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Hypothetical data relating stocking rate to daily animal live?mass gain on different types of pasture under continuous grazing or one of two forms of rotational grazing have been employed to determine the net return on investment over a range of stocking rates. By determining the stocking rate at which this function reaches its maximum value, it is possible to identify the optimum stocking rate for each management system in a variety of economic circumstances. The most profitable system of grazing management can then be identified.