Higher Feed Prices this Winter

Derrell S. Peel, Oklahoma State University Extension Livestock Marketing Specialist

The combination of drought impacts and high crop prices mean that beef cattle producers face significantly higher feed costs this winter.  Increased feed costs have been impacting feedlots for several months and the impacts will grow as cow-calf and stocker/background producers face additional feed and supplement needs this winter.

Prices are higher for both alfalfa and other hay across most of the country with the biggest increases in drought areas but impacting other regions as well.  USDA reported national average alfalfa hay prices up 20.5 percent year over year in the latest Agricultural Prices report for August.  The national average August price for other hay was up 13.4 percent compared to last year.

Markets for hay vary around the country. Alfalfa hay is always important for the dairy industry but use of alfalfa in the beef industry depends on the region.  Some states produce higher proportions of alfalfa, some more other hay and some states produce a balance of alfalfa and other hay. Generally, alfalfa hay production is more important for both dairy and beef production in northern tier states while in the southern regions, the beef industry relies more on other hay with alfalfa hay mostly directed to the dairy industry.

The epicenter of hay market impacts appears to be North Dakota along with surrounding states.  Prices for alfalfa hay in August were up 109.5 percent year over year with other hay prices up 69.4 percent over last year in North Dakota.  In South Dakota, August alfalfa hay price was up 62.0 percent and other hay price was up 62.9 percent year over year. Minnesota prices for alfalfa and other hay were up 63.1 percent and 54.5 percent, respectively.  In Montana, alfalfa hay price was up 53.8 percent over last year in August and other hay price was up 39.3 percent.  In the Southern Plains, despite not being impacted severely by drought, hay prices are higher.  The latest other hay prices reported for Oklahoma are up 23.5 percent year over year and in Texas, other hay prices are up 10.6 percent from one year ago.

Most cattle producers will need supplemental feed in addition to hay this winter.  The amount and type of supplement needed depends on the type and amount of hay available for beef cattle.  Crop and feedstuffs prices are sharply higher this year led by an export driven corn market.  Current corn prices in the southern plains are 40-50 percent higher year over year.

Soybean meal prices are lower than last year as strong soybean oil prices are driving the soybean crushing market.  However, most other protein and energy feedstuff prices are significantly higher compared to last year.  Prices are higher for cottonseed meal, whole cottonseed, corn gluten feed, distillers’ dried grains, hominy feed, wheat middlings and other common supplemental feed ingredients.  However, the amount of increase varies by ingredient type and source.  Producers are encouraged to shop around and evaluate a range of supplement alternatives.

With higher prices for hay and supplement feeds, producers can reduce winter feeds costs with enhanced management.  The process begins with understanding nutritional requirements of cattle by stage of production.  Testing and weighing hay will help determine the nutritional contribution of hay to meet cattle needs.  Careful feeding of hay can help reduce waste and make hay stretch farther.  Determine the additional needs for protein and energy and source supplement feeds that provide needed nutrients.  This is a good year to put some extra effort into feed management.

Evaluating Feeds on a Cost per Unit of Protein and Energy Basis

Mark Z. Johnson, Oklahoma State University Extension Beef Cattle Breeding Specialist

Oklahoma has finally received much needed moisture and a break from summer heat, finally it feels like fall!  Over the next two weeks, we will be discussing the evaluation of feedstuffs on a cost per nutrient basis.  From a nutritional standpoint, cattle basically need protein, energy, vitamins, minerals and water.  Assuming free choice vitamin/mineral and water is in adequate supply, most nutritional supplementation and feeding focuses primarily on the crude protein (CP) and energy (TDN) needs of cattle.  Furthermore, nutritional needs of cattle vary by age, size, stage of production, environmental conditions and weather, gender, breed and other factors.  In any nutritional program it is imperative to determine the objective of why we are feeding or supplementing.  Are we trying to grow light weight calves in a dry lot until wheat pasture is available?  Are we maintaining condition on pregnant cows until calving season or do cows need to gain some condition before calving season?  What size are our cows?  What is the nutritional content of the standing forage or hay we have on hand?  These are just an example of answers needed to determine the goal of our nutritional program.  That being said, this week we take a look at evaluating feed based on nutrient content as opposed to just looking at price per ton or bag.

