“Barley continues to decline slightly week after week and even day to day,” said Alberta-based Agfinity in a Feb. 29 market report. Large barley stocks and continued imports of corn from the United States accounted for the weakness, according to the brokerage, with any pricing opportunities quickly filled by growers before they disappear.

Agfinity placed current barley pricing in Lethbridge at around C$265 per tonne for March/April delivery, with pricing C$10 above that for May to July delivery. New crop bids were pegged at C$275 to C$280 per tonne.

Prices for barley delivered into southern Alberta have gone down by about C$7 to C$8 per bushel over the past week, according to Prairie Ag Hotwire data.

U.S. Department of Agriculture export data for the week ended Feb. 22 shows that Canada has already imported 564,900 tonnes of U.S. corn during the marketing year that began Sept. 1. That’s roughly double the accumulated imports at the same time the previous year. There are an additional 242,600 tonnes of corn on the books slated to move later in the crop year – which compares with 207,800 tonnes of outstanding sales at this time.

Meanwhile, Canada’s own barley exports are running well behind the year-ago pace, with 1.16 million tonnes moved through 30 weeks of the marketing year, which compares with 2.08 million tonnes at the same time in the 2022/23 crop year, according to Canadian Grain Commission data.

Looking ahead, while the nearby trend remains pointed lower, seasonal price patterns are typically supportive for barley heading into the spring as uncertainty over new crop production brings in some risk premiums. Early indications point to acreage declines in both Canadian barley and U.S. corn, with the ongoing dryness concerns across much of Western Canada another possible supportive influence.

— Phil Franz-Warkentin is an associate editor/analyst with MarketsFarm in Winnipeg.

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Beusekom quoted feed barley at C$280 to C$285/tonne delivered to Lethbridge, having lost C$5 to C$10 per tonne over the last week. He stated that was “a pretty good move down” for the commodity. He said feed wheat backtracked by the same range, with prices at C$305 to C$310/tonne.

“Corn coming from the U.S. today, will deliver to a feedlot at roughly C$295/tonne,” he said, noting “all three of these commodities are within spitting distance of each other.”

Beusekom explained the livestock feeders remained well covered, which has put pressure on feed prices. He said they made their purchases of U.S. corn during the height of last summer’s drought.

“Livestock feeders thought we would be significantly short on barley. So they went out and bought corn and they bought a lot of it. That covered whatever we were short on barley,” he said, pointing to a second reason for declining prices.

“Once farmers knew what they had, they refused to engage in selling it. They held on to it. Prices have been in a downtrend for seven months. Each week and each month the market is lower than the previous week or month,” Beusekom continued. “Even when [farmers] should have been making barley sales, feedlots were again forced to buy even more corn. Today that means you now have a surplus of barley.”

Beusekom pointed to the stocks as of Dec. 31 report from Statistics Canada that was released on Feb. 8. Barley stocks were estimated to be 5.45 million tonnes, up from the 5.17 million the previous year. With that, he said barley could see ending stocks of about two million tonnes when the 2023/24 marketing year wraps up at the end of July.

“That’s absolutely bearish for barley,” he warned.

Last month, Agriculture and Agri-Food Canada forecast the barley carryout for 2023/24 at 750,000 tonnes, up from 709,000 in 2022/24. And AAFC projected the 2024/25 carryout at 800,000 tonnes.

Also, the Canadian Grain Commission reported the amount of barley in the commercial pipeline were lower than a year ago. The CGC said producer deliveries of barley at through 27 weeks of the 2023/24 marketing year were 2.18 million tonnes versus nearly 2.99 million a year ago. Exports so far reached 962,300 tonnes versus almost 1.74 million, and domestic usage slipped to 773,300 tonnes from 839,800.

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Harakal pointed to the ongoing imports of corn from the United States, as it’s cheaper than domestic feed barley or wheat.

“The biggest thing is they have corn contracts all the way up to spring,” she commented.

Another factor she cited was the mild fall/early winter the Canadian Prairies have been experiencing, noting the feedlots don’t have to provide as much in rations for the cattle, thus reducing demand.

