wide range in cropping systems and tillage practices were similar to those predicted by the current state-of-the art erosion estimation model (WEPP). Total P losses were accurately predicted when manure P was applied at suitable rates of less than 250 kg P ha-1, but at higher application rates overestimation of P loss was found. Compared to observed data, soluble P loss was underestimated and sediment P loss was overestimated, but this was primarily due to a difference in the differentiation between soluble and sediment P between the modeling and experimental studies. To illustrate the use of the model, IFSM simulations were performed to evaluate the effects of manure handling and tillage systems on P loss from farms in Pennsylvania. For a 100-cow dairy farm, a manure handling strategy that used a 6-month storage and application by injection decreased total P loss by 19% compared to daily surface application, but annual farm net return was decreased by $57/cow. Compared to conventional tillage with a moldboard plow, use of conservation tillage and no-till systems reduced total P loss by 46% and 57%, respectively, with small increases in farm profitability. Reduced tillage increased soluble P loss, suggesting that conservation and no-till systems should be combined with practices such as manure injection to reduce all forms of P loss. The enhanced IFSM containing the soil P model provides a tool for whole-farm analysis of management effects on P loss along with other environmental and economic considerations.

Conversion from Corn to Grassland Provides Economic and Environmental Benefits to a Maryland Beef Farm

Beef producers must consider management strategies and technologies for reducing potential adverse environmental effects of their farms while maintaining or improving profit. One choice is between using perennial grassland or corn as the primary crop on the farm for feed production. Perennial grassland production systems are generally regarded as more favorable due to reduced nutrient losses to the environment and potential human health benefits through improvements in meat fatty acid composition. Simulation of an Angus cattle-producing farm of 325 acres in northeastern Maryland illustrated that the conversion of the farm from a corn and permanent pasture system to all perennial grassland with the use of more intensive rotational grazing has provided both environmental and economic benefits. Simulated nitrogen loss through ammonia volatilization was increased 21%, but nitrate leaching was reduced 56%, denitrification loss was reduced 50%, and surface runoff loss of P was reduced 75%. This conversion also increased the annual net return of the farm by $18,800 by eliminating the greater machinery, fuel, seed, fertilizer, and chemical costs incurred in corn production.

Optimal crop planning and water resources allocation in a coastal groundwater basin, Orissa, India

Intensive rice cultivation in a coastal groundwater basin in Balasore district of Orissa province (eastern India) during monsoon and winter seasons has resulted in extensive pumping of groundwater by a network of shallow, mini-deep and deep tubewells. Particularly, shallow tubewell owners using centrifugal pumps are unable to lift groundwater during winter seasons due to rapid drawdown of groundwater table below suction lift caused by mini-deep and deep tubewell owners. The seawater intrusion front is also progressing inland in an alarming rate. To develop a long-term sustainable land and water management strategies for the aforementioned issues in humid regions, the district administration realized the need for crop planning and water resources management policies in deterministic and stochastic regimes. As non-structural measure, the Deterministic linear programming (DLP) and chance-constrained linear programming (CCLP) models were developed to allocate available land and water resources optimally on seasonal basis so as to maximize the net annual return from the study area, considering net irrigation water requirement of crops as stochastic variable. These models were solved using the quantitative systems for business (QSB) software package. Sensitivity analysis of the models has been carried out by varying three ranges of cropping scenarios (20, 40 and 50% deviation from the existing cropping pattern) and combinations of surface water and groundwater at various risk levels (10, 20, 30 and 40%). The total groundwater available and withdrawal in the region are 655.87 × 10 3 and 255.03 × 10 3 km 3, respectively. The study reveals that 40% deviation of the existing cropping pattern is the optimal that satisfies the minimum food requirement and maintain geo-hydrological balance of the basin. The sensitivity analysis of conjunctive use of surface water and groundwater shows that 20% surface water and 30% groundwater availability as the optimum water allocation level. The proposed cropping and water resources allocation policies of the developed models were found to be socio-economically acceptable that maintained the balance of the entire system, considering all the constraints and restrictions imposed.

