With commodity prices under pressure and input costs on the rise, many row-crop farmers are evaluating their options and looking for new revenue opportunities in the process.
For Troy and Stacy Hadrick, that required making a bold shift in their farming operation about four years ago. They started converting much of their South Dakota cropland to pasture and expanding their cowherd.
It’s a path no one would describe as easy. But as Troy puts it, “You’re going to do something hard if you’re in agriculture, so choose your hard.”
The Hadricks, based near Faulkton, say moving away from commodity corn, soybeans and wheat to a more direct, value-added beef production model is giving them more control over their product and their bottom line.
“We want to take ourselves out of the ebbs and flows of the commodity market, and we believe our beef business is viable long-term,” says Troy.
The Hadricks’ business includes selling beef direct to nine restaurants, a caterer, grocery store and even to a gas station that sells high-end meat. Learn more at hadrickranch.com/
Farmers Put Marginal Crop Ground Into Grass
As the Hadricks tried to decide whether to focus more on their beef business, and less on commodity grains, two things encouraged them to move forward with cattle: the marketplace and some of their land that’s prone to erosion.
“We started thinking about what could we do on some of this crop ground to be better stewards of that land – to think about it in a different purpose,” Troy recalls.
When the Hadricks learned about a Ducks Unlimited (DU) program that fit with their goals, they signed on to convert an additional 250 acres of cropland to pasture to feed cattle.
“They help cover the cost of that land while it’s sitting idle for a couple years, allowing the grass to establish,” Troy notes.
Bruce Toay, manager of DU conservation programs in South Dakota, says the organization is working with 58 farmers across the as part of its Working Grasslands Partnership.
DU provides annual payments to farmers for the first three years of their participation in the program, based on local CRP rates. After establishment, cooperators are able to utilize the forage by haying or grazing for the remainder of the 10-year commitment.
Payment rates reflect the land quality: in southeast South Dakota, where soils are more productive, rates can be $200 or more per acre. In the northwest part of the state, rates are usually $20 to $30 per acre.
“We can help install pipelines and tanks, and sometimes drill wells—whatever it takes to ensure a reliable water source,” Toay adds. “You can’t have a good grazing plan without water.”
Currently, South Dakota farmers have enrolled 12,000 acres with DU, which aims to expand the program to 25,000 acres. The program goes through 2029.
“We’re really pushing to find more interested cooperators and get more acres back into grass,” says Toay.
Beyond DU, other organizations investing in habitat restoration in regions of the U.S. include Pheasants Forever and Quail Forever.
More Short-Term Opportunities Wanted
While the Hadricks are finding success in a long-term strategy of moving to beef production, most U.S. farmers are exploring short-term revenue streams rather than a permanent exit from row crops.
Jay Parsons, an agricultural economist at the University of Nebraska–Lincoln, says that for most farmers, converting cropland to permanent pasture rarely pencils out—unless the goal is to leave row-crop farming altogether and sell off equipment.
“Otherwise, it makes a lot more sense to go with annual forages, because it’s easier to switch back to crops when markets change,” he notes.
In some scenarios, farmers rent their ground in the fall for cattle to come in and graze cornstalks, adds Mary Drewnoski, UNL professor and beef systems Extension specialist. Another common practice is to charge beef producers a fee to graze cattle on cover crops.
“That’s probably the simplest thing for a farmer to do – have somebody else come in with cattle and graze the fields,” she says. “Basically, you give them access and get a paycheck.”
Grazing rates can vary significantly. Drewnoski says going rate in the eastern part of Nebraska is $10 to $15 an acre. In the western part of the state, farmers can charge in the neighborhood of $30 an acre.
“It’s a matter of supply and demand, and there’s more demand there,” Drewnoski explains.
She believes row-crop growers based in any area that also supports cattle production can likely find ways to add revenue from grazing cattle, either their own animals or through leasing ground to local beef producers.
The one thing she says is of utmost importance to do in the process is to develop a clear, written lease agreement spelling out the details that can keep everyone on the same page and relationships intact.
Key terms to define in a lease agreement include the rental rate, payment schedule, specific stocking rate, along with a clear outline of responsibilities for fencing, water, and general pasture maintenance. The agreement should also cover conditions for renewal or termination and any provisions for insurance, recommends Purdue University Extension.
When executed well, Drewnoski says partnerships between row-crop growers and livestock producers can be mutually rewarding. “There can be real beauty in this if you’re a crop farmer and you find the right cattleman to partner with,” she says. “It can open up doors for you both to benefit.”
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