NASHVILLE, Tenn. (RFD-TV) — Row crop farms are feeling the squeeze — high input costs and soft commodity prices are narrowing margins heading into 2026. Max Runge with Auburn University says contract grazing can add revenue without owning cattle, using available acres and forage to custom grow animals for others.
Here are some tips for row crop farmers considering diversifying with contract grazing:
- Success starts with resources: Sound fencing, workable pens and chutes, reliable water, and all-weather truck access.
- Experience with cattle matters: Owners are unlikely to place stock with newcomers, and clear plans for forage, supplemental feed, and water placement help keep performance on track.
- Mixed crop-livestock systems boost resilience when cash markets soften:
- Grazing can slot alongside row crops via cover crops and winter annuals — wheat, oats, rye, ryegrass, or hay grazer — adding income while improving soil health, nutrient cycling, and residue management.
- Careful timing, compaction avoidance, and termination plans protect next season’s crop.
- Put agreements in writing:
- Define parties, land, term, headcounts and weights, care responsibilities, death loss, payment, and exit clauses.
- Choose a structure that fits the cattle: daily rate for breeders, per-pound-of-gain for stockers, or revenue share.
- Spell out feed in droughts, stocking rates, and shared costs like minerals and vet work.
Farm-Level Takeaway: For tight margins, contract grazing leverages existing acres to diversify income and spread risk.
Tony St. James, RFD-TV Markets Expert
Related Stories
A disciplined, breakeven-based marketing plan helps protect margins and reduce risk, even when markets remain unpredictable.
Record Australian exports and rising U.S. imports reflect continued tight domestic cattle supplies — a reminder that herd recovery remains key to balancing future beef prices.
Supplemental Disaster Relief Program Stage Two will disburse around $16 billion, approved by Congress last year. Sign-ups begin Monday, and producers have until April to return applications.
