Home-Grown Feed vs. Purchased Feed

Growing your own feed gives control over quality and supply, but it also ties up land, labor and machinery. The right balance depends on your farm, not on a rule of thumb.

Key points

Count every real cost of growing feed, including labor and machinery.
Compare feed by nutrition delivered, not just price.
Plan for poor crop years and price swings.
Storage losses can erase savings either way.
Most farms use a mix, and the mix should be reviewed regularly.

What each choice offers

Home-grown feed gives you a say in variety, harvest timing and quality. It can use manure nutrients and keep money circulating on the farm. It also exposes you to weather, equipment breakdowns and the labor demands of planting and harvest.

Purchased feed shifts some of that risk to someone else and frees land and time. In return, you face market price swings, delivery issues and less control over how and when the feed was made.

Count the real cost of growing feed

Many farms underestimate the true cost of home-grown feed. Seed, fertilizer, fuel, repairs, hired help, your own labor, machinery depreciation, storage and shrink all belong in the picture, along with the value of the land if it could be used another way.

Work through these numbers with your accountant, lender or extension farm management specialist. Use your own records, not averages from another region.

Inputs such as seed, fertilizer and crop protection.
Machinery costs, fuel, repairs and replacement.
Labor, including your own time.
Storage, handling and feeding losses.
Land cost or the alternative use of that land.

Compare on a quality-adjusted basis

Feed value is more than weight. A ton of feed that has high energy and protein is worth more than a ton of poor feed. Compare options by the nutrition delivered, using lab analyses and your nutritionist's ration program, not just the price on the ticket.

Consider consistency, too. Uneven quality makes ration balancing harder and often costs milk.

Weigh risk and timing

A poor crop year can leave you buying feed at a bad time. A strong year can leave extra feed to store or sell. Think about how your cash flow handles both, and what backup plans you have.

Ask about crop insurance and other risk programs through your insurance agent and the USDA Farm Service Agency. Program terms change, so confirm current details directly.

Land, manure and the whole-farm plan

Land that receives manure and grows feed makes a closed nutrient loop, but only if the nutrient plan is managed properly. Soil tests, manure analysis and conservation planning help avoid both shortages and over-application. The USDA Natural Resources Conservation Service and your extension office can help.

Remember that crops compete for labor at the busiest time of year. Look honestly at whether you can plant, harvest and milk well at the same time.

Storage, shrink and feed quality

Whether grown or bought, feed loses value when it is stored poorly. Silage, hay and grain all need proper handling to limit spoilage, heating and mold. Poor storage can wipe out the savings of growing your own.

Buying in bulk also has storage and spoilage risks. Match the amount you buy to what your facilities can safely hold.

Questions to ask before you decide

Most farms land on a mix, growing forage and buying concentrates, protein and minerals. Reassess every few years as prices, labor and herd size change.

Take these questions to your nutritionist, accountant and extension advisor.

What does it actually cost us to grow each crop?
What quality do we get from our own feed compared with purchased options?
What happens to cash flow in a poor crop year?
Do we have the labor and equipment to do both well?
How does this fit our nutrient and land plan?

When to get help: Review the numbers with your nutritionist, accountant or lender, and check current USDA FSA and insurance program details with those agencies, since terms change. This is not financial advice.

Sources and further reading

Organization homepages are linked so you can search them for current guidance on this topic.

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