After two years of carrying the burden of elevated feed costs, Illinois cattlemen now see a decrease in corn prices.

Elevated corn costs can be attributed to a massive drought that has swept across the state for over two years, as well as a constantly high demand for ethanol. For Illinois cattlemen, the rise in corn costs has especially affected the price of cattle feed. 

“In the last five years, corn prices have shifted upwards,” said Travis Meteer, a University beef extension educator. “Previous to the ethanol era, we lived in a world of cheap corn prices.”

The creation of ethanol developed a new market for corn; when the demand for corn went up, so did its cost. In the last two years, a massive drought has caused record-high feed costs, Meteer said. The drought was the worst to hit western Illinois since the 1930s. No matter the size of the cattle farm, the elevated feed costs have affected everyone, he added.

“Let’s say you go to the grocery store, and five years ago bread was a dollar a loaf, but this time when you go, it’s three dollars a loaf,” Meteer said as an example. “For a family of six, it’s going to affect them a bit more, but everyone is still going to have to buy groceries at an elevated price.” 

Last year, a bushel of corn, which is about 56 pounds, cost between $7 and $8 because of the poor crop yield, Meteer said. This year, farmers have had a much better yield, causing corn prices to drop between $4 and $5, Meteer said.

But this lowered corn price isn’t necessarily ideal. Farmers have consequently been looking for and using other alternatives, Meteer said. 

“In an effort to save their feed, cattlemen have been using their harvested corn fields as an opportunity to feed their cattle,” he added.

Aaron Mitchell, a senior in ACES, grew up on a dairy farm. Currently, the Mitchell’s are milking about 120 cows, but own around 250. His family feeds all of their cows a total mixed ration, or TMR. 

The TMR consists of corn silage, haylage, dry hay and corn gluten, among other things. Usually, when a farm has both crops and animals, part of the crop is designated to feed the animals and the other part is often meant to be sold for ethanol production, Mitchell said. However, even when the corn yield is low, the animals still have to be fed. The drought became a problem for Mitchell’s family when they had to start feeding their cows corn they could have sold, he said.

“Even though you’re not buying as much feed, you’re still losing out on crops you could have sold,” Mitchell said.

Unlike other local farmers, Mitchell’s family cannot allow their cattle to graze on harvested fields because of their restrictive milking schedule. The cows are milked two to three times a day, which doesn’t allow for the extra transportation that would come with bringing them out to the fields.

“You can do that with beef, but it’s not really a feasible option for dairy cows. Beef cows, all they do is eat and lay down,” Mitchell said.

Still, there are other alternatives for feeding cows besides having them graze on harvested fields. 

“There are farms that feed their cows bakery waste or bi-products of ethanol. In California, I’ve seen them feed citrus pulp to their cows,” Mitchell said.

William Haas, a junior in ACES, has been showing cattle since he was 8 years old. 

“The higher quality the feed, the better the animal will look,” he said. 

Haas, like Mitchell, experienced a more difficult year in 2012. Typically, Haas would pay $400 per ton of feed, which feeds two calves for a month. But last year the Purina feed he preferred to buy cost up to $700 per ton. When cattlemen can’t afford the feed for their cattle, they are likely to sell them before they are market ready. 

These “cull cows” cost around 55 cents less per pound than their market ready counterparts.  

“Last year a lot of farmers only got by due to the fact they had insurance,” he said.

Despite the poor conditions incurred by the drought, cattlemen continue to seek out alternatives to paying the price for elevated feed. The good news, Meteer said, is with the effects of the drought subsiding, the prices of feed should continue to drop.  

Haas cited President Barack Obama’s speech, which he gave when he reopened the government on Thursday, where he urged legislators to reconsider farm policy and provide farmers with a better security blanket.  

“One of the reasons I’m so passionate about educating people on agriculture is because it’s our livelihood. If we put a black top over corn and soybeans fields, where will we get the resources we need to survive?” Haas said.

Sophia can be reached at [email protected].