By mid-November, most cow-calf operators in the U.S. are feeding hay or preparing to do so, as winter feed costs represent the largest expense in cow-calf production. Following a tight hay supply in 2022, 2023 saw improved production, leading to better hay availability. The USDA’s October Crop Production report projected a more than 5% increase in 2024 non-Alfalfa hay production compared to 2023, despite a slight downward revision from earlier estimates. This increase, coupled with higher spring hay stocks and a likely smaller cow herd, suggests improved availability for the upcoming winter.
Regional Variations in Hay Production
Hay production trends vary across regions. Most states are experiencing increases, but notable exceptions include Tennessee and Oklahoma, where declines are driven by reduced yields and fewer harvested acres, respectively. These regional disparities highlight the importance of local supply dynamics in determining hay availability and pricing.
Hay Values and Winter Feed Costs
Although hay values differ by region, the majority of hay used for beef cattle is produced on-farm, adding complexity to cost calculations. Winter feed costs are influenced not only by hay prices but also by storage and feeding efficiencies. For example, reducing hay storage and feeding losses from 25% to 15% can save up to 28 cents per day for a 1,300-pound cow when hay is valued at $120 per ton. Similarly, a $20 per ton decrease in hay costs can save between 34 and 45 cents per day, depending on loss rates.
Strategic Considerations for Profitability
Understanding winter feeding costs is essential for improving profitability in cow-calf operations. Strategies to reduce feed costs, such as minimizing storage losses and optimizing feeding practices, can significantly impact overall profitability. As hay availability improves and prices stabilize, producers are encouraged to focus on cost-efficiency measures to navigate the winter feeding season effectively.
