This report discusses higher livestock feed costs. The authors argue the current public policies, including financial incentives that divert corn from feed uses into ethanol production.
Sharply higher feed costs, fueled by competing use demands for corn and soybeans and by rising energy prices, are affecting the beef, pork, dairy, and poultry industries. In contrast, wholesales prices for most animal products have held steady. Some analysts argue that current public policies, including financial incentives that divert corn from feed uses into ethanol production, have exacerbated if not caused these higher costs. Other factors include crop production declines due to weather, and higher global demand for consumption. Proposed options aimed at easing the impacts of higher feed costs include changes in ethanol incentives, use of conservation land for forage use, and direct aid to producers.
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