Feed Costs

Dairy Farmers Wonder: Can Short Corn Replace BMR?

Mon, 22 Sep 2025 17:29:46 GMT

Corteva dropped a proverbial bomb on the dairy industry this summer when they announced they are exiting the BMR corn business. When Dow (with their Mycogen and Dairyland brands) and DuPont (with their Pioneer brand) merged, they controlled virtually the whole BMR market in the U.S. While KingFisher has had some success with their BMR line, it will be awhile before they can ramp production to fill the Corteva void.

This leaves farmers and their dairy nutritionists looking for different options. One of the most popular will be “short corn”. Let’s look at its pros and cons.

Short corn isn’t new. The first variety I looked at was about 20 years ago. It was originally developed for grain producers as a way to have less input needs, less fodder to deal with, better standability and the ability to spray its whole life. Corteva, Bayer and others are bringing out new hybrids with these characteristics.

Those characteristics positively impact forage quality. The shorter stature and increased leaf/stem ratio increases the fiber digestibility by a few points. The lower fodder yield increases the starch percentage, and it is not uncommon to see 40% to 45% starch samples.

The combination of increased starch and digestibility can make Milk Per Ton numbers that look similar to a BMR. It is not a BMR, though, and will have to be fed much differently.

Because of the higher starch, the UNDF240 as a percentage of Dry Matter may be similar. However, the UNDF240 percentage of fiber is still noticeably higher. This will likely limit forage intake or performance.

Farms who switch to short corn will likely feed less silage and bring in other digestible fiber sources, such as soy hulls, gluten or beet pulp. This can help maintain production but can also complicate nutrient management plans as more nutrients are imported.

The quality of short corn is good the entire way to the ground. To limit yield loss, farms should chop as low to the ground as possible and have a discussion with their harvester..

It will be important for farmers to communicate with nutritionists and not just listen to a company’s talking points. Many of the same company people who (rightly) promoted BMR will change their narrative now that it is going away.

Millions of high-producing cows are fed without BMR. It certainly can be done, but high milk production will get harder for farms who had developed a management system around it.

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Declining Grain Prices: A Godsend for Dairy Producers

Wed, 10 Jul 2024 16:29:11 GMT

Declining grain prices are not generating many smiles in the ag sector, unless you turn to livestock industries, like dairy, where lower grain prices mean cheaper feed rations. This trend is providing relief for dairy producers and adding a layer of optimism in times when other sectors are scrambling for profitability.

Independent dairy financial consultant, Gary Sipiorski, notes that feed costs comprise a significant portion of the dairy farm’s gross income, ranging between 20% to 45%, depending on the amount of feed produced by the farm itself.

“If you purchase all your feed, your feed cost will push to be around 50% of the milk check,” Sipiorski explains. “Feed is the biggest cost to a dairy and each farm needs to individually evaluate depending on variables such as needs and forage quality.”

Positive Financial Indicators
Phil Plourd, president of Ever.Ag Insights, shares a more optimistic view from a broader perspective. According to their models, there’s a notable decrease in costs, occurring simultaneously with some of the highest milk futures seen in recent years.

“As a result, prospective margins look as good as they have in two years,” Plourd says. “But as our customers remind us, that’s on paper. Is the on-the-ground reality as good? That’s hard to say.”

Long-Term Opportunities
Jay Matthews, vice president of feed and dairy producer division for Ever.Ag, echoes the positive sentiment. He highlights that the current declining grain prices are a significant win for dairy producers.

“And with milk pricing holding support for the time being, margins are looking very attractive for dairies as we push forward,” Matthews states, advising producers to consider stepping into new crop physical purchases. “They should definitely have hedges on by now for new crop ownership, especially if they are going to wait for better basis levels on corn and protein.”

Matthews cautions against complacency, as unpredictable weather and seasonal changes could disrupt this current advantage. He mentions the risk of managed money covering their massive net-short position through the summer, particularly if any adverse weather patterns emerge.

Monica Ganely, analyst with the Daily Dairy Report and founder and principal of Quarterra, shares striking data on feed costs. According to Ganely, May’s feed costs were nearly $3 per cwt. lower compared to the same time last year and the lowest since 2021.

While the entire ag sector grapples with various challenges, declining grain prices are delivering a much-needed break for dairy producers. With feed costs constituting a major expense, this reduction allows for healthier profit margins and a more optimistic outlook. However, it’s crucial for producers to remain vigilant and proactive in safeguarding these gains against market volatility and environmental uncertainties.

Here's Why Freight Is Driving Up Amino Acid Prices

Fri, 28 Jun 2024 21:04:32 GMT

The global feed-grade amino acid market is expected to grow steadily in coming years. But this popular class of feed additives also is becoming more expensive to access.

A recent report by Verified Market Reports indicates that from 2021-2031, demand the ration enhancements is expected to approximately quadruple, from less than $10 million to more than $40 million annually.

A rise in consumption of and demand for protein-based food sources worldwide is fueling the growth. Additionally, livestock nutritionists and producers are recognizing the value of optimizing feed formulations with the enhancement of amino acids to enhance animal performance, minimize environmental impact, and support food safety.

But as demand for these feed additives is rising, so is the cost. Currently, it’s not the ingredients themselves, but the freight required to deliver them.

A large share of the feed-grade amino acids today is manufactured in China. According to feed industry source All About Feed , FOB China prices for common amino acids including lysine, threonine, tryptophan and valine have softened in the first half of 2024.

However, the container freight rate from China to the Americas and Europe has increased significantly in recent months, with further upward potential at least through the summer.

The result is a net price for most amino acids that is firm-to-climbing. Thus, analysts expect strong interest in locking in contracts for Q3 and even into Q4 for these amino acids.

Meanwhile, reports continue that production of methionine is still lagging, but that factor has not influenced current methionine prices as much as freight rates. Like the other amino acids, slightly weaker prices have been offset by higher shipping costs.

Weak Global Demand for U.S. Corn Good for Dairy

Fri, 05 May 2023 17:30:30 GMT

In some of the first good financial news for dairy producers in a long time, feed prices collapsed last week after China cancelled orders to buy U.S. corn. Even before the cancelations, China had been cutting back on its purchases, according to Sarina Sharp, analyst with the Daily Dairy Report. Through April 20, Chinese commitments to buy U.S. corn were 39% lower than at this point last year and 63% less than in April 2021.

“China has not been the only importer eschewing U.S. corn,” Sharp said. “Even after the recent selloff, American grains and oilseeds are simply too pricey to attract international buyers, and late-season rains in Brazil were better than expected, so massive yields are expected from the country’s second corn crop.”