WHOLE FARM MANAGEMENT TO REDUCE NUTRIENT LOSSES FROM DAIRY FARMS: A SIMULATION STUDY

Whole-farm simulation provides a tool for evaluating long-term impacts of nutrient conservation technologies andstrategies on dairy farms. A farm simulation model was verified to predict the production and nutrient flows of the De Markeexperimental dairy farm in the Netherlands. On this farm, technologies such as a low ammonia emission barn floor, enclosedmanure storage, manure injection into the soil, and intraseeding of a grass cover crop on corn land were used to reducenitrogen loss and improve nutrient recycling. This experimental farm was simulated over the 1996 to 2003 weather yearswhere predicted production and use of feeds were within 15% of values measured on the actual farm. Simulated nitrogen andphosphorus flows through the farm and losses from the farm were generally within 10% of actual. After this process-basedmodel was found to accurately represent the nutrient conservation technologies used at De Marke, simulation was used toevaluate the environmental and economic impacts of their use on representative farms in southern Pennsylvania. Totalnitrogen loss from the farms, primarily in the form of ammonia emission, was reduced by 24% to 55% with a 7% to 45%reduction in P runoff loss. The highest reductions were obtained on a 1,000-cow farm where initial losses were high due toa greater number of animals per unit of cropland. The cost of this technology was greater than the value of the nutrients saved,causing a reduction in the annual net return of $88/cow for a 100-cow farm and $64/cow for the 1,000-cow farm.

Solar energy utilization: a key to employment generation in the Indian Thar Desert

The Western Rajasthan commonly known as the ‘Indian Thar Desert’ is characterised by harsh climatic conditions with active dunal activities. Precipitation (150–420 mm/yr) is far lower than evapotranspiration potentials (1500–2000 mm/yr). Ground water is limited and often brakish and high (75–100 m) water table. Solar intensity in the region varies from 5.85 to 6.44 kWh/m2/day. Further, peculiarity of the region is that sun is available for 345–355 days in a year, the area being highly scarce in rainfall. On an average, rains occur only for 10.4–20.5 days in a year in the Thar Desert. Therefore, there is high scope to harness solar energy for useful purposes. Considering these solar energy technologies for entrepreneurs, the detailed cost analysis has been worked out and presented. With initial investment of Rs (Indian Rupees) 3.50 lakhs for solar drying projects for handling 60,000 kg fresh vegetables annually (300 working days/yr), the payback period and average net annual returns come to 2.17 years and Rs 1,43,753/-, respectively at 18% interest rate. However, in case of solar candle making system with initial investment of Rs 25,500/- for handling 18,750 kg raw paraffin wax annually (300 working days/yr) the payback period and net annual returns at 15%, interest rate come to about 3 months and Rs 1,12,793/-, respectively. Both these projects are highly profitable.

Economic and Environmental Feasibility of a Perennial Cow Dairy Farm

More efficient and economical production systems are needed to improve the sustainability of dairy farms. One concept to consider is using perennial cows. Perennial cows are those that maintain a relatively high milk production for ≥2 yr without going through the typical dry period followed by calving. Farm records show that some cows have produced over 20kg/d after 4 yr of continuous lactation. A farm simulation model was used to evaluate the long-term performance, environmental impact, and economics of a conceptual perennial cow production system on a typical dairy farm in Pennsylvania. Compared with a traditional 100-cow farm with replacement heifers produced on the farm, a perennial herd of 100 cows and purchased replacements provided environmental benefit but sustained a substantial economic loss. However, increasing the perennial herd to 128 cows better utilized the feed produced on the farm. Compared with the traditional 100-cow farm, use of the perennial 128-cow herd reduced supplemental protein and mineral feed purchases by 38%, increased annual milk sales by 21%, reduced nitrogen losses by 17%, maintained a phosphorus balance, and increased annual net return to farm management by $3200. A traditional 120-cow dairy farm with purchased replacements also used a similar amount of farm-produced feed. Compared with this option, the farm with 128 perennial cows reduced protein and mineral feed purchases by 36%, maintained similar annual milk sales, increased manure production by 7%, reduced N losses by 10%, and increased annual net return by $12,700. The economic feasibility of the perennial-cow dairy farm was very sensitive to the milk production maintained by the perennial herd and market prices for milk and perennial replacement animals. The analysis was relatively insensitive to the assumed useful life of perennial cows as long as they could be maintained in the herd for at least 3 yr. Thus, a perennial cow production system can improve the economic and environmental sustainability of a traditional dairy farm if a similar level in annual milk production per cow can be maintained.

