1/30/2008 9:43:00 AM
Cattle Update: Ruminant Livestock, Facing New Economic Realities Programs Are Set
Certainly, 2007 was a challenge for cattlemen across the Midwest. On top of strengthening feed grain prices which began in the Fall of 2006 and have continued to the present, we've experienced a widespread lack of forage production. In fact, grain and feed prices are as high, and forage inventories as low as they've been anytime in recent history. Most Ohio cattlemen have improvised, in many cases by simply purchasing feed, utilizing alternative feed resources, employing a rigid culling program in their herds, or a combination of all of the above in an effort to get through until spring.
Soil moisture reserves are being adequately restored this winter. This means grass will turn green again in the spring. Yes, forages will grow again. Yet, it's not likely cattlemen or other ruminant livestock producers will experience an abundance of low cost, high quality forage and feedstuffs again for years to come. With so many acres which were traditionally in forages being attracted into row crop production, simply put, the "rules" which dictated that we could consistently "feed a profit" into ruminant livestock have changed. The result is that in the foreseeable future we face new and different economic realities in the livestock industry.
In an effort to remain competitive we need to make management changes. Some as subtle as simply dividing a pasture with one more fence, or as extreme as eliminating round bale feeder rings from the operation. The new reality is that perhaps co-product feeds may become the norm and not the exception. Or, will distillers grains become the primary source of phosphorus for both livestock and as a soil fertility amendment? Could perennial stands of harvested hay, corn grain and bean meal be pushed aside as the staple feed of ruminants? Is it possible that hay acres might be replaced by corn silage production as a lower cost forage option? And, maybe we need to return wheat to the crop rotation, and make annual forages the "traditional" double crop of choice?
Cattle Update: Ruminant Livestock, Facing New Economic Realities Programs Are Set
Certainly, 2007 was a challenge for cattlemen across the Midwest. On top of strengthening feed grain prices which began in the Fall of 2006 and have continued to the present, we've experienced a widespread lack of forage production. In fact, grain and feed prices are as high, and forage inventories as low as they've been anytime in recent history. Most Ohio cattlemen have improvised, in many cases by simply purchasing feed, utilizing alternative feed resources, employing a rigid culling program in their herds, or a combination of all of the above in an effort to get through until spring.
Soil moisture reserves are being adequately restored this winter. This means grass will turn green again in the spring. Yes, forages will grow again. Yet, it's not likely cattlemen or other ruminant livestock producers will experience an abundance of low cost, high quality forage and feedstuffs again for years to come. With so many acres which were traditionally in forages being attracted into row crop production, simply put, the "rules" which dictated that we could consistently "feed a profit" into ruminant livestock have changed. The result is that in the foreseeable future we face new and different economic realities in the livestock industry.
In an effort to remain competitive we need to make management changes. Some as subtle as simply dividing a pasture with one more fence, or as extreme as eliminating round bale feeder rings from the operation. The new reality is that perhaps co-product feeds may become the norm and not the exception. Or, will distillers grains become the primary source of phosphorus for both livestock and as a soil fertility amendment? Could perennial stands of harvested hay, corn grain and bean meal be pushed aside as the staple feed of ruminants? Is it possible that hay acres might be replaced by corn silage production as a lower cost forage option? And, maybe we need to return wheat to the crop rotation, and make annual forages the "traditional" double crop of choice?