According to Reuters, U.S. commitments to export corn to foreign markets outside of China as of late April were at their second-lowest level in two decades. Sales to Japan, another large market for U.S. corn, have been moving at their slowest clip in over 20 years, down more than 40% from year-ago volumes, she added.

“Because Brazil lacks the infrastructure to simultaneously store record-breaking corn and soybean crops, elevators are pushing overseas sales to make room for another bumper harvest,” she noted. “Importers around the world are moving their business to South America, and with good reason.”

Soybeans out of Brazil are currently selling for about $2/bu. below prices offered at U.S. ports, and at least two loads of Brazilian beans were expected to land in the United States last week.

“Assuming normal weather, the United States is expected to produce considerably more corn and slightly more soybeans than it did last year,” Sharp said. “Slow U.S. crop exports could help speed the transition from today’s scarcity to anticipated abundance this fall.”

Even so, feed prices remain high. Average March feed expenses for a typical dairy accounted for $14.65/cwt. of milk revenue on the typical U.S. dairy operation, according to the Dairy Margin Coverage program’s feed cost formula released last week. With the March all-milk price at $21.10/cwt., Sharp noted that left just $6.45 to cover all other expenses including labor, energy, interest on debt, and fixed costs.

“Declining corn futures prices could slowly result in reduced feed expenses, but most dairy producers won’t enjoy the full impact of the recent selloff, because the price of on-farm inventories likely has already been locked in,” Sharp noted. “This includes last year’s corn silage, which accounts for a majority of a typical dairy ration. Many dairy producers have also contracted to buy at least some of their future needs for soybean meal, grain, and byproducts, so they will not benefit from today’s lower prices until they’ve used up their contracted tonnage.”

Even so, the drop in feed prices is welcomed news for dairy producers.

For more on feed prices, read:

Five Tips for Reining in Feed Costs

Wed, 12 Apr 2023 15:06:51 GMT

Waning milk prices, persistently high feed costs, and spotty feed inventories appear to be the emerging financial story of the 2023 U.S. dairy industry.

The delicate dance between preserving production and attempting to curb input costs will remain a challenge this year. Visalia, Calif.-based VAS offers these tips to trim dairy feed bills in the current economic environment:

Evaluate heifer inventory – If you’re feeding out more heifers than you’ll need in the future, it likely doesn’t make financial sense to keep some of them around at all. Review cull-cow rates, heifer survival rates, and the number of heifers born monthly, and balance those numbers against future replacement needs. Recalibrating the allocation of sexed, conventional, and beef semen also can help tailor heifer inventories more appropriately to herd needs.
Check for TMR errors – Use feed management software to track TMR mixing routines. Review timing between TMR ration ingredients, volume of ingredients used, and ingredient order. TMR software can catch over- and under-feeding ingredient errors.
Recalculate feed inventory and regularly walk it – Unfortunately, everything tucked into the bunker, bag, or bay may not make it into the TMR mixer. Routinely monitor for weather-related losses and spoilage issues. Take frequent feed inventories and make timely ration changes to help stretch forages until the next crop is available.
Dig into shrink and weigh-backs – Set goals for weigh-back weights in distinct feeding groups, and monitor routinely. Keep your feeder aware of cow pen moves and number changes so feed batches can be adjusted accordingly. Feeding software tied to herd management software can automate some of these adjustments.
Explore alternative feed byproducts – Cows are nature’s best recyclers, and creatively incorporating byproducts can be a sustainable choice that also helps keep costs in check. If forage inventories are tight, byproducts can help stretch them. Possible options are whole cottonseed, wheat midds, soy hulls, and other locally available products. Feeding byproducts early, and at lower inclusion rates, can ease ration transitions while strategically preserving forage supply.

Feed Prices Steadier Heading into New Year

Thu, 15 Dec 2022 16:46:27 GMT

After some volatile stretches through the year, feed prices are posting a lower drama level as 2022 wraps up. Corn prices have normalized in the $6.50/bu. range, with nearby futures indicating similar levels going forward.

According to the U.S. Grains Council (USGC) , one big corn-value question mark is the corn crop in Argentina, which is suffering from drought. USGC analysts said seasonally, corn futures tend to strengthen heading into the New Year, with the prospect of larger export markets in the spring.

When it comes to exports, China remains a wild card that could dramatically break open ocean freight trade and subsequent commodity market demand next year. If China relaxes its COVID-19 restrictions and reopens its economy, it will be he big story of 2023, according to USGC. However, that move is not expected until at least the passing of the Lunar New Year – a time commonly devoted to large gatherings and celebrations – on January 22.

In domestic crop movement, the low-water situation on the Mississippi River had improved as of early December, creating the opportunity for the passage of larger barge loads. In the same timeframe, the rail strike threat has been resolved, but backlogs and slow service have not.

Soybean meal has posted a strong year-end market rally, currently trading near $480/metric ton (MT), with new contract highs spiking more than $65.00 compared to levels earlier in the fall. Commodity analyst Garrett Toay shared a prediction with AgWeb that he believes meal values may have topped out in the short term. “We’re getting into some rarified air here, and I think we may be due for a correction soon,” shared Toay.

In the meantime, whole soybeans remain steady in $14.00/bu. territory and pushing the $15.00 mark. Strong soy prices also are propping up values for distiller’s dried grains with solubles (DDGS). The USGC report noted that, in the first week of December, ethanol output rose 5.8%, to the highest level in the past 51 weeks.

Despite the increased DDGs supply, DDGS values were up $5.00/MT the first week of December, due to healthy domestic and export demand.

Could Guar be the Next Star in Dairy Rations?

Mon, 19 Sep 2022 18:17:30 GMT

Guar is not a common crop grown in the United States, nor is it widely used here as a livestock feedstuff.

But that picture may be changing, as alternative crops are explored, and nutritionists and producers search for more affordable ration ingredients.

Guar is a legume plant closely akin to the string bean. Both the plant and seed are high in protein, and the seed also delivers a healthy load of carbohydrate. Guar gum, which is processed from the endosperm of guar seeds, has many industrial uses. It is employed as a stabilizing or emulsifying ingredient in cosmetics and food products, and is even more widely used in the energy industry.

The unique viscosity properties of guar gum make it highly desirable for stabilizing water and sand mixtures when extracting gas and oil via drilling.

The co-product of guar gum processing is guar meal. It is the combined germ fraction and hull fraction that remain after guar gum is extracted from the seed.

According to Ted McCollum, retired Extension beef cattle specialist at Texas A&M University, guar meal contains between 35 and 50% crude protein (CP), depending on the degree of gum removal and the relative concentrations of the germ and hull that are re-combined.