Harakal quoted C$305 to C$310 per tonne for December delivery for feed barley going into Lethbridge. Those prices nudged up to C$310 to C$315/tonne for January-February delivery into feedlot alley.

Prices for feed barley for the week ended Dec. 13 were steady to lower, according to Prairie Ag Hotwire. Alberta saw the largest decline, down 33 cents per bushel at C$5.32 to C$7.08/bu. delivered. In Manitoba, prices eased back seven cents at C$5.75 to C$5.84/bu., while they held firm in Saskatchewan at C$5.50 to C$5.75/bu.

It’s a similar story for feed wheat, with a decline of 27 cents in Alberta at C$6.80 to C$9.39/bu. delivered, and down 12 cents in Manitoba at C$7.82/bu. Meanwhile prices were unchanged in Saskatchewan at C$6.80 to C$8.88/bu.

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“There are many alternative feeds that can supplement and even improve the diet,” the web page states.

These range from crop residues, chaff, oat hulls, and screenings to DDGs, fruit and vegetable waste, and even weeds.

The web page, which can be found at beefresearch.ca, examines the benefits and drawbacks of each type of alternative feeds as well as factors to consider.

These include costs, nutritional value, palatability, and considerations related to using the feed (such as the need for grinding or different mixing equipment).

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“There are some people who are going to be really short on feed and pasture,” Alberta Beef Producers executive director Rich Smith said in mid-August.

“Some people are in a really tough situation. The heat last week was hard on everything.”

Paltry soil moisture reserve this spring meant timely rain showers were badly needed. But they’ve been meagre and spotty with unrelenting heat hammering many — particularly the south, said Smith.

“It’s such a variable year across the province,” he said. “We’ve got a good chunk of the province that is near-normal precipitation and areas that are way below normal.”

As a result, hay and silage yields have been variable as well, but some estimates put hay yields 25 to 40 per cent lower than average and silage yields 30 per cent below average. Crop quality has also suffered. According to the Aug. 14 crop report from Alberta Agriculture, only 22 per cent of pasture was rated good or better. Save for irrigated land, haying is done as it’s been too dry for a second cut (and less than half of the first cut was rated as good quality).

However, in the frequently dry Peace Country, 80 per cent of pastures are rated good or better. Nearly three-quarters of central Alberta pastures received that rating but second-cut hay was poor as it was in the northwest and northeast — and those areas also have vast stretches of dried-out pastures.

“Some areas got some moisture, and that helps. But there are some areas that haven’t got moisture at all,” said Smith.

Reduced quality and yields are pushing prices up, he added.

“Prices are pretty high. As people get more and more desperate to find feed locally, that tends to drive prices up,” said Smith. “There are parts of Alberta where feed supplies aren’t too bad. But if you’re not living in those areas, it can be pretty expensive to bring feed in.”

Getting creative

That’s what Patrick Kunz has seen on his mixed operation near Beiseker.

“Hay around here is selling for $250 a tonne all day long. You put it up and it’s gone,” said Kunz, who farms with his brother and father.

“You can’t have a cow-calf operation and feed that kind of hay free choice.”

Hay prices in that area have peaked at $290 a tonne — a far cry from the usual $100 to $150. It’s “crazy” to feed cows hay that’s priced so high, said Kunz, who runs a 2,000-head feedlot and 85-head cow-calf herd in addition to 2,000 acres of grain.

“At this price, I just can’t pencil it,” he said. “Actually, it doesn’t require a pencil or a calculator to figure out it’s too high. So I’m not going to be feeding that much hay.”

Instead, he’ll use “a little bit of creativity.”

“People have a sense of dread because there isn’t much feed around, but there are options out there — you’ve just got to look for them.”

He’ll be feeding a maximum of 10 pounds of hay a day during lactation only, but even at that point, he’ll be feeding mostly barley straw supplemented with a bit of barley (though his silage yields were down).

“It doesn’t take much barley. At the peak when we started calving, it was about three pounds a head a day max,” he said.

“That’s not that much, but it actually helped cheapen up the ration even more.”

But the key to nailing down the right ration — one that balances the nutritional needs of the cattle with the feed budget — has been working with a nutritionist.

