Integration of forage, beef, and hog production systems in Western Canada: An economic assessment Derek G. Brewin a,⇑ , Michael Undi b , Suren Kulshreshtha c , Karin Wittenberg b , Mario Tenuta d , Kimberly H. Ominski b a Department of Agribusiness and Agricultural Economics, University of Manitoba, Winnipeg, Manitoba R3T 2N2, Canada b Department of Animal Science & National Centre for Livestock and the Environment (NCLE), University of Manitoba, Winnipeg, MB R3T 2N2, Canada c Department of Bioresource Policy, Business and Economics, University of Saskatchewan, Saskatoon, SASK. S7N 5A8, Canada d Department of Soil Science, University of Manitoba, Winnipeg, MB R3T 2N2, Canada article info Article history: Received 4 December 2012 Received in revised form 3 December 2013 Accepted 9 December 2013 Available online 20 January 2014 Keywords: Hog–forage integration Hog–beef integration Beef Hogs Forage Manure management abstract This study was conducted to evaluate the economic sustainability of single enterprise farming operations when compared to integrated operations. The single operations consisted of either a hog only production system, a forage-based production system or beef cattle on pasture and the integrated operations were either a hog–forage or hog–beef production system. The hypothesized benefit of integration was the rel- atively inexpensive supply of nutrients from the hog facilities which may be applied to forage land used in both hay and beef cattle production, resulting in improved forage yield and cattle stocking rates. Net income from a 500-sow farrow-to-finish operation was analysed along with net income from a 349-ha forage production system and a 349-ha cattle production system. The 349-ha land area was an estimate of the forage area needed to spread the manure from the hog operation at nutrient removal rates gov- erned by provincial (Manitoba, Canada) legislation. At ten year average prices, the single-enterprise beef and forage operations were not profitable, losing $2838/year and $34,169/year, respectively. Integration of single-enterprise operations with the hog operation made integrated operations viable, with additional profits of $50,935/year (beef) and $9894/year (forage), over and above the profit of the hog portion of the operation, as a consequence of the additional nutrients provided in the form of manure. Annual net income of the integrated hog–forage operation was 2% greater than the hog only operation that treats manure as a waste. Further, the integrated hog–beef operation realized a 10% increase in net income as a consequence of integration. Ó 2013 Elsevier Ltd. All rights reserved. 1. Introduction Rural landscapes in many parts of Canada have witnessed an evolution from traditional mixed crop-livestock enterprises to large-scale specialized farming (Entz et al., 2005). In Manitoba, for example, less than 10% of income from hog farms comes from sources other than hog sales (Statistics Canada, 2010a). Similarly, livestock sales make up less than 6% of crop farm revenues and crop sales make up less than 8% of beef farm revenues. These three farm types, hog, crop and beef, represent 84% of all farm types in Manitoba. Changes to specialized farming occur in response to political, regulatory, and economic pressures to meet market de- mands for food and fiber (Russelle and Franzluebbers, 2007). Growing criticism of agricultural specialization has developed based on the potential negative impact on nutrient cycling, soil degradation and in some cases reduced farm returns with in- creased income risk (Russelle et al., 2007; Sulc and Tracy, 2007; Franzluebbers and Stuedemann, 2007). Renewed interest in integrated crop and livestock production systems has arisen with the recognition that integration may im- part major benefits to the environment and to the development of sustainable agricultural production systems by more efficiently utilizing resources, reducing nutrient concentration and environ- mental risk while improving regional soil productivity (Franzlueb- bers, 2007). Integration of crop and livestock enterprises has the benefit of minimizing the importation of feedstuffs for livestock, and utilizing livestock manure as the primary source of nutrients for crop production, thereby facilitating nutrient recycling (Sulc and Tracy, 2007). The production environment in Manitoba is one which may readily support crop-livestock integration. Many of Manitoba’s hog farms consist of barns located on a limited land base. These operations do not require an abundance of land for the production of hogs per se but rather require land on which to spread the manure produced from the operation. In some circum- stances, the costs of exchanging of manure from livestock producer 0308-521X/$ - see front matter Ó 2013 Elsevier Ltd. All rights reserved. http://dx.doi.org/10.1016/j.agsy.2013.12.005 ⇑ Corresponding author. Tel.: +1 (204) 474 8702; fax: +1 (204) 261 7251. E-mail address: derek_brewin@umanitoba.ca (D.G. Brewin). Agricultural Systems 127 (2014) 1–8 Contents lists available at ScienceDirect Agricultural Systems journal homepage: www.elsevier.com/locate/agsy