By comparison, soybean meal is 44-48% CP; cottonseed meal is 41-44%CP; and canola meal is 35-38% CP. Feedipedia shows a balanced amino acid profile for guar meal. It also lists ruminant nutrient values for guar meal about 10% lower than soybean meal for organic matter digestibility, energy digestibility, digestible energy, and metabolizable energy, with higher nitrogen digestibility.

India currently grows about 80% of the world’s guar supply, and its name means “cow food” in Hindi. In addition to guar meal, it is customary to harvest the guar plant as a high-protein forage source for cattle in India and other arid regions of the world.

New Mexico State University researcher Kulbhushan Grover, a native of India, believes the popular plant from his homeland could soon find a place in the agricultural fields of the United States.

“It is one of the most drought-tolerant plants, and we are looking at it as an alternative crop for areas like New Mexico because of water issues,” said Grover.

The United States is one of the world’s biggest guar importers, so domestic consumption of the crop likely would be strong. Grover said the demand for guar gum in the oil industry alone far outstrips supply, and currently, there is only on guar processor in the U.S.

In addition to the energy and protein power it packs, McCollum noted there is some evidence that guar meal also may have some antimicrobial properties that improve gut health.

As early as 1968, the Journal of Dairy Science published a study on “Guar Meal in Dairy Rations.” Its ability to tolerate heat and water stress, while providing essential amino acids and relatively high energy, suggest that it might be a viable crop and feed option to revisit in the U.S. today.

For more on dairy nutrition, read:

Feed Still Pricey but Evolving as Fall Nears

Fri, 12 Aug 2022 20:18:28 GMT

Corn and soybean values have tempered slightly since the near-historic highs of May and June this year, but dairy feed bills still will be hefty heading into fall, according to the experts at ever.ag .

In their weekly webcast, “ The Grain Feed ,” ever.ag offers market commentary from their commodity and risk management experts from across the country to help livestock and dairy producers manage their risk. The last two episodes in July proved the commodity markets remain volatile, thanks to weather sensitivities, logistical challenges, and global events.

Katie Burgess, Risk Management Director for ever.ag’s sister company, Blimling & Associates, predicted on July 21 that feed prices for dairy producers will be down about $2.00/cwt. of milk production by fall compared to the highs of spring. But unfortunately, she said milk is predicted to be down about $3.00/cwt.

December 2022 soybean meal futures contracts spiked more than 10% in the last week of July, from $380 to $420/ton. Analysts at ever.ag noted that local suppliers are starting to lower their basis on soybeans a bit, and also are finally starting to offer cash contracts for new crop 2022 corn and soybeans, another indication that this year’s exceedingly tight commodity markets may be starting to loosen up.

“I think this may be a sign that rail transport is becoming more reliable and predictable again, or the basis is softening up at the origins, or both,” stated Jake Kingsley, Director of Feed Procurement at ever.ag. “I don’t think this market has broken yet, but there are signs that things are changing.”

$10.00 Corn in the Offing?

Tue, 17 May 2022 12:00:00 GMT

The all-time high U.S. price for corn happened in August 2012, when it peaked at $8.44/bu., according to Trading Economics .

Corn prices edged ever-so-close to that record in April 2022, with futures hitting $8.30/bu. They’ve retreated since then, but analysts predict the possibility of $10.00/bu. corn in the coming year is not out of the question.

If it happens, $10.00 corn likely will be the result of a perfect storm of soaring demand and the confluence of many supply issues, topped by the war in Ukraine. In recent history, Ukraine has been one of the top-5 corn exporters in the world. But this April, the country shipped roughly one-third less corn, or 923,000 fewer metric tonnes, compared to April 2021.

Ironically, by May 1 in the current planting season, Ukraine had a larger percentage of its traditional corn acres in the ground than most of the U.S. Corn Belt. Planting delays allowed just 15-20% of Midwest corn acres to be planted, compared to about 30% in Ukraine.

Yield predictions for this year’s U.S. crop are tempered by that late planting, coupled with concerns regarding drought in the western Corn Belt. Adding to supply pressure is the Biden Administration’s April announcement that it would allow the sale of higher-percentage-ethanol gasoline over the summer in an attempt to suppress rising fuel costs during peak consumption season.

Trading Economics predicts corn to be trading at $9.06/bu. by the end of Q2, and $10.00/bu. in the next 12 months. Tommy Grisafi with Advance Trading, Inc. recently weighed in with less conviction amidst unprecedented market conditions.

“We could trade down to $5.50,” he told Tyne Morgan on Ag Web . “We could trade up to $9.50.”

It appears the one certainty is that the market will be in for a wild ride in the months ahead. “With what’s happening in the world, we’ve never had this happen,” shared Grisafe. “There’s no one old enough who remembers the last time Russia invaded Ukraine, into having back-to-back problems in South America; drought in North Dakota, Montana, and Canada; and at the same time, phenomenal demand.”

Make the Most Out of Alfalfa’s First Cutting

Thu, 12 May 2022 17:30:00 GMT

First cutting is the most important and critical cutting of the alfalfa growing season. A late start of this growing season will determine multiple things during this year’s production. It is important to know that the success of the entire production will be based on determining a proper date to cut for the highest yield and quality.

As a rule of thumb, forage quality varies with the environment and cutting management. If you are forced to delay the first cutting due to environmental conditions (rain or even drought), keep in mind that this could have negative consequences with a slower regrowth and perhaps a reduction in future yield production.

First cutting tends to have low quality if it is cut late during the growing season. Generally, during the pre-bloom or bud stage the stems are highly digestible with high-quality forage. Second and third cuttings are still very important for production. However if there is a need to wait to harvest beyond the bud stage then the more the quality would suffer because of lower proportion of the leaf and stem ratio.

Below are some guidelines for plant height and harvest maturity in alfalfa. Producers should take these into consideration for future management and cutting strategies.

Table 1. Plant height and harvest maturity in alfalfa.

Cutting Schedule	Plant Height (inches)	Maturity Stage
First Cutting	32	Late vegetative to early bud
Second Cutting	23	Late bud to early flower
Third Cutting	19	Early to late flower
Fourth Cutting	16	Late flower

Source: Professor Marisol Berti; North Dakota State University for Midwest Forage Association (Forage Focus; May 2018).

Other Rules of Thumb

Don’t cut alfalfa too early, before floral bud development; give it time to accumulate enough reserves to grow an excellent crop for a second harvest. Harvesting too early and too often will reduce plant strength.

