Declining grain prices are not generating many smiles in the ag sector, unless you turn to livestock industries, like dairy, where lower grain prices mean cheaper feed rations. This trend is providing relief for dairy producers and adding a layer of optimism in times when other sectors are scrambling for profitability.
Independent dairy financial consultant, Gary Sipiorski, notes that feed costs comprise a significant portion of the dairy farm’s gross income, ranging between 20% to 45%, depending on the amount of feed produced by the farm itself.
“If you purchase all your feed, your feed cost will push to be around 50% of the milk check,” Sipiorski explains. “Feed is the biggest cost to a dairy and each farm needs to individually evaluate depending on variables such as needs and forage quality.”
By KAREN BOHNERT
July 10, 2024
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