An assessment of apple orchard investments in South Africa under uncertainty and irreversibility

The competitiveness of the South African fresh apple export value chain can be improved if local farmers grow and market more new apple cultivars. An ex ante version of the Dixit-Pindyck investment model is used to assess how uncertainty and irreversibility associated with adopting the new Pink Lady cultivar rather than a traditional Golden Delicious cultivar will raise the hurdle rate required to trigger investment. Modified real hurdle rates reflecting the value of the option to delay investment estimated for both cultivars, are about double the real rate of five per cent that is often used in orthodox investment analyses. The Pink Lady investment seems to be relatively more profitable under the assumed conditions, but it also has a relatively greater variance in expected real annual net returns.

Zone herbicide application controls annual weeds and reduces residual herbicide use in corn

Abstract To minimize the chance of surface water contamination by herbicides, farmers need alternative ways to manage weeds in field crops, such as field corn, that reduce herbicide use. Zone herbicide application (ZHA) reduces herbicide use compared with conventional broadcast herbicide application by (1) banding low herbicide rates between corn rows (≤ 1× normal broadcast registered rate), (2) managing crops to favor crop competition, and (3) banding very low herbicide rates over crop rows (≪ 1× normal rate). The research goal was to compare the relative effectiveness of reduced-rate ZHA with broadcast herbicide application on in-row (IR) and between-row (BR) summer annual weed cover (chiefly giant foxtail and waterhemp species), grain yields, and net returns resulting from herbicide application in field corn. Preemergence ZHA of atrazine + metolachlor + clopyralid + flumesulam was made in zones (i.e., even width bands) at different rates between and over crop rows for three site-years in Missouri, and ...

Automatic milking systems, farm size, and milk production.

Automatic milking systems (AMS) offer relief from the demanding routine of milking. Although many AMS are in use in Europe and a few are used in the United States, the potential benefit for American farms is uncertain. A farm-simulation model was used to determine the long-term, whole-farm effect of implementing AMS on farm sizes of 30 to 270 cows. Highest farm net return to management and unpaid factors was when AMS were used at maximal milking capacity. Adding stalls to increase milking frequency and possibly increase production generally did not improve net return. Compared with new traditional milking systems, the greatest potential economic benefit was a single-stall AMS on a farm size of 60 cows at a moderate milk production level (8600 kg/cow). On other farm sizes using single-stall type robotic units, losses in annual net return of 0 dollars to 300 dollars/cow were projected, with the greatest losses on larger farms and at high milk production (10,900 kg/cow). Systems with one robot serving multiple stalls provided a greater net return than single-stall systems, and this net return was competitive with traditional parlors for 50- to 130-cow farm sizes. The potential benefit of AMS was improved by 100 dollars/cow per year if the AMS increased production an additional 5%. A 20% reduction in initial equipment cost or doubling milking labor cost also improved annual net return of an AMS by up to 100 dollars/cow. Annual net return was reduced by 110 dollars/cow, though, if the economic life of the AMS was reduced by 3 yr for a more rapid depreciation than that normally used with traditional milking systems. Thus, under current assumptions, the economic return for an AMS was similar to that of new parlor systems on smaller farms when the milking capacity of the AMS was well matched to herd size and milk production level.