Typically, mid-bud to late-bud stage is when dairy producers will harvest top-quality alfalfa. However, beef cattle producers can stretch into early flower. There may be a slight loss in quality, but yield will be higher.

When harvesting, lay the crop in a windrow to wilt to the desired moisture content. The length of time wilting requires depends on the temperature, humidity, solar radiation, wetness of the ground and wind speed.

To gauge the moisture level of alfalfa laid in a windrow, it is recommended to go out into the field with your forage harvester, chopping a representative sample and collecting an amount in your hand. Squeeze your hand into a fist. If moisture oozes out of your hand, the forage is too wet to make into silage. If you squeeze and open and the ball has a slow release, then it’s close to an ideal moisture content. If you open your hand and that ball immediately falls apart, then the moisture content is too dry.

Hay Prices Could Increase Significantly

Wed, 20 Apr 2022 15:53:06 GMT

There is a strong correlation between corn prices and milk prices. In one of my previous articles, I wrote about the correlation and overlayed corn and milk price to show how closely these markets are related. It stands to reason that there is a strong correlation because corn is the main part of a dairy ration. As the price of corn increases, farmers have choices to make. They can feed less corn supplementing it with something else that might be less expensive and still provide the required nutrition for milk production. However, the replacement is generally not as good resulting in reduced, but acceptable milk production. Another choice is to cull cows to reduce the amount of corn being feed to lower producing animals thereby increasing efficiency and profitability while feeding the usual amount of corn. Another choice is to sell the cows and exit the dairy business if the farm cannot continue under current market conditions. Any of these choices may reduce overall milk production and tighten supply. This is what has been taking place in the market since last fall.

However, when we look at income over feed, it remains positive as milk price has increased keeping pace with increasing corn, soybean meal and premium/supreme hay prices. These are the prices used in calculating income over feed for the Dairy Margin Coverage program. I realize that feed prices can be significantly higher in some areas of the country because of the difference in cash prices for these commodities due to the need to rail or truck corn and soybean meal into deficit areas as well the cost of available dairy quality hay. But for the purpose of comparison, we use the average prices on the monthly Agricultural Prices report. The most recent income over feed price was $10.98, down from $11.54 in January. Both of these were the highest income over feed since November 2020 and indicates income over feed is historically good.

One component of income over feed is hay. Premium/supreme hay price is used in the calculation currently as it is more reflective of dairy quality hay. A blend of alfalfa hay and premium/supreme hay was used from January 2019 through December 2019. Prior to that the alfalfa hay price was used to calculate income over feed. The February alfalfa hay price was $214.00 per ton and not much different than it was in 2014 when we had five months of alfalfa price over $200.00 per ton and record high milk prices. Actually, current alfalfa hay prices are not too much higher than the past few years. The greater price change took place in premium/supreme quality hay. This price first began to be calculated in January 2019 with the first two year not showing a great deal of price fluctuation. However, that changed in 2021 as the drought had more of an impact on areas of the country affecting hay production and increased demand for hay resulting in significantly higher prices as seen in the chart below.

All hay stocks at the end of last year reached a ten-year low. The current drought monitor map indicates that it may not get any better unless the weather pattern changes. This could push hay prices and especially dairy quality hay prices significantly higher reducing income over feed cost.

Not only is income over feed a concern this year, but so are escalating costs for all other aspects for the dairy farm. Recent income over feed prices may indicate profitability in themselves, but other costs have increased cost of production substantially. What may look good on the Agricultural Prices report released at the end of the month does not mean it is profitable.

If just doing nothing is your marketing plan this year or any year, could result in many sleepless nights. Strategies need to be implemented to protect prices in any way possible. Feel free to call us if you need any help.

Robin Schmahl is a commodity broker with AgDairy, the dairy division of John Stewart & Associates Inc. (JSA). JSA is a full-service commodity brokerage firm based out of St. Joseph, MO. Robin’s office is located in Elkhart Lake, Wisconsin. Robin may be reached at 877-256-3253 or through the website www.agdairy.com .

The thoughts expressed and the basic data from which they are drawn are believed to be reliable but cannot be guaranteed. Any opinions expressed herein are subject to change without notice. Hypothetical or simulated performance results have certain inherent limitations. Simulated results do not represent actual trading. Simulated trading programs are subject to the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. There is risk of loss in trading commodity futures and options on futures. It may not be suitable for everyone. This material has been prepared by an employee or agent of JSA and is in the nature of a solicitation. By accepting this communication, you acknowledge and agree that you are not, and will not rely solely on this communication for making trading decisions.

War in Ukraine Spurs Feed Shortages, Threatens European Dairy Farmers

Wed, 23 Mar 2022 14:04:59 GMT

Dairy farmers throughout southern Europe are feeling intense pressure as the conflict between Russia and Ukraine sparks growing feed shortages. Ukraine, which is a major global supplier of animal feed, has been unable to export corn and wheat, two major feed ingredients, for the past several weeks.

According to Reuters , Italy’s agriculture industry is specifically feeling the effects of the Russian-Ukraine conflict. Assalzoo, an Italian livestock farmer organization, has warned hundreds of dairy cattle are at risk of premature culling as stocks of raw materials used to produce feed might only last for another month.

If dairy cows are slaughtered due to the lack of feed, Michele Liverini, acting president of Assalzoo, says it would take years to produce milk again.

“In the case of dairy cows, if we stop and send dairy cows to slaughter, it will take seven to eight years to rebuild a barn to produce milk again,” Liverini says. “The problem is very serious; it has to be analyzed by all of us in the chain. From the large-scale retail trade to the farms, cereal growers and importers, we must have a role of responsibility at this time, and we must bring an increase to the end customer, to the housewife, to the family, but at least assure them of the food, we cannot do it any other way.”

Pietro Fusco, chief executive of milk producer Cirio Agricola, located in southern Italy, says the conflict in Ukraine has exacerbated an already difficult time.

“The Ukrainian-Russian conflict has taken over from an already stressful period for us, after two long pandemic years, which had already put a strain on business management,” Fusco says. “We currently have problems with the purchase of feed for the animals. Above all, there is also a problem with transport and therefore the impossibility of having supplies on time, so this is what we are suffering and paying a lot for today.”

Hungary, Serbia and Moldova are also adding to the feed shortage dilemma, Reuters reports. These countries have banned exports as they work to safeguard their own agriculture products.

In Spain, feed supplies have also been depleted. The country was previously a serious buyer of Ukrainian corn products but was cut off shortly after the Russian invasion.

Agustin de Prada, supervisor of Spain’s ranchers’ affiliation, Asoprovac, in Castile and Leon, states the rise in prices had been brutal and raises questions concerning the viability of farms.

