price of feed

[pbnewbie]

I asked this question in another thread, but decided it might be better to break it out:

I went to Tractor Supply yesterday and discovered that the cost of steamed oats that I sometimes use for my horses has doubled in price. I couldn't believe it. I asked the person working there if the price was correct, and he said yes. He also said that anything having to do with feed was going through the roof because of the corn situation and ethanol. So, if the price of feed is going to double, HOW are ranchers going to be able to stay in business? This is a serious question for me because I have yet to make the investment, even though I have the acreage. I would like any and all serious replies because I'm seriously considering selling off the surplus acreage and calling it a day.

Any thoughts???

 

[ArrowHBrand]

Two weeks ago I went into our local elevator to order cracked corn/whole oat bulk feed and about passed out when she told me the price of oats. It was almost the same price as corn! Using corn to produce ethanol is a part of the drastic price increase of feedstuffs, but also the cost of fuel is pushing the prices up too. If the extra acreage you have is tillable maybe have some oats planted or hay planted. Hay is also going up up up. If that's not possible I would just sit on it. What goes up must come down and when it does come down, you will have the space to expand. Right now not many people can feed a large herd and I think large ranchers are diversified enough that they can supplement their income by selling hay or custom feeding livestock. I just don't know how long these prices can stay up and not push out the small producer. There are more cattle produced by the small producer than by the large producer. It's going to be interesting to see how long ethanol will be made from corn.

 

[pbnewbie]

Interesting. I hadn't thought about the price coming down. I wonder how long before we know if this ethanol thing is a passing fancy or here to stay? And if it's here to stay, how is it going to affect farmers?

 

[Crowderfarms]

Staying away from TSC for your Feed is one way you can beat high prices.

 

[pbnewbie]

yeah, I realize Tractor Supply is high, but doubling the price overnight was a shock. I'm just afraid that with the cost of feed being so high that the cost of beef will go so high, it'll be priced right out of the market. With the cost of transportation and the cost of feed, the cost of beef has to be going up. Right??? People will only pay so much before they start eating something else - like chicken.

 

[Crowderfarms]

yeah, I realize Tractor Supply is high, but doubling the price overnight was a shock. I'm just afraid that with the cost of feed being so high that the cost of beef will go so high, it'll be priced right out of the market. With the cost of transportation and the cost of feed, the cost of beef has to be going up. Right??? People will only pay so much before they start eating something else - like chicken.

Steamed Oats are predominantly Horse Feed. Oats have been high for a few months now. The prices of EVERYTHING have risen, due to Fuel costs, and unstable markets. I dont think you'll have to worry about anyone wanting a Chicken breast or drumstick over a Ribeye, or T Bone...

 

[pbnewbie]

I know oats are mostly horse feed. Cattle are mostly raised on grass and then finished off with grain, correct? And isn't the price of grain also going through the roof?

 

[backhoeboogie]

Feed for cows is pretty much out of the question. They get good grass. Occasional cubes to keep them coming to the pens or when I cross the road to another pasture. Like one a month.

The news this a.m. said the cotton crop here was suffering drastically because of all the rain. I am wondering how that can affect cube prices.

 

[Gate Opener]

Chickens eat grain also or at least they are supposed to.

I don't know what your setup is but since you have pasture, let your cows eat grass and don't grain them. Ours only get grain to keep them accustomed to my call and to get them where I want them to go.

Going back and reading your question sounds like it may be broader than your personal situation. I'm not sure what will happen to ranchers. Will it only be the end guy getting the big money if the prices of meat get real expensive or will we actually do better because the consumer is paying more for the finished product? Will the price for calves at auction go down since the feedlots have to feed grain? I don't know. Can anyone speculate? Anyone been through this before?

 

[pbnewbie]

Will it only be the end guy getting the big money if the prices of meat get real expensive or will we actually do better because the consumer is paying more for the finished product? Will the price for calves at auction go down since the feedlots have to feed grain? I don't know. Can anyone speculate? Anyone been through this before?

yeah, this is what I'm wondering. We sold off cattle last year because of the drought and i haven't re-invested. It's looking like a bad crap shoot right now, and I'm just wondering if I should do something else.

gotta get to church! I'll look for responses this afternoon. Thanks!

 

[J&T Farm]

Our cows only get grain if we are getting them up to work them. We have chicken houses so we have plenty of litter. So our grass and hay are all our cows get along with good mineral.
We have a neighbor that feeds his cows everyday. But he doesn't have enough grass to hold them. I don't know how he does it. He is 82 and he lets 8 cows at a time come in his barn to eat when they finish he lets 8 more in. He has about 40 head of mommas and then he feeds his calves in a pen. He has done it his whole life.

 

[Herefordcross]

Grain is cheaper than hay right now in some places. IF YOU GIVE THE COW WHAT SHE NEEDS. As long as I can remember it always has been cheaper to buy bags than grass in a drought. I stress the point greatly of giving the cow what she needs not what she would like to have.

 

[ArrowHBrand]

I think ethanol is here to stay because it is a great fuel source. However, I don't see it being made from corn for very long because corn is such an important feedstuff and food commodity. Brazil makes their ethanol from sugar cane and sugar beets. That is why it is so much cheaper than ours. Also they have mandated flex fuel vehicles in Brazil. There was 92.5 million acres of corn planted this year, I wonder how many acres of that will be turned into ethanol?

 

[Brandonm2]

I think people getting too and from work and freight getting to market is more important than cheap chicken or grain fed beef. Corn ethanol is here to stay and is liable to use MOST of the corn crop in coming years. We need to accept this and get our farms adjusted to less corn reliance.

 

[MoGal]

Well, farmers are good are what they do: Produce

They will over produce corn as well one of these days, providing mother nature cooperates.

 

[TheBullLady]

I would grass feed the beef and save the bagged feed for calling them up or penning them. Growing forage is a lot easier (usually) than buying feed. Just make sure you make the most of your pastures, and don't overstock. Rotational grazing is a great tool to consider.

 

[pbnewbie]

I would grass feed the beef and save the bagged feed for calling them up or penning them. Growing forage is a lot easier (usually) than buying feed. Just make sure you make the most of your pastures, and don't overstock. Rotational grazing is a great tool to consider.

I had intended to grass feed all along, but I just started wondering, given the market conditions, if there was even going to be a market available.

 

[dun]

I think that the market is going to be for heavier calves to go to market. That way the feedlot doesn;t have to feed them as long. 5 weights will be out but 7-8 weights should shine.

 

[pbnewbie]

I think that the market is going to be for heavier calves to go to market. That way the feedlot doesn;t have to feed them as long. 5 weights will be out but 7-8 weights should shine.

Thanks. It'll be interesting to see how it actually plays out. There are so many economic pressures right now, it's scary.

 

[Herefordcross]

Think about it this way. If you would have penned all of your cattle up on a pad of concrete this summer and planted all of your acreage in corn look what you would have in the bank.