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Economic Analysis of High-Level Grain Feeding for Dairy Cows¹

Department of Agricultural Economics, Michigan State University, East Lansing

ABSTRACT

The economic consequences of feeding variable quantities of grain and forage to lactating cows with an assumed producing ability of 10,500 lb 4% FCM milk were budgeted for five combinations of milk and feed prices. The four feeding levels included 3,000, 4,500, 6,000, and 7,500 lb grain mixture per cow. Quality of forage was assumed to be average.

With low grain ($50 per ton) and low hay ($22 per ton) prices and milk at $4.15 hundredweight net at the farm, the most profitable level of grain feeding was at 6,000 lb, at a milk output of 11,000 lb. When milk in excess of 10,500 lb per cow was sold at $3.00 per hundredweight, the optimum feeding rate was reduced to 5,000 lb grain. When all milk was sold at $3.00 per hundredweight, the optimum rate was only 4,000 lb grain.

With high grain ($65 per ton) and low hay prices, and low grain and high hay ($35 per ton) prices, the most profitable feeding rates were at 4,500 and 6,000 lb, respectively. From an economic standpoint, it is not necessary to exactly pinpoint the most profitable level of grain feeding. Over a grain feeding range of 500 lb + or – from the economic optimum, there were relatively small variations in returns above costs of feed. Missing the economic optimum by over- or under-feeding grain by 1,000 lb, or 20%, resulted in $6 lower returns over cost of feed per cow.

¹ Published with the approval of the Director of Michigan Agricultural Experiment Station as Journal Article No. 3,129.