Corn Yield Projections Higher, Supplies Still Tight

Fri, 15 Oct 2021 12:00:00 GMT

Drought in the Midwest and crop damage from the remnants of Hurricane Ida had created dampened optimism this summer about the size of this year’s U.S. corn crop. But as the harvest season ensues, yields are surprisingly strong.

So much so, in fact, that the 2021/22 U.S. corn crop is now on pace to be the second largest on record. The National Agricultural Statistics Service’s (NASS) September 2021 Crop Production report posted an estimated total crop forecast of 14,996 million bushels, up 246 million bushels from their predictions just a month earlier.

If realized, that would make 2021/22 a bridesmaid to only the 2016/17 crop – our country’s largest ever – which totaled 15,148 million bushels.

A bigger-than-expected crop could help lessen simmering concerns about corn supply shortages heading into next year. But even with the harvest windfall, it will take time – possibly years – to restore corn supply stores in the countryside.

The most recent NASS Grain Stocks report showed that total old-crop corn stores on hand as of September 1, 2021, totaled 1.24 billion bushels, down 36% from September 1, 2020. On-farm stores were down nearly half (47%) compared to the previous year, while off-farm stocks were reduced by 28% versus a year ago.

The large crop forecast also drove corn price predictions down slightly. The 2021/22 season-average farm price now is projected at $5.45 per bushel, compared to August’s projection of $5.75. Still, that’s a healthy bump compared to prices in recent years, and the highest since 2012/13.

Ration Alternatives to Balance Against Forage Shortages

Tue, 12 Oct 2021 21:10:17 GMT

Crafting effective lactating rations when the “ideal” ingredients are in short supply is challenging, but possible.

After a summer of drought in parts of the Central Plains and Upper Midwest, some dairies are facing forage shortages and looking for ways to stretch their rations without affecting milk production or cow health.

J.W. Schroeder , Extension Dairy Specialist Emeritus in currently drought-stricken North Dakota, advised that, in the absence of adequate forage stores, dairy and beef producers may need to temporarily accept lower production.

“As feed supplies dwindle, producers of all ruminant species will be forced to abandon the ideals of production efficiency and move into survival mode,” he stated.

Schroeder advised feeding more grain can raise dietary net energy for lactation, but will not match the performance achieved by feeding high-quality alfalfa with low to moderate grain levels. He cited a study in which cows fed a diet containing high-quality alfalfa with 40% neutral detergent fiber (NDF) and 20% grain outperformed cows fed a ration of with low-quality alfalfa (60% NDF) and 70% grain.

There are several avenues to attempt to navigate poor-quality forages or diminished forage supplies, though not all will preserve milk and/or component production at desired levels. They include:

Feeding more grain – Avoiding acidosis is the key to safe grain feeding, which requires commensurate fiber feeding. Schroeder advised keeping dietary NDF at or above 25% of ration dry matter and avoiding finely chopped forages. He also suggested limiting grain intake to 7-8 pounds per feeding, or 50-60% of ration dry matter. The Penn State University Dairy Team ranks the rate of digestion for grains, from slowest to fastest, as: milo, corn, barley, wheat, and oats.

Using high-fiber by-products as starch replacements or forage extenders – Ear corn, corn gluten, hominy, beet pulp, wheat bran, cottonseed hulls, oat mill by-products; and soy hulls all can add fiber and sometimes energy to the diet while buffering the acidic effects of grain concentrates. Schroeder advised maintaining minimum effective fiber levels at 19-21 acid detergent fiber (ADF); 26-27 NDF; 75% of NDF from coarse roughage; 40-50% forage in total ration dry matter.

Feeding supplemental fat – Adding fat can boost the ration’s energy content and prevent acidosis by discouraging cows from overfeeding on grain. Schroeder said a good rule of thumb is that pounds of fat in the ration should approximately equal pounds of butterfat per hundredweight of milk in the herd. The Penn State team advised watching fatty acid profiles of ingredients carefully, as unsaturated fat can reduce fiber digestibility in the rumen. They suggested considering protected fat sources, which bypass the rumen and thus do not impact rumen function.

Feeding more corn silage – If corn silage is available, it can be fed at 60-75% of total forage in the ration. Schroeder said more protein supplementation will be needed, and using high-fiber, low-starch by-products will help stimulate rumination and reduce the potential for acidosis. Adding a buffer and increasing feeding frequency also can help promote better cow performance when feeding high-corn-silage diets.

The Penn State team provides an extensive list of concentrates commonly used in dairy rations; the beneficial contributions they make to the ration; and suggested maximum intakes for each ingredient, in this publication .

Feed Cost Per Cow Per Day: Today’s Critical Metric

Wed, 18 Aug 2021 20:49:55 GMT

The 2021 climate of high feed costs and tepid milk prices are creating a tenuous financial scenario for most U.S. dairy farms.

Penn State Dairy Extension specialist Virginia Ishler said current conditions are mimicking those of 2012, when feed prices soared to unprecedented highs. “Using farm financial data from 2020 and projecting costs into 2021, most operations will be extremely vulnerable to maintaining a positive cash flow, especially if high feed prices continue,” she stated in a Penn State Dairy Extension bulletin .

Ishler and her team have developed a cash-flow analysis comparing a range of breakeven cost of production to cash flow from milk revenue. “Operations with cost of production exceeding $19.00/cwt. will have an uphill challenge in keeping feed costs below their projected maximum,” said Ishler.

Drilling down to the per-cow level can help keep a tighter handle on overall cost of production. Ishler said even using cost numbers for home-raised forages, most operations exceed $5.50/milk cow/day during periods of “normal” feed costs.

In an example factoring in low milk prices, a gross milk price of $17.00/cwt. for a herd producing an average of 70 pounds/cow/day, would result in a maximum feed cost/cow/day of $4.66. A bump in milk production and/or milk price would obviously help, but the Penn State calculator clearly indicates that “production at any cost” does not pencil out well. A herd averaging 75 pounds/cow/per day can afford a per-cow daily feed cost of $8.32 when milk price is $21.00/cwt. But dropping the milk price to $18.00/cwt. shows they must shave individual-cow daily feed cost to $5.18 to break even.

“Real-life” market influences also could impact these figures, cautioned Ishler. Severe heat stress could drop milk production; drought may drive the need to purchase forages in an already-tight marketplace; and high-priced commodities can quickly skew cost of production.

The Penn State Dairy team advises running cost-versus-payoff projections as a regular exercise to keep a constant fix on feed costs versus reward. In some cases, expensive ration elements may not enhance production enough to compensate for low milk prices. Ultimately the breakeven cost of production is the key metric for preserving a herd’s long-term financial viability.