“That’s pretty important. If you’re going to control costs, you have to know what you’re feeding and then manage it.”

Kunz also bunk feeds, which makes it easier to manage what the cows are actually eating.

“We’ve managed to reduce feed costs drastically that way — we’ve cut them in half by not feeding hay out in the field,” he said, adding there is a trade-off with higher labour requirements.

“If you shred it and put it into bunks and manage it, you can probably still feed cheaper than a guy who has hay at half the price but is just putting bales out in the field.”

And while culling his herd isn’t yet on his radar, he thinks it’s “not a bad option” for producers who are running into serious feed shortages.

“Everybody has cows that they need to get rid of anyway,” he said. “It’s not a bad idea to make your herd a little bit younger, a little bit leaner, a little more efficient.

“If you can get rid of those big old cows that are eating you out of house and home, you can make a heck of a difference really quickly.”

Government relief

It’s getting close to decision time for producers on whether to cull or sell off animals, said Smith.

“There will be some people who will be stretched, and in extreme cases, there will be people who have to reduce the size of their herd,” said Smith. “We never like to see people being forced into selling animals because of the weather. But there is some risk of that.”

But the sector is stuck in wait-and-see mode as the grain crop harvest gets underway. Initial estimates place the provincial dryland grain yield at six per cent below the five-year average, with yields in southern Alberta 25 per cent below average. But grain quality is still up in the air, so it’s hard to say what proportion of the crop will hit the feed market.

“It’s not a fully clear situation yet,” said Smith. “Sometimes you have crops that turn into feed, so it’s difficult to tell how it’s going to look. We don’t have a crystal ball.”

Alberta Beef Producers has been in discussions with provincial ag officials about relief for those struggling to find feed or who may have to sell some cattle.

“As time goes on and we learn more about the full extent of the trouble, we’re going to be moving forward with some requests for assistance,” said Smith.

“We’re hopeful the government will recognize those challenges and take action to try and help. At this stage, there haven’t been any programs announced, so we’re still waiting to see what will happen there.”

One such program is the federal Livestock Tax Deferral Provision, which allows farmers to sell part of their breeding herd due to drought or flooding and then defer a portion of sale proceeds to the following year.

“We don’t want producers to end up with a big tax burden if they’re forced to sell animals they weren’t planning to sell,” said Smith.

But there are other tools that government can employ to help producers struggling to feed their herds. Those include allowing grazing on public lands, haying along roadsides, feed freight assistance, and “drought disaster” loans.

“We’re trying to see if we can figure out a strategic approach to providing assistance to those people who are hit the hardest,” said Smith, adding it’s important for producers to get in touch with their elected officials about the situation.

“Dry conditions are something that people are pretty familiar with, and producers are pretty resilient and resourceful. But their provincial and municipal elected officials need to know if they’re struggling.”

Kunz agrees.

“People are in a bad spot, so if there’s some relief, that’s great,” he said. “But farmers are a lot more resilient than they give themselves credit for. I think people will get through this.”

– With staff files

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“Livestock feed supplies are going to be tight in some areas of Alberta, while in other areas, quality may be an issue,” said provincial beef extension specialist Andrea Hanson. “As such, testing feed stuffs that are to be fed this winter is important as you need to know what nutrients are available.”

The formulation of a ration depends on the nutrient composition of the forage, and the only way to accurately determine that is by sampling and testing the feed.

“Using last year’s feed tests, or even worse, using a provincial average for a feed’s nutritional content, isn’t realistic or useful,” said Hanson. “While physical attributes are part of feed quality, they don’t tell the whole story. A bright-green colour does help indicate the feed was put up with little or no rain, and that the mould level is little to none, but it doesn’t tell much more than that.

“Protein and energy content of the same hayfield can vary greatly depending on when it was cut.”

For example, brome cut very early in the season could have 18 per cent protein but only five to six per cent if cut late.

Protein requirements of a cow in second trimester of pregnancy (minimum of seven per cent) is significantly different than when she reaches the third trimester (nine per cent) or lactation (11 per cent), said forage-beef specialist Barry Yaremcio.

