Winter feeding remains the largest cost in Canadian cow-calf production, according to 2024 benchmark data from Canfax Research Services.
Feed costs accounted for about 63 per cent of cash costs and 37 per cent of total production costs in 2024. In 2020, feed represented 56 per cent of cash costs and 33 per cent of total costs. Rising input prices over the past five years have pushed winter feeding to the centre of profitability discussions.
The data shows that competitive cow-calf producers are usually competitive winter-feed producers as well. Within the cost of production (COP) network, producers purchased an average of 11 per cent of their feed. Farms that relied more heavily on purchased feed generally reported higher feed costs.
Purchased feed also increases risk. During drought years, feed prices can rise sharply and strain cash flow. As a result, homegrown feed remains a key factor separating profitable operations from those operating at a loss.
2024 feed cost benchmarks
In 2024, average approximate feed costs reached $690 per cow. This figure includes feed, machinery, fuel, energy, and water costs. Feed costs rose five per cent from 2023.
Costs increased by three per cent in Western Canada and nine per cent in Eastern regions. Despite the overall rise, results varied widely across farms.
About one-third of benchmark farms reported feed costs below $600 per cow. The top-third most profitable operations averaged $559 per cow. These farms fed cows for an average of 204 days at a daily cost of $2.76 per head.
Days on feed ranged from 60 to 250 days across benchmark farms. The data shows that days on feed alone do not determine cost levels. Management decisions play a much larger role.
Feed type versus feed management
Canfax grouped benchmark farms by primary winter forage type. These groups included hay, silage, annual forages, and combinations of these feeds. Feed costs varied across systems, but no single feed type consistently delivered the lowest costs.
Over the past five years, hay- and silage-based systems recorded the largest cost increases. These systems rose by more than 50 per cent since 2020. Annual- and silage-based systems saw the smallest increase and remained the lowest cost on average.
Daily feed costs in 2024 ranged from $2.04 to $11.72 per head. Top-performing farms recorded daily feed costs that were 26 per cent lower than the average. This efficiency reduced annual feed costs by 19 per cent.
Improving winter feeding competitiveness
As input costs remain high, the benchmarks highlight the importance of efficient forage production and feeding practices. Higher-yield regions benefit from natural advantages, but lower-yield regions can still compete.
Producers can improve competitiveness by selecting forage species suited to local soils and moisture conditions. Proper fertility management and timely harvest also support both yield and quality.
Reducing machinery passes can lower harvest costs. Optimizing bale size and density can cut labour, transport, and storage expenses. Producers can also limit storage losses by using net wrap or plastic and storing bales off the ground.
Feed efficiency remains critical. Forage testing helps match feed quality to cow requirements and prevents overfeeding. Feeding lower-quality forage to dry cows and reducing waste at the feed bunk can further control costs.
The 2024 benchmarks send a clear message. Winter feed costs drive cow-calf profitability, and strong management matters more than feed choice alone.