Economic Implications of Off-Stream Water Developments to Improve Riparian Grazing

Livestock grazing in riparian areas is an important management issue on both private and public lands. A study was initiated in northeastern Oregon to evaluate the economic and ecological impacts of different cattle management practices on riparian areas. The effect of off-stream water and salt on livestock distribution and subsequent impact on riparian use, water quality, and livestock production was evaluated. A multi-period bioeconomic linear programming model is used to evaluate the long-term economic feasibility of this management practice with a riparian utilization restriction of 35% for a 300 cow-calf operation. The utilization restriction resulted in economically optimal herd sizes 10% smaller than the baseline herd size. With the management practice, cattle were distributed more evenly, consumed more upland forage before maximum riparian utilization was reached, and gained more weight. The economic impacts of these outcomes were increased with expected annual net returns to the ranch for the project ranging between $4,500 and $11,000 depending on cattle prices and precipitation levels.

Comparison of Tillage Types and Frequencies for Cotton on Southern Piedmont Soil

Tillage to disrupt root‐restricting, consolidated soil zones can improve rooting capacity and crop production, but costs increase with the need for more powerful tractors. Between 1992 and 1996, agronomic and economic consequences of annual or less frequent soil disruption treatments were evaluated for cotton (Gossypium hirsutum L.) on a Typic Kanhapludult. Two soil‐disruptive treatments, fall paratillage (PT) and in‐row chisel (IC) at planting (spring), were compared with two shallow‐tillage treatments, coulter planting plus weed control with sweeps (ST) and conventional disk tillage (DT). The IC, PT, and ST treatments were applied annually or in Years 3, 4, and 5. Lint yield with annual IC was 15 to 20% greater than with DT each year. In 1994, yields ranged from 0.53 to 0.84 Mg ha−1 with annual IC and were better than with annual ST or PT. In 1995, yields ranged from 0.92 to 1.29 Mg ha−1, with the top yield associated with current‐year IC application. In 1996, no differences in yield were observed among tillages; however, yields of two IC treatments were among the top five. For Years 3, 4, and 5, cotton yields were numerically greater with annual IC than with annual PT and ST. Yields with PT, ST, and DT were not different. Average annual net returns from annual IC were $450, $403, and $287 ha−1 greater than those with annual DT, PT, and ST, respectively. In‐row chisel appears to be a more economically viable production practice for heavy Piedmont soils compared with PT, ST, and DT.

Effects of grazing and management on herbage mass, persistence, animal production and soil water content of native pastures. 1. A redgrass - wallaby grass pasture, Barraba, North West Slopes, New South Wales