The most important information in a feed test is protein, energy and fibre.

“A basic forage analysis will list the moisture content of the feed stuff, energy as total digestible nutrients (TDN), net energy (NE) and/or digestible energy (DE), crude protein values as well as calcium, and phosphorus, magnesium and potassium,” said Hanson. “A basic analysis should cost less than $50 which is much less than the cost of a round bale of feed, let alone the possible savings from using fewer bales of hay mixed with lower-quality forages.

“The more advanced analytical packages will provide more details about the feed depending on what’s requested. If an early frost or crop stress have been experienced in the area and there are concerns, a nitrate test may be very beneficial as would a toxin test.”

Getting a representative sample of the feed to test is important in feeling confident with the analysis, said Hanson.

“If sampling bales, samples need to be taken from a number of bales (at least 15 to 20) from different areas in the field and then mixed into one sample,” she said.

That work is made much easier with a commercial forage sampler and some local agriculture service boards or forage associations have equipment available for loan.

“Use plastic bags to ship the feed so that an accurate moisture level can be determined. If sampling from a silage pit, rub the loose material off the face before taking the sample from packed material from the freshest part of the silage face, and from several locations in a ‘W’ or ‘M’ pattern. Mix the samples and pack tightly into a plastic bag with as little air as possible.”

If samples won’t arrive at a lab right away, they should be frozen.

“Finally, if you want a sample of the swath grazing feed, take a tub and scissors out to the field and pull various samples from the swath from locations all over the field,” said Hanson. “As the samples are pulled, cut the feed into two-inch lengths and mix in the tub. From the total sample, stuff a large zip-lock bag with a representative sample of the feed for analysis.”

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The good news is that there’s plenty of cheap feed grains in the market right now — but producers will need those savings to offset poor-quality feed (the bad news) and part of the sharp drop in calf prices (the even worse news).

“We can complain about calf prices, but there’s nothing we can do about that,” said Barry Yaremcio, a beef and forage specialist with Alberta Agriculture and Forestry.

“But we can manage these animals to optimize their performance and get as much out of them as we can.”

Late-season rainfalls have led to a lot of “oddball feedstuffs” this winter, Yaremcio said at a Battle River Research Group herd-management seminar last month.

• Read more: Save feed costs by improving body condition scores

“What we’re finding with the feed test results I’ve seen so far this year is that feed quality is down,” he said. “The quality isn’t going to be the same this year as it was last year, so feed testing is critical. We can’t start to balance the rations without it, and if you don’t have a sound nutritional program, it can affect your bottom line very dramatically.”

But in the 2014 Western Canadian Cow-Calf Survey, only 47 per cent of beef producers test their feed each winter.

“This year, it’s critically important that we do that,” said Yaremcio. “How do you formulate a ration if you don’t have good information?”

Cows in good condition don’t need “all that extra energy or protein,” he said. Producers can get away with feeding cows half hay and half straw, depending on the quality.

“That’s where your feed testing comes in. If I can cut my hay cost by half and replace it with straw, I’m knocking 32 cents a day off my feeding costs,” said Yaremcio. “Use your feed availability to your advantage. Feed the cheaper stuff or the poorer quality when demands are down and save your good feeds for last.”

Feed choices

But good-quality feed may be harder to come by this winter. For an average alfalfa grass hay, protein levels have dropped from around 14 per cent to around 10 per cent, and fibre levels are between five to 10 per cent higher, which will affect energy content.

“It’s a little bit worse this year than what we typically see,” said Yaremcio.

This year, a lot of hay was put up wet and, as a result, wasn’t cured properly, he said.

“The bales are already sagging and you can smell that it’s very, very sweet. If you pull the hay out and it’s nice and brown, that’s been heat damaged,” he said.

“Depending on the age of the hay, how many times you turned it, and how much weather damage you got on it, there are some times when you’re going to need to feed some supplemental energy.

“That’s one way you can mitigate the 40 or 50 per cent drop in calf prices that we’re seeing.”

But the late-season moisture also hit some grain crops hard — particularly barley that was planted late and didn’t make malt — so producers could see up to 50 cents a bushel discounts on feed barley at the elevator.