At the time of this writing, 38% CP, 70% TDN range cubes are available at a bulk price of $425/ton, the same commercial feed mill has 20% CP, 70% TDN cubes priced at $312/ton.  Protein and TDN contest are on an “As Fed” basis.  If we are in a situation requiring protein supplementation of cows grazing warm season grass this fall, either of these protein supplements could meet our needs, but which is the more cost effective alternative?  At a glance, $312/ton strikes most of us as a more cost effective feed.  So what are we actually getting?

At a cost of $425, one ton of 38% cubes contains 760 lbs. of CP and 1,400 lbs. of TDN:

For example: 2,000 lbs. x .38 = 760 lbs. and 2,000 x .70 = 1,400 lbs.

The cost per unit of CP is $.56/lb., the cost per unit of TDN is $.30/lb.

For example: $425/760 lbs. = $.55921 and $425/1,400 lbs. = $.30357

At a cost of $312, one ton of 20% cubes contains 400 lbs. of CP and 1,400 lbs. of TDN:

For example: 2,000 lbs. x .20 = 400 lbs. and 2,000 x .70 = 1,400 lbs.

The cost per unit of CP is $.78/lb., the cost per unit of TDN is $.22/lb.

For example: $312/400 = $.78 and $312/1400 = $.2228

So, we have determined the more cost effective source of CP is the 38% cubes and the more cost effective source of energy is the 20% cubes.

What is the most cost effective feed?  Depends on our objective.  What we are we feeding/supplementing and why?

Next week we will take a look at specific feeding/supplementation goals to answer that question and take a closer look at the potential expense of feed purchased strictly based on price per ton or bag.

References

Beef Cattle Manual. Eight Edition. E-913. Oklahoma Cooperative Extension. Chapter 16

Animal Disease Traceability

Dr. Rosslyn Biggs, OSU Extension Beef Cattle Veterinarian

As a result of the current pandemic, terms such as “herd immunity,” “infection rates,” and “contact tracing” are now part of daily conversations. Similar terms and principles would apply if an incursion of a foreign animal disease, such as foot and mouth disease, occurred in the United States. In such situations, animal disease traceability is critical to emergency response efforts.

Animal disease traceability (ADT), as defined by the United States Department of Agriculture (USDA), is knowing where diseased and at-risk animals are, where they’ve been, and when. ADT does not prevent disease introduction, but does allow expedited emergency response. Accurate and timely response is critical for both producers and industry.

ADT allows official individual identification of animals and rapid tracing during an outbreak. One ADT system that allows individual identification is the National Uniform Eartagging System (NUES).  This system has been used for years and is familiar to many producers.  The common names for these tags are “Bangs tags” or “Silver Bright tags.  These tags are used for cattle requiring brucellosis vaccination or tuberculosis testing.

Another system of official identification involves the use of radiofrequency (electronic) tags beginning the tag number with the digits 840.  Radiofrequency identification (RFID) tags are available as low frequency and ultra-high frequency. In certain circumstances other forms of identification, such as registration tattoos and brands, may be used as official identification.

Currently, official identification is required only under certain conditions and for certain classes of cattle. The two primary situations requiring official identification are program disease testing (such as that required for brucellosis) and interstate movement.

The cattle classes requiring identification when moving interstate are listed below. Exceptions to this requirement do apply under unique movement types, such as travel for veterinary care. Feeder cattle and animals moving directly to slaughter do not require official identification for interstate movement.

Classes of cattle requiring USDA official identification for interstate movement include:

Beef Cattle & Bison

• sexually intact and 18 months or older
• used for rodeo or recreational events (regardless of age)
• used for shows or exhibitions

Dairy Cattle

• all female dairy cattle
• all male dairy cattle born after March 11, 2013