Iowa Beef Center

By Dan Loy, Iowa Beef Center

Feed costs have been increasing since 2007, but recent developments have moved feed costs into uncharted territory. After 40 years of $2 corn livestock producers became quite comfortable with these costs and with the relationship between year to year feed cost fluctuations and the cost of production.  2007 brought a new plateau in feed (corn) costs which have continued to increase, along with increased variation and volatility. These appear to be the new rules of feed cost economics.

Perhaps the most dramatic change that has occurred during this time period is that corn is no longer the lowest cost source of feed energy. This is a drastic change in Iowa, where “corn-fed” is often considered to be the middle name of Iowa Beef. For much of the past 100 years, the best cattle feeding ration has included corn, home-grown forage and a complete protein-based supplement. Today the best options are more local and may change from year to year. To be the low cost producer today takes a new approach to management of feed, ration and cattle. Check out the latest issue of  “Growing Beef Newsletter” for suggestions to consider as you develop feeding programs for the upcoming year.

What are you doing to control the increased cost of feed in your operation?

Director's Comments, Feed/Corn Coproducts, Feedlot Operations, Uncategorized cattle feed, distiller's grains, IBC newsletter

The November issue of the Iowa Beef Center newsletter, Growing Beef, is now available! Robert Jolly, Iowa State University economics professor, walks feedlot operators through preparations for upcoming meetings with their ag lenders. Click here to read Jolly’s recommendations on understanding your lender and developing a plan regarding your operation’s financial future.

For more information on working with your ag lender and understanding your operation’s financial future, check out the following Iowa State University Extension resources:

• Ag Decision Maker Web site: An agricultural economics and business site
• “Obtaining a Business Loan” : article from Ag Marketing Resource Center
• “Financial Terms” : article from Ag Marketing Resource Center

Economics & Markets, Feedlot Operations ag financing, ag lender, IBC newsletter

The October issue of the Iowa Beef Center newsletter, Growing Beef, is now available!  This month’s issue focuses on preparing your organizations for winter, including articles on getting your feed supply ready for winter and fall prep for tackling winter cattle comfort. Click here to read the latest issue of Growing Beef. Extra education is available to help you prepare for the trials of the coming winter weather:

Assessment Tools

• Feedlot Cost Assessment Tool
• Cow Winter Feeding Cost Assessment Tool
• Feedlot Environmental Management Tool
• Feed Energy Indexing Software

Articles

•  Managing Cow Herd Feed Needs
• Ways to Reduce Handling Stress
• Wintertime Feeding for Reducing Cattle Stress
• Grazing Corn Residue: Using Resources and Reducing Costs

Cow-Calf Operations, Feed/Corn Coproducts, Feedlot Operations cattle comfort, IBC newsletter, preparing for winter, winter feed