Hay Growing Costs Outpace Market Prices for Many Canadian Cattlemen

The cost of growing forage on Canadian cow-calf farms can vary significantly from farm to farm, and in some cases, buying hay may be more economical than growing it. According to a five-year analysis by the Canadian Cow-Calf Cost of Production Network, nearly half of hay growers spent more than the market price of $220 per tonne in 2024.

Hay remains the dominant forage on these farms, but it's not always the cheapest option. Overhead and opportunity costs, such as machinery ownership, land value, and unpaid labor, make up nearly half of the total cost of growing hay. In contrast, corn silage and corn grazing systems were generally the most cost-efficient on a dry-matter basis.

However, these systems require more upfront cash investment for seed, fertilizer, and establishment. Managing overhead and input costs effectively is crucial to controlling total costs, which also include depreciation and opportunity costs tied to capital investment.