Nutritionists can play a vital role in helping producers control costs by sourcing affordable feedstuffs; recommending alternative ration ingredients; and making other ration changes to trim per-cow feed costs without jeopardizing animal performance.

How Much Impact Will Higher Grain Prices Have on Milk Production?

Wed, 02 Jun 2021 18:55:08 GMT

The peak of spring flush in mostly behind us and even with increased milk production, the milk has been processed and seemingly without much difficulty. In a few years in history, not counting last year, there has always been some milk dumped in various locations due to the inability of processer to handle it for a period of time. So far, I have not seen any reports of dumped milk unless there was some mechanical problem. Manufacturing has become more efficient and plant capacity has improved. There are also those plants that have a production quota in effect for their patrons at various time of the year that has also allowed for milk to be distributed more across the course of the whole year. Those farms with production quotas during the spring are managing the breeding cycle of cows in order to have higher milk production during times when the plant does not have a production quota enforced. There are other plants that do not have milk production quotas, but a farm cannot expand unless they receive approval from the milk plant. Thus, milk production continues to increase, but it seems to be managed more efficiently.

With increasing milk production, the market needs to continue improving demand from both the domestic market as well as the international market in order to absorb increased output of dairy products. That has been happening as demand from the food service industry has been steadily improving. Restaurant traffic has increased more rapidly than anticipated at the beginning of this year. People seem to be making up for the lost time of last year. The problem the restaurant industry is facing is that they are having difficulty finding workers.

Demand from the international market has been good with total exports of dairy products up 11.2% for the first quarter of this year and the value of those exports up 5.0%. U.S. dairy prices have been competitive on the world market as world prices have been quite a bit higher making it attractive for international buyers.

But for the time being, cheese prices are struggling. Block cheese has been under the most pressure as increasing supply of milk has increased cheese production. This is expected to continue for a period of time. Block cheese price on Wednesday has moved below the price range it has been trading in since mid-November and moved to the lowest price it has been since May 12, 2020. A year ago, the market was rebounding from the cash that took place in March as the industry was severely disrupted in the beginning stages of COVID and the shutting down of the economy. This is somewhat concerning and does not bode well for cheese prices in the near-term or maybe even for the longer term. If an oversupply of the market is taking place at the present time, it may only get worse as the summer progresses unless hot weather impacts milk supply significantly. It appears that current grain prices may not be as much of a concern as was initially thought. It may have a greater impact if the growing season is less than optimal and yields decrease resulting in much higher grain prices, but there are many factors involved in that and a long way to go before the crop is in the silo or bin. One thing we do know is that the dairy industry has changed significantly since 2012-2013 when corn prices reached $7.00 - $8.00 per bushel and milk price moved to record highs the following year. Milk prices may be higher next year if grain prices remain high, but the strength may not be as much as it was in 2014.

Robin Schmahl is a commodity broker and owner of AgDairy LLC, a full-service commodity brokerage firm located in Elkhart Lake, Wisconsin. He can be reached at 877-256-3253 or through their website at www.agdairy.com .

The thoughts expressed and the basic data from which they are drawn are believed to be reliable but cannot be guaranteed. Any opinions expressed herein are subject to change without notice. Hypothetical or simulated performance results have certain inherent limitations. Simulated results do not represent actual trading. Simulated trading programs are subject to the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. There is risk of loss in commodity trading may not be suitable for recipients of this publication. This material has been prepared by an employee or agent of AgDairy LLC and is in the nature of a solicitation. By accepting this communication, you acknowledge and agree that you are not, and will not rely solely on this communication for making trading decisions.

Corn Prices Likely to Remain Elevated

Fri, 07 May 2021 02:23:53 GMT

Corn prices have reached their highest level in nearly eight years, and that means dairy producers who rely on purchased feed will pay more for corn. The reason behind this spring’s price surge is threefold: tight end-of-season stocks, formidable exports, and an old-fashioned short squeeze in the futures market, according to Sarina Sharp, analyst with the Daily Dairy Report. May corn futures, which began April above $5.64/bu. finished the month at $7.40.

“On the heels of USDA’s surprisingly low grain stocks estimate on March 31, the bulls spent all of April strutting around the grain pits,” Sharp says. “In many locations throughout the Corn Belt, the cash corn price, which adjusts for local surpluses or shortages, has climbed even more quickly than futures, signaling that inventories are indeed tight and providing dry tinder for a rally.”

Due to the unusually high basis in varying locations, some grain analysts started speculating that USDA’s estimate of the 2020 harvest was overstated, which would further reduce the already tight end-of-season stocks.

Corn exports have also been steady and robust, Sharp notes. USDA’s monthly balance sheets called for China to import 24 million metric tons (MMT) of corn this season, shattering the record of 7.6 MMT set in the 2019-20 crop year, but USDA Foreign Agricultural Service raised its current estimate to 28 MMT.

“In a typical year, importers would shift their corn purchases away from the United States in spring to South America, but the grain bins there are rather bare after back-to-back seasons with big exports,” Sharp notes. “Argentina is expected to see a lower corn harvest than it did in the previous two seasons, and while USDA is still calling for a bumper corn crop in Brazil, very little rain has fallen in two of the country’s three most important second-crop corn states.” Moreover, the forecast calls for persisting dryness.

While South Africa could increase its corn exports modestly to offset some of the reduction from South America, Ukraine will export 20% less corn than it did last season, according to recent USDA reports.

“The red-hot corn rally also attracted investment funds looking to cash in on inflation in the commodity markets. Traders who had sold May 2021 corn futures and options mostly stuck with their positions, hoping for a setback in prices that never came,” Sharp notes. “Some were forced out of the market when May 2021 options expired, and the rest have been reluctantly buying back futures this week to get out of their short positions.”

The rush of investors trying to get out of their short position added fuel to the rally, creating what Sharp calls an “old-fashioned short squeeze.”

Given the tight corn supplies, some export commitments could roll forward into the 2021-22 crop season, when a lot more corn could be available. But given the very tight end-of-season stocks as well as dry conditions in the northern Corn Belt and throughout the West, the corn market will likely remain elevated until a big crop is assured.

“Corn futures will be extremely sensitive to weather into summer, and dairy producers can expect to pay more for feed than they have in recent years,” Sharp concludes.

Forage Quality in Today’s Markets

Thu, 22 Apr 2021 15:21:03 GMT

How many times have you seen the words “Bitcoin”, “GameStop”, or “AMC” in the news this year? Likely a lot. These stocks and investments saw crazy price swings and attracted a lot of attention. However, if you were to ask your financial advisor over this time period, I doubt they were encouraging you to spend your life savings in Bitcoin. They likely encouraged you to stay the course, diversify the portfolio, and buy and hold. Price volatility should not cause you to change your overall strategy.

