Farmers Make Hay for Cattle, but That Could Be Eating Into Profits

By Harshawn Ratanpal

A new report from the U.S. Department of Agriculture shows the number of cattle in the U.S. is at a record low. Beef prices are up, but many farmers still aren’t turning a profit.

Carson Roberts is the state forage specialist with University of Missouri Extension. He said to increase profits and incentivize more supply, costs need to fall.

“The low hanging fruit? Hay,” he said. “It is the single largest line item in a cattlemen's annual budget.”

Most farms have a profit margin of less than 10%, according to the U.S. Department of Agriculture. While some farmers diversify their income by growing hay for their own use and selling the extra for more revenue, Roberts said that’s one of the things keeping them in the red.

“The farmers that I know that aren't making hay and that are feeding very little hay are very profitable,” he said. “I mean, they’re making close to $400 more per cow than what is normal in the state, and that's a big number.”