“You don’t have to buy that high-quality barley. Buy the off-grade stuff and take advantage of some of these situations,” said Yaremcio. “If you’ve got neighbours who have barley that’s 16 to 18 per cent moisture and you can get a deal to purchase it from them, feed that.

“That’s an easy way to save some money.”

But even with a surfeit of feed grains, wheat, triticale, and rye have some “limitations” because of the higher risk of acidosis. And you may want to skip the oats this year unless the price is right, he added.

“When you look at it on an energy and protein basis, you need about $1.60 a bushel difference in purchase price to make oats economical to feed,” said Yaremcio. “Right now we’re looking at about 50 to 60 cents a bushel difference between barley and oats. Barley is your better deal.”

Do the math

A lot of producers are tempted to feed their calves straight hay all winter to save some money, rather than supplementing their diets with grain. But that’s a mistake in the long run, said Yaremcio.

Say you’re feeding 150 calves for 160 days, and you want an average two pounds daily gain, he said.

“If you’re feeding only hay, your average daily gain will be limited to roughly 1.2 to 1.3 pounds a day. If you add one per cent of their body weight in barley — 5.5 pounds of barley for 550-pound calves — that will increase their gains to two pounds a day.”

And that’s where you’ll see cost savings in the long run, he said. Feeding straight hay will cost around $0.67 per head per day — or around $16,080 total. At mid-November calf prices, you stand to make around $189,210. Minus feed costs, your net income would be around $173,130.

If you reduce your hay and add 5.5 pounds of barley, your daily feed costs go up to $0.84 per head per day — $20,160 total. But because your average daily gain is higher, you can sell those calves for around $212,712. Minus feed costs, your net income would be around $192,555 — nearly $130 per calf or $20,000 more total.

While the drop in quality for winter feedstuffs will make overwintering cattle tricky this year, producers can “find ways to cut their input costs.”

“For every dollar that you can reduce your winter feeding costs, the overall profitability of your operation increases by $2.48,” said Yaremcio.

“You have to take what you’ve got, but how do you modify things this year to make up for those environmental problems? What are the little things we can do that aren’t going to cost us an arm and a leg?”

And the little things can make a big difference to your bottom line, he added.

“Pay attention to the details and save yourself some money,” he said. “If you try to take some shortcuts and do things half-assed, it’s going to cost you in the long run.”

The post Make the most of cheap feed grain this winter appeared first on Alberta Farmer Express.

“However, if you ensile the standing crop with the mycotoxins present, you are mixing good and contaminated feed together so that the cows cannot be selective about what they are eating,” he said.

Ingesting mycotoxins can cause blisters in the mouth, hemorrhages in the GI tract, and abortions. It can also suppress the immune system.

Prairie Diagnostic Services in Saskatoon offers a $65 feed test.

Call 306-966-7316 or email pds.info@usask.ca for more info.

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Cattle “pick and choose” what they want when grazing stubble, slough hay, or mature hay growing along the fences and headlands, said Barry Yaremcio.

Straw, chaff, and overmature grass hays typically have low amounts of protein, energy, calcium and magnesium.

“These feeds are also high in neutral detergent fibre (which can reduce total feed intake) and relatively high in phosphorus,” said Yaremcio. “Grains and weed seeds are also high in phosphorus and have higher energy and protein content than the grasses, straw and chaff.”

Cow-calf pairs that are turned onto stubble fields have different mineral supplementation requirements compared to when they were on a mixed alfalfa and grass pasture.

A lack of calcium and magnesium in the straw and forages can cause two problems:

• A diet low in calcium and higher in phosphorus can reduce phosphorus absorption. Phosphorus is the driver of all metabolic functions. When phosphorus is not absorbed, feed intake is reduced which in turn reduces milk production and weight gain on the calves. Cows can also start to lose weight. If the imbalance continues, it can impair reproductive performance, with cows taking longer to cycle and conceive a calf next year.
• A calcium/magnesium deficiency can cause cows to go down and it generally requires a veterinarian to treat animals in this situation.

