While the necessity of feeding supplements in cattle operations is undeniable, it’s not a task that most ranchers relish. As we all know, feed costs can be a significant financial burden, often constituting the most considerable portion of annual expenses. However, by implementing strategies to reduce these costs, such as optimizing forage production and minimizing hay waste, you can save a substantial amount. This not only eases the financial strain but also significantly improves your operation’s overall profitability.
As I said before, the total amount that it can cost you depends on a few things. Such factors include the time of year and the current forage conditions. In a drought situation, feed costs can total 70% of the total yearly expenses.
Reducing feed costs without sacrificing overall production may seem challenging. However, it’s crucial to understand that some producers, known as ‘low-cost producers,’ have mastered this balance. They recognize that productivity is vital to any successful operation, and this understanding is what makes them sustainable and profitable.
Increase forage production for feed.
Forages are not just a component but the foundation of any successful cattle operation. A genuinely profitable cattle operation will prioritize forages as the cornerstone of its nutrition program, recognizing its pivotal role in reducing feed costs and enhancing profitability.
If managed correctly, forages can provide most of the nutrients your cattle will need with minimal supplementation. When there are enough excellent quality forages for your cattle to consume, then being profitable will become easier. But how can you increase your forage production?
The first step in increasing forage production is doing a soil test. A soil test, more than other tests, can affect the economic efficiency of your forage production. When you know what nutrients your plants need, you can then fertilize and lime as needed to ensure good yields in your pasture. To learn more about soil tests then, check out a previous article of mine, “Don’t hold back your soil test.”
Weeds and stocking rates
Keeping weeds in check is critical in improving both qualities as well as the quantity of your forages. When there is too much competition from your more undesirable plants, overall productivity will suffer. When weeds are allowed to take over a pasture, your land’s overall grazing capability will decrease.
The stocking rate may not go with forage production, but I assure you it does. Some producers may think they have a specific stocking rate, but their land’s carrying capacity is much lower. Things like rocks and bare spots can affect your stocking rate. You need to know your real stocking rate for the sake of not overgrazing and damaging your pasture forage production. I discuss finding out your real stocking rate in the article “Estimating your grazeable acreage.”
Reducing feed costs and improving forage production is not a one-time fix but a strategic investment. It requires a systematic approach and a long-term perspective. While the results may take time, if done correctly, they will have a significant and lasting impact on your bottom line.
Test your forages
Knowing the kinds and amounts of nutrients your forages provide is valuable information. With this knowledge, you can make better decisions on what types of supplements, if any, are needed.
Because forage quality will change based on the time of year, you will need to do this test at different times. Doing it that way will give you a good idea of what your forages are providing during certain times. Once you know this, you can then make better decisions on the supplements you may need to “fill in the gaps” in your cattle’s nutrient requirements.
When you are testing the hay bales that you will be feeding, it is crucial that you divide the bales into lots. Once the criteria are set, separate them based on the cutting they came from. 1st cutting hay will have better nutrients available over, say, 3rd cutting simply because of the stage of forage production. Also, when feeding, you will know what bales will require any additional supplements.
Feeding without a thorough forage analysis is akin to guesswork. While you might occasionally get it right, more often than not, you’ll end up spending on supplements that may not be necessary. Accurate forage analysis is a crucial tool for informed decision-making and cost optimization.
Minimize hay waste
Hay can represent the single most significant feed cost for a cow producer, not just the hay itself. You also have to consider the equipment prices, fuel, and fertilizer. Hay can cost between $0.02 and $0.07 per pound of dry matter. That can be more than double the cost of other sources.
How you store and feed the hay will play a role in reducing potential waste. According to a study by Oklahoma State, losses during storage can account for up to 50% of the dry matter of the bale.
When feeding that bale of hay, how you do it will determine the amount of waste that will occur; when providing, you will want to place it in some kind of rack, such as a hay ring. Being in a rack will keep the battle from walking all over it or dropping feces on it, making it useless. Studies have shown that not using a type of rack for hay can lead to losses of up to 40% of the bale.
Track your feed costs.
Unfortunately, it is virtually impossible to completely eliminate supplements if you want to be an efficient cattle producer. Since you will not be able to drop this down to 0, it is vital that you keep track of what you are spending your money on.
By keeping a record of the supplements that you are buying, you will be able to identify if any patterns happen to occur. Any patterns outside of weather conditions might indicate that you have a problem that needs to be corrected. You should improve your forage production or look for better-quality hay.
By keeping track of your feed purchases, you can predict when it is that you will need supplements beforehand. By having that information, you can then pre-contract your feed purchases with your chosen supplier. In many cases, you can get them at a discount.
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