Feed Grains Sector at a Glance

Sector at a Glance

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The major feed grains are corn, sorghum, barley, and oats. Corn is the primary U.S. feed grain, accounting for more than 95 percent of total feed grain production and use.   

• The United States is the largest producer, consumer, and exporter of corn in the world.
• On average, U.S. farmers plant about 90 million acres of corn each year, with the majority of the crop grown in the Heartland region.
• Most of the crop is used domestically as the main energy ingredient in livestock feed and for fuel ethanol production.  
• Corn is also processed into a multitude of food and industrial products including starch, sweeteners, corn oil, and beverage and industrial alcohols.
• U.S. corn exports are on the rise and account for an average of 15 percent of the country&#;s total use.

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Corn is grown in most U.S. States, but production is concentrated in the Heartland region (from the Great Plains through Ohio). Iowa and Illinois, the top corn-producing States, typically account for about one-third of the U.S. crop.  

Because of provisions in the Federal Agriculture Improvement and Reform Act of that permits farmers to make their own crop planting decisions based on the most profitable crop for a given year, corn acreage in the United States has increased from a Government-mandated low of 60.2 million planted acres in to close to or exceeding 90 million since .  Much of this growth in area and production is a result of expanding ethanol production, which now accounts for nearly 45 percent of total corn use.  While the number of feed grain farms (those that produce corn, sorghum, barley, and/or oats) in the United States has declined in recent years, the acreage per corn farm has risen. Moreover, the number of large corn farms (with more than 500 acres) has increased over time, while the number of small corn farms (with less than 500 acres) has fallen.   

Corn production has risen over time on increased area and higher yields. Improvements in technology (seed varieties, fertilizers, pesticides, and machinery) and in production practices (reduced tillage, irrigation, crop rotations, and pest management systems) have significantly boosted harvest volumes over the past two decades.

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Strong domestic demand for livestock feed and fuel ethanol coupled with growing exports has led to higher prices, providing incentives for farmers to increase corn acreage. In many cases, farmers have increased corn planted area by shifting acres away from less-profitable crops. Corn production has also expanded to nontraditional growing areas, especially in the north, as short-season hybrids have been developed. 

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Corn is a major component of livestock feed. Feed use, a derived demand, is closely related to the number of animals (cattle, hogs, and poultry) that are fed corn and typically accounts for about 40 percent of total domestic corn use. The amount of corn used for feed also depends on the crop's supply and price, the amount of supplemental ingredients used in feed rations, and the supplies and prices of competing ingredients.   

Corn also has food, seed, and industrial (FSI) uses, the most significant of which is fuel ethanol. Total FSI makes up close 60 percent of total domestic corn use.

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Aside from fuel ethanol, corn is also processed for human consumption and other industrial uses. During processing, corn is either wet or dry milled depending on the desired end products:   

• Wet millers process corn into high fructose corn syrup (HFCS), glucose and dextrose, starch, corn oil, beverage alcohol, industrial alcohol, and fuel ethanol.
• Dry millers process corn into flakes for cereal, corn flour, corn grits, corn meal, and brewers grits for beer production.   

Corn is the largest component of the global trade of feed grains (corn, sorghum, barley, and oats), generally accounting for about 80 percent of the total volume over the past decade. The United States is the world's largest corn exporter and exports between 10 and 20 percent of its total production volume. The largest international markets for U.S. corn are Mexico, China, Japan, and Colombia. Corn export competition from Brazil, Argentina, and Ukraine has grown over time in response to increased worldwide demand and total shipments from these countries comprise more than 50 percent of the global annual corn trade.

If you&#;re just thinking about starting a hobby farm, then you&#;re also probably wondering what the best livestock is for breeding and raising on your farm.

Certainly you may have a personal preference &#; maybe your grandparents raised cattle on their farm back home, or you think that goats would be a fun addition to the homestead. You also may have specific requirements for what you raise &#; you may only have a small plot of land to work with or your area&#;s climate may be too hot for certain animals.