This holds true for how we should approach our forage quality in today’s markets. The large increases and changes in corn, soybean, and other feed prices may have some producers looking to alter their cropping plans. Even with expensive commodities, the basics of forage quality should remain the same. What should change, is the emphasis and energy we put towards achieving high quality forage.

Utilizing quality, home-grown forages is imperative to low-cost lactating rations, especially during time of high commodity prices. This has been demonstrated many times but let us compare two rations with different quality haylage and compare spring 2020 prices to spring 2021 prices (Table 1).

To start, lets compare the ration formulation with the two different haylage qualities. With high quality forages, the percent forage of the ration can reach over 60% of the ration dry matter. As haylage quality drops, to maintain the same level of nutrient available to the cow, we must substitute haylage with more nutrient dense and digestible feedstuff. In this example, we had to decrease haylage and increase the amount of corn gluten feed, canola, and other proteins.

As for cost, because we replaced forage with purchased commodities, the lower quality haylage rations had lower home-grown forage costs and higher purchased feed costs. When we compare ration costs within year, the rations with higher quality haylage are cheaper. However, the difference between low and high quality forage ration costs is much larger in 2021 than 2020. In 2021, the difference between rations was $0.16 per head per day and on $0.01 in 2020. This is because the substitutes that are used to replace lower quality haylage are much more expensive this year. From a cash standpoint, it also favorable to lower purchased feed costs and focus on creating a larger return on your investment in equipment, land, labor and energy by harvesting quality forage.

Do not bet the farm on speculative options to lower feed cost. In 2021, double-down on forage quality. Stick to the foundations, cut on time, chop at the right moisture, chop at the right length, pack hard, and seal tight.

	2021 Prices*		2020 Prices**
	High Quality (170 RFQ)	Low Quality (130 RFQ)	High Quality (170 RFQ)	Low Quality (130 RFQ)
Haylage	11.0	6.0	11.0	6.0
Corn Silage	25.0	25.0	25.0	25.0
Corn Grain	10.0	10.0	10.0	10.0
Corn Gluten Feed	4.0	6.5	4.0	6.5
Canola	4.0	5.0	4.0	5.0
Protein/Min Mix	6.0	7.5	6.0	7.5
Prices
Home-Grown Forage	$2.74	$1.92	$2.49	$1.71
Purchased	$4.38	$5.36	$3.57	$4.36
Total	$7.12	$7.28	$6.06	$6.07

* Haylage 170 RFQ ($95/ton), Haylage 130 RFQ ($70/ton), Corn Silage ($40/ton), Corn Grain ($204/ton), Corn Gluten Feed ($225/ton),

** Haylage 170 RFQ ($90/ton), Haylage 130 RFQ ($65/ton), Corn Silage ($30/ton), Corn Grain ($158/ton), Canola ($273/ton), Corn Gluten Feed ($165/ton), Protein/Mineral Mix ($533/ton)

The Do’s and Don’ts of Lowering Feed Costs

Tue, 23 Mar 2021 15:27:12 GMT

Feed prices are on the verge of being at their highest level in years. In turn, this has caused some major concern for dairy producers who are already facing tight margins.

However, when considering your options to lower your feed bill, there are some do’s and don’ts. Jordan Kraft-Lambert, vice president of business development at VAS, along with Mark Schlaefer, feed manger at Kinnard Farm in Green Bay, Wis., offer these tips:

What To Do

Get Visibility

“Most producers are feeding their cows by using spreadsheets, but some are just scribbling the rations down on a sheet of paper so there’s no real-time feedback about how accurately they’re feeding their animals a consistent ration,” Kraft-Lambert says.

To gain a better understanding of what’s actually happening at the feed bunk, she suggests using a feed management system to help monitor feed inventory, record trends and assist with management decisions.

“In order to help control feed costs, one of the best things a producer can do is invest in a feed management system because that gives you the ability to really see what’s going on,” Kraft-Lambert adds.

Track Progress

If you want to know where you’re going, it’s important to know where you’ve been. According to Kraft-Lambert, keeping track of your progress is a crucial step in a feed management program.

“I don’t know about you, but I have a terrible memory,” she jokes. “One of the great things about feed management software is you can set it up to send you email notifications to see how you’ve performed. It’s more of a coaching tool and a companion to help you understand how to be the best feeder possible.”

If you don’t have the means to invest in a feed management system, there are other ways to track your progress.

“Getting in the habit of making a little appointment with yourself to calculate your feed costs per pound of dry matter is a good practice,” Kraft-Lambert says. “Just looking at that every week can help you make better decisions as you’re deciding what feed to buy.”

Make Your Own

In just a matter of weeks producers will hit the fields to get their crops in the ground. It’s likely we’ll see farmers planting more of their own forages this year to help keep feed prices lower.

“When possible, the best thing you can do is make your own feed and control those costs,” Kraft-Lambert adds. “It’s important to have some in-depth conversations with your agronomist, particularly about how much nitrogen you need to be putting on your field. Getting the right amount of nitrogen into that corn crop means you’re going to have a lot of really great protein in your silage, which translates to the protein that ends up in the milk check.”

What Not to Do

Allow Feed Shrink

One item that might be racking up your feed bill could be feed shrink, Kraft-Lambert says. According to Ohio State University Extension, approximately 60¢ on the dollar is the average feed shrink per cow per day.

“What that means is in a 1,000-cow herd, if you solve just 5% of that 60¢ loss per cow per day due to feed shrink that’s $10,000 a year in decreased feed waste,” Kraft-Lambert says. “Feed shrink can come from a variety of places such as improper bunker management, feed blowing away on a windy day or even feed just not getting mixed properly in the mixer wagon.”

Overfeed Your Herd

Another area of opportunity is to make sure you’re not overfeeding certain pens. Kraft-Lambert emphasizes the importance of knowing how many animals are in each pen and scaling those rations appropriately. One way to measure this is by weighing your refusals.

“Before the next feeding, you can actually push up all of the refusals and weigh them every day to see how much your overfeeding,” Kraft-Lambert says. “If you are overfeeding, you might say to yourself, ‘There’s a lot of extra rations here I didn’t need to spend money on, but I did,’ and that can be frustrating. So, if you start to log and record those refusals, you can see where you are overfeeding and if you’re starting to make progress.”

