The Enterprise Efficiency reports are crucial because they enable you to directly compare alternative grazing livestock enterprises. These reports answer the question, “How much can I expect each of these enterprises to return per unit of grass consumed, given my current plans?” The Enterprise Efficiency report creates an apples to apples comparison between competing grazing enterprises.

With the information from these reports, you will be able to make informed choices among enterprises and allocate resources accordingly toward maximal profitability.

For example, if enterprise efficiency for a particular stocker enterprise is better than the enterprise efficiency for your cow-calf enterprise, then perhaps that stocker enterprise should be expanded and the cow-calf enterprise diminished, or possibly even eliminated, accordingly.

By observing the projected changes in the Grazing reports while these management changes are implemented, a new ranch plan can be made which takes into consideration this reallocation of the grass resource.

Alternatively, a ewe-lamb enterprise may return more per unit of grass than a particular stocker enterprise. If that is the case, then the ranch business would be more profitable if you expanded that ewe-lamb enterprise and contracted or eliminated the stocker enterprise.