Those restrictions and preferences are something you definitely need to consider, but let&#;s look at what really matters to the bottom line. You need animals that can provide you with a good income. With that in mind, we&#;ll run through a quick list of the 5 most profitable livestock animals!

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1 - Cattle

With a massive market for beef in the U.S. and Canada, raising cattle is at the top of the list for livestock. Not only do you get a decent payout for each animal you raise, but cattle are remarkably low-maintenance. Even better, if you manage to raise them organically, you&#;ll tap into an even more lucrative market for your beef, milk and cheese.

• What You Sell: Beef, milk, butter, cheese
• Electric Fencing Options: Use electric poly rope for rotational grazing to cut feed costs. String high tensile fencing to secure the outer fence line boundaries of your pasture.

2 - Chickens

Even before chicken meat, the real money-maker for chickens is their eggs. That&#;s because eggs are so widely used in meal preparation. The constant production of eggs by hens and their breeding capabilities make chickens a fantastic income generator for a small farmer. Once again, you can boost that profit even more by focusing on the organic egg and meat market. Another helpful sales booster is adding a &#;locally sourced&#; label to your eggs and chicken meat.

• What You Sell: Eggs, chicken meat
• Electric Fencing Options: Install a wire mesh fence with an electrified line at the top and another exterior-facing electrified line, like our Zareba® Aluminized Steel Wire. Both will help deter predators.

3 &#; Goats

Believe it or not, the market for goat products are on the upswing. First off, know that 65% of the red meat consumed globally is goat meat. Here in North America, goat meat is still a bit of an oddity, but it&#;s catching on fast and there&#;s a big demand from ethnic markets. Beyond that, goat milk and cheese are considered a healthy alternative to offerings from dairy cattle. Gaining organic certification for your goat products will enhance your sales even more.

A special sub-benefit of goats is that you can even rent them out to property owners. The goats will clear out heavy patches of vegetation. Yes, they&#;ll pay you to let your goats eat!

• What You Sell: Milk, cheese, meat, goat rentals (for foliage control), soap
• Electric Fencing Options: Goats are climbers, so you need tall, high tensile fences to keep them contained. 

4 &#; Bees

Honey bees are a valuable &#;livestock&#; that are relatively easy to develop on practically any farm. You can rent them to other farmers for help in pollination or you can use them to help your own crops. Beyond that, locally sourced honey and beeswax are important products for many consumers, especially for those people who regularly battle pollen allergies.

• What You Sell: Hive rentals, honey, bees wax
• Electric Fencing Options: It&#;s important to protect hives from wildlife that may exploit the honey or the bees themselves for an easy meal. These animals include bears, skunks, squirrels, raccoons, opossums and rats. A small, multi-line enclosure operated with a Zareba ® battery-powered energizer will keep most of these animals away. Be aware that bears may need a stronger deterrent than an electric fence can provide.

Rabbits are another growing market in which hobby farmers can invest. Aside from selling them as pets, their meat, manure and pelts are in demand.

5 &#; Rabbits

Another growing market, rabbits generate a number of sales-friendly products for small farmers. Rabbit meat, for example, is considered quite healthy since it&#;s full of protein while being low in calories. Rabbit pelts can be harvested and sold for use in crafts, coats and hats. For the right household, a fuzzy bunny is a welcome addition to the family &#; so you can create a small side business selling pet-friendly breeds. Lastly, rabbit manure is considered one of the best fertilizers for organic gardens, so don&#;t let that go to waste.

• What You Sell: Meat, pelts, manure, pets
• Electric Fencing Options: The best rabbit species for meat and pelts are highly attractive to predators. To protect your rabbits, install a perimeter fence to keep predators from entering your pens.

Welcome to the Life of a Livestock Producer

If you&#;re just starting to look into the idea of running a hobby farm, know that Zareba® is here to help you. If you have questions about specific Zareba® products, reach out to our dedicated Consumer Care Team by calling 855-5-ZAREBA. Finally, be sure to subscribe to the Zareba®  eNewsletter for more articles like this one and links to new product offers!

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