At Kinnard Farms, Schlaefer and his team are constantly monitoring their refusals. They use three weigh-back wagons to record the amount of feed each pen does not consume.

“We try to aim for about a 5% refusal,” Schlaefer explains. “For a while, we were aiming for a 3% refusal, but 3% is pretty small. I remember going out there and thinking all of the bunks were empty even though the feed going back into the wagon weighed a lot. So, then we increased our goal to the 5% and the cows responded positively because it kept a little more of that feed in front of them.”

Cut Corners

While it’s tempting to eliminate some of the expensive ingredients in your ration to reduce costs, you might end up causing more harm than good.

“We don’t look at our ration and say, ‘let’s just take this ingredient out because the price is high,’” Schlaefer says. “A lot of those ingredients are what keep the milk flowing. You’re feeding them for a reason. So, if you take out some of those ingredients, the cows are going to drop production, and you’re going to lose some of your milk check.”

Typically, feed management protocols should be addressed before cutting certain ingredients from the diet.

Know everything

One of the most important relationships a producer should form on the farm is with their nutritionist, Kraft-Lambert says. This especially holds true when feed prices start to climb.

“Before you start to make any changes to your ration, it’s important to consult with your nutritionist to make sure you keep your cows on track,” she says. “Just having another set of eyes to look over your feeding program can be really helpful, so don’t be afraid to ask them questions. They’re there to help.”

Are High Feed Prices on the Horizon for 2021?

Mon, 04 Jan 2021 21:03:20 GMT

During the last few months of 2020, dairy producers began to take notice of the rising prices for several of their feed commodities. Corn markets began to tick upward, soybean meal took a giant leap and the demand for forage started to put pressure on the hay market.

With milk prices predicted to remain extremely volatile during the first few months of 2021, producers are anxious to know what to expect when the feed bill hits the mailbox. Here’s the current forecast:

$5 Corn a Possibility

Four-dollar corn was the new reality for 2020, but some analysts believe we could see the commodity hit $5 in 2021. Dan Basse, president of AgResource Company, is one of those analysts and says the sudden shift in the corn market is unrivaled.

“If I look back in my 40 years of being in this business, this happened so quickly in terms of loss of U.S. crop and world crop loss and the arrival of a big buyer (China), that it’s almost unprecedented,” he told Chip Flory on “AgriTalk.” “I’ve been saying that I’ve never seen anything like this, and when you get the combination of the lower supplies and the higher demand, it’s a rare combination.”

Basse says as hog production ramps up in China, and the Chinese resort to more refined production practices, the need for corn will continue to grow, causing prices to potentially hit that $5 mark.

Soybeans Soar

In mid-December, the USDA projected the season-average soybean price for 2020/21 to be at $10.55 per bushel – up 15 cents from the agency’s November World Agricultural Supply and Demand Estimates (WASDE) report. This would be the highest price for soybeans since 2014, when price reached $10.10 per bushel.

While the price surge has been encouraging for soybean farmers, dairy producers have been left shaking their heads at the current price for protein.

If you were not able to forward contract protein commodities early this fall, there are still a few affordable protein options.

“The best way to look at the situation is comparing the ‘value’ of different protein options to determine which products are the best buys,” says Trent Dado a nutritionist with GPS Dairy Group.

To substitute the degradable protein in soybean meal, Dado recommends corn by-products including distiller’s grains, corn-gluten feed and corn gluten because they are still relatively affordable.

Forage

The most constant dairy feed commodity in 2021 has been forages, with quality alfalfa hay prices remaining steady and little decline as quality decreases.

In the Hay Market Demand and Price Report for the Upper Midwest , provided by the University of Wisconsin-Madison, the hay price summary for large square bales has averaged between $100-$200 depending on quality grade.

For dairy states such as Wisconsin and Minnesota, prices have remained relatively stable with a strong demand for dairy quality large square bales. In other parts of the Midwest, demand has dipped slightly as producers continue to use up their current supply, causing prices to remain rather consistent throughout the year.

Feed Costs Too High?

Fri, 20 Nov 2020 05:32:56 GMT

Sky-high feed costs are making it tougher than ever for cattle producers to break even and make a profit. While high feed costs are a reality for every cattle operation today, you can better manage the costs on your farm or ranch by evaluating your long-term goals and daily practices.

Two basic factors should be considered to manage feed costs, says John Lawrence, director of the Iowa Beef Center (IBC) at Iowa State University (ISU).

“First, it’s a strategic issue. If you built your cow-calf or feedlot system around $2 corn, you need to reevaluate it because that world no longer exists. Your current system may work, but look at it in the light of higher feed and land prices,” Lawrence says.

Producers need to evaluate their entire operation, Lawrence says, not simply whether they are feeding the right products or coproducts. Producers may also need to change their grazing systems, cow size or weaning dates to better fit the environment.

Bonus Content:
ISU web tools to help you manage feed costs.

The second factor in managing feed costs is the day-to-day tasks such as reducing feed wastage, proper hay storage, not overfeeding cattle and checking for body condition. Attention to the details will help reduce feed costs, Lawrence says.

The IBC has an in-depth section on its Web site to help manage high feed costs. You can find the link at www.beeftoday.com by clicking on the headline “Feed Costs Too High?”

The section offers articles by ISU researchers and Extension specialists on all aspects of cattle production to help lower feed costs, including the “Top 10 Ways to Reduce Feedlot Costs” and “Top 12 Ways to Reduce Cow–Calf Costs.”

The IBC section on managing feed costs also offers assessment worksheets for feedlot cost management and for cow winter-feeding costs.

“The worksheets are popular with producers in workshops that our specialists conduct around the state,” Lawrence says. “Producers can evaluate their operations and find specific things they need to change to save money.”

By going through an assessment checklist and evaluation process, cattle producers can identify and prioritize areas that need improvement, and then develop an action plan to fix problems.

Operate efficiently. The assessment worksheet for feedlots has sections on nutrition and rations, feed delivery and bunk management, feed storage, feed additives, implant systems, records and tracking, budgeting and purchase costs, cattle marketing and improving cattle comfort. Each section has a series of items that are scored. The tallied scores may range from “excellent” to “needs to develop,” which helps producers determine the areas that require improvement.

By taking the cow winter-feeding cost assessment, producers can learn whether they fall into the high, average or low-cost production category. For example, the question “What winter grazing options are available?” can be answered with “None” (for a high-cost producer), “Owned stalk fields, hay stubble” (average-cost producer), or “Owned and leased stalk fields, stockpiled hay fields, winter annuals” (low-cost producer).

Once the initial assessment is completed, a producer can print an action plan of goals, performance measurements and essential steps to help meet the objectives. BT