The experimentwas carried out from 2000 (Year 1) to 2001 (Year 2), in a leveled lowland, tocompare the effect of nitrogen levels and energy supplementation levels on theherbage crude protein, in vitro organic matter digestibility and production,animal production and profit. The treatments used in Year 1 were: Italian ryegrasscultivated pasture (Lolium multiflorum Lam.) plus 300 kg.ha of nitrogen(N) and supplementation with ground corn grain at .8% LW/day (300N+.8S); Italianryegrass pasture plus 200 kg.ha N and supplementation with ground corn grainat .4% LW/day; and Italian ryegrass pasture plus 100 kg.ha N, without supplementation(100N+.0S). In Year 2, the treatments were: Italian ryegrass pasture plus 230kg.ha N and supplementation with ground corn grain at 1.0% LW/day (230N+1.0S);Italian ryegrass pasture plus 155 kg.ha N and supplementation with ground corngrain at 0.5% LW/day (155N+.5S); and Italian ryegrass pasture plus 80 kg.haN, without supplementation (80N+.0S). Beef steers under continuous stockinggrazing, with variable stocking rate, were used. Dry matter accumulation ratedid not show difference among N and supplementation levels. The live weightgain per hectare was higher when higher nitrogen and supplementation levelswere used. In 2000, the treatment with the smaller N level and no supplementationresulted in positive net income. In 2001, all treatments showed negative netincome. The increasing nitrogen levels with different energy supplementationlevels, although increased the stocking rate, did not affect dry matter yieldrate and forage quality, resulting in smaller net income.