By Blake Jackson
Missouri ranks eighth nationally in hay production, generating 4.83 million tons annually, according to the Missouri Department of Agriculture. While hay plays a key role in feeding beef cattle and other livestock, making it may not always be the most profitable strategy for cow-calf producers.
“Despite the vastness of the hay industry, making hay can be an indicator of an unprofitable cow-calf enterprise,” says University of Missouri Extension state forage specialist Carson Roberts. “Every measure to improve profit margins should be taken to capitalize on the record-breaking cattle prices.”
Although it's commonly believed that producing hay is the cheapest way to feed cattle in winter, Roberts disagrees. “This couldn’t be further from the truth. Hay is expensive to make, expensive to feed.”
Roberts highlights 10 reasons to reconsider making hay:
- Equipment costs have soared, with machinery inflation outpacing cattle prices by 10-to-1 over the last 50 years. In the 1970s, 14 weaned calves could buy a new baler, but today it takes 41.
- Many smaller farms are over-equipped. Farms with fewer than 400 cows would likely be more profitable selling hay equipment and purchasing hay.
- Haying is time-consuming. Roberts notes many producers spend valuable time on $15/hour work when they should focus on higher-value activities like marketing or pasture improvement.
- Forage quality is inconsistent due to weather delays, but purchased hay allows full control through testing. “You can 100% control the quality of the hay you purchase. You cannot always control the quality of hay you make.”
- Haying removes vital nutrients from soil, with fertilizer value around $72 per ton of fescue hay.
- Alternatives like custom grazing or stocker operations often pay better per acre. MU research suggests stocker enterprises could earn $200 more per acre than hay production.
- Labor shortages and rising costs make hay production challenging. “Most hardworking young people are interested in making money, and they expect to be compensated for their marketplace value.”
- An oversupply of hay, combined with fewer cattle, has lowered hay prices recently.
- Haying can degrade soil by removing carbon, essential for soil health. Fertilizers can’t fully replace biomass benefits.
- Cheaper winter feeding options, like milo grazing and stockpiled fescue, can cut feeding costs by over half. Roberts notes, “Reducing hay sounds great, but you can’t starve weight onto a cow.” Still, stockpiled forages often match or exceed average hay quality at a fraction of the cost.
“Not only is it possible, it is essential if you are serious about making money as a cow-calf producer,” says Roberts.
Photo Credit: gettyimages-ianchrisgraham
Categories: Missouri, Crops, Hay & Forage