What to do

A mineral supplementation program should contain additional calcium and magnesium.

“When it comes to calcium, in many cases; a 2:1 mineral does not provide enough calcium to remedy the situation,” said Yaremcio. “A feedlot mineral with a 3:1 or 4:1 calcium to phosphorus ratio is preferred. If a 1:1 or 2:1 mineral is left over from the summer, mix one bag of limestone (38 per cent calcium) with one bag of mineral and one bag of fortified trace mineral salt (with selenium). This mixture (roughly 165 pounds) should be consumed by 100 cow-calf pairs in five to six days. If consumption is too low, add dried molasses to improve consumption. Add eight to 10 pounds of dried molasses to the entire mix and adjust to get the proper intake.”

If feeding a straight mineral, magnesium content should be in the three to five per cent range if the recommended intake is between 70 and 100 grams per day.

“The added magnesium along with the calcium reduces the risk of downer cows,” said Yaremcio. “If magnesium is not present in the mineral, it can be purchased as an individual product from some feed stores or feed mills.”

Adding grain

Feeds that are overmature or crop aftermath are usually low in protein.

“A lactating cow requires 11 per cent protein (minimum on a dry basis) to maintain feed intake and milk production,” he said. “Dry cows can manage on eight per cent protein. Supplementing protein on pasture is troublesome. Protein tubs or blocks will help solve the problem, but the mineral and vitamin supplementation should still continue as described above.

“Feeding three to four pounds of grain every third day along with a protein supplement is another option. Putting weaned cows onto these fields is an option to reduce protein requirements.”

If the energy and protein requirements of the cow are not met, the cow will not be producing much milk.

“This will reduce calf gains. To offset the loss of calf performance, creep feeding the calves with a ration that is between 14 and 16 per cent protein will improve average daily gains. If feeding straight oats (which have 10 to 11 per cent protein on average), the calves will put down fat rather than lean growth and they could possibly not frame out properly resulting in fat, dumpy butterballs that will be discounted at auction. A mixture of one-third peas and two-thirds oats or barley by weight will provide a creep ration that meets protein and energy requirements. With lower grain prices and high calf prices, creep feeding will pay very well in the long run.”

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“In this situation, an added product should have more calcium than phosphorus,” said Barry Yaremcio, beef and forage specialist, with the Ag-Info Centre in Stettler.

“Most block and tub products along with some minerals have equal amounts of calcium and phosphorus or generally 2:1 calcium-to-phosphorus ratio. In many situations, the calcium-to-phosphorus ratio in a mineral product may need to be 8:1 or higher (similar to a feedlot-type mineral) to bring calcium and phosphorus levels into line.

“Tub or block products have lower calcium and phosphorus levels compared to a dry mineral. It’s difficult to have minerals stay in suspension during the manufacturing process.”

To successfully register a feed product, the Canadian Food Inspection Agency requires the nutrient content in the first block must be the same as what is found in the last block in a batch. Calcium and phosphorus are difficult to keep in solution during the mixing and manufacturing phase; thus, the lower concentration in the final product.

“It’s generally more efficient and more economical to feed a dry mineral to provide calcium or phosphorus in a ration rather than using a tub or block,” said Yaremcio.

In a swath-grazing situation where the feed contains 0.32 per cent calcium and 0.2 per cent phosphorus and the calcium content in the tub or block is 4.7 per cent calcium and 1.75 per cent phosphorus, it would require 3.9 pounds of the block product to achieve 2:1 calcium-to-phosphorus ratio in the final feeding program. Cost would be $0.63 per head per day (at 17.5 cents a pound).

“There would be other nutritional problems if this feeding program was followed,” said Yaremcio. “Some nutrients would be excessive and it could cause a reduction in performance. A second option would be to feed 0.067 pounds (30 grams) of limestone (38 per cent calcium) to achieve the 2:1 ratio. The cost would be one to two cents per head per day. If a feedlot-type mineral with 24 per cent calcium and eight per cent phosphorus is used and fed at 0.25 pounds a day, the cost would be roughly eight cents per head per day. The key is to minimize expense but provide a proper ration.”

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