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Simple Summary: Economic analysis can be used before animal experiments to estimate the change in production that would be needed for experimental treatments to be as equally profitable as the control treatment. After the experiment, the results can be examined to assess if the production threshold was met. This approach was applied before and after an animal experiment that tested the effect of feeding dietary supplements on the milk production of dairy cows experiencing a heat event in climate-controlled chambers. Heat stress reduces the milk yield of cows, but the inclusion of supplements such as betaine and fat could lessen the impact. The pre-experimental economic threshold analysis showed that cows fed a diet containing betaine, fat, or betaine plus fat would need to produce 1%, 9% and 11% more milk, respectively, to be equally as profitable as the control diet. Results from the subsequent animal experiment combined with previously modelled projections of heat stress conditions showed that supplementing diets with fat or betaine, but not in combination could exceed the milk production threshold required to be as profitable as the control diet. Ex ante economic analysis can be used to establish the production threshold for a proposed experimental diet to be as profitable as the control treatment. This study reports (1) a pre-experimental economic analysis to estimate the milk production thresholds for an experiment where dietary supplements were fed to dairy cows experiencing a heat challenge, and (2) comparison of these thresholds to the milk production results of the subsequent animal experiment. The pre-experimental thresholds equated to a 1% increase in milk production for the betaine supplement, 9% increase for the fat supplement, and 11% increase for fat and betaine in combination, to achieve the same contribution to farm profit as the control diet. For the post-experimental comparison, previously modelled climate predictions were used to extrapolate the milk production results from the animal experiment over the annual hot-weather period for the dairying region in northern Victoria, Australia. Supplementing diets with fat or betaine had the potential to produce enough extra milk to exceed the production thresholds, making either supplement a profitable alternative to feeding the control diet during the hot-weather period. Feeding fat and betaine in combination failed to result in the extra milk required to justify the additional cost when compared to the control diet. [ABSTRACT FROM AUTHOR]

• The value of extra pasture DM for livestock production can be estimated using several different methods. • The two-price market value method can be an efficient way to estimate the value of extra seasonal dry matter yield of pasture grown and used. • To demonstrate its application, the method is used to value the seasonal yield of 19 perennial ryegrass cultivars grown in temperate Australia. • The value of extra pasture estimated using the two-price market value method can be easily generalised across a range of farming systems. The challenges of estimating the value of growing and using extra pasture to the farm business often necessitates using complex systems modelling of individual farms. In this paper, a straightforward market value method is outlined, where technical substitutes for which there is a defined market price are used as proxies to estimate an equivalent value for extra pasture used in a farm system. The method can be useful for all grazed livestock production systems where substitutes for pasture are purchased and sold. The two-price approach presented advances on previous applications of using market values by accounting for differences in the value of extra pasture DM used on farm in different seasons. The value per extra kg DM harvested in seasons when pasture typically limits livestock production, for example during summer/autumn in temperate environments, and used on farm equates to the market price of the replacement cost as purchased supplementary feed. This is the maximum the extra pasture DM could be worth when used in the farm system. Conversely, the value per extra kg DM harvested in spring when extra pasture is likely to be in surplus of livestock requirements, equates to its market price if sold, as standing hay for example, termed the salvage value. This two-price approach was applied to value the previously published seasonal DM yield differences of 19 perennial ryegrass cultivars, compared to an industry standard cultivar, grown in three regions of Victoria, Australia. Results were then compared to the value of extra pasture DM previously estimated using system simulation analyses of three farms and applied to the same perennial ryegrass data set. The difference in the value of extra pasture DM estimated using the two methods ranged from $0.01/kg DM to $0.24/kg DM. Overall, the two-price method estimated an extra $24 to $200/ha.year benefit over the industry standard cultivar for the 19 cultivars across the three regions, similar to the extra $0 to ∼ $180/ha.year estimated by the previous system simulation analysis. The two-price market value method can be an efficient way to estimate the value of extra seasonal DM yield of pasture, with results easily generalised across a range of farming systems. [ABSTRACT FROM AUTHOR]