A study was conducted on a native pasture (dominated by redgrass, Bothriochloa macra) in the Barraba district of northern New South Wales to examine the effects of 5 grazing treatments on total herbage mass, litter mass, basal cover, ground cover, sheep liveweight, wool production and soil water content (SWC, mm) at different depths. Plots were grazed with Merino wethers and data were collected from spring 1997 to spring 2001 and analysed to determine the effects of treatments on both production and sustainability. Five grazing treatments were applied in a randomised 3 replicate design. Grazing treatments were: continuous grazing at 4 and 6 sheep/ha (C4 and C6), continuous grazing at 8 sheep/ha, with subterranean clover (Trifolium subterraneum) oversown and fertiliser applied (C8+sub), and, rotational grazing at an annual stocking rate of 4 sheep/ha with pasture grazed for 4 weeks and rested for 4 weeks (R4/4), or rested for 12 weeks (R4/12).Total herbage mass declined in the C4 (control) treatment throughout the experiment and, compared with this treatment, the C6 treatment had less (P<0.007) linear trend over time, while the R4/12 treatment had a greater (P<0.001) linear trend. Stocking rates could not be maintained in the C4 and C6 treatments and sheep were supplementary fed or removed from these treatments for a total of 133 and 263 days, respectively. For ground cover, the linear trend was greater (P<0.05) in the C8+sub, R4/4, and R4/12 treatments compared with the continuously grazed C4 and C6 treatments and for litter mass this trend was also greater (P<0.05) for the R4/12 treatment than the C4 treatment. Basal cover of wiregrass (Aristida ramosa), wallaby grass (Austrodanthonia spp.) and windmill grass (Chloris truncata) was not affected by grazing treatment but for redgrass the linear trend was greater (P<0.05) in the C8+sub, R4/4, and R4/12 treatments compared with the C4 and C6 treatments. Sheep liveweight (kg/head) was greater (P<0.001) in the C8+sub treatment compared with the C4 treatment. Annual wool production (kg/head) was also higher (P<0.05) in the C8+sub treatment compared with all other treatments. Compared with the C4�treatment, significant differences in soil water content occurred in the R4/12 and C8+sub treatments, but these were predicted to be only 2.9 mm per year for the R4/12 treatment (0–30 cm depth) and 5.7 mm per year for the C8+sub treatment (30–170 cm). Use of a biophysical model indicated that evapotranspiration was the largest output term in the soil water balance and that both drainage and surface runoff of water were episodic events. A sustainability index derived from economic (equivalent annual net return ($/ha) for a 10-year period), animal production, pasture, soil health and soil water data indicated that the C4 and C6 treatments had the lowest scores for each of these parameters and the lowest overall indices. These scores were highly correlated with subjective assessments of the impact of the treatments (r�=�0.93). Overall, these data indicated substantial benefits of either rotationally grazing or the addition of fertiliser and subterranean clover to the production and sustainability of the native pasture studied.

Effects of grazing and management on herbage mass, persistence, animal production and soil water content of native pastures. 2. A mixed native pasture, Manilla, North West Slopes, New South Wales

As part of the Sustainable Grazing Systems (SGS) National Experiment a study was conducted on a native pasture in the Manilla district of northern New South Wales to examine the effects of 5 grazing treatments on total herbage mass, litter mass, basal cover, ground cover, sheep liveweight, wool production and soil water content (SWC, mm) at different depths. The pasture was a mixture of native perennial grasses, with redgrass (Bothriochloa macra) and wiregrass (Aristida ramosa) dominant on a red Chromosol soil type and bluegrass (Dichanthium sericeum) on a brown Vertosol. Wallaby grasses (Austrodanthonia richardsonii and A. bipartita) were common on both soils. Plots were grazed with Merino wethers and data collected from spring 1997 to spring 2001 were analysed to determine the effect of treatments on both production and sustainability. Five grazing treatments were applied in a randomised 3 replicate design. Grazing treatments were: continuous grazing at 3.1 and 6.2�sheep/ha (C3 and C6), continuous grazing at 9.2 sheep/ha, with subterranean clover (Trifolium subterraneum) oversown and fertiliser applied (C9+sub) and rotational grazing at an annual stocking rate of 3.1 sheep/ha with pasture grazed for 4 weeks and rested for 4 weeks (R4/4), or rested for 12 weeks (R4/12). Over time, treatments had no significant effect on either total pasture herbage mass (compared with the C3�control) or the basal cover of the major perennial grasses. Treatments had inconsistent significant effects on ground cover, litter mass, sheep liveweight and wool production (kg/head) over time. Compared with all other treatments ground cover was less (P<0.05) in the C6 treatment in only May and September 2000 and litter mass less (P<0.05) in only December 1998 and March 1999. Treatment sheep liveweights were not significantly different from the C3 treatment from September 1997 to 1999. However, from October 1999 to October 2001 sheep liveweight in the C6 treatment was significantly less than in the C3 treatment, while in the C9+sub and R4/12 treatments it was significantly greater than the control. In 1999, wool production per head was higher (P<0.05) in the C9+sub and R4/12 treatments compared with all other treatments but treatment differences were not significant in all other years. Significant differences in SWC only occurred at the 0–30 cm depth between the C3 and the C6 and R4/12 treatments, but were predicted to be <1.5 mm/year. A sustainability index derived from economic [equivalent annual net return ($/ha) for a 10-year period], animal production, pasture, soil health and soil water data indicated that the overall indices were lowest for the C3, C6 and C9+sub treatments and highest for the R4/4 and R4/12 treatments.

