Runup in corn prices puts pressure on Iowa cow/calf producer
A cow/calf producer in northeast Iowa figures the difference in feed costs between $4 and $5 corn is about 20 percent.
And Willie Morris of Plainfield says for each percentage point corn prices rise, it reduces the calf price .185 cents.
“You take that times 20 (and) it’s significant. And then beyond that, when corn is high more hay acres get taken out of production and put into corn. So we can utilize more hay if corn is high and silage is high, but that drives the price of hay higher as well.”
He tells Brownfield there aren’t many ways to mitigate higher feed costs, but cover crops might be part of the solution.
“A lot of people planted cover crops and terminated them before they go to beans or corn again. I think we’re going to let those cover crops survive longer and harvest them if we’re able to, those of us feeding cattle.”
Morris says as corn prices climb, more farmers are dumping feeder cattle, driving that market lower.