Economic implications of off-stream water developments to improve riparian grazing

Livestock grazing in riparian areas is an important management issue on both private and public lands. A study was initiated in northeastern Oregon to evaluate the economic and ecological impacts of different cattle management practices on riparian areas. The effect of off-stream water and salt on livestock distribution and subsequent impact on riparian use, water quality, and livestock production was evaluated. A multi-period bioeconomic linear programming model is used to evaluate the long-term economic feasibility of this management practice with a riparian utilization restriction of 35% for a 300 cow-calf operation. The utilization restriction resulted in economically optimal herd sizes 10% smaller than the baseline herd size. With the management practice, cattle were distributed more evenly, consumed more upland forage before maximum riparian utilization was reached, and gained more weight. The economic impacts of these outcomes were increased with expected annual net returns to the ranch for the project ranging between 4,500 and 11,000 depending on cattle prices and precipitation levels.

Watershed optimization of best management practices using AnnAGNPS and a genetic algorithm

An optimization algorithm linked with a nonpoint source (NPS) pollution model can be used to optimize NPS pollution control strategies on a field‐by‐field basis in a watershed by maximizing NPS pollution reduction and net monetary return. In this paper a methodology is described which integrated a genetic algorithm (GA) (an optimization algorithm) with a continuous simulation, watershed‐scale, NPS pollution model, Annualized Agricultural Non‐Point Source Pollution model (AnnAGNPS) to optimize the selection of best management practices (BMP) on a field‐by‐field basis for an entire watershed. To test the methodology, optimization analysis was performed for a U.S. Department of Agriculture experimental watershed in Pennsylvania to identify BMPs that minimized long‐term (over a 4‐year period) water quality degradation and maximized net farm return on an annual basis. Results indicate that the GA was able to identify BMP schemes that reduced pollutant load by as much as 56% and increased net annual return by 109%.

ECONOMIC AND ENVIRONMENTAL IMPLICATIONS OF SMALL GRAIN PRODUCTION AND USE ON PENNSYLVANIA DAIRY FARMS

Two challenges facing dairy producers are low profit and environmental issues related to nutrient management.Wholefarm simulation was used to determine if adding small grain crops to traditional corn and alfalfa rotations providedlongterm environmental and economic benefits. Small grain cropping strategies included 1) corn double cropped with barleyharvested as cash crop grain and straw bedding, 2) corn double cropped with barley harvested as feed grain and straw, 3) corndouble cropped with barley harvested as silage, 4) corn double cropped with rye harvested as silage, and 5) corn replacedwith cash crop wheat and straw bedding. Nitrogen leaching loss over the farm was reduced by 10 kg/ha (8.9 lb/acre) when40% of the corn was double cropped with a small grain, and soil P accumulation was reduced by 2 kg/ha (1.8 lb/acre) peryear. Annual farm net return or profit was increased by up to $93/cow when doublecropped barley or singlecropped wheatwas harvested as grain and straw, by about $30/cow for doublecropped barley silage, and $50/cow for doublecropped ryesilage. Use of small grains generally reduced the risk or yeartoyear variation in net return. The economic benefit of usingsmall grains was not sensitive to farm size, herd milk production level, the amount of forage used in animal rations, or grainprices, but there was less benefit when the farm was moved to a more northern climate. If straw was not harvested and usedfor bedding, the economic benefit for producing grain as a cash crop or feed was eliminated. Use of small grain crops onPennsylvania dairy farms should be encouraged, particularly when double cropped with corn, to reduce N leaching loss,reduce soil P accumulation, and improve farm profit.